WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - EPA:WAVE - FR0013357621 - Common Stock
47.95 EUR
+0.7 (+1.48%)
WAVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the IT Services industry. WAVE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WAVE has a decent growth rate and is not valued too expensively. These ratings would make WAVE suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
In the past year WAVE had a positive cash flow from operations.
WAVE had positive earnings in each of the past 5 years.
In the past 5 years WAVE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WAVE (7.71%) is better than 82.61% of its industry peers.
The Return On Equity of WAVE (11.96%) is comparable to the rest of the industry.
WAVE has a better Return On Invested Capital (10.71%) than 68.12% of its industry peers.
WAVE had an Average Return On Invested Capital over the past 3 years of 11.44%. This is in line with the industry average of 11.46%.
| 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 85.51% of its industry peers.
WAVE's Profit Margin has improved in the last couple of years.
WAVE's Operating Margin of 11.61% is amongst the best of the industry. WAVE outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of WAVE has declined.
With a decent Gross Margin value of 84.64%, WAVE is doing good in the industry, outperforming 73.91% of the companies in the same industry.
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WAVE has more shares outstanding
The debt/assets ratio for WAVE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.02 indicates that WAVE is not in any danger for bankruptcy at the moment.
WAVE's Altman-Z score of 4.02 is amongst the best of the industry. WAVE outperforms 84.06% of its industry peers.
WAVE has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of 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 84.06% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that WAVE is not too dependend on debt financing.
WAVE's Debt to Equity ratio of 0.10 is amongst the best of the industry. WAVE outperforms 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.02 |
ROIC/WACC0.77
WACC13.94%
2.3 Liquidity
A Current Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, WAVE is in the better half of the industry, outperforming 72.46% of the companies in the same industry.
A Quick Ratio of 1.49 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE's Quick ratio of 1.49 is amongst the best of the industry. WAVE outperforms 81.16% 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 15.07% over the past year.
The Earnings Per Share has been growing by 14.55% on average over the past years. This is quite good.
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)15.07%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%29.86%
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 11.39% on average per year.
The Revenue is expected to grow by 3.90% on average over the next years.
EPS Next Y9.3%
EPS Next 2Y9.94%
EPS Next 3Y11.39%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.47, WAVE is valued correctly.
72.46% of the companies in the same industry are more expensive than WAVE, based on the Price/Earnings ratio.
WAVE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.92, which indicates a correct valuation of WAVE.
WAVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 68.12% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. WAVE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAVE is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as WAVE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 9.74 |
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.
PEG (NY)1.66
PEG (5Y)1.06
EPS Next 2Y9.94%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.97%, which is pretty low.
WAVE's Dividend Yield is comparable with the industry average which is at 7.73.
With a Dividend Yield of 0.97, WAVE pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
On average, the dividend of WAVE grows each year by 10.75%, which is quite nice.
Dividend Growth(5Y)10.75%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
WAVE pays out 12.41% of its income as dividend. This is a sustainable payout ratio.
WAVE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP12.41%
EPS Next 2Y9.94%
EPS Next 3Y11.39%
EPA:WAVE (9/18/2025, 7:00:00 PM)
47.95
+0.7 (+1.48%)
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 Cap1.19B
Analysts80
Price Target65.84 (37.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend0.38
Dividend Growth(5Y)10.75%
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)1.49%
PT rev (3m)18.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.84%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)10.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 13.92 | ||
| P/S | 1.27 | ||
| P/FCF | 14.15 | ||
| P/OCF | 13.38 | ||
| P/B | 1.89 | ||
| P/tB | 28.95 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)3.1
EY6.47%
EPS(NY)3.45
Fwd EY7.18%
FCF(TTM)3.39
FCFY7.07%
OCF(TTM)3.58
OCFY7.47%
SpS37.88
BVpS25.37
TBVpS1.66
PEG (NY)1.66
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 11.96% | ||
| ROCE | 14.7% | ||
| ROIC | 10.71% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 51.64% | ||
| 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)170.44%
ROICexgc(5y)N/A
ROCE(3y)15.72%
ROCE(5y)16.86%
ROICexcg growth 3YN/A
ROICexcg growth 5Y-18.03%
ROICexc growth 3Y-39.81%
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 | 4.02 |
F-Score8
WACC13.94%
ROIC/WACC0.77
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)15.07%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%29.86%
EPS Next Y9.3%
EPS Next 2Y9.94%
EPS Next 3Y11.39%
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year1.71%
Revenue Next 2Y3.07%
Revenue Next 3Y3.9%
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year22.83%
EBIT Next 3Y13.12%
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%