WEBSTEP ASA (WSTEP.OL) Stock Fundamental Analysis
OSL:WSTEP - Euronext Oslo - NO0010609662 - Common Stock - Currency: NOK
Taking everything into account, WSTEP scores 5 out of 10 in our fundamental rating. WSTEP was compared to 65 industry peers in the IT Services industry. WSTEP has only an average score on both its financial health and profitability. WSTEP is not valued too expensively and it also shows a decent growth rate. Finally WSTEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WSTEP was profitable.
WSTEP had a positive operating cash flow in the past year.
WSTEP had positive earnings in each of the past 5 years.
Each year in the past 5 years WSTEP had a positive operating cash flow.
1.2 Ratios
WSTEP's Return On Assets of 10.30% is amongst the best of the industry. WSTEP outperforms 93.85% of its industry peers.
WSTEP has a Return On Equity of 18.53%. This is in the better half of the industry: WSTEP outperforms 80.00% of its industry peers.
WSTEP has a Return On Invested Capital (9.65%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 18.53% | ||
| ROIC | 9.65% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.90%, WSTEP is doing good in the industry, outperforming 72.31% of the companies in the same industry.
WSTEP's Profit Margin has been stable in the last couple of years.
WSTEP's Operating Margin of 7.99% is in line compared to the rest of the industry. WSTEP outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of WSTEP has remained more or less at the same level.
WSTEP has a better Gross Margin (92.91%) than 87.69% of its industry peers.
WSTEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.99% | ||
| PM (TTM) | 5.9% | ||
| GM | 92.91% |
OM growth 3Y-3.54%
OM growth 5Y0.53%
PM growth 3Y-3.26%
PM growth 5Y0.73%
GM growth 3Y0.74%
GM growth 5Y1.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WSTEP is still creating some value.
WSTEP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.04 indicates that WSTEP is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.04, WSTEP belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
The Debt to FCF ratio of WSTEP is 7.10, which is on the high side as it means it would take WSTEP, 7.10 years of fcf income to pay off all of its debts.
WSTEP has a worse Debt to FCF ratio (7.10) than 66.15% of its industry peers.
WSTEP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
WSTEP has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.1 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.23
WACC7.82%
2.3 Liquidity
WSTEP has a Current Ratio of 1.07. This is a normal value and indicates that WSTEP is financially healthy and should not expect problems in meeting its short term obligations.
WSTEP has a Current ratio of 1.07. This is in the lower half of the industry: WSTEP underperforms 66.15% of its industry peers.
A Quick Ratio of 1.07 indicates that WSTEP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, WSTEP is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.22% over the past year.
WSTEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.69% yearly.
WSTEP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.38%.
The Revenue has been growing slightly by 5.76% on average over the past years.
EPS 1Y (TTM)30.22%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%92%
Revenue 1Y (TTM)10.38%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-13.93%
3.2 Future
WSTEP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.60% yearly.
WSTEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y24.91%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue Next Year0.44%
Revenue Next 2Y3.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
The Price/Earnings ratio is 13.37, which indicates a correct valuation of WSTEP.
WSTEP's Price/Earnings ratio is a bit cheaper when compared to the industry. WSTEP is cheaper than 76.92% of the companies in the same industry.
WSTEP is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.70, the valuation of WSTEP can be described as very reasonable.
Based on the Price/Forward Earnings ratio, WSTEP is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WSTEP to the average of the S&P500 Index (21.38), we can say WSTEP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WSTEP is valued a bit cheaper than 73.85% of the companies in the same industry.
67.69% of the companies in the same industry are cheaper than WSTEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.84 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
WSTEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WSTEP may justify a higher PE ratio.
WSTEP's earnings are expected to grow with 15.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)2.35
EPS Next 2Y18.08%
EPS Next 3Y15.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.06%, WSTEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.76, WSTEP pays a better dividend. On top of this WSTEP pays more dividend than 95.38% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, WSTEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
5.2 History
The dividend of WSTEP has a limited annual growth rate of 2.04%.
