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Relative valuation derived from Energy sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 41.8GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
4.6%
Sector: 6.7%
Dividend Analysis audit
INCOME
2.62%
Trailing Yield
$2.62
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
115%HIGH
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Select Water Solutions, Inc. (WTTR) receives a "Hold" rating with a composite score of 47.0/100, ranked #565 out of 4446 stocks. Key factor scores: Quality 42/100, Value 52/100, Momentum 63/100. This is quantitative analysis only — not investment advice.
Select Water Solutions, Inc. (WTTR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Select Water Solutions, Inc. Do?
Select Energy Services, Inc., an oilfield services company, provides water management and chemical solutions to the onshore oil and gas industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Oilfield Chemicals. The Water Services segment provides water-related services, including water transfer, flow back and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various on-site rental equipment and workforce accommodation services. The Water Infrastructure segment develops, builds, and operates semi-permanent and permanent pipeline infrastructure solutions to support oil and gas well development. The Oilfield Chemicals segment develops, manufactures, and provides a suite of chemicals, water treatment solutions, and services used in hydraulic fracturing, stimulation, cementing, production, pipelines, and well completions, including polymers, viscosity, crosslinkers, friction reducers, surfactants, buffers, breakers, and other chemical technologies to pressure pumping service companies. This segment also offers production chemical solutions for underperforming wells and ancillary oilfield services comprising corrosion and scale monitoring, chemical inventory management, well failure analysis, and lab services. Select Energy Services, Inc. was incorporated in 2016 and is headquartered in Houston, Texas. Select Water Solutions, Inc. (WTTR) is classified as a small-cap stock in the Energy sector, specifically within the Petroleum And Natural Gas industry. The company is led by CEO John D. Schmitz and employs approximately 4,000 people. With a market capitalization of $1.8B, WTTR is one of the notable companies in the Energy sector.
Select Water Solutions, Inc. (WTTR) Stock Rating — Hold (April 2026)
As of April 2026, Select Water Solutions, Inc. receives a Hold rating with a composite score of 47.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.WTTR ranks #565 out of 4,446 stocks in our coverage universe. Within the Energy sector, Select Water Solutions, Inc. ranks #68 of 128 stocks, placing it in the lower half of its Energy peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WTTR Stock Price and 52-Week Range
Select Water Solutions, Inc. (WTTR) currently trades at $15.00. The stock lost $0.12 (0.8%) in the most recent trading session. The 52-week high for WTTR is $15.45, which means the stock is currently trading -2.9% from its annual peak. The 52-week low is $7.20, putting the stock 108.3% above its annual trough. Recent trading volume was 867K shares, suggesting relatively thin trading activity.
Is WTTR Overvalued or Undervalued? — Valuation Analysis
Select Water Solutions, Inc. (WTTR) carries a value factor score of 52/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 43.72x, compared to the Energy sector average of 19.63x — a premium of 123%. The price-to-book ratio stands at 2.00x, versus the sector average of 1.64x. The price-to-sales ratio is 1.29x, compared to 0.47x for the average Energy stock. On an enterprise value basis, WTTR trades at 37.09x EV/EBITDA, versus 3.50x for the sector.
Overall, WTTR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Select Water Solutions, Inc. Profitability — ROE, Margins, and Quality Score
Select Water Solutions, Inc. (WTTR) earns a quality factor score of 42/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 4.6%, compared to the Energy sector average of 6.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 2.6% versus the sector average of 3.7%.
On a margin basis, Select Water Solutions, Inc. reports gross margins of 15.3%, compared to 52.7% for the sector. The operating margin is 3.6% (sector: 10.7%). Net profit margin stands at 2.9%, versus 6.4% for the average Energy stock. Revenue growth is running at -11.8% on a trailing basis, compared to -1.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
WTTR Debt, Balance Sheet, and Financial Health
Select Water Solutions, Inc. has a debt-to-equity ratio of 35.0%, compared to the Energy sector average of 55.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.57x, suggesting adequate working capital coverage. Total debt on the balance sheet is $320M. Cash and equivalents stand at $18M.
WTTR has a beta of 1.19, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Select Water Solutions, Inc. is 54/100, reflecting average volatility within the normal range for its sector.
