Aris Water Solutions, Inc.
$23.69
+0.0000%Aris Water Solutions, Inc., an environmental infrastructure and solutions company, provides water handling and recycling solutions. The company's produced water handling business gathers, transports, unless recycled, and handles produced water generated from oil and natural gas production. Its water solutions business develops and operates recycling facilities to treat, store, and recycle produced water. The company was founded in 2015 and is headquartered in Houston, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 29.1).
Valuation inputs: P/E 29.1, earnings yield +3.4%, momentum 0.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +1.6%, ROIC +1.6%).
Profitability stack: net margin +5.4%, ROE +1.6%, ROIC +1.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +46.7%, momentum 0.0%, net margin +5.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Aris Water Solutions, Inc. Market vs Earnings Trajectory
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Aris Water Solutions, Inc. Fair Value Envelope
Aris Water Solutions, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Aris Water Solutions, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Aris Water Solutions, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Strong liquidity. The company has adequate resources to meet short-term liabilities.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Aris Water Solutions, Inc. Street Expectations Map
Wall Street analysts project that ARIS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 27.33, with estimates ranging from a low of 25.00 to a high of 30.00.
The consensus 1-year price target stands at 27.33, with estimates ranging from a low of 25.00 to a high of 30.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Aris Water Solutions, Inc. Insider Positioning
During the last 12 months, insiders have sold $5.47M worth of ARIS shares, with no buying activity reported.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
645.8K
5.32M
-5.3M
-$5.32M
9-12 Months
0
0.00
6.0K
145.57K
-146K
-$146K
Top Buyers
No buying activity
Top Sellers
Brock Amanda M
Director, Officer: President And Ceo
$2.30M
Zartler William A
Director, Officer: Founder And Executive Chairman
$1.41M
Tompsett Stephan E
Officer: Chief Financial Officer
$799K
Hunt Robert W Jr
Officer: Chief Legal Officer And Sec.
$388K
Van Brunt David Dylan
Officer: Chief Operating Officer
$384K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $5.47M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
aris Dividend History
Learning Layer
Related Guides
Build conviction on ARIS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.