How are energy investors positioned?
In a challenging market environment, Select Energy Services Inc. (NYSE:WTTR) stock has touched a 52-week low, dipping to $8.6. According to InvestingPro analysis, the stock appears undervalued despite its recent decline, with analysts setting price targets between $16.50 and $19.00. This latest price level reflects a notable decline amidst industry headwinds, with the stock falling 27.6% year-to-date and 16.3% over the past six months. Despite these challenges, the company maintains strong fundamentals with a healthy current ratio of 1.65 and moderate debt levels. Over the last twelve months, Select Energy Services has remained profitable with $218 million in EBITDA, while maintaining a solid gross profit margin of 25.7%. This 52-week low serves as a critical point for investors who are closely monitoring the company’s performance for signs of a turnaround or further decline. For deeper insights into WTTR’s valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, Select Water Solutions, Inc. reported its fourth-quarter earnings for 2024, revealing a miss in earnings per share (EPS) but a revenue beat. The company posted an EPS of -$0.02, falling short of the expected $0.11, while revenue reached $349 million, surpassing the anticipated $339.97 million. Despite the EPS miss, Select Water Solutions raised its quarterly dividend by 17% and continues to expand its water infrastructure and recycling capabilities. Raymond (NSE:RYMD) James maintained a Strong Buy rating on the company, setting a price target of $19.00, emphasizing the value of Select’s Water Infrastructure segment. The analyst noted that this segment presents a compelling value proposition compared to competitors, despite recent stock price volatility. Select Water Solutions achieved a gross margin of 53% in its Water Infrastructure division for the year, demonstrating operational strength. Looking ahead, the company anticipates a 15-25% revenue growth in its Water Infrastructure segment for 2025, with plans for significant capital expenditures. The company’s leadership expressed confidence in their infrastructure growth strategy, highlighting its unique market position.
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