Select Water Solutions, Inc. (WTTR) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Select Water Solutions's price-to-book of 2.08 is above the Oil and Gas Field Services median of 1.36.

Trading above fair value

The share price of $16.43 is above our fair value estimate of $8.76.

Margin of safety under 20%

The price is 87.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 7.8% over the last twelve months; the Oil and Gas Field Services median is 4.6%.

Guidance lowered

Select Water Solutions lowered its third quarter of 2026 gross margins before D&A outlook on Aug 4, 2026.

Gross margin improving

Gross margin was 17.7% over the last twelve months, against 14.3% a year earlier.

Return on equity under 15%

Return on equity was 5.2% over the last twelve months and averaged 3.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Select Water Solutions's return on equity of 5.2% is above the Oil and Gas Field Services median of 1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 3.3% over the last twelve months, against a 5-year average of 1.3%.

Net margin above the industry

Select Water Solutions's net margin of 3.3% is above the Oil and Gas Field Services median of 0.9%.

Low debt

Debt is 22.3% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 101% of total debt.

Interest not well covered

Operating income covers interest expense 3.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.61 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Select Water Solutions paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Select Water Solutions yields 1.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 72.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.