Fundamental analysis: Aris Water Solutions, Inc. (ARIS)

Awarener score: 4.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Lacking), the business stability (Very poor) and growth (Superb), and the company's inclination to return cash to the stockholders (Very poor).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been growing at an extremely fast pace. It's been top tier when measured against peer companies.
Aris Water Solutions, Inc. business varies frequently, ups and downs are normal. It's risky. It looks worse than most rivals.

Margins score: 6.5

ARIS profit margins -on goods and services sold- are usually good. They stand mediocre against rival companies.
Business profit on sales tends to be good. It's last-in-rank when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain in a very weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still bottom tier against similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain last-in-rank when measured against rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands last-in-rank when measured against comparable firms.

Growth score: 5.7

Aris Water Solutions, Inc. profit -on goods and services sold- has been growing at a very good pace. It's been excellent in relation to competitors.
In recent years, earnings -on operations- have been growing at an excellent step, which has been better than most comparable firms.
Profits -available to repay debt and purchase properties- have been growing at an extremely fast pace, which compares great when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be excellent in relation to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 7.3

ARIS had to pay too much income taxes in relation to profits made in the past years. It's been worse than most peers.
Research and development expenses hardly consume a portion of revenues. It's last-in-rank when measured against competitors.
The company shows excellent business growth in relation to research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 7.5

Aris Water Solutions, Inc. usually gets very good returns on the resources it controls. It proves encouraging in relation to peer firms.
The company normally gets good proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
There's usually some profitability -in relation to owned resources-. It ranks last-in-rank when measured against competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 4.4

ARIS usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands top tier when measured against rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is last-in-rank when measured against industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came top-notch against competitors.
Has recently started or restarted paying dividends to stockholders. Business prospects are most likely good. The company has behaved impressive in relation to similar firms.
The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
The company has heavily enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains a disappointment compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.7

Aris Water Solutions, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be a slight improvement compared to similar firms.
Roughly a third of resources controlled were provided for with financial debt. Creditors have claims on the company. It remains somewhat worse than rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is worse than most similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks last-in-rank when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers two months after the purchase. It ranks substantially worse when measured against industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's a disappointment compared to similar companies.
Usual business earnings barely cover net interest expenses. Creditors may be earning money by assuming risks, but hardly shareholders. Situation is risky, profitability must increase, or additional stockholders' funding will eventually be required. It stands worse than most rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks a slight improvement compared to similar firms.
Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 3.5

Aris Water Solutions, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be substantially worse when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands worse than most similar companies.
In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still almost average when measured against industry firms.
In the past twelve months, the company has largely enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among a lot more stockholders. It came up a disappointment compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks substantially worse when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks impressive in relation to rival firms.
The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 5.6

Company at a glance: Aris Water Solutions, Inc. (ARIS)

Sector, industry: Utilities, Utilities—Regulated Water

Market Cap: 0.89 billions

Revenues TTM: 0.32 billions

Aris Water Solutions, Inc., an environmental infrastructure and solutions company, provides water handling and recycling solutions. The company's produced water handling business gathers, transports, unless recycled, and handles produced water generated from oil and natural gas production. Its water solutions business develops and operates recycling facilities to treat, store, and recycle produced water. The company was founded in 2015 and is headquartered in Houston, Texas.