(WTTR) Select Energy - Ratings and Ratios

Select Water Solutions, Inc., formerly known as Select Energy Services, Inc., is a leading provider of comprehensive water management and chemical solutions to the energy industry in the United States. The companys operations are diversified across three key segments: Water Services, Water Infrastructure, and Chemical Technologies, enabling it to offer a broad range of services and products that cater to the complex needs of oil and gas producers.

The Water Services segment is a critical component of the companys operations, providing an array of water-related services including sourcing, transfer, flowback, and well testing, as well as advanced technology solutions such as hydrographic mapping and water quality monitoring. Additionally, the segment offers surface rental equipment and workforce accommodation services, underscoring the companys commitment to delivering holistic solutions to its clients.

The Water Infrastructure segment is another vital part of Select Water Solutions business, focusing on the recycling, gathering, transferring, and disposal of water through a network of pipelines, recycling facilities, and other infrastructure. The company also provides solids management services and develops customized infrastructure solutions, highlighting its ability to adapt to the evolving needs of the energy industry.

The Chemical Technologies segment rounds out the companys offerings, providing technical solutions, products, and services related to chemical applications in oil and gas production. This includes the development, manufacture, and logistics management of chemicals used in hydraulic fracturing, stimulation, and well completions, as well as production chemical solutions aimed at optimizing well performance.

From a technical analysis perspective, WTTRs stock has shown a recent uptrend, with its last price at $9.17 and a 20-day SMA of $8.55, indicating a potential buy signal. However, the stock remains below its 200-day SMA of $11.11, suggesting that it is still in a longer-term downtrend. The ATR of 0.36, or 3.95%, indicates moderate volatility.

Fundamentally, Select Water Solutions has a market capitalization of $1.063 billion and a forward P/E ratio of 19.23, which is relatively reasonable compared to its peers in the Oil & Gas Equipment & Services sub-industry. The companys RoE of 4.46% suggests that it is generating returns, albeit modest, on its equity.

Forecasting future performance, if the current uptrend continues and the stock breaks above its 200-day SMA, it could potentially target the 52-week high of $14.79. Conversely, if the stock fails to gain traction and falls below its 20-day SMA, it may retest the 52-week low of $7.30. Given the current fundamental and technical data, a reasonable price target for WTTR could be around $12.00 in the next 6-12 months, contingent upon the companys ability to maintain its current momentum and improve its profitability.