Select Water Solutions, Inc. (WTTR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Consolidated Water Co. Ltd.

American Water Works Co., Inc.

American States Water Co.

Artesian Resources Corp.

SJW Group

California Water Service Group

Essential Utilities, Inc.

Middlesex Water Co.

Aris Water Solutions, Inc.

The York Water Co.

Select Water Solutions, Inc.

Why is Select Water Solutions, Inc. ?

The company has declared negative results for the last 2 consecutive quarters

NET PROFIT(9M) At USD 19.49 MM has Grown at -62.47%
INTEREST COVERAGE RATIO(Q) Lowest at 1,096.37
RAW MATERIAL COST(Y) Grown by 6.16% (YoY)

With ROE of 5.98%, it has a very expensive valuation with a 1.34 Price to Book Value

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 -24.98%, its profits have fallen by -42%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.98% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Select Water Solutions, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Select Water Solutions, Inc.

-23.03%

0.09

48.03%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.38%

EBIT Growth (5y)

31.70%

EBIT to Interest (avg)

-4.62

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.72

Tax Ratio

26.83%

Dividend Payout Ratio

83.00%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

4.89%

ROE (avg)

5.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.34

EV to EBIT

18.33

EV to EBITDA

5.66

EV to Capital Employed

1.26

EV to Sales

0.89

PEG Ratio

Dividend Yield

304.54%

ROCE (Latest)

6.89%

ROE (Latest)

5.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 67.44%

DEBTORS TURNOVER RATIO(HY)

Highest at 4.83 times

DIVIDEND PER SHARE(HY)

Highest at USD 4.83

-20What is not working for the Company

NET PROFIT(9M)

At USD 19.49 MM has Grown at -62.47%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,096.37

RAW MATERIAL COST(Y)

Grown by 6.16% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 32.61 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 31.4 times

INTEREST(Q)

Highest at USD 5.64 MM

Here's what is working for Select Water Solutions, Inc.

Debtors Turnover Ratio

Highest at 4.83 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 4.83

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 67.44%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 42.97 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Select Water Solutions, Inc.

Net Profit

At USD 19.49 MM has Grown at -62.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 5.64 MM has Grown at 15.77%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 1,096.37

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 5.64 MM

in the last five periods and Increased by 15.77% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 32.61 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 31.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.16% (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