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 59 industry peers in the Energy Equipment & Services industry. While WTTR seems to be doing ok healthwise, there are quite some concerns on its profitability. WTTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WTTR was profitable.
WTTR had a positive operating cash flow in the past year.
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 has a Return On Assets (2.24%) which is in line with its industry peers.
With a Return On Equity value of 3.86%, WTTR perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
WTTR's Return On Invested Capital of 3.59% is on the low side compared to the rest of the industry. WTTR is outperformed by 75.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WTTR is below the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 3.86% | ||
| ROIC | 3.59% |
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 2.11% is on the low side compared to the rest of the industry. WTTR is outperformed by 60.34% of its industry peers.
WTTR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.86%, WTTR is doing worse than 79.31% of the companies in the same industry.
In the last couple of years the Operating Margin of WTTR has grown nicely.
The Gross Margin of WTTR (15.11%) is worse than 81.03% of its industry peers.
In the last couple of years the Gross Margin of WTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.86% | ||
| PM (TTM) | 2.11% | ||
| GM | 15.11% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WTTR is destroying value.
Compared to 1 year ago, WTTR has more shares outstanding
WTTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WTTR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.67 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 2.67, WTTR is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
The Debt to FCF ratio of WTTR is 1.38, which is an excellent value as it means it would take WTTR, only 1.38 years of fcf income to pay off all of its debts.
WTTR has a better Debt to FCF ratio (1.38) than 81.03% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that WTTR is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.11, WTTR is doing good in the industry, outperforming 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.38
WACC9.48%
2.3 Liquidity
A Current Ratio of 1.65 indicates that WTTR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, WTTR is in line with its industry, outperforming 41.38% of the companies in the same industry.
WTTR has a Quick Ratio of 1.49. 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 Quick ratio (1.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
WTTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.53%.
WTTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.66% yearly.
The Revenue has decreased by -8.41% in the past year.
WTTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.37% yearly.
EPS 1Y (TTM)-57.53%
EPS 3YN/A
EPS 5Y34.66%
EPS Q2Q%-103.7%
Revenue 1Y (TTM)-8.41%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-6.89%
3.2 Future
The Earnings Per Share is expected to grow by 101.96% on average over the next years. This is a very strong growth
WTTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y181.54%
EPS Next 2Y101.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.32%
Revenue Next 2Y6.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 39.87 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 67.24% of the companies in the same industry.
WTTR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 14.16, WTTR is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as WTTR.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WTTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.87 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WTTR.
WTTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.89 | ||
| EV/EBITDA | 7.23 |
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.
WTTR's earnings are expected to grow with 101.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)1.15
EPS Next 2Y101.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.09%, WTTR has a reasonable but not impressive dividend return.
WTTR's Dividend Yield is a higher than the industry average which is at 3.55.
WTTR's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
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 97.07% of its income as dividend. This is not a sustainable payout ratio.
DP97.07%
EPS Next 2Y101.96%
EPS Next 3YN/A
12.36
-0.08 (-0.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners90.08%
Inst Owner Change-91.44%
Ins Owners4.12%
Ins Owner Change0.35%
Market Cap1.47B
Analysts85.45
Price Target18.16 (46.93%)
Short Float %5.89%
Short Ratio6.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP97.07%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-52.79%
Min EPS beat(2)-111.25%
Max EPS beat(2)5.67%
EPS beat(4)2
Avg EPS beat(4)-34.68%
Min EPS beat(4)-111.25%
Max EPS beat(4)12.5%
EPS beat(8)3
Avg EPS beat(8)-16.55%
EPS beat(12)6
Avg EPS beat(12)56.39%
EPS beat(16)6
Avg EPS beat(16)23.62%
Revenue beat(2)2
Avg Revenue beat(2)3.16%
Min Revenue beat(2)2.57%
Max Revenue beat(2)3.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)3.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.49%
Revenue beat(12)6
Avg Revenue beat(12)-0.25%
Revenue beat(16)9
Avg Revenue beat(16)0.25%
PT rev (1m)7.23%
PT rev (3m)24.48%
EPS NQ rev (1m)-12.22%
EPS NQ rev (3m)-44.27%
EPS NY rev (1m)-9.96%
EPS NY rev (3m)-9.52%
Revenue NQ rev (1m)6.4%
Revenue NQ rev (3m)-6.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.87 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.02 | ||
| P/FCF | 23.89 | ||
| P/OCF | 6.28 | ||
| P/B | 1.86 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)0.31
EY2.51%
EPS(NY)0.87
Fwd EY7.06%
FCF(TTM)0.52
FCFY4.19%
OCF(TTM)1.97
OCFY15.93%
SpS12.17
BVpS6.65
TBVpS5.46
PEG (NY)0.22
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.24% | ||
| ROE | 3.86% | ||
| ROCE | 4.95% | ||
| ROIC | 3.59% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 4.19% | ||
| OM | 3.86% | ||
| PM (TTM) | 2.11% | ||
| GM | 15.11% | ||
| FCFM | 4.25% |
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-Score5
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 110.33% | ||
| Cap/Sales | 11.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.26% | ||
| Profit Quality | 201.45% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.67 |
F-Score5
WACC9.48%
ROIC/WACC0.38
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)-57.53%
EPS 3YN/A
EPS 5Y34.66%
EPS Q2Q%-103.7%
EPS Next Y181.54%
EPS Next 2Y101.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.41%
Revenue growth 3Y23.84%
Revenue growth 5Y2.37%
Sales Q2Q%-6.89%
Revenue Next Year5.32%
Revenue Next 2Y6.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.03%
EBIT growth 3YN/A
EBIT growth 5Y10.99%
EBIT Next Year371.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-58.7%
FCF growth 3YN/A
FCF growth 5Y-8.03%
OCF growth 1Y-17.69%
OCF growth 3YN/A
OCF growth 5Y2.87%