ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Aris Water Solutions, Inc. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.62 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.62 times
- The company has been able to generate a Return on Capital Employed (avg) of 11.51% signifying low profitability per unit of total capital (equity and debt)
2
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 494.1
- RAW MATERIAL COST(Y) Grown by 9.76% (YoY)
- OPERATING PROFIT MARGIN(Q) Lowest at 38.09 %
3
With ROCE of 12.51%, it has a expensive valuation with a 2.21 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 40.92%, its profits have risen by 15.1% ; the PEG ratio of the company is 1.8
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aris Water Solutions, Inc. should be less than 10%
- Overall Portfolio exposure to Other Utilities should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aris Water Solutions, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Aris Water Solutions, Inc.
52.45%
0.88
69.29%
S&P 500
13.22%
0.84
19.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.20%
EBIT Growth (5y)
20.65%
EBIT to Interest (avg)
2.53
Debt to EBITDA (avg)
2.62
Net Debt to Equity (avg)
1.16
Sales to Capital Employed (avg)
0.51
Tax Ratio
11.65%
Dividend Payout Ratio
50.25%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
11.51%
ROE (avg)
14.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
3.61
EV to EBIT
17.67
EV to EBITDA
10.26
EV to Capital Employed
2.21
EV to Sales
4.30
PEG Ratio
1.78
Dividend Yield
0.31%
ROCE (Latest)
12.51%
ROE (Latest)
15.57%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Sideways
Moving Averages
Bearish (Daily)
KST
Bullish
Bullish
Dow Theory
Bearish
Bearish
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 186.88 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 110.2 %
NET SALES(Q)
Highest at USD 124.09 MM
DIVIDEND PER SHARE(HY)
Highest at USD 4.45
-4What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 494.1
RAW MATERIAL COST(Y)
Grown by 9.76% (YoY
OPERATING PROFIT MARGIN(Q)
Lowest at 38.09 %
Here's what is working for Aris Water Solutions, Inc.
Operating Cash Flow
Highest at USD 186.88 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 124.09 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 110.2 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 4.45
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Here's what is not working for Aris Water Solutions, Inc.
Interest Coverage Ratio
Lowest at 494.1
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit Margin
Lowest at 38.09 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 9.76% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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