WashTec (WSU) AI Stock Analysis

• Market Cap: €643.69M
• Dividend Yield: 5.13%
• Average Volume (3M): 3.09K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.50
• Revenue Growth: 7.24%
• EPS Growth: 22.00%
• Country: DE
• Employees: 1,780
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.73
• Shares Outstanding: 13,976,970
• 10 Day Avg. Volume: 3,774
• 30 Day Avg. Volume: 3,086
• PEG Ratio: 1.59
• Price to Book (P/B): 6.14
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 13.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €54.00
• Price Target Upside: 12.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €52.00 ▲(8.11% Upside)

WashTec's overall stock score reflects strong technical momentum and a solid valuation with a high dividend yield. Financial performance is robust, but high leverage and inconsistent revenue growth are potential risks. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for WashTec's products and services, enhancing its market position and long-term financial stability.

Profitability

Sustained profitability reflects efficient operations and pricing power, supporting WashTec's ability to reinvest in growth and innovation.

Leverage Management

Improved leverage management enhances financial flexibility, reducing risk and supporting strategic investments for future growth.

Negative Factors

Equity Ratio

A low equity ratio may limit WashTec's ability to absorb financial shocks, potentially impacting its long-term financial resilience.

Free Cash Flow Growth

Declining free cash flow growth could constrain WashTec's ability to fund operations and strategic initiatives, affecting future growth potential.

Margin Decline

Decreasing margins may signal rising costs or pricing pressure, potentially impacting WashTec's profitability and competitive edge.

WashTec Business Overview & Revenue Model

Company Description

WashTec AG provides solutions for car wash in Europe, North America, and the Asia Pacific. The company offers various roll-over, self-service, and commercial vehicle wash equipment, as well as associated peripheral devices. It also provides wash tunnel systems; water reclaim systems; equipment maintenance; service projects and upgrades; spare parts; and digital solutions, as well as car wash chemicals under the Auwa brand. In addition, the company offers car wash management services; and financial services, such as financing and leasing solutions. It serves petroleum companies, convenience stores, individual filling stations, and filling station operator chains; and car wash operators, automobile repair shops, supermarket chains, road freight companies, and public transport operators. WashTec AG was founded in 1885 and is headquartered in Augsburg, Germany.

How the Company Makes Money

WashTec generates revenue through multiple streams, primarily by selling car wash systems and equipment to commercial operators, including gas stations, car dealerships, and standalone car wash facilities. The company also earns money from service contracts, which include regular maintenance and parts replacement for their installed systems. Additionally, WashTec benefits from recurring revenue through consumables, such as cleaning agents and water recycling systems. Strategic partnerships with automotive manufacturers and service providers contribute to its market presence and revenue growth, as they facilitate expanded distribution and customer access. Overall, WashTec's focus on innovation and quality service solidifies its financial performance in the competitive car wash industry.

WashTec Financial Statement Overview

Summary

WashTec demonstrates solid financial performance with strong profitability and cash generation. However, high leverage and inconsistent revenue growth present potential risks. Continued focus on stabilizing revenue growth and managing debt levels will be crucial for maintaining financial health.

Income Statement

WashTec's income statement shows a stable revenue growth rate of 2.39% TTM, indicating a positive trend in sales. The gross profit margin of 31.19% and net profit margin of 6.46% TTM reflect healthy profitability, although slightly below industry leaders. EBIT and EBITDA margins are solid at 9.55% and 11.96% respectively, suggesting efficient operational management. However, the revenue growth has been inconsistent over the years, which could pose a risk if not stabilized.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.23 TTM, indicating significant leverage which could be risky if not managed properly. Return on equity is strong at 40.02% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 25.52%, suggesting a moderate reliance on equity financing. Overall, while profitability is strong, the high leverage could be a concern if market conditions worsen.

Cash Flow

WashTec's cash flow statement shows a positive free cash flow growth rate of 3.67% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 1.48 TTM suggests strong cash conversion efficiency. However, the free cash flow to net income ratio of 0.82 TTM indicates that a significant portion of net income is not translating into free cash flow, which could limit reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.85M	476.89M	489.47M	482.24M	430.53M	378.67M
Gross Profit	158.05M	147.66M	136.53M	129.41M	126.73M	213.55M
EBITDA	66.47M	60.57M	56.79M	53.23M	60.27M	41.95M
Net Income	34.73M	31.03M	27.97M	26.36M	31.08M	13.30M
Balance Sheet
Total Assets	288.61M	279.68M	271.31M	284.48M	267.00M	243.98M
Cash, Cash Equivalents and Short-Term Investments	18.30M	20.90M	16.67M	14.21M	19.70M	20.99M
Total Debt	76.61M	65.77M	58.56M	59.46M	33.79M	39.28M
Total Liabilities	214.98M	191.17M	185.54M	196.36M	168.56M	147.73M
Stockholders Equity	73.63M	88.51M	85.76M	88.13M	98.45M	96.25M
Cash Flow
Free Cash Flow	42.04M	41.34M	43.69M	14.41M	41.40M	41.61M
Operating Cash Flow	51.37M	49.72M	58.41M	21.94M	45.66M	46.27M
Investing Cash Flow	-9.12M	-10.24M	-15.66M	-6.52M	-3.40M	-675.00K
Financing Cash Flow	-45.83M	-43.96M	-34.38M	-47.67M	-39.39M	-9.54M

WashTec Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WSU, the sentiment is Neutral. The current price of 48.1 is below the 20-day moving average (MA) of 48.49, above the 50-day MA of 47.07, and above the 200-day MA of 41.53, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:WSU.

WashTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSU	75 Outperform	€643.69M	18.53	47.28%	5.13%	7.24%	22.00%
JST	70 Outperform	€934.23M	32.30	8.47%	2.81%	21.74%	-20.68%
HDD	65 Neutral	€560.59M	13.84	8.07%	―	5.97%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SKB	52 Neutral	€153.68M	-9.98	-4.67%	―	4.81%	75.36%
F3C	49 Neutral	€245.31M	-665.09	-0.27%	―	5.15%	-101.58%