Wavestone SA
Wavestone SA Fundamental Analysis
Wavestone SA (WAVE.PA) shows moderate financial fundamentals with a PE ratio of 14.88, profit margin of 8.33%, and ROE of 12.33%. The company generates $0.9B in annual revenue with strong year-over-year growth of 31.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WAVE.PA's fundamental strength across five key dimensions:
Efficiency Score
WeakWAVE.PA struggles to generate sufficient returns from assets.
Valuation Score
ModerateWAVE.PA shows balanced valuation metrics.
Growth Score
ModerateWAVE.PA shows steady but slowing expansion.
Financial Health Score
ExcellentWAVE.PA maintains a strong and stable balance sheet.
Profitability Score
WeakWAVE.PA struggles to sustain strong margins.
Key Financial Metrics
Is WAVE.PA Expensive or Cheap?
P/E Ratio
WAVE.PA trades at 14.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WAVE.PA's PEG of 3.52 indicates potential overvaluation.
Price to Book
The market values Wavestone SA at 1.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.08 times EBITDA. This is generally considered low.
How Well Does WAVE.PA Make Money?
Net Profit Margin
For every $100 in sales, Wavestone SA keeps $8.33 as profit after all expenses.
Operating Margin
Core operations generate 11.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.33 in profit for every $100 of shareholder equity.
ROA
Wavestone SA generates $8.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wavestone SA produces operating cash flow of $106.16M, showing steady but balanced cash generation.
Free Cash Flow
Wavestone SA generates strong free cash flow of $102.05M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.16 in free cash annually.
FCF Yield
WAVE.PA converts 8.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How WAVE.PA Stacks Against Its Sector Peers
| Metric | WAVE.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.88 | 33.98 | Better (Cheaper) |
| ROE | 12.33% | 1007.00% | Weak |
| Net Margin | 8.33% | -47797.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.44 | Strong (Low Leverage) |
| Current Ratio | 1.37 | 5.66 | Neutral |
| ROA | 8.42% | -287350.00% (disorted) | Weak |
WAVE.PA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wavestone SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.60%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
75.98%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
133.23%
Industry Style: Growth, Innovation, High Beta
High Growth