SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
USA - NYSE:WTTR - US81617J3014 - Common Stock
9.98 USD
-0.12 (-1.19%)
10.17 USD
+0.19 (+1.9%)
Overall WTTR gets a fundamental rating of 3 out of 10. We evaluated WTTR against 60 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of WTTR have multiple concerns. WTTR has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WTTR was profitable.
In the past year WTTR had a positive cash flow from operations.
In multiple years WTTR reported negative net income over the last 5 years.
Of the past 5 years WTTR 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.17%, WTTR is in line with its industry, outperforming 43.33% of the companies in the same industry.
With a Return On Equity value of 4.21%, WTTR is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
The Return On Invested Capital of WTTR (3.39%) is worse than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WTTR is below the industry average of 7.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.21% | ||
| ROIC | 3.39% |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.87%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.30%, WTTR is doing worse than 68.33% of the companies in the same industry.
In the last couple of years the Profit Margin of WTTR has grown nicely.
With a Operating Margin value of 4.32%, WTTR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
WTTR's Operating Margin has improved in the last couple of years.
The Gross Margin of WTTR (15.09%) is worse than 78.33% of its industry peers.
WTTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | 2.3% | ||
| GM | 15.09% |
OM growth 3YN/A
OM growth 5Y8.23%
PM growth 3YN/A
PM growth 5Y58%
GM growth 3Y76.83%
GM growth 5Y5.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WTTR is destroying value.
WTTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WTTR has been increased compared to 5 years ago.
WTTR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.05 indicates that WTTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.05, WTTR is in line with its industry, outperforming 56.67% of the companies in the same industry.
WTTR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WTTR's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. WTTR outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.05 |
ROIC/WACC0.38
WACC8.88%
2.3 Liquidity
WTTR has a Current Ratio of 2.00. This indicates that WTTR is financially healthy and has no problem in meeting its short term obligations.
WTTR has a Current ratio (2.00) which is comparable to the rest of the industry.
WTTR has a Quick Ratio of 1.81. This is a normal value and indicates that WTTR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of WTTR (1.81) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.81 |
3. Growth
3.1 Past
The earnings per share for WTTR have decreased strongly by -44.07% in the last year.
WTTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.78% yearly.
WTTR shows a decrease in Revenue. In the last year, the revenue decreased by -8.41%.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)-44.07%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%13.33%
Revenue 1Y (TTM)-8.41%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-13.22%
3.2 Future
The Earnings Per Share is expected to grow by 37.46% on average over the next years. This is a very strong growth
Based on estimates for the next years, WTTR will show a decrease in Revenue. The Revenue will decrease by -0.05% on average per year.
EPS Next Y-3.63%
EPS Next 2Y28.39%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue Next Year-4.57%
Revenue Next 2Y-3.05%
Revenue Next 3Y0.45%
Revenue Next 5Y-0.05%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.24 indicates a quite expensive valuation of WTTR.
Based on the Price/Earnings ratio, WTTR is valued a bit more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. WTTR is around the same levels.
Based on the Price/Forward Earnings ratio of 20.18, the valuation of WTTR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTTR is on the same level as its industry peers.
WTTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WTTR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.3 |
4.3 Compensation for Growth
WTTR's earnings are expected to grow with 34.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y28.39%
EPS Next 3Y34.99%
5. Dividend
5.1 Amount
WTTR has a Yearly Dividend Yield of 2.46%.
Compared to an average industry Dividend Yield of 2.97, WTTR pays a bit more dividend than its industry peers.
WTTR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
WTTR has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WTTR pays out 95.24% of its income as dividend. This is not a sustainable payout ratio.
