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WSTE

Webstep OB:WSTEP Stock Report

Last Price

kr34.80

Market Cap

kr953.8m

7D

7.7%

1Y

25.6%

Updated

11 Aug, 2022

Data

Company Financials +
WSTEP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends3/6

WSTEP Stock Overview

Webstep ASA, together with its subsidiaries, provides information technology (IT) consultancy services to public and private businesses in Norway and Sweden.

Rewards

Trading at 62.6% below our estimate of its fair value

Earnings are forecast to grow 15.27% per year

Earnings grew by 29.2% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months


Webstep Competitors

Itera

OB:ITERA

kr990.3m

ECIT

OB:ECIT

kr2.9b

Bouvet

OB:BOUV

kr6.6b

Atea

OB:ATEA

kr13.1b

Price History & Performance

Summary of all time highs, changes and price drops for Webstep
Historical stock prices
Current Share Pricekr34.80
52 Week Highkr38.80
52 Week Lowkr27.30
Beta0.82
1 Month Change6.10%
3 Month Change16.39%
1 Year Change25.63%
3 Year Change45.00%
5 Year Changen/a
Change since IPO28.89%

Recent News & Updates

Apr 28
Webstep (OB:WSTEP) Has Announced That It Will Be Increasing Its Dividend To kr1.70

Webstep (OB:WSTEP) Has Announced That It Will Be Increasing Its Dividend To kr1.70

Webstep ASA's ( OB:WSTEP ) dividend will be increasing to kr1.70 on 9th of May. This takes the dividend yield from 5.5...

Shareholder Returns

WSTEPNO ITNO Market
7D7.7%-0.05%1.9%
1Y25.6%-22.3%9.8%

Return vs Industry: WSTEP exceeded the Norwegian IT industry which returned -23.3% over the past year.

Return vs Market: WSTEP exceeded the Norwegian Market which returned 8.7% over the past year.

Price Volatility

Is WSTEP's price volatile compared to industry and market?
WSTEP volatility
WSTEP Average Weekly Movement4.2%
IT Industry Average Movement5.3%
Market Average Movement6.8%
10% most volatile stocks in NO Market12.5%
10% least volatile stocks in NO Market3.7%

Stable Share Price: WSTEP is less volatile than 75% of Norwegian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WSTEP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000492Save Asmervikhttps://www.webstep.com

Webstep ASA, together with its subsidiaries, provides information technology (IT) consultancy services to public and private businesses in Norway and Sweden. The company offers digitalization, cloud migration and integration, Internet of Things, machine learning, IT security, robotics, and analytics. Its services include consulting, digitalization,

Webstep Fundamentals Summary

How do Webstep's earnings and revenue compare to its market cap?
WSTEP fundamental statistics
Market Capkr953.80m
Earnings (TTM)kr52.71m
Revenue (TTM)kr813.78m

18.1x

P/E Ratio

1.2x

P/S Ratio

Is WSTEP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WSTEP income statement (TTM)
Revenuekr813.78m
Cost of Revenuekr680.71m
Gross Profitkr133.08m
Other Expenseskr80.37m
Earningskr52.71m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)1.92
Gross Margin16.35%
Net Profit Margin6.48%
Debt/Equity Ratio0%

How did WSTEP perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

87%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WSTEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WSTEP?

Other financial metrics that can be useful for relative valuation.

WSTEP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA12.3x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does WSTEP's PE Ratio compare to its peers?

WSTEP PE Ratio vs Peers
The above table shows the PE ratio for WSTEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28x
ITERA Itera
21.1x15.7%kr990.3m
ECIT ECIT
52.9xn/akr2.9b
BOUV Bouvet
22.6x7.6%kr6.6b
ATEA Atea
15.5x11.7%kr13.1b
WSTEP Webstep
18.1x15.3%kr953.8m

Price-To-Earnings vs Peers: WSTEP is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (28x).

Price to Earnings Ratio vs Industry

How does WSTEP's PE Ratio compare vs other companies in the European IT Industry?

Price-To-Earnings vs Industry: WSTEP is good value based on its Price-To-Earnings Ratio (18.1x) compared to the Norwegian IT industry average (21.4x)

Price to Earnings Ratio vs Fair Ratio

What is WSTEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WSTEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio22.3x

Price-To-Earnings vs Fair Ratio: WSTEP is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).

Share Price vs Fair Value

What is the Fair Price of WSTEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WSTEP (NOK34.8) is trading below our estimate of fair value (NOK93.01)

Significantly Below Fair Value: WSTEP is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Webstep forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

15.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSTEP's forecast earnings growth (15.3% per year) is above the savings rate (1.1%).

Earnings vs Market: WSTEP's earnings (15.3% per year) are forecast to grow faster than the Norwegian market (0.3% per year).

High Growth Earnings: WSTEP's earnings are forecast to grow, but not significantly.

Revenue vs Market: WSTEP's revenue (8.2% per year) is forecast to grow faster than the Norwegian market (-0.9% per year).

High Growth Revenue: WSTEP's revenue (8.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WSTEP's Return on Equity is forecast to be low in 3 years time (17.7%).

Discover growth companies

Past Performance

How has Webstep performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

-0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WSTEP has high quality earnings.

Growing Profit Margin: WSTEP's current net profit margins (6.5%) are higher than last year (5.8%).

Past Earnings Growth Analysis

Earnings Trend: WSTEP's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: WSTEP's earnings growth over the past year (29.2%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: WSTEP earnings growth over the past year (29.2%) exceeded the IT industry 18.5%.

Return on Equity

High ROE: WSTEP's Return on Equity (12.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Webstep's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WSTEP's short term assets (NOK239.9M) exceed its short term liabilities (NOK234.8M).

Long Term Liabilities: WSTEP's short term assets (NOK239.9M) exceed its long term liabilities (NOK48.3M).

Debt to Equity History and Analysis

Debt Level: WSTEP is debt free.

Reducing Debt: WSTEP has no debt compared to 5 years ago when its debt to equity ratio was 111.9%.

Debt Coverage: WSTEP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WSTEP has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Webstep current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

4.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WSTEP's dividend (4.89%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.67%).

High Dividend: WSTEP's dividend (4.89%) is low compared to the top 25% of dividend payers in the Norwegian market (6.77%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WSTEP has been paying a dividend for less than 10 years.

Growing Dividend: WSTEP's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (87.4%), WSTEP's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (77.6%), WSTEP's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure

CEO

Save Asmervik

1.5yrs

Tenure

Mr. Save Asmervik has been Chief Executive Officer at Webstep ASA since February 15, 2021. Mr. Asmervik has since 2011 served as regional director of Webstep in Trondheim. Mr. Asmervik has a long and stro...

Leadership Team

Experienced Management: WSTEP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: WSTEP's board of directors are considered experienced (3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: WSTEP insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Webstep ASA's employee growth, exchange listings and data sources

Key Information

  • Name: Webstep ASA
  • Ticker: WSTEP
  • Exchange: OB
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: kr953.797m
  • Shares outstanding: 27.41m
  • Website: https://www.webstep.com

Number of Employees

Location

  • Webstep ASA
  • Universitetsgata 2
  • Oslo
  • Oslo
  • 164
  • Norway

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.