WAVESTONE (WAVE.PA) Stock Fundamental Analysis
EPA:WAVE - Euronext Paris - Matif - FR0013357621 - Common Stock - Currency: EUR
Overall WAVE gets a fundamental rating of 6 out of 10. We evaluated WAVE against 71 industry peers in the IT Services industry. WAVE has an excellent financial health rating, but there are some minor concerns on its profitability. WAVE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WAVE was profitable.
WAVE had a positive operating cash flow in the past year.
WAVE had positive earnings in each of the past 5 years.
WAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.59%, WAVE is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Return On Equity of WAVE (10.80%) is comparable to the rest of the industry.
The Return On Invested Capital of WAVE (9.71%) is better than 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WAVE is above the industry average of 10.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 10.8% | ||
| ROIC | 9.71% |
ROA(3y)8.54%
ROA(5y)7.64%
ROE(3y)15.61%
ROE(5y)15.34%
ROIC(3y)13.27%
ROIC(5y)12.88%
1.3 Margins
WAVE's Profit Margin of 7.08% is fine compared to the rest of the industry. WAVE outperforms 75.38% of its industry peers.
WAVE's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 10.67%, WAVE is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
WAVE's Operating Margin has declined in the last couple of years.
WAVE has a better Gross Margin (85.32%) than 72.31% of its industry peers.
WAVE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.67% | ||
| PM (TTM) | 7.08% | ||
| GM | 85.32% |
OM growth 3Y5.71%
OM growth 5Y-1.79%
PM growth 3Y10.96%
PM growth 5Y1.1%
GM growth 3Y-2.23%
GM growth 5Y-1.38%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WAVE is creating value.
Compared to 1 year ago, WAVE has more shares outstanding
The number of shares outstanding for WAVE has been increased compared to 5 years ago.
WAVE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.82 indicates that WAVE is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAVE (3.82) is better than 86.15% of its industry peers.
The Debt to FCF ratio of WAVE is 1.64, which is an excellent value as it means it would take WAVE, only 1.64 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.64, WAVE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that WAVE is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.12, WAVE belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.34
WACC7.26%
2.3 Liquidity
WAVE has a Current Ratio of 1.28. 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 1.28 is in line compared to the rest of the industry. WAVE outperforms 58.46% of its industry peers.
A Quick Ratio of 1.28 indicates that WAVE should not have too much problems paying its short term obligations.
The Quick ratio of WAVE (1.28) is better than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The earnings per share for WAVE have decreased by -4.74% in the last year.
Measured over the past years, WAVE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.97% on average per year.
Looking at the last year, WAVE shows a very strong growth in Revenue. The Revenue has grown by 54.26%.
The Revenue has been growing by 12.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.74%
EPS 3Y28.71%
EPS 5Y11.97%
EPS Q2Q%-4.43%
Revenue 1Y (TTM)54.26%
Revenue growth 3Y18.85%
Revenue growth 5Y12.36%
Sales Q2Q%65.46%
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 11.69% on average per year.
WAVE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.03% yearly.
EPS Next Y16.04%
EPS Next 2Y15.03%
EPS Next 3Y11.69%
EPS Next 5YN/A
Revenue Next Year26.15%
Revenue Next 2Y14.02%
Revenue Next 3Y11.03%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.11, WAVE is valued on the expensive side.
WAVE's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.47. WAVE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.02, the valuation of WAVE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 64.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. WAVE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 14.02 |
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 66.15% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WAVE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.45 | ||
| EV/EBITDA | 11.59 |
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)1.19
PEG (5Y)1.6
EPS Next 2Y15.03%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 4.29, WAVE has a dividend in line with its industry peers.
With a Dividend Yield of 0.82, WAVE pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.78%!
Dividend Growth(5Y)10.78%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
WAVE pays out 15.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of WAVE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP15.02%
EPS Next 2Y15.03%
EPS Next 3Y11.69%
WAVESTONE
EPA:WAVE (2/5/2025, 5:29:23 PM)
50.45
+0.45 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners15.65%
Inst Owner ChangeN/A
Ins Owners44.45%
Ins Owner ChangeN/A
Market Cap1.26B
Analysts80
Price Target55.73 (10.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.34
Dividend Growth(5Y)10.78%
DP15.02%
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)-1.44%
PT rev (3m)-19.65%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-16.33%
EPS NY rev (3m)-9.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.02%
Revenue NY rev (3m)-3.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.11 | ||
| Fwd PE | 14.02 | ||
| P/S | 1.42 | ||
| P/FCF | 17.45 | ||
| P/OCF | 16.49 | ||
| P/B | 2.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.59 |
EPS(TTM)2.64
EY5.23%
EPS(NY)3.6
Fwd EY7.13%
FCF(TTM)2.89
FCFY5.73%
OCF(TTM)3.06
OCFY6.07%
SpS35.41
BVpS23.22
TBVpS-0.63
PEG (NY)1.19
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 10.8% | ||
| ROCE | 13.38% | ||
| ROIC | 9.71% | ||
| ROICexc | 10.47% | ||
| ROICexgc | 116.75% | ||
| OM | 10.67% | ||
| PM (TTM) | 7.08% | ||
| GM | 85.32% | ||
| FCFM | 8.16% |
ROA(3y)8.54%
ROA(5y)7.64%
ROE(3y)15.61%
ROE(5y)15.34%
ROIC(3y)13.27%
ROIC(5y)12.88%
ROICexc(3y)25.7%
ROICexc(5y)24.38%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.29%
ROCE(5y)17.76%
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.81%
ROICexc growth 3Y-27.56%
ROICexc growth 5Y-13.49%
OM growth 3Y5.71%
OM growth 5Y-1.79%
PM growth 3Y10.96%
PM growth 5Y1.1%
GM growth 3Y-2.23%
GM growth 5Y-1.38%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 22.1% | ||
| Cap/Sales | 0.48% | ||
| Interest Coverage | 118.12 | ||
| Cash Conversion | 67.35% | ||
| Profit Quality | 115.31% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.82 |
F-Score5
WACC7.26%
ROIC/WACC1.34
Cap/Depr(3y)25.41%
Cap/Depr(5y)19.61%
Cap/Sales(3y)0.41%
Cap/Sales(5y)0.43%
Profit Quality(3y)107.24%
Profit Quality(5y)153.12%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.74%
EPS 3Y28.71%
EPS 5Y11.97%
EPS Q2Q%-4.43%
EPS Next Y16.04%
EPS Next 2Y15.03%
EPS Next 3Y11.69%
EPS Next 5YN/A
Revenue 1Y (TTM)54.26%
Revenue growth 3Y18.85%
Revenue growth 5Y12.36%
Sales Q2Q%65.46%
Revenue Next Year26.15%
Revenue Next 2Y14.02%
Revenue Next 3Y11.03%
Revenue Next 5YN/A
EBIT growth 1Y17.39%
EBIT growth 3Y25.63%
EBIT growth 5Y10.35%
EBIT Next Year41.59%
EBIT Next 3Y16.52%
EBIT Next 5YN/A
FCF growth 1Y63.17%
FCF growth 3Y4.51%
FCF growth 5Y20.74%
OCF growth 1Y68.21%
OCF growth 3Y5.47%
OCF growth 5Y20.56%