Select Water Solutions Inc. Class A common stock (WTTR)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Select Water Solutions as a cyclical oilfield service business, not a consumer franchise. It supplies water infrastructure, services, and chemicals to U.S. energy producers. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $395.8M and net income $21.0M, better than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $364.2M and net income $10.6M. But the longer record is uneven: FY2023 revenue was $1.6B and net income $74.4M; FY2024 revenue was $1.5B and net income $30.6M; FY2025 revenue was $1.4B and net income $21.2M. That tells me pricing and activity are largely outside management's control. FairStock's calculations show ROE of 3.13% and ROCE of 2.28%, weak for a capital-intensive business, while trailing free cash flow is negative $82.0M. Debt/equity of 0.26 is not alarming, and a Piotroski F-Score of 7/9 suggests some accounting strength, but an Altman Z-Score of 2.15 is only middling. The moat is modest: pipelines, recycling, and disposal sites can create local advantages, but customers are tied to the energy cycle. At the 2026-10-13 close of $19.35, FairStock calculates a P/E of 69.11, P/B of 2.38, PEG of 0.71, EV/EBITDA of 9.07, and a Graham Number of $7.21, leaving a negative 168.38% margin of safety. The $2.0B market value already assumes a recovery. I would want durable cash generation and returns above the cost of capital before calling this a bargain.

In plain English: Select Water Solutions sells water handling and related services to U.S. energy companies. The business looks mixed: it is not very profitable, earns low returns on its assets, and burned cash over the last year, though the latest quarter was better. At the $19.35 close on 2026-10-13, the stock looks expensive compared with recent profits and net assets, so the price is not offering a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer