WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
58 EUR
+0.7 (+1.22%)
Taking everything into account, WAVE scores 6 out of 10 in our fundamental rating. WAVE was compared to 77 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.
In the past 5 years WAVE has always been profitable.
WAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WAVE has a Return On Assets of 8.35%. This is amongst the best in the industry. WAVE outperforms 83.12% of its industry peers.
The Return On Equity of WAVE (12.11%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 11.40%, WAVE is doing good in the industry, outperforming 74.03% of the companies in the same industry.
WAVE had an Average Return On Invested Capital over the past 3 years of 11.48%. This is significantly below the industry average of 26.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.11% | ||
| ROIC | 11.4% |
ROA(3y)7.68%
ROA(5y)7.81%
ROE(3y)13%
ROE(5y)14.23%
ROIC(3y)11.48%
ROIC(5y)12.31%
1.3 Margins
WAVE has a Profit Margin of 8.26%. This is amongst the best in the industry. WAVE outperforms 84.42% of its industry peers.
WAVE's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.76%, WAVE belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
WAVE's Operating Margin has declined in the last couple of years.
WAVE's Gross Margin of 85.38% is fine compared to the rest of the industry. WAVE outperforms 79.22% of its industry peers.
In the last couple of years the Gross Margin of WAVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.76% | ||
| PM (TTM) | 8.26% | ||
| GM | 85.38% |
OM growth 3Y-9.04%
OM growth 5Y-1.67%
PM growth 3Y-9.48%
PM growth 5Y1.77%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WAVE is still creating some value.
The number of shares outstanding for WAVE has been reduced compared to 1 year ago.
Compared to 5 years ago, WAVE has more shares outstanding
Compared to 1 year ago, WAVE has an improved debt to assets ratio.
2.2 Solvency
WAVE has an Altman-Z score of 5.04. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
WAVE has a Altman-Z score of 5.04. This is amongst the best in the industry. WAVE outperforms 92.21% 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.
WAVE has a Debt to FCF ratio of 0.39. This is amongst the best in the industry. WAVE outperforms 96.10% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that WAVE is not too dependend on debt financing.
WAVE has a better Debt to Equity ratio (0.03) than 92.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.48
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.37 indicates that WAVE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, WAVE is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
WAVE has a Quick 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.
Looking at the Quick ratio, with a value of 1.37, WAVE is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.75% over the past year.
The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.99% in the past year.
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)23.75%
EPS 3Y7.41%
EPS 5Y15.06%
EPS Q2Q%14.81%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
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 10.82% yearly.
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 Y6.02%
EPS Next 2Y8.21%
EPS Next 3Y10.82%
EPS Next 5YN/A
Revenue Next Year1.24%
Revenue Next 2Y2.56%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 17.96, which indicates a rather expensive current valuation of WAVE.
66.23% of the companies in the same industry are more expensive than WAVE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WAVE to the average of the S&P500 Index (26.54), we can say WAVE is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.72, which indicates a correct valuation of WAVE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 61.04% of the companies listed in the same industry.
WAVE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WAVE is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 61.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 11.21 |
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.
The decent profitability rating of WAVE may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)1.19
EPS Next 2Y8.21%
EPS Next 3Y10.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.90%, WAVE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, WAVE has a dividend in line with its industry peers.
With a Dividend Yield of 0.90, WAVE pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of WAVE grows each year by 10.95%, which is quite nice.
Dividend Growth(5Y)10.95%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
14.10% of the earnings are spent on dividend by WAVE. This is a low number and sustainable payout ratio.
WAVE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.1%
EPS Next 2Y8.21%
EPS Next 3Y10.82%
EPA:WAVE (12/12/2025, 7:00:00 PM)
58
+0.7 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.85%
Inst Owner ChangeN/A
Ins Owners44.17%
Ins Owner ChangeN/A
Market Cap1.44B
Revenue(TTM)943.85M
Net Income(TTM)78.00M
Analysts80
Price Target63.36 (9.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.39
Dividend Growth(5Y)10.95%
DP14.1%
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)-2.85%
PT rev (3m)-3.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.96 | ||
| Fwd PE | 15.72 | ||
| P/S | 1.53 | ||
| P/FCF | 13.83 | ||
| P/OCF | 13.31 | ||
| P/B | 2.24 | ||
| P/tB | 27.78 | ||
| EV/EBITDA | 11.21 |
EPS(TTM)3.23
EY5.57%
EPS(NY)3.69
Fwd EY6.36%
FCF(TTM)4.19
FCFY7.23%
OCF(TTM)4.36
OCFY7.51%
SpS37.89
BVpS25.85
TBVpS2.09
PEG (NY)2.98
PEG (5Y)1.19
Graham Number43.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.35% | ||
| ROE | 12.11% | ||
| ROCE | 15.63% | ||
| ROIC | 11.4% | ||
| ROICexc | 11.4% | ||
| ROICexgc | 68.62% | ||
| OM | 11.76% | ||
| PM (TTM) | 8.26% | ||
| GM | 85.38% | ||
| FCFM | 11.06% |
ROA(3y)7.68%
ROA(5y)7.81%
ROE(3y)13%
ROE(5y)14.23%
ROIC(3y)11.48%
ROIC(5y)12.31%
ROICexc(3y)13.04%
ROICexc(5y)23.01%
ROICexgc(3y)170.72%
ROICexgc(5y)N/A
ROCE(3y)15.74%
ROCE(5y)16.87%
ROICexgc growth 3YN/A
ROICexgc growth 5Y-18.02%
ROICexc growth 3Y-39.72%
ROICexc growth 5Y-10%
OM growth 3Y-9.04%
OM growth 5Y-1.67%
PM growth 3Y-9.48%
PM growth 5Y1.77%
GM growth 3Y-4.64%
GM growth 5Y-2.67%
F-Score9
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 20.55% | ||
| Cap/Sales | 0.44% | ||
| Interest Coverage | 94.87 | ||
| Cash Conversion | 82.86% | ||
| Profit Quality | 133.89% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 5.04 |
F-Score9
WACC7.69%
ROIC/WACC1.48
Cap/Depr(3y)28.51%
Cap/Depr(5y)20.81%
Cap/Sales(3y)0.55%
Cap/Sales(5y)0.39%
Profit Quality(3y)107.65%
Profit Quality(5y)141.71%
High Growth Momentum
Growth
EPS 1Y (TTM)23.75%
EPS 3Y7.41%
EPS 5Y15.06%
EPS Q2Q%14.81%
EPS Next Y6.02%
EPS Next 2Y8.21%
EPS Next 3Y10.82%
EPS Next 5YN/A
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
Revenue Next Year1.24%
Revenue Next 2Y2.56%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
EBIT growth 1Y17.36%
EBIT growth 3Y14.74%
EBIT growth 5Y15.5%
EBIT Next Year21%
EBIT Next 3Y14.66%
EBIT Next 5YN/A
FCF growth 1Y92.92%
FCF growth 3Y14.63%
FCF growth 5Y10.01%
OCF growth 1Y87.07%
OCF growth 3Y16.47%
OCF growth 5Y9.99%
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 3 / 10 and the dividend payout ratio is 14.1%.