A

Aris Water Solutions Inc
NYSE:ARIS

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Aris Water Solutions Inc
NYSE:ARIS
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Price: 16.56 USD 1.66% Market Closed
Market Cap: 962.3m USD
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Intrinsic Value

The intrinsic value of one ARIS stock under the Base Case scenario is 18.71 USD. Compared to the current market price of 16.56 USD, Aris Water Solutions Inc is Undervalued by 11%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

ARIS Intrinsic Value
18.71 USD
Undervaluation 11%
Intrinsic Value
Price
A
Worst Case
Base Case
Best Case

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Aris Water Solutions Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Aris Water Solutions Inc

Current Assets 123.8m
Cash & Short-Term Investments 11.5m
Receivables 106.9m
Other Current Assets 5.4m
Non-Current Assets 1.3B
PP&E 991m
Intangibles 248.3m
Other Non-Current Assets 24m
Current Liabilities 94.9m
Accounts Payable 42.1m
Accrued Liabilities 50.3m
Short-Term Debt 1.9m
Other Current Liabilities 679k
Non-Current Liabilities 955.9m
Long-Term Debt 444.7m
Other Non-Current Liabilities 511.2m
Efficiency

Earnings Waterfall
Aris Water Solutions Inc

Revenue
408.4m USD
Cost of Revenue
-247.6m USD
Gross Profit
160.9m USD
Operating Expenses
-61.3m USD
Operating Income
99.5m USD
Other Expenses
-76.1m USD
Net Income
23.4m USD

Free Cash Flow Analysis
Aris Water Solutions Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Aris Water Solutions reported a robust first half of 2024, with a 5% year-over-year increase in produced water volumes and a 17% rise in adjusted EBITDA to $50 million in Q2. Despite some deferred customer completions, they anticipate higher water volumes later in the year and improved operating margins sustained at $0.46 per barrel. Their strategic focus includes an iodine extraction facility in the Permian Basin and ongoing beneficial reuse tests with major industry partners. They raised their full-year adjusted EBITDA guidance to $195-$205 million, backed by significant balance sheet flexibility and targeted capital investments.

What is Earnings Call?
Fundamental Scores

ARIS Profitability Score
Profitability Due Diligence

Aris Water Solutions Inc's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Years Revenue Growth
Positive Gross Profit
Positive Operating Income
ROE is Increasing
49/100
Profitability
Score

Aris Water Solutions Inc's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

ARIS Solvency Score
Solvency Due Diligence

Aris Water Solutions Inc's solvency score is 30/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Average D/E
Low Altman Z-Score
30/100
Solvency
Score

Aris Water Solutions Inc's solvency score is 30/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ARIS Price Targets Summary
Aris Water Solutions Inc

Wall Street analysts forecast ARIS stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ARIS is 19.53 USD with a low forecast of 17.17 USD and a high forecast of 22.05 USD.

Lowest
Price Target
17.17 USD
4% Upside
Average
Price Target
19.53 USD
18% Upside
Highest
Price Target
22.05 USD
33% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for ARIS is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

ARIS Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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Profile

Aris Water Solutions Inc

Country

United States of America

Industry

Commercial Services & Supplies

Market Cap

962.1m USD

Dividend Yield

2.36%

Description

Aris Water Solutions, Inc. is an environmental infrastructure and solutions company which engages in the reduction of water and carbon footprints. The company is headquartered in Houston, Texas and currently employs 148 full-time employees. The company went IPO on 2021-10-22. The firm helps customers reduce their water and carbon footprints. The company delivers full-cycle water handling and recycling solutions for energy operations. Its integrated pipelines and related infrastructure create produced water management, recycling and supply solutions to operators in the core areas of the Permian Basin. The company manages its business through two streams: Produced Water Handling and Water Solutions. Its Produced Water Handling business gathers, transports and, unless recycled, 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 has approximately 680 miles of produced water pipeline, 47 produced water handling facilities and operates 12 produced water recycling facilities in the Delaware Basin.

Contact

TEXAS
Houston
9811 Katy Freeway, Suite 700
+12815013070.0

IPO

2021-10-22

Employees

148

Officers

Founder & Executive Chairman
Mr. William A. Zartler
President, CEO & Director
Ms. Amanda M. Brock
Chief Financial Officer
Mr. Stephan E. Tompsett
Chief Operating Officer
Mr. D. Dylan Van Brunt
Chief Accounting Officer
Mr. Jeffrey K. Hunt
Chief Scientist
Ms. Lisa Henthorne P.E.
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Senior Vice President of Finance & Investor Relations
Mr. David Tuerff
Chief Legal Officer & Secretary
Mr. Robert W. Hunt Jr., J.D.
Senior Vice President of Operations & Engineering
Mr. Jon Ricker
Senior Vice President of Land, Legal & Regulatory
Mr. Drew Dixon
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See Also

Discover More
What is the Intrinsic Value of one ARIS stock?

The intrinsic value of one ARIS stock under the Base Case scenario is 18.71 USD.

Is ARIS stock undervalued or overvalued?

Compared to the current market price of 16.56 USD, Aris Water Solutions Inc is Undervalued by 11%.

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