SELECT WATER SOLUTIONS INC (WTTR) Stock Fundamental Analysis
USA - NYSE:WTTR - US81617J3014 - Common Stock
9.01 USD
-0.07 (-0.77%)
9.19 USD
+0.18 (+2%)
Overall WTTR gets a fundamental rating of 3 out of 10. We evaluated WTTR against 61 industry peers in the Energy Equipment & Services industry. The financial health of WTTR is average, but there are quite some concerns on its profitability. WTTR is valued correctly, but it does not seem to be growing.
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.
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 Return On Assets (2.14%) which is comparable to the rest of the 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.
With a Return On Invested Capital value of 3.42%, WTTR is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
WTTR had an Average Return On Invested Capital over the past 3 years of 3.94%. This is below the industry average of 8.01%.
| 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's Profit Margin of 2.26% is on the low side compared to the rest of the industry. WTTR is outperformed by 65.57% of its industry peers.
WTTR's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of WTTR has grown nicely.
With a Gross Margin value of 15.09%, WTTR is not doing good in the industry: 80.33% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WTTR is destroying value.
WTTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WTTR has been increased compared to 5 years ago.
WTTR has a worse debt/assets ratio than last year.
2.2 Solvency
WTTR has an Altman-Z score of 1.96. 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 1.96 is fine compared to the rest of the industry. WTTR outperforms 60.66% of its industry peers.
WTTR has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WTTR's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. WTTR outperforms 57.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.96 |
ROIC/WACC0.38
WACC9.06%
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.
Looking at the Quick ratio, with a value of 1.82, WTTR is in the better half of the industry, outperforming 72.13% of the companies in the same industry.
| 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
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
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.
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 Y48.44%
EPS Next 2Y40.99%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 29.06, which means the current valuation is very expensive for WTTR.
Based on the Price/Earnings ratio, WTTR is valued a bit more expensive than the industry average as 62.30% of the companies are valued more cheaply.
WTTR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 15.11, WTTR is valued correctly.
WTTR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WTTR to the average of the S&P500 Index (22.73), we can say WTTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 15.11 |
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 | 5.81 |
4.3 Compensation for Growth
WTTR's 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 34.99% in the coming years.
PEG (NY)0.6
PEG (5Y)0.86
EPS Next 2Y40.99%
EPS Next 3Y34.99%
5. Dividend
5.1 Amount
WTTR has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.35, WTTR pays a better dividend. On top of this WTTR pays more dividend than 83.61% of the companies listed in the same industry.
WTTR's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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 2Y40.99%
EPS Next 3Y34.99%
9.01
-0.07 (-0.77%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners89.98%
Inst Owner Change-2.56%
Ins Owners6.59%
Ins Owner Change0.9%
Market Cap1.09B
Analysts85
Price Target14.28 (58.49%)
Short Float %4.6%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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)-6.67%
PT rev (3m)-7.89%
EPS NQ rev (1m)-39.26%
EPS NQ rev (3m)-71.81%
EPS NY rev (1m)-11.76%
EPS NY rev (3m)-22.52%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-17.59%
Revenue NY rev (1m)-5.95%
Revenue NY rev (3m)-5.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.06 | ||
| Fwd PE | 15.11 | ||
| P/S | 0.75 | ||
| P/FCF | N/A | ||
| P/OCF | 5.53 | ||
| P/B | 1.37 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)0.31
EY3.44%
EPS(NY)0.6
Fwd EY6.62%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)1.63
OCFY18.07%
SpS12.03
BVpS6.59
TBVpS5.49
PEG (NY)0.6
PEG (5Y)0.86
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 | 1.96 |
F-Score6
WACC9.06%
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)-46.55%
EPS 3YN/A
EPS 5Y33.78%
EPS Q2Q%-23.08%
EPS Next Y48.44%
EPS Next 2Y40.99%
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 Year323.28%
EBIT Next 3Y69.3%
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%