SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
USA - NYSE:WTTR - US81617J3014 - Common Stock
11.68 USD
-0.21 (-1.77%)
12.11 USD
+0.43 (+3.68%)
We assign a fundamental rating of 3 out of 10 to WTTR. WTTR was compared to 60 industry peers in the Energy Equipment & Services industry. WTTR scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. WTTR does not seem to be growing, but still is valued expensively.
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.
WTTR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WTTR's Return On Assets of 2.14% is in line compared to the rest of the industry. WTTR outperforms 46.67% of its industry peers.
WTTR has a worse Return On Equity (4.13%) than 60.00% of its industry peers.
WTTR has a worse Return On Invested Capital (3.42%) than 70.00% 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 7.80%.
| 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 Profit Margin of 2.26%. This is in the lower half of the industry: WTTR underperforms 65.00% of its industry peers.
In the last couple of years the Profit Margin of WTTR has grown nicely.
WTTR's Operating Margin of 4.29% is on the low side compared to the rest of the industry. WTTR is outperformed by 68.33% of its industry peers.
WTTR's Operating Margin has improved in the last couple of years.
WTTR has a worse Gross Margin (15.09%) than 78.33% of its industry peers.
WTTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| 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.
Compared to 1 year ago, WTTR has more shares outstanding
Compared to 5 years ago, WTTR has more shares outstanding
WTTR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.24 indicates that WTTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
WTTR has a Altman-Z score of 2.24. This is in the better half of the industry: WTTR outperforms 63.33% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that WTTR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, WTTR perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.24 |
ROIC/WACC0.39
WACC8.87%
2.3 Liquidity
WTTR has a Current Ratio of 2.01. This indicates that WTTR is financially healthy and has no problem in meeting its short term obligations.
WTTR has a Current ratio (2.01) which is in line with its industry peers.
A Quick Ratio of 1.82 indicates that WTTR should not have too much problems paying its short term obligations.
The Quick ratio of WTTR (1.82) is better than 68.33% 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%.
The Earnings Per Share has been growing by 33.78% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.46% in the past year.
The Revenue has been growing slightly by 2.37% on average over the past years.
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
WTTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.46% yearly.
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 Y1.66%
EPS Next 2Y36.56%
EPS Next 3Y34.99%
EPS Next 5Y37.46%
Revenue Next Year-4.16%
Revenue Next 2Y-2.73%
Revenue Next 3Y0.45%
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
WTTR is valuated quite expensively with a Price/Earnings ratio of 37.68.
Based on the Price/Earnings ratio, WTTR is valued a bit more expensive than 63.33% of the companies in the same industry.
WTTR is valuated rather expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.88 indicates a rather expensive valuation of WTTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WTTR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WTTR to the average of the S&P500 Index (22.53), we can say WTTR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.68 | ||
| Fwd PE | 20.88 |
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 | 7.35 |
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.
WTTR's earnings are expected to grow with 34.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)22.7
PEG (5Y)1.12
EPS Next 2Y36.56%
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 2.94, WTTR pays a bit more dividend than its industry peers.
WTTR's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
WTTR has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WTTR pays out 95.70% of its income as dividend. This is not a sustainable payout ratio.
DP95.7%
EPS Next 2Y36.56%
EPS Next 3Y34.99%
11.68
-0.21 (-1.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners87.19%
Inst Owner Change2.74%
Ins Owners6.58%
Ins Owner Change-0.23%
Market Cap1.42B
Revenue(TTM)1.46B
Net Income(TTM)33.04M
Analysts85
Price Target15.15 (29.71%)
Short Float %6.4%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP95.7%
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)6.12%
PT rev (3m)-2.04%
EPS NQ rev (1m)-20.45%
EPS NQ rev (3m)-70.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-39.57%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-13.85%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-5.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.68 | ||
| Fwd PE | 20.88 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 7.18 | ||
| P/B | 1.77 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)0.31
EY2.65%
EPS(NY)0.56
Fwd EY4.79%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.63
OCFY13.94%
SpS12.03
BVpS6.59
TBVpS5.49
PEG (NY)22.7
PEG (5Y)1.12
Graham Number6.78
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
ROICexgc growth 3YN/A
ROICexgc 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 | 2.24 |
F-Score6
WACC8.87%
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-4.16%
Revenue Next 2Y-2.73%
Revenue Next 3Y0.45%
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%
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 37.68 and the Price/Book (PB) ratio is 1.77.
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 95.7%.