Select Water Solutions, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Select Water Solutions, Inc. reported revenue of $1.43B. Net income for the quarter was $42M. Gross margin was 15.3%. Operating income came in at $54M.
In FY 2025, Select Water Solutions, Inc. reported revenue of $1.41B. Net income for the quarter was $21M. Gross margin was 14.4%. Revenue grew -3.1% year-over-year compared to FY 2024. Operating income came in at $29M.
In Q3 2025, Select Water Solutions, Inc. reported revenue of $322M. Net income for the quarter was $2M. Gross margin was 13.5%. Revenue grew -13.2% year-over-year compared to Q3 2024. Operating income came in at $-2M.
In Q2 2025, Select Water Solutions, Inc. reported revenue of $364M. Net income for the quarter was $12M. Gross margin was 15.9%. Revenue grew -0.3% year-over-year compared to Q2 2024. Operating income came in at $15M.
Over the past 8 quarters, Select Water Solutions, Inc. has demonstrated a growth trajectory, with revenue expanding from $365M to $1.43B. Investors analyzing WTTR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WTTR Dividend Yield and Income Analysis
Select Water Solutions, Inc. (WTTR) currently pays a dividend yield of 2.6%. At this yield, a $10,000 investment in WTTR stock would generate approximately $$262.00 in annual dividend income. This compares to the Energy sector average dividend yield of 1.9%, meaning WTTR offers above-average income for its sector.
WTTR Momentum and Technical Analysis Profile
Select Water Solutions, Inc. (WTTR) has a momentum factor score of 63/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WTTR vs Competitors — Energy Sector Ranking and Peer Comparison
Comparing WTTR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WTTR vs S&P 500 (SPY) comparison to assess how Select Water Solutions, Inc. stacks up against the broader market across all factor dimensions.
WTTR Next Earnings Date
No upcoming earnings date has been announced for Select Water Solutions, Inc. (WTTR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WTTR? — Investment Thesis Summary
Select Water Solutions, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 63/100, suggesting the trend favors buyers.
In summary, Select Water Solutions, Inc. (WTTR) earns a Hold rating with a composite score of 47.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WTTR stock.
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Institutional Research Dossier
Select Water Solutions, Inc. (WTTR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Select Water Solutions (WTTR) receives a Hold rating, reflecting a balanced view of its potential and challenges. While the company operates in a crucial segment of the energy industry, providing water management and chemical solutions, its financial performance exhibits inconsistencies and its valuation appears stretched relative to its peers. The Hold rating acknowledges the company's strategic importance in the oil and gas sector but tempers enthusiasm due to concerns about profitability, cash flow, and competitive pressures.
The primary concern revolves around WTTR's ability to consistently generate free cash flow and improve its margins. Despite its significant revenue base, the company's net income and free cash flow have been volatile, and its profitability metrics lag behind the sector average. While the company's EV/EBITDA multiple appears attractive, the high P/E ratio and negative free cash flow raise questions about its current valuation. Investors should closely monitor the company's ability to improve its operational efficiency and capitalize on growth opportunities in the water management and chemical solutions market.
Business Strategy & Overview
Select Water Solutions operates as a critical service provider within the onshore oil and gas industry, focusing on water management and chemical solutions. The company's business is segmented into Water Services, Water Infrastructure, and Oilfield Chemicals, each addressing specific needs within the oil and gas lifecycle. The Water Services segment offers a comprehensive suite of services, including water transfer, flowback, containment, and monitoring, catering to the immediate water-related requirements of oil and gas operations. The Water Infrastructure segment focuses on developing and operating permanent pipeline solutions, providing a long-term approach to water management. The Oilfield Chemicals segment develops and manufactures chemicals used in hydraulic fracturing, stimulation, and production, offering solutions to enhance well performance and efficiency.
WTTR's strategic positioning centers on providing integrated solutions to its clients, aiming to capture a larger share of their spending on water management and chemical needs. The company's technology solutions, such as hydrographic mapping and remote monitoring, differentiate it from competitors by offering enhanced efficiency and data-driven insights. The company's focus on developing permanent water infrastructure solutions reflects a long-term vision, capitalizing on the increasing demand for sustainable water management practices in the oil and gas industry. This strategy aims to reduce reliance on trucking and other less efficient methods of water transportation, potentially lowering costs and environmental impact.
The company's success is closely tied to the activity levels in the oil and gas industry, particularly in shale basins across the United States. Fluctuations in oil and gas prices directly impact drilling and production activity, which in turn affects the demand for WTTR's services. WTTR's ability to adapt to changing market conditions and maintain strong relationships with its clients is crucial for its long-term success. The company also faces competition from other oilfield service companies, as well as from in-house water management capabilities developed by some oil and gas operators.
WTTR's product pipeline focuses on developing innovative chemical solutions and enhancing its technology offerings. The company invests in research and development to create new chemicals that improve well performance, reduce costs, and minimize environmental impact. The company also continues to expand its technology platform, incorporating advanced sensors, data analytics, and automation to optimize water management operations. These investments are aimed at strengthening WTTR's competitive position and attracting new clients.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-11.8%
Sector: -1.2%
+904% VS SCTR
Economic Moat Analysis
Select Water Solutions' economic moat is likely narrow, stemming primarily from switching costs and, to a lesser extent, specialized knowledge in water management and chemical solutions. The company's integrated service offerings, particularly in water infrastructure, create some stickiness with customers. Once a pipeline infrastructure is established, switching to a competitor involves significant disruption and capital expenditure, providing WTTR with a degree of customer retention. However, this moat is not insurmountable, as competitors can offer alternative solutions or develop their own infrastructure.
The Oilfield Chemicals segment benefits from specialized knowledge and formulations tailored to specific well conditions. Developing and testing these chemicals requires expertise and time, creating a barrier to entry for new competitors. However, the chemical market is also characterized by innovation and the emergence of new solutions, which can erode WTTR's competitive advantage if it fails to keep pace with technological advancements. The company's ability to continuously improve its chemical formulations and offer customized solutions is crucial for maintaining its market share.
The water services segment, while generating a significant portion of revenue, faces intense competition and lower barriers to entry. Water transfer and containment services are relatively commoditized, with numerous providers offering similar services. WTTR's scale and geographic reach provide some advantage, but it is difficult to differentiate based solely on these factors. The company's technology solutions, such as remote monitoring and automation, offer a potential source of differentiation, but these technologies are also becoming increasingly prevalent in the industry.
Overall, WTTR's economic moat is not wide enough to provide a significant and sustainable competitive advantage. While the company benefits from switching costs in water infrastructure and specialized knowledge in chemicals, these advantages are limited and can be eroded by competition and technological change. The company's ability to strengthen its moat depends on its continued investment in innovation, its ability to offer integrated solutions, and its success in building long-term relationships with its clients.
Financial Health & Profitability
Select Water Solutions' financial health presents a mixed picture. While the company generates substantial revenue, its profitability and cash flow generation have been inconsistent. The company's revenue for the latest fiscal year was $1.41 billion, a decrease of 11.8% compared to the previous year's $1.59 billion. This decline in revenue raises concerns about the company's ability to maintain its market share and capitalize on growth opportunities. The sector average revenue growth is -1.7%, so WTTR is underperforming its sector.
The company's net income for the latest fiscal year was $21.47 million, significantly lower than the $79.22 million reported in the previous year. This decline in net income reflects the challenges the company faces in managing its costs and improving its operational efficiency. The company's gross margin of 15.3% and operating margin of 3.6% are significantly lower than the sector averages of 55.1% and 10.6%, respectively, indicating that the company is struggling to convert its revenue into profits. The quarterly financial history shows fluctuations in gross and operating margins, suggesting that the company's profitability is sensitive to changes in market conditions and operating costs.
WTTR's free cash flow has been negative for the past two fiscal years, with a free cash flow of -$150.17 million in the latest fiscal year and -$105.97 million in the previous year. This negative free cash flow raises concerns about the company's ability to fund its operations and investments without relying on external financing. The company's total debt of $320 million is significantly higher than its total cash of $17.83 million, resulting in a debt-to-equity ratio of 35.00, which is lower than the sector average of 55.00. While the debt-to-equity ratio is relatively manageable, the company's negative free cash flow and low cash balance increase its financial risk.
The company's current ratio of 1.57 indicates that it has sufficient liquid assets to cover its short-term liabilities. However, the company's overall financial health is weakened by its inconsistent profitability, negative free cash flow, and relatively high debt level. The company needs to improve its operational efficiency, reduce its costs, and generate positive free cash flow to strengthen its financial position and reduce its reliance on external financing.
Valuation Assessment
Select Water Solutions' valuation presents a mixed picture. The company's P/E ratio of 40.5x is significantly higher than the sector average of 19.5x, suggesting that the stock is overvalued relative to its earnings. However, the company's EV/EBITDA multiple of 2.8x is lower than the sector average of 3.5x, indicating that the stock may be undervalued relative to its enterprise value and operating performance. The discrepancy between these two valuation metrics highlights the challenges in assessing WTTR's true value.
The high P/E ratio reflects the market's expectations for future earnings growth, but it also raises concerns about the company's current profitability. The company's net income has been volatile, and its earnings per share (EPS) has not been consistently positive. If the company fails to meet the market's expectations for earnings growth, its P/E ratio could decline significantly, resulting in a lower stock price. The company's negative free cash flow further complicates the valuation picture. A company with negative free cash flow is typically valued lower than a company with positive free cash flow, as it indicates that the company is not generating enough cash to fund its operations and investments.
The company's valuation is also influenced by its growth prospects and its competitive position in the oilfield services industry. The demand for water management and chemical solutions is expected to grow in the coming years, driven by the increasing complexity of oil and gas operations and the growing focus on environmental sustainability. If WTTR can capitalize on these growth opportunities and strengthen its competitive position, its valuation could increase. However, the company faces intense competition from other oilfield service companies, and its ability to differentiate itself and maintain its market share is crucial for its long-term success.
Overall, WTTR's valuation appears stretched given its inconsistent profitability, negative free cash flow, and high P/E ratio. While the company's EV/EBITDA multiple suggests that it may be undervalued, the other valuation metrics raise concerns about its current valuation. Investors should carefully consider the company's growth prospects, its competitive position, and its ability to improve its financial performance before making an investment decision.
Risk & Uncertainty
Select Water Solutions faces several specific risks that could negatively impact its business and financial performance. The most significant risk is its dependence on the cyclical nature of the oil and gas industry. Fluctuations in oil and gas prices directly affect drilling and production activity, which in turn impacts the demand for WTTR's services. A prolonged downturn in the oil and gas industry could significantly reduce the company's revenue and profitability. The company attempts to mitigate this risk by diversifying its service offerings and expanding its geographic reach, but it remains vulnerable to industry-wide downturns.
Another significant risk is the increasing competition in the oilfield services industry. WTTR faces competition from other large oilfield service companies, as well as from smaller, regional players. The company's ability to differentiate itself and maintain its market share is crucial for its long-term success. The company's technology solutions and integrated service offerings provide some competitive advantage, but it must continue to innovate and improve its services to stay ahead of the competition.
Regulatory risks also pose a threat to WTTR's business. The oil and gas industry is subject to extensive environmental regulations, and changes in these regulations could increase the company's costs and reduce its profitability. For example, regulations related to water disposal and chemical usage could significantly impact the company's operations. The company must comply with all applicable regulations and adapt to any changes in the regulatory landscape.
Bulls Say / Bears Say
The Bull Case
BULL VIEWSelect Water Solutions is well-positioned to benefit from the increasing demand for water management and chemical solutions in the oil and gas industry, driven by the growing complexity of operations and the focus on environmental sustainability.
BULL VIEWThe company's integrated service offerings and technology solutions provide a competitive advantage, allowing it to capture a larger share of its clients' spending and improve its profitability.
The Bear Case
BEAR VIEWSelect Water Solutions' inconsistent profitability and negative free cash flow raise concerns about its financial health and its ability to fund its operations and investments without relying on external financing.
BEAR VIEWThe company's high P/E ratio suggests that the stock is overvalued, and its dependence on the cyclical oil and gas industry makes it vulnerable to downturns in the market.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score WTTR and 4,400+ other equities.
Select Water Solutions, Inc. exhibits a 320% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.6%
Sector: 3.7%
Gross Margin
Pricing power and cost efficiency
15.3%
Sector: 52.7%
Operating Margin
Core business profitability
3.6%
Sector: 10.7%
Net Margin
Bottom-line profitability
2.9%
Sector: 6.4%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield1.89%
Yield Delta+39%
Income Projection audit
A $10,000 investment would generate approximately $262 annually in dividends at the current trailing rate.
