We assign a fundamental rating of 3 out of 10 to WTTR. 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 has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

WTTR had positive earnings in the past year.
WTTR had a positive operating cash flow in the past year.
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

WTTR has a worse Return On Assets (1.25%) than 62.30% of its industry peers.
The Return On Equity of WTTR (2.47%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.06%, WTTR is not doing good in the industry: 68.85% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for WTTR is significantly below the industry average of 12.88%.

		Industry Rank	Sector Rank
ROA	1.25%
ROE	2.47%
ROIC	2.06%

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's Profit Margin of 1.41% is on the low side compared to the rest of the industry. WTTR is outperformed by 63.93% of its industry peers.
In the last couple of years the Profit Margin of WTTR has grown nicely.
WTTR has a worse Operating Margin (2.74%) than 67.21% of its industry peers.
WTTR's Operating Margin has improved in the last couple of years.
WTTR's Gross Margin of 14.28% is on the low side compared to the rest of the industry. WTTR is outperformed by 77.05% of its industry peers.
WTTR's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	2.74%
PM (TTM)	1.41%
GM	14.28%

OM growth 3YN/A

OM growth 5Y8.42%

PM growth 3YN/A

PM growth 5Y57.64%

GM growth 3Y76.83%

GM growth 5Y5.59%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

WTTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WTTR has been increased compared to 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 2.04. 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.
WTTR's Altman-Z score of 2.04 is in line compared to the rest of the industry. WTTR outperforms 54.10% of its industry peers.
WTTR has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
WTTR's Debt to Equity ratio of 0.35 is fine compared to the rest of the industry. WTTR outperforms 62.30% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.35
Debt/FCF	N/A
Altman-Z	2.04

ROIC/WACC0.23

WACC8.97%

2.3 Liquidity

WTTR has a Current Ratio of 1.64. This is a normal value and indicates that WTTR is financially healthy and should not expect problems in meeting its short term obligations.
WTTR has a Current ratio of 1.64. This is in the lower half of the industry: WTTR underperforms 62.30% of its industry peers.
A Quick Ratio of 1.48 indicates that WTTR should not have too much problems paying its short term obligations.
WTTR has a Quick ratio (1.48) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.64
Quick Ratio	1.48

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

WTTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.07%.
WTTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.78% yearly.
The Revenue has decreased by -4.60% in the past year.
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)-4.6%

Revenue growth 3Y23.84%

Revenue growth 5Y2.37%

Sales Q2Q%-13.22%

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 37.46% on average per year.
The Revenue is expected to decrease by -0.05% on average over the next years.

EPS Next Y-27.83%

EPS Next 2Y-13.81%

EPS Next 3Y14.08%

EPS Next 5Y37.46%

Revenue Next Year-3.89%

Revenue Next 2Y-3.16%

Revenue Next 3Y-0.27%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 36.64 indicates a quite expensive valuation of WTTR.
Compared to the rest of the industry, the Price/Earnings ratio of WTTR is on the same level as its industry peers.
WTTR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.30.
A Price/Forward Earnings ratio of 54.25 indicates a quite expensive valuation of WTTR.
WTTR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WTTR is more expensive than 65.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WTTR to the average of the S&P500 Index (25.57), we can say WTTR is valued expensively.

		Industry Rank	Sector Rank
PE	36.64
Fwd PE	54.25

4.2 Price Multiples

WTTR's Enterprise Value to EBITDA ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	8.43

4.3 Compensation for Growth

WTTR's earnings are expected to grow with 14.08% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)1.08

EPS Next 2Y-13.81%

EPS Next 3Y14.08%

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5. Dividend

5.1 Amount

WTTR has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.14, WTTR pays a better dividend. On top of this WTTR pays more dividend than 85.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, WTTR pays a bit more dividend than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	2.51%

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 166.84% of its income as dividend. This is not a sustainable payout ratio.

DP166.84%

EPS Next 2Y-13.81%

EPS Next 3Y14.08%

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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.

What is the valuation status for WTTR stock?

ChartMill assigns a valuation rating of 1 / 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.

What is the valuation of SELECT WATER SOLUTIONS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SELECT WATER SOLUTIONS INC (WTTR) is 36.64 and the Price/Book (PB) ratio is 1.81.

Can you provide the dividend sustainability for WTTR stock?

The dividend rating of SELECT WATER SOLUTIONS INC (WTTR) is 3 / 10 and the dividend payout ratio is 166.84%.