WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
61.8 EUR
+1.3 (+2.15%)
Overall WAVE gets a fundamental rating of 6 out of 10. We evaluated WAVE against 70 industry peers in the IT Services industry. WAVE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, WAVE is valued expensive at the moment.
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.
- Each year in the past 5 years WAVE has been profitable.
- In the past 5 years WAVE always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 8.42%, WAVE belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
- The Return On Equity of WAVE (12.21%) is comparable to the rest of the industry.
- WAVE has a Return On Invested Capital of 11.36%. This is in the better half of the industry: WAVE outperforms 72.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WAVE is significantly below the industry average of 26.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 12.21% | ||
| ROIC | 11.36% |
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 better Profit Margin (8.33%) than 80.00% of its industry peers.
- WAVE's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 11.74%, WAVE belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
- WAVE's Operating Margin has declined in the last couple of years.
- WAVE's Gross Margin of 85.44% is fine compared to the rest of the industry. WAVE outperforms 75.71% of its industry peers.
- In the last couple of years the Gross Margin of WAVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.74% | ||
| PM (TTM) | 8.33% | ||
| GM | 85.44% |
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
- WAVE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, WAVE has less shares outstanding
- WAVE has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WAVE has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.26 indicates that WAVE is not in any danger for bankruptcy at the moment.
- The Altman-Z score of WAVE (5.26) is better than 92.86% of its industry peers.
- The Debt to FCF ratio of WAVE is 0.39, which is an excellent value as it means it would take WAVE, only 0.39 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.39, WAVE belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
- A Debt/Equity ratio of 0.03 indicates that WAVE is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.03, WAVE belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 5.26 |
ROIC/WACC1.45
WACC7.83%
2.3 Liquidity
- WAVE has a Current Ratio of 1.37. This is a normal value and indicates that WAVE is financially healthy and should not expect problems in meeting its short term obligations.
- WAVE's Current ratio of 1.37 is fine compared to the rest of the industry. WAVE outperforms 64.29% of its industry peers.
- A Quick Ratio of 1.37 indicates that WAVE should not have too much problems paying its short term obligations.
- The Quick ratio of WAVE (1.37) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
- WAVE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.20%, which is quite impressive.
- The Earnings Per Share has been growing by 14.55% on average over the past years. This is quite good.
- WAVE shows a small growth in Revenue. In the last year, the Revenue has grown by 7.00%.
- The Revenue has been growing by 17.46% on average over the past years. This is quite good.
EPS 1Y (TTM)22.2%
EPS 3Y6.62%
EPS 5Y14.55%
EPS Q2Q%11.64%
Revenue 1Y (TTM)7%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.06%
3.2 Future
- The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
- Based on estimates for the next years, WAVE will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y10.61%
EPS Next 2Y11.85%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y2.92%
Revenue Next 3Y3.67%
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.
- 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
- Based on the Price/Earnings ratio of 19.19, the valuation of WAVE can be described as rather expensive.
- WAVE's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of WAVE to the average of the S&P500 Index (28.87), we can say WAVE is valued slightly cheaper.
- A Price/Forward Earnings ratio of 15.67 indicates a correct valuation of WAVE.
- The rest of the industry has a similar Price/Forward Earnings ratio as WAVE.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, WAVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
- WAVE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WAVE is more expensive than 64.29% of the companies in the same industry.
- WAVE's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 12.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WAVE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)1.32
EPS Next 2Y11.85%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.77%, WAVE is not a good candidate for dividend investing.
- WAVE's Dividend Yield is comparable with the industry average which is at 2.27.
- Compared to an average S&P500 Dividend Yield of 1.82, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
- 14.36% of the earnings are spent on dividend by WAVE. This is a low number and 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.
DP14.36%
EPS Next 2Y11.85%
EPS Next 3Y11.42%
WAVESTONE / WAVE.PA FAQ
What is the ChartMill fundamental rating of WAVESTONE (WAVE.PA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WAVE.PA.
Can you provide the valuation status for WAVESTONE?
ChartMill assigns a valuation rating of 3 / 10 to WAVESTONE (WAVE.PA). This can be considered as Overvalued.
Can you provide the profitability details for WAVESTONE?
WAVESTONE (WAVE.PA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WAVESTONE (WAVE.PA) stock?
The Price/Earnings (PE) ratio for WAVESTONE (WAVE.PA) is 19.19 and the Price/Book (PB) ratio is 2.39.
Can you provide the financial health for WAVE stock?
The financial health rating of WAVESTONE (WAVE.PA) is 8 / 10.