WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - EPA:WAVE - FR0013357621 - Common Stock
49.4 EUR
-0.7 (-1.4%)
We assign a fundamental rating of 6 out of 10 to WAVE. WAVE was compared to 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. WAVE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WAVE had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.71%, WAVE belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
WAVE has a Return On Equity (11.96%) which is comparable to the rest of the industry.
The Return On Invested Capital of WAVE (10.71%) is better than 71.43% of its industry peers.
WAVE had an Average Return On Invested Capital over the past 3 years of 11.44%. This is significantly below the industry average of 21.24%.
| 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
The Profit Margin of WAVE (8.01%) is better than 82.86% of its industry peers.
In the last couple of years the Profit Margin of WAVE has grown nicely.
Looking at the Operating Margin, with a value of 11.61%, WAVE belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
In the last couple of years the Operating Margin of WAVE has declined.
WAVE has a better Gross Margin (84.64%) than 74.29% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WAVE is creating some value.
The number of shares outstanding for WAVE has been reduced compared to 1 year ago.
WAVE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WAVE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.14 indicates that WAVE is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAVE (4.14) is better than 90.00% 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.
With an excellent Debt to FCF ratio value of 0.96, WAVE belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that WAVE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, WAVE belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 4.14 |
ROIC/WACC1.39
WACC7.7%
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 70.00% 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 Quick ratio of 1.49. This is in the better half of the industry: WAVE outperforms 77.14% 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.
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!
Measured over the past years, WAVE shows a quite strong growth in Revenue. The Revenue has been growing by 17.46% on average per year.
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
WAVE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
Based on estimates for the next years, WAVE will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y6.88%
EPS Next 2Y8.94%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue Next Year1.34%
Revenue Next 2Y2.71%
Revenue Next 3Y2.79%
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
WAVE is valuated correctly with a Price/Earnings ratio of 15.94.
71.43% of the companies in the same industry are more expensive than WAVE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.13, WAVE is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.67, the valuation of WAVE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, WAVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
65.71% of the companies in the same industry are cheaper than WAVE, based on the Enterprise Value to EBITDA ratio.
WAVE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 10.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WAVE does not grow enough to justify the current Price/Earnings ratio.
WAVE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.1
EPS Next 2Y8.94%
EPS Next 3Y11.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, WAVE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.86, WAVE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.75%!
Dividend Growth(5Y)10.75%
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP12.41%
EPS Next 2Y8.94%
EPS Next 3Y11.23%
EPA:WAVE (11/6/2025, 5:29:26 PM)
49.4
-0.7 (-1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.55%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.23B
Revenue(TTM)943.67M
Net Income(TTM)75.56M
Analysts80
Price Target65.22 (32.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)-0.95%
PT rev (3m)7.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 14.67 | ||
| P/S | 1.3 | ||
| P/FCF | 14.57 | ||
| P/OCF | 13.78 | ||
| P/B | 1.95 | ||
| P/tB | 29.82 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)3.1
EY6.28%
EPS(NY)3.37
Fwd EY6.82%
FCF(TTM)3.39
FCFY6.86%
OCF(TTM)3.58
OCFY7.26%
SpS37.88
BVpS25.37
TBVpS1.66
PEG (NY)2.32
PEG (5Y)1.1
Graham Number42.07
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 4.14 |
F-Score8
WACC7.7%
ROIC/WACC1.39
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 Y6.88%
EPS Next 2Y8.94%
EPS Next 3Y11.23%
EPS Next 5YN/A
Revenue 1Y (TTM)34.6%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%14.49%
Revenue Next Year1.34%
Revenue Next 2Y2.71%
Revenue Next 3Y2.79%
Revenue Next 5YN/A
EBIT growth 1Y27.73%
EBIT growth 3Y14.59%
EBIT growth 5Y15.41%
EBIT Next Year24.15%
EBIT Next 3Y12.96%
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%
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.
What is the valuation status for WAVE stock?
ChartMill assigns a valuation rating of 4 / 10 to WAVESTONE (WAVE.PA). This can be considered as Fairly Valued.
Can you provide the profitability details for WAVESTONE?
WAVESTONE (WAVE.PA) has a profitability rating of 6 / 10.
How financially healthy is WAVESTONE?
The financial health rating of WAVESTONE (WAVE.PA) is 8 / 10.
Is the dividend of WAVESTONE sustainable?
The dividend rating of WAVESTONE (WAVE.PA) is 4 / 10 and the dividend payout ratio is 12.41%.