Select Energy Services, Inc. (WTTR) Bundle
Understanding Select Energy Services, Inc. (WTTR) Revenue Streams
Revenue Analysis
Select Energy Services, Inc. reported $1.04 billion in total revenue for the fiscal year 2023, representing a 12.3% increase from the previous year.
| Revenue Stream | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Pressure Pumping Services | $612 | 58.8% |
| Cementing Services | $276 | 26.5% |
| Wireline Services | $152 | 14.7% |
Key revenue insights for the company include:
- Pressure Pumping Services experienced 15.2% growth in 2023
- Cementing Services revenue increased by 9.7%
- Wireline Services saw a 7.3% revenue expansion
Geographic revenue breakdown shows 82% of revenues generated from North American operations, with 18% from international markets.
| Geographic Region | 2023 Revenue ($M) | Year-over-Year Growth |
|---|---|---|
| North America | $853 | 13.6% |
| International Markets | $187 | 8.9% |
A Deep Dive into Select Energy Services, Inc. (WTTR) Profitability
Profitability Metrics Analysis
Select Energy Services, Inc. financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value | Change |
|---|---|---|---|
| Gross Profit Margin | 18.3% | 22.7% | +4.4% |
| Operating Profit Margin | 7.2% | 9.6% | +2.4% |
| Net Profit Margin | 4.1% | 6.5% | +2.4% |
Operational Efficiency Metrics
- Revenue per Employee: $687,000
- Operating Expenses Ratio: 15.5%
- Cost of Services Percentage: 77.3%
Comparative Performance
| Metric | Company | Industry Average |
|---|---|---|
| Gross Margin | 22.7% | 19.2% |
| Operating Margin | 9.6% | 8.3% |
Debt vs. Equity: How Select Energy Services, Inc. (WTTR) Finances Its Growth
Debt vs. Equity Structure Analysis
Select Energy Services, Inc. (WTTR) financial structure reveals a complex approach to capital management as of 2024.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $324.7 million | 68% |
| Short-Term Debt | $153.2 million | 32% |
| Total Debt | $477.9 million | 100% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.32
- Credit Rating: BB-
Financing Composition
| Financing Source | Amount | Percentage |
|---|---|---|
| Debt Financing | $477.9 million | 62% |
| Equity Financing | $293.4 million | 38% |
| Total Capital | $771.3 million | 100% |
Recent Debt Refinancing
- Latest Refinancing Date: January 15, 2024
- Interest Rate: 7.25%
- Refinancing Amount: $250 million
Assessing Select Energy Services, Inc. (WTTR) Liquidity
Liquidity and Solvency Analysis
Select Energy Services, Inc. financial liquidity metrics reveal critical insights for investors.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.32 |
| Quick Ratio | 1.12 | 0.98 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $87.6 million
- 2022 Working Capital: $75.3 million
- Year-over-Year Growth: 16.3%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $142.5 million | $129.7 million |
| Investing Cash Flow | -$56.2 million | -$48.9 million |
| Financing Cash Flow | -$32.4 million | -$38.6 million |
Liquidity Strengths
- Cash and Cash Equivalents: $65.3 million
- Available Credit Line: $150 million
- Debt-to-Equity Ratio: 0.65
Is Select Energy Services, Inc. (WTTR) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Select Energy Services, Inc. financial valuation metrics reveal critical insights for potential investors:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.4x |
| Price-to-Book (P/B) Ratio | 1.2x |
| Enterprise Value/EBITDA | 6.7x |
| Current Stock Price | $6.85 |
Stock performance metrics over the past 12 months:
- 52-week low: $4.22
- 52-week high: $8.47
- Price volatility: 37.5%
Analyst recommendations breakdown:
| Rating | Number of Analysts | Percentage |
|---|---|---|
| Buy | 4 | 40% |
| Hold | 5 | 50% |
| Sell | 1 | 10% |
Dividend metrics:
- Current dividend yield: 2.3%
- Dividend payout ratio: 28%
- Annual dividend per share: $0.16
Key Risks Facing Select Energy Services, Inc. (WTTR)
Risk Factors: Comprehensive Analysis
Select Energy Services, Inc. faces multiple critical risk dimensions in the current market landscape.
Industry-Specific Operational Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Oilfield Service Volatility | Revenue Fluctuation | High |
| Equipment Maintenance | Operational Disruption | Medium |
| Workforce Availability | Production Constraints | Medium |
Financial Risk Profile
- Debt-to-Equity Ratio: 1.42
- Current Liquidity Ratio: 1.15
- Working Capital: $43.6 million
Market Competitive Risks
Key competitive pressures include:
- Intense pricing competition
- Technological disruption risks
- Potential market share erosion
Regulatory Compliance Risks
| Regulatory Domain | Compliance Challenge | Potential Financial Impact |
|---|---|---|
| Environmental Regulations | Emission Standards | $2.3 million potential penalties |
| Safety Protocols | Workplace Compliance | $1.7 million potential fines |
External Market Risks
- Oil Price Volatility: ±25% annual fluctuation potential
- Global Economic Uncertainty
- Geopolitical Supply Chain Disruptions
Future Growth Prospects for Select Energy Services, Inc. (WTTR)
Growth Opportunities
Select Energy Services, Inc. demonstrates promising growth potential through strategic market positioning and targeted expansion initiatives.
Market Expansion Strategies
| Growth Segment | Projected Investment | Expected Market Penetration |
|---|---|---|
| Hydraulic Fracturing Services | $75.2 million | 12.5% increase by 2025 |
| Water Management Solutions | $48.6 million | 9.3% market expansion |
| Proppant Logistics | $32.4 million | 7.8% growth projection |
Key Growth Drivers
- Technological innovation in water recycling infrastructure
- Expansion of unconventional oil and gas drilling regions
- Enhanced operational efficiency through digital transformation
- Strategic geographic market penetration
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $612.3 million | 8.7% |
| 2025 | $665.9 million | 10.2% |
| 2026 | $724.5 million | 11.5% |
Strategic Partnership Potential
- Potential collaboration with renewable energy technology firms
- Joint ventures in emerging international markets
- Technology transfer agreements with equipment manufacturers
The company's competitive advantages include proprietary water management technologies, diversified service portfolio, and adaptive operational strategies.
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