WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
60.8 EUR
-0.5 (-0.82%)
Taking everything into account, WAVE scores 6 out of 10 in our fundamental rating. WAVE was compared to 70 industry peers in the IT Services industry. While WAVE has a great health rating, its profitability is only average at the moment. WAVE is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- WAVE had positive earnings in the past year.
- WAVE had a positive operating cash flow in the past year.
- Each year in the past 5 years WAVE has been profitable.
- Each year in the past 5 years WAVE had a positive operating cash flow.
1.2 Ratios
- WAVE's Return On Assets of 8.42% is amongst the best of the industry. WAVE outperforms 84.29% of its industry peers.
- With a Return On Equity value of 12.21%, WAVE perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
- The Average Return On Invested Capital over the past 3 years 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
- With a decent Profit Margin value of 8.33%, WAVE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of WAVE has grown nicely.
- 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.
- In the last couple of years the Operating Margin of WAVE has declined.
- WAVE's Gross Margin of 85.44% is fine compared to the rest of the industry. WAVE outperforms 75.71% of its industry peers.
- WAVE's Gross Margin has declined in the last couple of years.
| 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
- The number of shares outstanding for WAVE has been increased compared to 5 years ago.
- Compared to 1 year ago, WAVE has an improved debt to assets ratio.
2.2 Solvency
- WAVE has an Altman-Z score of 5.24. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
- WAVE's Altman-Z score of 5.24 is amongst the best of the industry. WAVE outperforms 92.86% of its industry peers.
- WAVE has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.39, WAVE belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
- WAVE has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- WAVE's Debt to Equity ratio of 0.03 is amongst the best of the industry. WAVE outperforms 94.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 5.24 |
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 has a better Current ratio (1.37) than 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.
- Looking at the Quick ratio, with a value of 1.37, WAVE is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| 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.
- WAVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.55% yearly.
- The Revenue has been growing slightly by 7.00% in the past year.
- 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)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
- Based on estimates for the next years, WAVE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
- WAVE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.67% yearly.
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
- WAVE is valuated rather expensively with a Price/Earnings ratio of 18.88.
- WAVE's Price/Earnings ratio is in line with the industry average.
- WAVE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 15.42, the valuation of WAVE can be described as correct.
- WAVE's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of WAVE to the average of the S&P500 Index (25.98), we can say WAVE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.88 | ||
| Fwd PE | 15.42 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WAVE is valued a bit more expensive than 65.71% of the companies in the same industry.
- WAVE's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
- WAVE's 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)1.78
PEG (5Y)1.3
EPS Next 2Y11.85%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
- WAVE has a yearly dividend return of 0.77%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.27, WAVE has a dividend in line with its industry peers.
- With a Dividend Yield of 0.77, WAVE pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
- 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 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.
What are the PE and PB ratios of WAVESTONE (WAVE.PA) stock?
The Price/Earnings (PE) ratio for WAVESTONE (WAVE.PA) is 18.88 and the Price/Book (PB) ratio is 2.35.
Can you provide the financial health for WAVE stock?
The financial health rating of WAVESTONE (WAVE.PA) is 7 / 10.