Select Water Solutions, Inc.
Select Water Solutions, Inc. Fundamental Analysis
Select Water Solutions, Inc. (WTTR) shows weak financial fundamentals with a PE ratio of 68.59, profit margin of 1.51%, and ROE of 2.65%. The company generates $1.4B in annual revenue with weak year-over-year growth of -8.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 17.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WTTR's fundamental strength across five key dimensions:
Efficiency Score
WeakWTTR struggles to generate sufficient returns from assets.
Valuation Score
WeakWTTR trades at a premium to fair value.
Growth Score
WeakWTTR faces weak or negative growth trends.
Financial Health Score
ExcellentWTTR maintains a strong and stable balance sheet.
Profitability Score
WeakWTTR struggles to sustain strong margins.
Key Financial Metrics
Is WTTR Expensive or Cheap?
P/E Ratio
WTTR trades at 68.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WTTR's PEG of 13.03 indicates potential overvaluation.
Price to Book
The market values Select Water Solutions, Inc. at 1.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.11 times EBITDA. This is generally considered low.
How Well Does WTTR Make Money?
Net Profit Margin
For every $100 in sales, Select Water Solutions, Inc. keeps $1.51 as profit after all expenses.
Operating Margin
Core operations generate 2.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.65 in profit for every $100 of shareholder equity.
ROA
Select Water Solutions, Inc. generates $1.33 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Select Water Solutions, Inc. produces operating cash flow of $220.02M, showing steady but balanced cash generation.
Free Cash Flow
Select Water Solutions, Inc. generates weak or negative free cash flow of $-81.88M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.78 in free cash annually.
FCF Yield
WTTR converts -5.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
68.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How WTTR Stacks Against Its Sector Peers
| Metric | WTTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 68.59 | 19.69 | Worse (Expensive) |
| ROE | 2.65% | 936.00% | Weak |
| Net Margin | 1.51% | 8814.00% | Weak |
| Debt/Equity | 0.44 | 1.49 | Strong (Low Leverage) |
| Current Ratio | 1.57 | 1.50 | Neutral |
| ROA | 1.33% | -6168.00% (disorted) | Weak |
WTTR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Select Water Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.85%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
494.11%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-7.65%
Industry Style: Defensive, Dividend, Income
Declining