WAVESTONE (WAVE.PA) Stock Fundamental Analysis
EPA:WAVE - Euronext Paris - Matif - FR0013357621 - Common Stock - Currency: EUR
Taking everything into account, WAVE scores 6 out of 10 in our fundamental rating. WAVE was compared to 71 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making WAVE a very profitable company, without any liquidiy or solvency issues. WAVE is not valued too expensively and it also shows a decent growth rate. These ratings could make WAVE a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
WAVE had a positive operating cash flow in the past year.
In the past 5 years WAVE has always been profitable.
Each year in the past 5 years WAVE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.71%, WAVE belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
The Return On Equity of WAVE (11.96%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 10.71%, WAVE is doing good in the industry, outperforming 76.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WAVE is in line with the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROIC | 10.71% |
ROA(3y)7.66%
ROA(5y)7.8%
ROE(3y)12.97%
ROE(5y)14.22%
ROIC(3y)11.44%
ROIC(5y)12.28%
1.3 Margins
WAVE has a Profit Margin of 8.01%. This is amongst the best in the industry. WAVE outperforms 84.51% of its industry peers.
WAVE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.61%, WAVE belongs to the top of the industry, outperforming 87.32% of the companies in the same industry.
WAVE's Operating Margin has declined in the last couple of years.
WAVE has a Gross Margin of 84.64%. This is in the better half of the industry: WAVE outperforms 74.65% of its industry peers.
In the last couple of years the Gross Margin of WAVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.61% | ||
| PM (TTM) | 8.01% | ||
| GM | 84.64% |
OM growth 3Y-9.16%
OM growth 5Y-1.75%
PM growth 3Y-9.65%
PM growth 5Y1.65%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WAVE is destroying value.
WAVE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WAVE has more shares outstanding
WAVE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.52 indicates that WAVE is not in any danger for bankruptcy at the moment.
WAVE's Altman-Z score of 4.52 is amongst the best of the industry. WAVE outperforms 88.73% of its industry peers.
The Debt to FCF ratio of WAVE is 0.96, which is an excellent value as it means it would take WAVE, only 0.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.96, WAVE belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
WAVE has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WAVE (0.10) is better than 83.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.52 |
ROIC/WACC0.76
WACC14.09%
2.3 Liquidity
WAVE has a Current Ratio of 1.49. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
WAVE has a Current ratio of 1.49. This is in the better half of the industry: WAVE outperforms 64.79% of its industry peers.
A Quick Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE has a better Quick ratio (1.49) than 74.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.93% over the past year.
Measured over the past years, WAVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.55% on average per year.
The Revenue has grown by 34.60% in the past year. This is a very strong growth!
WAVE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.46% yearly.
EPS 1Y (TTM)14.93%
EPS 3Y6.61%
EPS 5Y14.55%
EPS Q2Q%29.61%
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
3.2 Future
Based on estimates for the next years, WAVE will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.28% on average per year.
WAVE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.23% yearly.
EPS Next Y12.93%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.68%
Revenue Next 2Y-1.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.00, WAVE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 61.97% of the companies listed in the same industry.
WAVE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.90, WAVE is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 60.56% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. WAVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAVE indicates a slightly more expensive valuation: WAVE is more expensive than 66.20% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAVE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.32 | ||
| EV/EBITDA | 11.99 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WAVE has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WAVE's earnings are expected to grow with 13.28% in the coming years.
PEG (NY)1.47
PEG (5Y)1.31
EPS Next 2Y13.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, WAVE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.93, WAVE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of WAVE grows each year by 10.50%, which is quite nice.
Dividend Growth(5Y)10.5%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
12.41% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
WAVE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP12.41%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPA:WAVE (7/4/2025, 10:52:08 AM)
58.7
-0.2 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.7%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.46B
Analysts83.64
Price Target60.87 (3.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.38
Dividend Growth(5Y)10.5%
DP12.41%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.69%
PT rev (3m)5.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 16.9 | ||
| P/S | 1.55 | ||
| P/FCF | 17.32 | ||
| P/OCF | 16.38 | ||
| P/B | 2.31 | ||
| P/tB | 34.81 | ||
| EV/EBITDA | 11.99 |
EPS(TTM)3.09
EY5.26%
EPS(NY)3.47
Fwd EY5.92%
FCF(TTM)3.39
FCFY5.77%
OCF(TTM)3.58
OCFY6.11%
SpS37.88
BVpS25.37
TBVpS1.69
PEG (NY)1.47
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROCE | 14.71% | ||
| ROIC | 10.71% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 51.48% | ||
| OM | 11.61% | ||
| PM (TTM) | 8.01% | ||
| GM | 84.64% | ||
| FCFM | 8.95% |
ROA(3y)7.66%
ROA(5y)7.8%
ROE(3y)12.97%
ROE(5y)14.22%
ROIC(3y)11.44%
ROIC(5y)12.28%
ROICexc(3y)13%
ROICexc(5y)22.97%
ROICexgc(3y)170.38%
ROICexgc(5y)N/A
ROCE(3y)15.72%
ROCE(5y)16.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-18.08%
ROICexc growth 3Y-39.8%
ROICexc growth 5Y-10.07%
OM growth 3Y-9.16%
OM growth 5Y-1.75%
PM growth 3Y-9.65%
PM growth 5Y1.65%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 24.72% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 102.88 | ||
| Cash Conversion | 69.14% | ||
| Profit Quality | 111.75% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 4.52 |
F-Score8
WACC14.09%
ROIC/WACC0.76
Cap/Depr(3y)28.68%
Cap/Depr(5y)20.92%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)107.99%
Profit Quality(5y)141.92%
High Growth Momentum
Growth
EPS 1Y (TTM)14.93%
EPS 3Y6.61%
EPS 5Y14.55%
EPS Q2Q%29.61%
EPS Next Y12.93%
EPS Next 2Y13.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year-7.68%
Revenue Next 2Y-1.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year22.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.57%
FCF growth 3Y14.75%
FCF growth 5Y10.08%
OCF growth 1Y7.44%
OCF growth 3Y16.59%
OCF growth 5Y10.05%