Education
About Us
Working with TipRanks
Follow Us
Wavestone SA (GB:0G1T)
:0G1T
Top Page
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
Financial Performance
The IT consulting expert reported a slight decline in 3Q-24/25 sales, as expected.
Market Conditions
The French political crisis and budgetary situation is a significant headwind for quarters to come.
Outlook
The group also confirmed its FY-24/25 outlook of a slight decline in proforma adjusted EBIT.
Wavestone (0G1T) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
€1.40B
Dividend Yield1.02%
Average Volume (3M)0.00
Price to Earnings (P/E)12.1
Beta (1Y)0.98
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees5,875
SectorTechnology
Sector Strength83
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.98
Shares Outstanding24,906,332
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-11.95
Price to Book (P/B)2.41
Price to Sales (P/S)0.00
P/FCF Ratio19.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€65.00Price Target Upside31.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Wavestone Business Overview & Revenue Model
Company DescriptionWavestone SA provides management and digital consulting services primarily in France and internationally. It offers consulting services in the areas of finance, telecom, media and entertainment, consumer goods and retail, manufacturing, energy and utilities, transportation and travel, real estate, public sector, and international institutions. The company was formerly known as Solucom SA and changed its name to Wavestone SA in July 2016. Wavestone SA was founded in 1990 and is based in Paris, France.
How the Company Makes Money
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.90
Very Positive
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.85
Very Positive
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.92
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 882.19M | 701.06M | 532.26M | 470.06M | 417.61M | 422.04M | Gross Profit |
| 197.12M | 167.79M | 116.41M | 215.94M | 93.49M | 94.81M | EBIT |
| 94.14M | 85.78M | 72.69M | 72.81M | 43.26M | 53.52M | EBITDA |
| 106.65M | 95.55M | 77.61M | 80.33M | 53.03M | 64.21M | Net Income Common Stockholders |
| 62.46M | 58.20M | 50.07M | 51.03M | 25.38M | 31.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 50.71M | 77.48M | 70.82M | 108.25M | 88.01M | 65.13M | Total Assets |
| 384.23M | 977.74M | 536.79M | 494.24M | 446.47M | 449.57M | Total Debt |
| 89.42M | 84.39M | 59.46M | 65.97M | 86.44M | 131.91M | Net Debt |
| 38.71M | 6.91M | -11.37M | -42.28M | -1.56M | 66.78M | Total Liabilities |
| 233.42M | 406.35M | 237.74M | 237.25M | 240.41M | 272.43M | Stockholders Equity |
| 150.81M | 569.47M | 299.05M | 256.98M | 206.06M | 177.14M |
| Cash Flow | Free Cash Flow | ||||
| 72.03M | 78.67M | 35.36M | 55.23M | 69.19M | 49.75M | Operating Cash Flow |
| 76.24M | 81.77M | 41.15M | 56.34M | 70.82M | 55.30M | Investing Cash Flow |
| -100.33M | -69.02M | -52.73M | -12.48M | -849.00K | -29.53M | Financing Cash Flow |
| 20.91M | -7.41M | -25.85M | -23.96M | -47.17M | -11.17M |
Wavestone Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| €1.40B | 12.08 | 12.58% | 1.02% | ― | ― | ||
62 Neutral | $11.81B | 10.34 | -7.44% | 2.91% | 7.41% | -7.93% | |
| €2.56B | 13.71 | 8.78% | 2.05% | ― | ― | ||
| €704.22M | 0.01 | 58.08% | ― | ― | ― | ||
| €642.89M | 17.26 | 14.12% | 2.56% | ― | ― | ||
| €1.14B | 21.54 | 14.35% | 2.57% | ― | ― | ||
| €3.95B | 15.63 | 16.26% | 2.39% | ― | ― |
* Technology Sector Average
Performance Comparison
GB:0G1T
Wavestone
49.50
-14.84
-23.06%
GB:0O1S
ALTEN SA
73.65
-39.74
-35.05%
GB:0DNH
Atos SE
38.82
-45.84
-54.15%
GB:0IPY
Aubay Société Anonyme
50.80
7.51
17.35%
GB:0GX2
Neurones
46.65
1.50
3.32%
GB:0NJQ
Sopra Steria
194.80
-19.65
-9.16%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.