Aris Water Solutions, Inc.

NYSE:ARIS Stock Report

Market Cap: US$1.4b

Aris Water Solutions Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Discounted Cash Flow
Simply Wall St
US$21.68
Fair Value
13.4% overvalued intrinsic discount
12
Number of Analysts

Below Fair Value: ARIS ($24.58) is trading above our estimate of fair value ($21.68)

Significantly Below Fair Value: ARIS is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As ARIS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ARIS. This is calculated by dividing ARIS's market cap by their current earnings.
What is ARIS's PE Ratio?
PE Ratio30.6x
EarningsUS$24.88m
Market CapUS$1.43b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ARIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.6x
LBRT Liberty Energy
5.9x-9.2%US$1.8b
OII Oceaneering International
11.6xn/aUS$1.7b
INVX Innovex International
7.5xn/aUS$1.0b
SEI Solaris Energy Infrastructure
45.4x82.3%US$1.2b
ARIS Aris Water Solutions
30.6x37.7%US$1.4b

Price-To-Earnings vs Peers: ARIS is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does ARIS's PE Ratio compare vs other companies in the US Energy Services Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PKDC Parker Drilling
1.3xn/aUS$165.56m
BASX.Q Basic Energy Services
n/an/aUS$24.00
No more companies available in this PE range
ARIS 30.6xIndustry Avg. 10.3xNo. of Companies13PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ARIS is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the US Energy Services industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is ARIS'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.

ARIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.6x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: ARIS is expensive based on its Price-To-Earnings Ratio (30.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

Analyst Price Targets

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

The above table shows the analyst ARIS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$24.58
US$32.42
+31.9%
6.8%US$35.00US$28.00n/a12
Apr ’26US$32.59
US$32.42
-0.5%
6.8%US$35.00US$28.00n/a12
Mar ’26US$31.46
US$28.73
-8.7%
11.3%US$34.00US$23.00n/a11
Feb ’26US$25.53
US$27.36
+7.2%
8.6%US$31.00US$23.00n/a11
Jan ’26US$23.95
US$26.09
+8.9%
12.7%US$30.00US$18.00n/a11
Dec ’25US$26.90
US$23.91
-11.1%
12.8%US$29.00US$18.00n/a11
Nov ’25US$16.29
US$19.41
+19.1%
8.1%US$23.00US$17.00n/a11
Oct ’25US$16.86
US$19.14
+13.5%
5.9%US$21.00US$17.00n/a11
Sep ’25US$16.82
US$19.18
+14.0%
5.8%US$21.00US$17.00n/a11
Aug ’25US$16.85
US$19.09
+13.3%
6.4%US$21.00US$17.00n/a11
Jul ’25US$15.51
US$18.68
+20.5%
5.4%US$20.00US$17.00n/a11
Jun ’25US$15.37
US$18.32
+19.2%
9.2%US$20.00US$14.00n/a11
May ’25US$13.73
US$15.36
+11.9%
11.9%US$18.00US$11.00n/a11
Apr ’25US$14.12
US$15.05
+6.6%
11.9%US$18.00US$11.00US$32.5911
Mar ’25US$12.18
US$14.09
+15.7%
14.3%US$17.00US$9.00US$31.4611
Feb ’25US$8.76
US$13.91
+58.8%
14.2%US$17.00US$9.00US$25.5311
Jan ’25US$8.39
US$14.00
+66.9%
14.3%US$17.00US$9.00US$23.9511
Dec ’24US$8.40
US$13.90
+65.5%
14.9%US$17.00US$9.00US$26.9010
Nov ’24US$8.26
US$13.90
+68.3%
14.9%US$17.00US$9.00US$16.2910
Oct ’24US$9.98
US$14.33
+43.6%
11.4%US$17.00US$11.00US$16.869
Sep ’24US$10.45
US$14.33
+37.2%
11.4%US$17.00US$11.00US$16.829
Aug ’24US$10.94
US$14.00
+28.0%
17.8%US$20.00US$10.00US$16.859
Jul ’24US$10.32
US$13.89
+34.6%
18.1%US$20.00US$10.00US$15.519
Jun ’24US$9.16
US$13.40
+46.3%
20.9%US$20.00US$9.00US$15.3710
May ’24US$7.49
US$13.75
+83.6%
18.8%US$20.00US$9.00US$13.7310
Apr ’24US$7.79
US$15.32
+96.6%
14.9%US$20.00US$12.50US$14.1211
AnalystConsensusTarget
Consensus Narrative from 12 Analysts
US$32.42
Fair Value
24.2% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/15 09:52
End of Day Share Price 2025/04/15 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Aris Water Solutions, Inc. is covered by 18 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Marc SolecittoBarclays
Christine ChoBarclays
Marc SolecittoBarclays