Aris Water Solutions, Inc.

Aris Water Solutions, Inc.

ARISยทNYSE

$23.69

+0.0000%
UtilitiesRegulated Water

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 Snapshot
Market Cap$774.71M
EPS0.1900
P/E Ratio29.07
Earnings Date11/03/2025

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation 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 confidence

Return 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 confidence

Risk 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.

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Aris Water Solutions, Inc. Market vs Earnings Trajectory

ARIS ยท NYSE

Loading price and EPS data...

Aris Water Solutions, Inc.

Aris Water Solutions, Inc. Fair Value Envelope

ARIS ยท NYSE

Our analysis suggests that ARIS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $23.69, this represents a potential HIDDEN relative to our calculated worth for Aris Water Solutions, Inc..

Intrinsic Value
Current Price: $23.69
3Y-353.0%
5Y+27.0%
10Y-1524.0%
3Y+90.0%
5Y+267.0%
10Y+1347.0%
3Y-391.0%
5Y+106.0%
10Y-3667.0%
3Y+204.0%
5Y+4211.0%
10Y+7341.0%
3Y-598.0%
5Y-144.0%
10Y+4590.0%
3Y+26.0%
5Y+69.0%
10Y+4187.0%
Aris Water Solutions, Inc.

Aris Water Solutions, Inc. Profit Bridge

ARIS ยท NYSE
Revenue435.44M
Cost of Goods Sold (257.56M)
Gross Profit177.89M
Operating Expenses (71.14M)
Operating Income106.75M
Interest Expense (36.23M)
Other Income/Expense-36.23M
Pretax Income70.52M
Income Tax (10.34M)
Net Income26.86M
Net Income
26.86M

Profitability Analysis

Gross Margin

40.9%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

24.5%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

6.2%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

14.7%

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.

40.85%
Gross Profit Margin
16%
3Y+21.0%
5Y+79.0%
10Y-48.0%
24.52%
Operating Profit Margin
15%
3Y+19.0%
5Y+116.0%
10Y-3753.0%
6.17%
Net Profit Margin
28%
3Y-253.0%
5Y-44.0%
10Y-347.0%
7.70%
Return on Equity
32%
3Y-278.0%
5Y+222.0%
10Y-264.0%
1.89%
Return on Assets
34%
3Y-331.0%
5Y+21.0%
10Y-183.0%
6.88%
Return on Invested Capital
20%
3Y+50.0%
5Y+292.0%
10Y-1945.0%
ARIS

Aris Water Solutions, Inc. Cash Conversion Engine

ARIS ยท NYSE
Net Income60.18M
Depreciation & Amortization79.16M
Stock-Based Compensation18.19M
Change in Working Capital6.27M
Others6.39M
Capital Expenditures-99.98M
Free Cash Flow78.89M

Cash Flow Quality Analysis

FCF Conversion Rate

131.1%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

137.0%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

+458.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$6.27M

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.

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Aris Water Solutions, Inc. Funding & Solvency Profile

ARIS ยท NYSE
Cash & Cash Equivalents57.36M
Net Receivables106.86M
Inventory0.00
Other Current Assets3.68M
Total Current Assets171 M
Property, Plant & Equipment1.08B
Goodwill & Intangible Assets215.29M
Long-Term Investments0.00
Other Non-Current Assets3.48M
Total Non-Current Assets1 B
Total Assets
1.48B

Financial Health Analysis

Current Ratio

1.73x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

0.88x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

72 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

12% Current

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.

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Aris Water Solutions, Inc. Street Expectations Map

ARIS ยท NYSE

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.

Lowest Target
25.00
5.53%
Consensus Target
27.33
15.37%
Highest Target
30.00
26.64%

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

+15.4%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

18.3% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

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.

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Aris Water Solutions, Inc. Insider Positioning

ARIS ยท NYSE

During the last 12 months, insiders have sold $5.47M worth of ARIS shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

645.8K

5.32M

Net Activity

-5.3M

-$5.32M

9-12 Months

Bought

0

0.00

Sold

6.0K

145.57K

Net Activity

-146K

-$146K

Top Buyers

No buying activity

Top Sellers

1
BAM

Brock Amanda M

Director, Officer: President And Ceo

92.1K sharesโ€ข1 transactions

$2.30M

2
ZWA

Zartler William A

Director, Officer: Founder And Executive Chairman

56.5K sharesโ€ข1 transactions

$1.41M

3
TSE

Tompsett Stephan E

Officer: Chief Financial Officer

32.1K sharesโ€ข2 transactions

$799K

4
HRWJ

Hunt Robert W Jr

Officer: Chief Legal Officer And Sec.

15.5K sharesโ€ข1 transactions

$388K

5
VBDD

Van Brunt David Dylan

Officer: Chief Operating Officer

15.4K sharesโ€ข1 transactions

$384K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $5.47M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

1.11%
Dividend Yield
30%
3Y-19.0%
5Y-
10Y-
ย 

aris Dividend History

ARIS
10Y CAGR +7%
Latest $0.14
Annual $0.63
5 year growth trend
Last Period: +0%