Dividend Growth(5Y)2.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
42.66% of the earnings are spent on dividend by WSTEP. This is a bit on the high side, but may be sustainable.
The dividend of WSTEP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.66%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
OSL:WSTEP (4/25/2025, 7:00:00 PM)
24.2
-1.2 (-4.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners33.38%
Inst Owner ChangeN/A
Ins Owners0.87%
Ins Owner ChangeN/A
Market Cap682.20M
Analysts84
Price Target30.6 (26.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.06% |
Yearly Dividend1.7
Dividend Growth(5Y)2.04%
DP42.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.71%
Min EPS beat(2)-6.51%
Max EPS beat(2)-2.91%
EPS beat(4)1
Avg EPS beat(4)-1.04%
Min EPS beat(4)-17.72%
Max EPS beat(4)22.98%
EPS beat(8)1
Avg EPS beat(8)-23.4%
EPS beat(12)2
Avg EPS beat(12)-29.19%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.69%
Min Revenue beat(2)-6.18%
Max Revenue beat(2)-5.2%
Revenue beat(4)0
Avg Revenue beat(4)-6.01%
Min Revenue beat(4)-11.23%
Max Revenue beat(4)-1.45%
Revenue beat(8)0
Avg Revenue beat(8)-4.44%
Revenue beat(12)0
Avg Revenue beat(12)-4.15%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)7.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.68%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 10.7 | ||
| P/S | 0.62 | ||
| P/FCF | 27.84 | ||
| P/OCF | 24.25 | ||
| P/B | 1.94 | ||
| P/tB | 17.94 | ||
| EV/EBITDA | 6.29 |
EPS(TTM)1.81
EY7.48%
EPS(NY)2.26
Fwd EY9.34%
FCF(TTM)0.87
FCFY3.59%
OCF(TTM)1
OCFY4.12%
SpS39.16
BVpS12.47
TBVpS1.35
PEG (NY)0.54
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 18.53% | ||
| ROCE | 21.8% | ||
| ROIC | 9.65% | ||
| ROICexc | 11.49% | ||
| ROICexgc | 41.68% | ||
| OM | 7.99% | ||
| PM (TTM) | 5.9% | ||
| GM | 92.91% | ||
| FCFM | 2.22% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.54%
OM growth 5Y0.53%
PM growth 3Y-3.26%
PM growth 5Y0.73%
GM growth 3Y0.74%
GM growth 5Y1.28%
F-Score8
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 7.1 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 17.4% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 25.81% | ||
| Profit Quality | 37.62% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 4.04 |
F-Score8
WACC7.82%
ROIC/WACC1.23
Cap/Depr(3y)26.24%
Cap/Depr(5y)31.6%
Cap/Sales(3y)0.75%
Cap/Sales(5y)0.77%
Profit Quality(3y)603.94%
Profit Quality(5y)414.03%
High Growth Momentum
Growth
EPS 1Y (TTM)30.22%
EPS 3Y0.31%
EPS 5Y5.69%
EPS Q2Q%92%
EPS Next Y24.91%
EPS Next 2Y18.08%
EPS Next 3Y15.6%
EPS Next 5YN/A
Revenue 1Y (TTM)10.38%
Revenue growth 3Y4.09%
Revenue growth 5Y5.76%
Sales Q2Q%-13.93%
Revenue Next Year0.44%
Revenue Next 2Y3.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y377.38%
EBIT growth 3Y0.4%
EBIT growth 5Y6.32%
EBIT Next Year40%
EBIT Next 3Y19.26%
EBIT Next 5YN/A
FCF growth 1Y-65.48%
FCF growth 3Y-19.48%
FCF growth 5Y-8.42%
OCF growth 1Y-63.21%
OCF growth 3Y-19.87%
OCF growth 5Y-7.57%