WashTec (WSU) AI Stock Analysis

• Market Cap: €509.87M
• Dividend Yield: 6.22%
• Average Volume (3M): 5.99K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.45
• Revenue Growth: 3.34%
• EPS Growth: 9.02%
• Country: DE
• Employees: 1,780
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.62
• Shares Outstanding: 13,976,970
• 10 Day Avg. Volume: 5,681
• 30 Day Avg. Volume: 5,991
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €52.00
• Price Target Upside: 34.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: €40.00 ▲(3.63% Upside)

WashTec's overall stock score is driven by its solid financial performance and attractive valuation. The company shows strong revenue growth and profitability, though there are concerns about operational efficiency and cash flow management. The technical analysis indicates a bearish trend, which is a risk factor. However, the stock's reasonable P/E ratio and high dividend yield provide a compelling valuation case.

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 key streams, including the sale of car wash systems, maintenance services, and spare parts. The primary revenue model is based on direct sales of their equipment to car wash operators and franchise businesses, which allows them to capitalize on the growing demand for automated and efficient car washing solutions. Additionally, WashTec earns consistent income from service contracts and maintenance agreements, ensuring ongoing customer support and equipment performance. Partnerships with automotive service providers and participation in industry trade shows further enhance their market presence and contribute to revenue generation by increasing brand visibility and attracting new clients.

WashTec Financial Statement Overview

Summary

WashTec demonstrates strong revenue growth and profitability, with effective use of equity to generate returns. The company manages its leverage well, but the low equity ratio could be a concern. Cash flow generation is stable, though recent declines in free cash flow growth warrant attention. Overall, WashTec is in a solid financial position with opportunities for improvement in operational efficiency and cash flow management.

Income Statement

WashTec's income statement shows a solid performance with a consistent revenue growth trend, particularly in the TTM period with an impressive 87% growth rate. The company maintains healthy gross and net profit margins, although there was a slight decline in EBIT and EBITDA margins in the TTM period compared to the previous year. Overall, the income statement reflects strong revenue growth and profitability, with some room for improvement in operational efficiency.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio, which has improved in the TTM period, suggesting better leverage management. Return on equity is strong, indicating effective use of equity to generate profits. However, the equity ratio is relatively low, which could pose a risk if the company faces financial challenges. Overall, the balance sheet is stable with a good return on equity, but there is potential risk due to lower equity levels.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth in the TTM period, which is a concern. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to net income. The free cash flow to net income ratio is healthy, suggesting efficient cash conversion. Despite the decline in free cash flow growth, the company maintains a solid cash flow position, though improvements in free cash flow generation are needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	489.18M	476.89M	489.47M	482.24M	430.53M	378.67M
Gross Profit	152.57M	147.66M	136.53M	129.41M	126.73M	213.55M
EBITDA	58.51M	60.57M	56.79M	53.23M	60.27M	42.70M
Net Income	31.62M	31.03M	27.97M	26.36M	31.08M	13.30M
Balance Sheet
Total Assets	280.73M	279.68M	271.31M	284.48M	267.00M	243.98M
Cash, Cash Equivalents and Short-Term Investments	15.43M	20.90M	16.67M	14.21M	19.70M	20.99M
Total Debt	78.70M	65.77M	58.56M	59.46M	33.79M	39.28M
Total Liabilities	216.82M	191.17M	185.54M	196.36M	168.56M	147.73M
Stockholders Equity	63.91M	88.51M	85.76M	88.13M	98.45M	96.25M
Cash Flow
Free Cash Flow	40.55M	41.34M	43.69M	14.41M	41.40M	41.61M
Operating Cash Flow	49.69M	49.72M	58.41M	21.94M	45.66M	46.27M
Investing Cash Flow	-10.29M	-10.24M	-15.66M	-6.52M	-3.40M	-675.00K
Financing Cash Flow	-46.20M	-43.96M	-34.38M	-47.67M	-39.39M	-9.54M

WashTec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WSU, the sentiment is Positive. The current price of 38.6 is above the 20-day moving average (MA) of 37.18, above the 50-day MA of 38.54, and above the 200-day MA of 38.56, indicating a bullish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WSU.

WashTec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSU	66 Neutral	€509.87M	16.12	47.90%	6.22%	3.34%	9.02%
HDD	63 Neutral	583.11M	15.98	0.92%	―	3.97%	0.00%
JST	55 Neutral	727.12M	19.26	10.89%	3.07%	5.34%	-9.83%
F3C	54 Neutral	301.40M	90.55	2.39%	―	11.79%	-86.24%
SKB	46 Neutral	218.79M	-4.25	-21.22%	―	2.41%	-42.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%