SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
NYSE:WTTR - New York Stock Exchange, Inc. - US81617J3014 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to WTTR. WTTR was compared to 63 industry peers in the Energy Equipment & Services industry. WTTR has a bad profitability rating. Also its financial health evaluation is rather negative. WTTR is not valued too expensively and it also shows a decent growth rate.
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.
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
WTTR's Return On Assets of 2.30% is on the low side compared to the rest of the industry. WTTR is outperformed by 61.90% of its industry peers.
Looking at the Return On Equity, with a value of 4.49%, WTTR is doing worse than 63.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.68%, WTTR is doing worse than 73.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WTTR is below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 4.49% | ||
| ROIC | 3.68% |
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 2.44%, WTTR is doing worse than 68.25% of the companies in the same industry.
WTTR's Profit Margin has improved in the last couple of years.
WTTR's Operating Margin of 4.56% is on the low side compared to the rest of the industry. WTTR is outperformed by 71.43% of its industry peers.
WTTR's Operating Margin has improved in the last couple of years.
The Gross Margin of WTTR (15.24%) is worse than 84.13% of its industry peers.
In the last couple of years the Gross Margin of WTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 2.44% | ||
| GM | 15.24% |
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
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
WTTR has an Altman-Z score of 1.91. 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 (1.91) is comparable to the rest of the industry.
WTTR has a debt to FCF ratio of 22.49. This is a negative value and a sign of low solvency as WTTR would need 22.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.49, WTTR is doing worse than 60.32% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that WTTR is not too dependend on debt financing.
WTTR has a Debt to Equity ratio (0.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 22.49 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.41
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.83 indicates that WTTR should not have too much problems paying its short term obligations.
WTTR has a Current ratio (1.83) which is comparable to the rest of the industry.
A Quick Ratio of 1.67 indicates that WTTR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.67, WTTR is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
WTTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.69%.
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 -4.91%.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)-47.69%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%100%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%2.14%
3.2 Future
Based on estimates for the next years, WTTR will show a very strong growth in Earnings Per Share. The EPS will grow by 51.46% on average per year.
The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y68.23%
EPS Next 2Y54.02%
EPS Next 3Y51.46%
EPS Next 5YN/A
Revenue Next Year1.77%
Revenue Next 2Y3.39%
Revenue Next 3Y4.11%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.41 indicates a quite expensive valuation of WTTR.
WTTR's Price/Earnings is on the same level as the industry average.
WTTR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
WTTR is valuated correctly with a Price/Forward Earnings ratio of 12.14.
WTTR's Price/Forward Earnings ratio is in line with the industry average.
WTTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTTR.
Based on the Price/Free Cash Flow ratio, WTTR is valued a bit more expensive than the industry average as 65.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 94.95 | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WTTR's earnings are expected to grow with 51.46% in the coming years.
PEG (NY)0.37
PEG (5Y)0.75
EPS Next 2Y54.02%
EPS Next 3Y51.46%
5. Dividend
5.1 Amount
WTTR has a Yearly Dividend Yield of 3.06%.
Compared to an average industry Dividend Yield of 3.70, WTTR pays a bit more dividend than its industry peers.
WTTR's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 87.30% of its income as dividend. This is not a sustainable payout ratio.
DP87.3%
EPS Next 2Y54.02%
EPS Next 3Y51.46%
8.64
-0.13 (-1.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners88.59%
Inst Owner Change0.9%
Ins Owners6.59%
Ins Owner Change1.97%
Market Cap1.04B
Analysts85.45
Price Target15.5 (79.4%)
Short Float %4.69%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend0.25
Dividend Growth(5Y)N/A
DP87.3%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-49%
Min EPS beat(2)-122.49%
Max EPS beat(2)24.49%
EPS beat(4)3
Avg EPS beat(4)-19.96%
Min EPS beat(4)-122.49%
Max EPS beat(4)24.49%
EPS beat(8)4
Avg EPS beat(8)-13.15%
EPS beat(12)6
Avg EPS beat(12)1.5%
EPS beat(16)7
Avg EPS beat(16)28.2%
Revenue beat(2)2
Avg Revenue beat(2)2.15%
Min Revenue beat(2)1.73%
Max Revenue beat(2)2.57%
Revenue beat(4)3
Avg Revenue beat(4)1.11%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)3.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)-0.59%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)-10.59%
PT rev (3m)-15.08%
EPS NQ rev (1m)-4.43%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)-12.19%
EPS NY rev (3m)-42.17%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.41 | ||
| Fwd PE | 12.14 | ||
| P/S | 0.71 | ||
| P/FCF | 94.95 | ||
| P/OCF | 5.25 | ||
| P/B | 1.31 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)0.34
EY3.94%
EPS(NY)0.71
Fwd EY8.24%
FCF(TTM)0.09
FCFY1.05%
OCF(TTM)1.65
OCFY19.06%
SpS12.14
BVpS6.6
TBVpS5.46
PEG (NY)0.37
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.3% | ||
| ROE | 4.49% | ||
| ROCE | 5.15% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 4.21% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.44% | ||
| GM | 15.24% | ||
| FCFM | 0.75% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 22.49 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 117.61% | ||
| Cap/Sales | 12.81% | ||
| Interest Coverage | 6.11 | ||
| Cash Conversion | 87.72% | ||
| Profit Quality | 30.73% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 1.91 |
F-Score5
WACC9.04%
ROIC/WACC0.41
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)-47.69%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%100%
EPS Next Y68.23%
EPS Next 2Y54.02%
EPS Next 3Y51.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%2.14%
Revenue Next Year1.77%
Revenue Next 2Y3.39%
Revenue Next 3Y4.11%
Revenue Next 5YN/A
EBIT growth 1Y14.76%
EBIT growth 3YN/A
EBIT growth 5Y10.8%
EBIT Next Year325.52%
EBIT Next 3Y69.3%
EBIT Next 5YN/A
FCF growth 1Y121.66%
FCF growth 3YN/A
FCF growth 5Y-7.95%
OCF growth 1Y485.62%
OCF growth 3YN/A
OCF growth 5Y2.88%