WTTRSelect Water Solutions, Inc.
Is the business good?
The checks split: earnings fully cash-backed (5.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WTTR?
Select Water Solutions, Inc. earns 3.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.9 points below what the capital costs: growth destroys value
- Operating margin
- 3.5%
Operating margin · Oil & Gas Equipment & Services median 10% · 12 months to Q2 2026
- Cash conversion
- 5.91×
Cash conversion · 4.79× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 16%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −65% |
| FY2021 | −8.6% |
| FY2022 | 2.8% |
| FY2023 | 3.9% |
| FY2024 | 3.8% |
| FY2025 | 2.1% |
Details›
- Gross margin12 months to Q2 2026
- 16%
- Operating margin12 months to Q2 2026
- 3.5%
- Net margin12 months to Q2 2026
- 2.2%
- Free cash flow margin
- −5.7%
- Revenue, trailing twelve months
- $1.43B
- Free cash flow, trailing twelve months
- −$82M
- Net income, trailing twelve months
- $32M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Equipment & Services
Ranks #23 of 29 by RyuScore