Wavestone (WAVE) AI Stock Analysis

• Market Cap: €1.41B
• Dividend Yield: 0.67%
• Average Volume (3M): 10.41K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.00
• Revenue Growth: 34.61%
• EPS Growth: 13.69%
• Country: FR
• Employees: 5,875
• Sector: Services
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 1.98
• Shares Outstanding: 24,906,332
• 10 Day Avg. Volume: 10,870
• 30 Day Avg. Volume: 10,412
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €65.00
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: €64.00 ▲(11.89% Upside)

Wavestone's strong financial performance is the most significant factor, supported by solid revenue growth and profitability. The technical analysis suggests a neutral trend with potential for a rebound. The valuation is fair, with a reasonable P/E ratio and modest dividend yield. The absence of earnings call and corporate events data limits the analysis to these components.

Positive Factors

Growth Potential

In the event of a cyclical rebound, Wavestone will be able to benefit from embedded growth of +3% and a capacity to lift its utilisation rate by two percentage points.

Valuation

Wavestone trades at a meaningful discount to the stock's historical valuation multiples, and to completed industry deals.

Negative Factors

Earnings Outlook

Wavestone published slightly disappointing half-year results for 2024/25 and a profit warning for the FY-24/25.

Financial Performance

The IT consulting expert reported a slight decline in sales, as expected, and confirmed a slight decline in proforma adjusted EBIT.

Market Conditions

The French political crisis and budgetary situation is a significant headwind for quarters to come.

Wavestone Business Overview & Revenue Model

Company Description

Wavestone (WAVE) is an international consulting firm specializing in transformation and innovation strategies for businesses across various sectors, including finance, healthcare, energy, and technology. The company focuses on providing consulting services that encompass digital transformation, strategic management, operational efficiency, and IT services. Wavestone aims to help organizations navigate complex challenges and leverage emerging technologies to enhance their competitive edge in the market.

How the Company Makes Money

Wavestone generates revenue primarily through its consulting services, which include strategic advisory, operational improvement, and digital transformation projects. The company operates on a fee-for-service model, charging clients based on the scope and duration of consulting engagements. Key revenue streams include project-based fees, long-term contracts, and retainer agreements with clients. Additionally, Wavestone forms strategic partnerships with technology firms and industry leaders, which not only enhances its service offerings but also contributes to its revenue through collaborative projects and joint ventures. The firm's expertise in specific sectors allows it to command premium prices for its specialized services, further driving its financial performance.

Wavestone Financial Statement Overview

Summary

Wavestone's financial performance is impressive, characterized by robust revenue growth, strong profitability, and efficient cash flow management. The company's balance sheet reflects financial stability and prudent debt management. Overall, Wavestone is well-positioned for continued success in the competitive software services industry.

Income Statement

Wavestone demonstrates strong revenue growth with a significant increase from the previous year, showing resilience in the software services industry. The gross profit margin is stable, and the net profit margin has improved, reflecting enhanced operational efficiency. EBIT and EBITDA margins are healthy, indicating effective cost management and profitability.

Balance Sheet

The company's balance sheet is robust with a favorable debt-to-equity ratio, indicating prudent leverage management. The equity ratio is solid, showcasing strong financial stability. High return on equity (ROE) highlights effective utilization of shareholder equity to generate profits.

Cash Flow

Wavestone's cash flow is exceptional with substantial free cash flow growth, ensuring liquidity and financial flexibility. The operating cash flow to net income ratio signifies strong cash generation abilities, and the free cash flow to net income ratio further underscores the company's capability to convert profits into free cash flow efficiently.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	943.67M	943.67M	701.06M	532.26M	470.06M	417.61M
Gross Profit	166.47M	344.64M	167.79M	116.41M	215.94M	93.49M
EBITDA	123.68M	127.84M	95.55M	77.61M	80.33M	53.03M
Net Income	75.56M	75.56M	58.20M	50.07M	51.03M	25.38M
Balance Sheet
Total Assets	979.95M	979.95M	977.74M	536.79M	494.24M	446.47M
Cash, Cash Equivalents and Short-Term Investments	78.35M	78.35M	77.48M	70.82M	108.25M	88.01M
Total Debt	80.77M	80.77M	84.39M	59.46M	65.97M	86.44M
Total Liabilities	346.55M	346.55M	406.35M	237.74M	237.25M	240.41M
Stockholders Equity	631.96M	631.96M	569.47M	299.05M	256.98M	206.06M
Cash Flow
Free Cash Flow	82.93M	84.44M	78.67M	35.36M	55.23M	69.19M
Operating Cash Flow	87.77M	89.28M	81.77M	41.15M	56.34M	70.82M
Investing Cash Flow	-48.74M	-48.74M	-69.02M	-52.73M	-12.48M	-849.00K
Financing Cash Flow	-37.15M	-40.18M	-7.41M	-25.85M	-23.96M	-47.17M

Wavestone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:WAVE, the sentiment is Positive. The current price of 57.2 is below the 20-day moving average (MA) of 58.11, above the 50-day MA of 56.85, and above the 200-day MA of 49.05, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 10.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:WAVE.

Wavestone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUB	76 Outperform	$626.27M	16.65	14.12%	2.65%	1.16%	15.37%
WAVE	73 Outperform	€1.41B	18.51	12.58%	0.67%	34.61%	13.69%
NRO	72 Outperform	€1.05B	19.33	14.35%	3.05%	9.33%	6.21%
ATE	72 Outperform	€2.39B	12.82	8.78%	2.16%	1.83%	-21.09%
SOP	70 Outperform	€3.74B	13.37	14.39%	2.54%	-4.12%	43.37%
Sector *	66 Neutral	€3.93B	16.52	-4.02%	4.38%	2.15%	-15.30%
ATO	34 Underperform	€625.32M	0.41	58.08%	―	-10.44%	49.00%

Wavestone Corporate Events

Wavestone Updates Share Capital and Voting Rights

Wavestone announced that as of February 28, 2025, its capital comprised 24,906,332 shares in circulation, with a total of 37,223,364 voting rights. This update reflects the company’s adherence to regulatory requirements and highlights its strong market position, potentially impacting shareholder decisions and market perceptions.

Wavestone Updates Shareholders on Capital Structure and Voting Rights

Wavestone has announced that as of January 31, 2025, its capital comprises 24,906,332 outstanding shares and a total of 37,228,464 voting rights. This development reflects the firm’s ongoing commitment to transparency and effective stakeholder communication, enhancing its industry position and reinforcing its operational strategy.