Is WTTR a good stock to buy? We came across a cheap thesis at Select Water Solutions, Inc. on Valueinvestorsclub.com via ChannelsTX. In this article, we will summarize the bulls’ view on WTTR. Share of Select Water Solutions, Inc. it was $16.42 as of May 1stSt. WTTR’s trailing and forward P/E were 78.19 and 38.31 respectively according to Yahoo Finance.
Suwin/Shutterstock.com
Select Water Solutions (WTTR) is positioned as a leading water management and recycling platform in the US oil and gas industry, benefiting from strong national trends as shale production improves water capacity and operators increasingly move from waste to reuse and ultimately beneficial reuse.
Read more: 15 AI Stocks That Are Making Investors Quietly Rich
Read more: Underrated AI Stock Expects Huge Profits: Potential to Increase 10000%
The company’s Water Infrastructure segment, which already delivers high margins and long-term contracted cash flow, is expected to be the primary growth engine as re-entry rises to 85-90% and emerging non-energy applications in the municipal, agricultural, and industrial markets begin to emerge from 2026 onwards.
Select Water Solutions has changed its business mix to strong revenue linked to production, reducing turnover and improving margins, while Water Infrastructure now represents a growing share supported by strategic M&A and targeted capital allocation after equity raising.
The market is underappreciating earnings power, consensus 2028 EPS of $0.65 near $1.00 as Water Infrastructure consolidates at 25%+ driven by acquisitions, network expansion, and high-return investment opportunities. Applying a 25x multiple to earnings implies a valuation of ~$25, supported by a multiple from ~7x EBITDA to ~10x as the business increasingly resembles a high-end water infrastructure service provider rather than an oilfield rotary service provider.
Upside is bolstered by a strong balance sheet at ~1.0x leverage, free cash flow generation, and a management team led by founder-CEO John Schmitz with deep industry trust and equity ownership compatibility. Oil price exposure and principal risk are considerations, but the structural shift to recycling and infrastructure-led growth supports a compelling story with asymmetric upside as the water cycle grows industrialized within energy production.
Previously, we included a bullish thesis on Halliburton Company (HAL) by Buffet_fromTemu in October 2024, which highlighted the oil price’s upward and political drilling. HAL stock is down about 49.80% since it went live. ChannelsTX shares a similar view but emphasizes Select Water Solutions’ shift to water infrastructure, recycling, and oilfield services for regional growth, highlighting contract revenue and the expansion of beneficial reuse.
