Wayside Technology Group, Inc. Fundamental Analysis (NASDAQ: WSTG)
Wayside Technology Group, Inc. Fundamental Analysis (NASDAQ: WSTG)
Wayside Technology Group, Inc. (NASDAQ: WSTG) shows moderate financial fundamentals with a PE ratio of 10.30, profit margin of 2.89%, and ROE of 17.50%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WSTG's fundamental strength across five key dimensions:
Efficiency Score
WeakWSTG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWSTG trades at attractive valuation levels.
Growth Score
ModerateWSTG shows steady but slowing expansion.
Financial Health Score
ExcellentWSTG maintains a strong and stable balance sheet.
Profitability Score
ModerateWSTG maintains healthy but balanced margins.
Key Financial Metrics
Is WSTG Expensive or Cheap?
P/E Ratio
WSTG trades at 10.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WSTG's PEG of -0.32 indicates potential undervaluation.
Price to Book
The market values Wayside Technology Group, Inc. at 4.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.47 times EBITDA. This is generally considered low.
How Well Does WSTG Make Money?
Net Profit Margin
For every $100 in sales, Wayside Technology Group, Inc. keeps $2.89 as profit after all expenses.
Operating Margin
Core operations generate 3.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.50 in profit for every $100 of shareholder equity.
ROA
Wayside Technology Group, Inc. generates $4.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wayside Technology Group, Inc. generates limited operating cash flow of $6.35M, signaling weaker underlying cash strength.
Free Cash Flow
Wayside Technology Group, Inc. produces free cash flow of $6.46M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.44 in free cash annually.
FCF Yield
WSTG converts 18.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How WSTG Stacks Against Its Sector Peers
| Metric | WSTG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.30 | 36.46 | Better (Cheaper) |
| ROE | 17.50% | 679.00% | Weak |
| Net Margin | 2.89% | -129239.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 1.13 | 5.89 | Neutral |
| ROA | 4.44% | 237.00% | Weak |
WSTG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wayside Technology Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta