One-glance verdict
Within fair range
$14.46 our estimate vs market $20.67
Wall Street consensus: $24.00 (65.9% higher than our fair-value estimate)
43% above our estimate
Fundamentals snapshot
Select Water Solutions, Inc.
WTTR · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$20.67
52-week range
$9.22 - $22.55
Market cap
$2.95B
Balance sheet
Stretched
1.54x Concerning
Net debt $258.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.6% last year.
- Reward Returns 3.1% on equity, ahead of 50% of its peers.
- Risk Net debt grew 359.4% over 3 years.
- Risk Stock trades 131.3% above its 5-year average P/E.
What this company does
Select Water Solutions, Inc.
Select Water Solutions acts like a full-service plumber for the oil and gas industry, managing all the water needed for drilling from start to finish. They make money by building and operating the pipeline infrastructure (the system of pipes and facilities that move and treat water) and by selling the necessary chemicals, making them a crucial partner for energy producers.
How the company got here
Founded in 2008 as Select Energy Services, the company started by providing water-related services to the growing U.S. shale oil and gas industry. A key turning point was in 2017 when it became a publicly traded company and combined with Rockwater Energy Solutions, which significantly expanded its offerings in water services and chemical technologies. To better reflect its core focus, the company rebranded to Select Water Solutions in 2023. Through strategic acquisitions, it has grown its infrastructure, including pipelines and recycling facilities, to become a major player in water management for the energy sector.
What it actually does
Think of Select Water Solutions as a specialized plumbing and water treatment service for the oil and gas industry. When energy companies drill for oil and gas, they use and produce massive amounts of water, and Select manages that entire lifecycle. They handle everything from sourcing fresh water, moving it to the drilling site, treating it, and then safely disposing of or recycling the used water. They also provide the necessary chemicals to help with the drilling and production process, making them a one-stop-shop for water and chemical needs in the oilfield.
Water Infrastructure
This segment is the company's network of permanent assets, like pipelines, recycling facilities, and disposal wells. Instead of trucking water, oil and gas producers pay Select to transport and manage water through this fixed system, which is often more efficient. This part of the business provides more stable, recurring revenue (income that is predictable and likely to continue in the future) because it's based on long-term contracts for using the infrastructure. Management is heavily investing in growing this segment, as it offers more predictable and long-term returns.
Water Services
This is the company's on-demand service division, which was its original and is still its largest business. It includes services like sourcing and transferring water to well sites, hauling fluids, well testing, and renting out equipment like tanks and pumps. Customers, the oil and gas producers, pay for these services on a project-by-project basis. This segment's revenue can be more volatile because it depends on the immediate level of drilling and completion activity in the oilfields.
Chemical Technologies
This division develops and sells the specialty chemicals used in the oil and gas extraction process. For example, they provide chemicals that help release oil and gas from rock formations, prevent corrosion in pipes, and treat water to be reused. Oil and gas companies purchase these products to make their operations more efficient and to manage their water quality. This business is a natural fit with their water services, allowing them to offer an integrated package to customers.
What management is betting on now
The company's main strategy is to focus on expanding its Water Infrastructure segment by investing in pipelines and recycling facilities. This shifts the company towards more stable, long-term contracts and away from the more fluctuating, project-based work of Water Services. They are also emphasizing sustainability by developing technologies for water recycling and reuse, which helps their customers reduce their use of freshwater. By becoming an integrated provider of both water infrastructure and chemical solutions, management aims to create more value for their customers and secure more predictable, long-term growth for the company.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$14.44M
FY2024 Q4
$12.69M
FY2025 Q1
$-53.49M
FY2025 Q2
$3.18M
FY2025 Q3
$-23.53M
FY2025 Q4
$-6.05M
FY2026 Q1
$-68.14M
FY2026 Q2
$15.72M
Revenue
$395.81M
Net income
$21.04M
Diluted EPS
—
Operating cash flow
$86.74M
Free cash flow
$15.72M
Fetching…
Sources
Revenue
$365.96M
Net income
$8.61M
Diluted EPS
—
Operating cash flow
$10.24M
Free cash flow
$-68.14M
Fetching…
Sources
Revenue
$346.50M
Net income
$-346.00K
Diluted EPS
—
Operating cash flow
$65.45M
Free cash flow
$-6.05M
Fetching…
Sources
Revenue
$322.24M
Net income
$2.68M
Diluted EPS
—
Operating cash flow
$71.70M
Free cash flow
$-23.53M
Fetching…
Sources
Revenue
$364.21M
Net income
$10.65M
Diluted EPS
—
Operating cash flow
$82.59M
Free cash flow
$3.18M
Fetching…
Sources
Revenue
$374.38M
Net income
$8.24M
Diluted EPS
—
Operating cash flow
$-5.06M
Free cash flow
$-53.49M
Fetching…
Sources
Revenue
$349.05M
Net income
$-1.64M
Diluted EPS
—
Operating cash flow
$67.77M
Free cash flow
$12.69M
Fetching…
Sources
Revenue
$371.35M
Net income
$15.79M
Diluted EPS
—
Operating cash flow
$51.88M
Free cash flow
$14.44M
Fetching…
Sources
Is it cheap or expensive?
Fair value $14.46 vs current price $20.67
Wall Street consensus is the average analyst price target: $24.00 (65.9% higher than our fair-value estimate).
Our most-likely fair value is $14.46 a share — about 30.0% away from today's price of $20.67, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $258.6M. Interest coverage 1.5x.
Net debt
$258.56M
Interest coverage
1.54x
Select Water Solutions, Inc.'s profit covers its interest bill about 1.5 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
WTTR
BASELINE
Select Water Solutions, Inc.
Total debt $291.95M Interest coverage 1.54x This is the baseline the peer rows are being compared against.
Total debt $505.83M Interest coverage 9.25x +500% vs WTTR Carries about 6.0x more debt cushion than WTTR.
Total debt $1.61B Interest coverage 2.24x +45% vs WTTR Carries about 1.5x more debt cushion than WTTR.
Total debt $1.29B Interest coverage -0.56x -100% vs WTTR This peer has almost no interest-payment cushion compared with WTTR.
Total debt $857.89M Interest coverage 2.25x +46% vs WTTR Carries about 1.5x more debt cushion than WTTR.
What you should know
The case for and against WTTR
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.6% last year.
-
Returns 3.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Net debt grew 359.4% over 3 years.
-
Stock trades 131.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
71.28x
Forward P/E
30.72x
P/B
2.54x
P/S
2.06x
EV/EBITDA
11.89x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
29.3%
Operating margin
8.8%
Net margin
2.2%
ROE
3.1%
ROA
2.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.58x
Quick ratio
1.28x
Total debt
$291.95M
Total cash
$33.40M
Growth
How the business has been compounding
Revenue TTM
$1.43B
Revenue 5Y CAGR
16.5%
EPS TTM
0.29
EPS 5Y CAGR
-25.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$234.13M
Free CF TTM
$-79.89M
FCF margin
-5.6%
Dividend
Shareholder payout
Yield
1.4%
Payout ratio
100.0%
Last ex-div date
2026-08-07