Aris Water Solutions, Inc.

Energy
Oilfield Services/Equipment
www.ariswater.com

Earnings Score
Moat Score
Safety Score

Market Cap $772.25M
PE 31
Debt $455.00M
Cash $32.76M
EV $1.19B
FCF $17.51M

Earnings

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Sales & Net Margins

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Earnings	$24.60M
EBIT	$105.07M
ROE	3%
ROA	7%
FCF	$17.51M
Equity	$726.76M
Growth Stability	100%
PE	31.39
PEG	0.55
PB	1.06
P/FCF	44.1
P/S	1.83
Price/Cash	0.04
Debt/Equity	0.63
Debt/FCF	25.99
Net Margins	6%
Gross Margins	41%
Op. Margins	25%
Earnings CAGR	57%
Sales Growth YoY	13%
Sales Growth QoQ	11%
Sales CAGR	25%
FCF CAGR	-4%
Equity CAGR	6%
Earnings Stability	-0.6
Earnings Growth YoY	36%
Earnings Growth QoQ	26%
Earnings CAGR 5Y	57%

Sales CAGR 5Y	25%
FCF CAGR 5Y	-4%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	24%
Sales CAGR 3Y	24%
FCF CAGR 3Y	18%
Equity CAGR 3Y	7%
Market Cap	$772.25M
Revenue	$420.96M
Dividend Yield	3%
Payout Ratio	96%
Assets	$1.40B
Total Debt	$455.00M
Cash	$32.76M
Shares Outstanding	30.51M
EV	1.19B
Earnings Score	6%
Moat Score	67%
Safety Score	73%
Final Score	49%
Working Capital	64.28M
Current Ratio	1.72
Gross Profit	$170.98M
Shares Growth 3y	17%
Equity Growth QoQ	2%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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Aris Water Solutions Inc is an environmental infrastructure and solutions company that helps customers reduce their water and carbon footprints. It has two primary revenue streams. The Produced Water Handling business gathers, transports, and, unless recycled, handles produced water generated from oil and natural gas production. The Water Solutions business develops and operates recycling facilities to treat, store and recycle produced water.

SEC Filings

Direct access to Aris Water Solutions, Inc. (ARIS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Aris Water Solutions, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Aris Water Solutions, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 57%

Stability -60%

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Aris Water Solutions, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Aris Water Solutions, Inc..

Years

Calculation mode

= $137M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$18M	$17M	$16M	$16M	$15M	$15M	$14M	$13M	$13M	$13M	$12M	$121M
DCF		$15M	$13M	$12M	$10M	$9M	$7.9M	$6.9M	$6.1M	$5.3M	$4.7M	$47M
Value	$137M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	11%	-3%	-3%	0%	5%	6%
ROA	-	-	2%	3%	6%	7%
ROE	-	-	-1%	0%	3%	3%

Bad Net Margins (6.16%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-25.23	-5.7	30.22	25.99
Debt over Equity	-	0.47	0.66	0.66	0.62	0.63
Growth Stability	-	-	-	100%	-	100%

Bad Debt/FCF ratio (25.99)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.63)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	44%	34%	40%	22%	25%
Earnings YoY growth	-	-133%	62%	-114%	2K%	57%
Equity YoY growth	-	16%	-5%	9%	5%	6%
FCF YoY growth	-	-60%	-78%	381%	-119%	-4%