WAVESTONE (WAVE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:WAVE - FR0013357621 - Common Stock
54.9 EUR
+0.2 (+0.37%)
WAVE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 76 industry peers in the IT Services industry. While WAVE has a great health rating, its profitability is only average at the moment. WAVE has a correct valuation and a medium 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.
WAVE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.35%, WAVE belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
WAVE has a Return On Equity (12.11%) which is comparable to the rest of the industry.
WAVE has a better Return On Invested Capital (11.40%) than 73.68% of its industry peers.
WAVE had an Average Return On Invested Capital over the past 3 years of 11.48%. This is significantly below the industry average of 26.78%.
| 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's Profit Margin of 8.26% is amongst the best of the industry. WAVE outperforms 82.89% of its industry peers.
WAVE's Profit Margin has improved in the last couple of years.
The Operating Margin of WAVE (11.76%) is better than 84.21% of its industry peers.
In the last couple of years the Operating Margin of WAVE has declined.
WAVE has a Gross Margin of 85.38%. This is in the better half of the industry: WAVE outperforms 77.63% 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
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.
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 4.91. This indicates that WAVE is financially healthy and has little risk of bankruptcy at the moment.
WAVE has a Altman-Z score of 4.91. This is amongst the best in the industry. WAVE outperforms 88.16% 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 97.37% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that WAVE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, WAVE belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.39 | ||
| Altman-Z | 4.91 |
ROIC/WACC1.49
WACC7.67%
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 Current ratio of 1.37. This is in the better half of the industry: WAVE outperforms 61.84% of its industry peers.
A Quick Ratio of 1.37 indicates that WAVE should not have too much problems paying its short term obligations.
WAVE's Quick ratio of 1.37 is fine compared to the rest of the industry. WAVE outperforms 67.11% of its industry peers.
| 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.
WAVE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.06% yearly.
Looking at the last year, WAVE shows a small growth in Revenue. The Revenue has grown by 6.99% in the last year.
The Revenue has been growing by 17.46% on average over the past years. This is quite good.
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
Based on estimates for the next years, WAVE will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.93% on average per year.
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y8.93%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year1.71%
Revenue Next 2Y2.92%
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.
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 17.00.
Compared to the rest of the industry, the Price/Earnings ratio of WAVE indicates a somewhat cheap valuation: WAVE is cheaper than 67.11% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. WAVE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.13, which indicates a correct valuation of WAVE.
WAVE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WAVE is cheaper than 64.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, WAVE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
63.16% of the companies in the same industry are cheaper than WAVE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WAVE is valued a bit cheaper than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WAVE may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)1.13
EPS Next 2Y11.04%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
WAVE has a yearly dividend return of 0.90%, which is pretty low.
WAVE's Dividend Yield is comparable with the industry average which is at 2.27.
Compared to an average S&P500 Dividend Yield of 1.87, WAVE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of WAVE is nicely growing with an annual growth rate of 10.95%!
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 2Y11.04%
EPS Next 3Y10.93%
EPA:WAVE (12/24/2025, 7:00:00 PM)
54.9
+0.2 (+0.37%)
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 Cap1.37B
Revenue(TTM)943.85M
Net Income(TTM)78.00M
Analysts80
Price Target63.36 (15.41%)
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)2.75%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 14.13 | ||
| P/S | 1.45 | ||
| P/FCF | 13.1 | ||
| P/OCF | 12.6 | ||
| P/B | 2.12 | ||
| P/tB | 26.3 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)3.23
EY5.88%
EPS(NY)3.89
Fwd EY7.08%
FCF(TTM)4.19
FCFY7.64%
OCF(TTM)4.36
OCFY7.94%
SpS37.89
BVpS25.85
TBVpS2.09
PEG (NY)1.9
PEG (5Y)1.13
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 | 4.91 |
F-Score9
WACC7.67%
ROIC/WACC1.49
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 Y8.93%
EPS Next 2Y11.04%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)6.99%
Revenue growth 3Y26.15%
Revenue growth 5Y17.46%
Sales Q2Q%0.04%
Revenue Next Year1.71%
Revenue Next 2Y2.92%
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%.