SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
USA - NYSE:WTTR - US81617J3014 - Common Stock
10.1 USD
0 (0%)
9.8964 USD
-0.2 (-2.02%)
Taking everything into account, WTTR scores 3 out of 10 in our fundamental rating. WTTR was compared to 61 industry peers in the Energy Equipment & Services industry. WTTR has a bad profitability rating. Also its financial health evaluation is rather negative. WTTR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WTTR had positive earnings in the past year.
In the past year WTTR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WTTR reported negative net income in multiple years.
WTTR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.14%, WTTR is in line with its industry, outperforming 45.90% of the companies in the same industry.
WTTR's Return On Equity of 4.13% is on the low side compared to the rest of the industry. WTTR is outperformed by 62.30% of its industry peers.
The Return On Invested Capital of WTTR (3.42%) is worse than 72.13% of its industry peers.
WTTR had an Average Return On Invested Capital over the past 3 years of 3.94%. This is below the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 4.13% | ||
| ROIC | 3.42% |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.94%
ROIC(5y)N/A
1.3 Margins
WTTR has a worse Profit Margin (2.26%) than 65.57% of its industry peers.
In the last couple of years the Profit Margin of WTTR has grown nicely.
WTTR has a Operating Margin of 4.29%. This is in the lower half of the industry: WTTR underperforms 70.49% of its industry peers.
WTTR's Operating Margin has improved in the last couple of years.
The Gross Margin of WTTR (15.09%) is worse than 78.69% of its industry peers.
WTTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 2.26% | ||
| GM | 15.09% |
OM growth 3YN/A
OM growth 5Y8.42%
PM growth 3YN/A
PM growth 5Y57.64%
GM growth 3Y76.83%
GM growth 5Y5.59%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WTTR is destroying value.
WTTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WTTR has more shares outstanding
Compared to 1 year ago, WTTR has a worse debt to assets ratio.
2.2 Solvency
WTTR has an Altman-Z score of 2.06. This is not the best score and indicates that WTTR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of WTTR (2.06) is comparable to the rest of the industry.
WTTR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WTTR has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC0.39
WACC8.8%
2.3 Liquidity
A Current Ratio of 2.01 indicates that WTTR has no problem at all paying its short term obligations.
WTTR has a Current ratio (2.01) which is comparable to the rest of the industry.
WTTR has a Quick Ratio of 1.82. This is a normal value and indicates that WTTR is financially healthy and should not expect problems in meeting its short term obligations.
WTTR's Quick ratio of 1.82 is fine compared to the rest of the industry. WTTR outperforms 72.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
WTTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.55%.
Measured over the past years, WTTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.78% on average per year.
WTTR shows a decrease in Revenue. In the last year, the revenue decreased by -2.46%.
Measured over the past years, WTTR shows a small growth in Revenue. The Revenue has been growing by 2.37% on average per year.
EPS 1Y (TTM)-46.55%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-0.25%
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
WTTR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.05% yearly.
EPS Next Y1.66%
EPS Next 2Y36.56%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue Next Year-4.03%
Revenue Next 2Y-2.49%
Revenue Next 3Y1.32%
Revenue Next 5Y-0.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 32.58 indicates a quite expensive valuation of WTTR.
WTTR's Price/Earnings ratio is a bit more expensive when compared to the industry. WTTR is more expensive than 62.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of WTTR to the average of the S&P500 Index (27.50), we can say WTTR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.05, the valuation of WTTR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTTR indicates a slightly more expensive valuation: WTTR is more expensive than 60.66% of the companies listed in the same industry.
WTTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WTTR does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as WTTR's earnings are expected to grow with 34.99% in the coming years.
PEG (NY)19.63
PEG (5Y)0.96
EPS Next 2Y36.56%
EPS Next 3Y34.99%
5. Dividend
5.1 Amount
WTTR has a Yearly Dividend Yield of 2.69%.
WTTR's Dividend Yield is rather good when compared to the industry average which is at 3.31. WTTR pays more dividend than 80.33% of the companies in the same industry.
WTTR's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
95.70% of the earnings are spent on dividend by WTTR. This is not a sustainable payout ratio.
DP95.7%
EPS Next 2Y36.56%
EPS Next 3Y34.99%
10.1
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.19%
Inst Owner Change-0.06%
Ins Owners6.58%
Ins Owner Change0.37%
Market Cap1.22B
Analysts85
Price Target14.28 (41.39%)
Short Float %5.14%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP95.7%
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)0%
PT rev (3m)-7.89%
EPS NQ rev (1m)-4.35%
EPS NQ rev (3m)-63.46%
EPS NY rev (1m)-31.52%
EPS NY rev (3m)-39.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 18.05 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 6.2 | ||
| P/B | 1.53 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 6.39 |
EPS(TTM)0.31
EY3.07%
EPS(NY)0.56
Fwd EY5.54%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.63
OCFY16.12%
SpS12.03
BVpS6.59
TBVpS5.49
PEG (NY)19.63
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 4.13% | ||
| ROCE | 4.71% | ||
| ROIC | 3.42% | ||
| ROICexc | 3.55% | ||
| ROICexgc | 3.97% | ||
| OM | 4.29% | ||
| PM (TTM) | 2.26% | ||
| GM | 15.09% | ||
| FCFM | N/A |
ROA(3y)4.1%
ROA(5y)-6.17%
ROE(3y)6.6%
ROE(5y)-8.89%
ROIC(3y)3.94%
ROIC(5y)N/A
ROICexc(3y)4.07%
ROICexc(5y)N/A
ROICexgc(3y)4.68%
ROICexgc(5y)N/A
ROCE(3y)5.43%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.33%
ROICexc growth 3YN/A
ROICexc growth 5Y11.06%
OM growth 3YN/A
OM growth 5Y8.42%
PM growth 3YN/A
PM growth 5Y57.64%
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 | 1.2 | ||
| Cap/Depr | 133.31% | ||
| Cap/Sales | 14.94% | ||
| Interest Coverage | 4.42 | ||
| Cash Conversion | 87.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 2.06 |
F-Score6
WACC8.8%
ROIC/WACC0.39
Cap/Depr(3y)89.59%
Cap/Depr(5y)66.57%
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)-46.55%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%-23.08%
EPS Next Y1.66%
EPS Next 2Y36.56%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-0.25%
Revenue Next Year-4.03%
Revenue Next 2Y-2.49%
Revenue Next 3Y1.32%
Revenue Next 5Y-0.05%
EBIT growth 1Y20.19%
EBIT growth 3YN/A
EBIT growth 5Y10.99%
EBIT Next Year286.26%
EBIT Next 3Y66.15%
EBIT Next 5Y51.5%
FCF growth 1Y-224.7%
FCF growth 3YN/A
FCF growth 5Y-8.03%
OCF growth 1Y58.44%
OCF growth 3YN/A
OCF growth 5Y2.87%