DP95.24%
EPS Next 2Y28.39%
EPS Next 3Y34.99%
9.98
-0.12 (-1.19%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.19%
Inst Owner Change6.08%
Ins Owners6.58%
Ins Owner Change-0.61%
Market Cap1.21B
Revenue(TTM)1.45B
Net Income(TTM)33.60M
Analysts84.62
Price Target15.15 (51.8%)
Short Float %6.4%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP95.24%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.08%
Min EPS beat(2)-16.33%
Max EPS beat(2)24.49%
EPS beat(4)2
Avg EPS beat(4)-27.16%
Min EPS beat(4)-122.49%
Max EPS beat(4)24.49%
EPS beat(8)4
Avg EPS beat(8)-13.47%
EPS beat(12)5
Avg EPS beat(12)-14.28%
EPS beat(16)7
Avg EPS beat(16)30.61%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)1.73%
Revenue beat(4)3
Avg Revenue beat(4)1.44%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)3.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.06%
Revenue beat(12)5
Avg Revenue beat(12)-1.07%
Revenue beat(16)9
Avg Revenue beat(16)0.46%
PT rev (1m)6.12%
PT rev (3m)-0.95%
EPS NQ rev (1m)-20.45%
EPS NQ rev (3m)-70.6%
EPS NY rev (1m)-5.21%
EPS NY rev (3m)-42.72%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-14.47%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-6.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.24 | ||
| Fwd PE | 20.18 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 6.11 | ||
| P/B | 1.51 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)0.33
EY3.31%
EPS(NY)0.49
Fwd EY4.95%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)1.63
OCFY16.36%
SpS12.03
BVpS6.59
TBVpS5.49
PEG (NY)N/A
PEG (5Y)0.9
Graham Number6.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.21% | ||
| ROCE | 4.75% | ||
| ROIC | 3.39% | ||
| ROICexc | 3.53% | ||
| ROICexgc | 3.94% | ||
| OM | 4.32% | ||
| PM (TTM) | 2.3% | ||
| GM | 15.09% | ||
| FCFM | N/A |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.87%
ROIC(5y)N/A
ROICexc(3y)4%
ROICexc(5y)N/A
ROICexgc(3y)4.61%
ROICexgc(5y)N/A
ROCE(3y)5.42%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y4.14%
ROICexc growth 3YN/A
ROICexc growth 5Y10.86%
OM growth 3YN/A
OM growth 5Y8.23%
PM growth 3YN/A
PM growth 5Y58%
GM growth 3Y76.83%
GM growth 5Y5.59%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 132.93% | ||
| Cap/Sales | 14.94% | ||
| Interest Coverage | 4.51 | ||
| Cash Conversion | 87.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.81 | ||
| Altman-Z | 2.05 |
F-Score6
WACC8.88%
ROIC/WACC0.38
Cap/Depr(3y)89.6%
Cap/Depr(5y)66.58%
Cap/Sales(3y)8.56%
Cap/Sales(5y)6.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.07%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%13.33%
EPS Next Y-3.63%
EPS Next 2Y28.39%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue 1Y (TTM)-8.41%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-13.22%
Revenue Next Year-4.57%
Revenue Next 2Y-3.05%
Revenue Next 3Y0.45%
Revenue Next 5Y-0.05%
EBIT growth 1Y21.21%
EBIT growth 3YN/A
EBIT growth 5Y10.8%
EBIT Next Year286.26%
EBIT Next 3Y66.15%
EBIT Next 5Y51.5%
FCF growth 1Y-221.21%
FCF growth 3YN/A
FCF growth 5Y-7.95%
OCF growth 1Y58.91%
OCF growth 3YN/A
OCF growth 5Y2.88%
SELECT WATER SOLUTIONS INC / WTTR FAQ
Can you provide the ChartMill fundamental rating for SELECT WATER SOLUTIONS INC?
ChartMill assigns a fundamental rating of 3 / 10 to WTTR.
Can you provide the valuation status for SELECT WATER SOLUTIONS INC?
ChartMill assigns a valuation rating of 2 / 10 to SELECT WATER SOLUTIONS INC (WTTR). This can be considered as Overvalued.
How profitable is SELECT WATER SOLUTIONS INC (WTTR) stock?
SELECT WATER SOLUTIONS INC (WTTR) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for WTTR stock?
The Price/Earnings (PE) ratio for SELECT WATER SOLUTIONS INC (WTTR) is 30.24 and the Price/Book (PB) ratio is 1.51.
Is the dividend of SELECT WATER SOLUTIONS INC sustainable?
The dividend rating of SELECT WATER SOLUTIONS INC (WTTR) is 2 / 10 and the dividend payout ratio is 95.24%.