Wavestone SA (WAVE) 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

GL Events SA

Elis SA

Ipsos SA

Neurones SA

Wavestone SA

Aubay SA

Bureau Veritas SA

Alan Allman Associates SA

Eurofins Scientific SE

Carbios SA

Teleperformance SE

Why is Wavestone SA ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 44.59

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 14.86%

Flat results in Mar 25

ROCE(HY) Lowest at 12.58%
INTEREST COVERAGE RATIO(Q) Lowest at 1,966.06
DIVIDEND PAYOUT RATIO(Y) Lowest at 23.27%

With ROE of 0.00%, it has a Fair valuation with a 1.86 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.33%, its profits have risen by 15.3%

Market Beating performance in long term as well as near term

Along with generating 33.33% returns in the last 1 year, the stock has outperformed France CAC 40 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wavestone SA should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wavestone SA for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wavestone SA

33.33%

1.29

36.90%

France CAC 40

8.73%

0.52

16.76%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.46%

EBIT Growth (5y)

15.54%

EBIT to Interest (avg)

44.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.47

Tax Ratio

26.45%

Dividend Payout Ratio

14.88%

Pledged Shares

Institutional Holding

ROCE (avg)

24.55%

ROE (avg)

14.86%

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

1.86

EV to EBIT

EV to EBITDA

EV to Capital Employed

1.88

EV to Sales

16.30

PEG Ratio

Dividend Yield

2.64%

ROCE (Latest)

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 168.02 MM

CASH AND EQV(HY)

Highest at EUR 78.35 MM

DIVIDEND PER SHARE(HY)

Highest at EUR 3.59

NET SALES(Q)

Highest at EUR 485.85 MM

OPERATING PROFIT(Q)

Highest at EUR 77.11 MM

PRE-TAX PROFIT(Q)

Highest at EUR 65.21 MM

NET PROFIT(Q)

Highest at EUR 48.49 MM

EPS(Q)

Highest at EUR 1.98

-11What is not working for the Company

ROCE(HY)

Lowest at 12.58%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,966.06

DIVIDEND PAYOUT RATIO(Y)

Lowest at 23.27%

RAW MATERIAL COST(Y)

Grown by 13.8% (YoY

INTEREST(Q)

Highest at EUR 3.92 MM

Here's what is working for Wavestone SA

Operating Cash Flow

Highest at EUR 168.02 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Net Sales

Highest at EUR 485.85 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Operating Profit

Highest at EUR 77.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Pre-Tax Profit

Highest at EUR 65.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (EUR MM)

Net Profit

Highest at EUR 48.49 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (EUR MM)

EPS

Highest at EUR 1.98

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Cash and Eqv

Highest at EUR 78.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at EUR 3.59

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (EUR)

Here's what is not working for Wavestone SA

Interest Coverage Ratio

Lowest at 1,966.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at EUR 3.92 MM

in the last five periods and Increased by 95.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Dividend Payout Ratio

Lowest at 23.27%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 13.8% (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