Technical Analysis
ADX at 18.57 indicates no established trend, implying price action may remain range-bound unless momentum indicators push ADX above the 20–25 threshold that signals an emerging trend.
DI+ at 17.05 has crossed below DI-, which stands at 21.59; that move reads as bearish directional pressure and favors downside momentum over the immediate term relative to valuation.
MACD sits at -0.15 after a dip and reversal, while the signal line rests at -0.07. The MACD reversal signals improving momentum, but the negative MACD and its position below the signal line temper that improvement and limit conviction for sustained upside.
MRO at 18.82 has peaked and reversed; that level indicates price currently sits above the model target and faces likely downward pressure absent fresh supportive flows.
RSI of 49.37 shows neutral momentum and a dip and reversal pattern; this suggests the potential for modest upward movement but not a definitive trend extension.
Price behavior places the close at $16.45, crossing above the -1x standard deviation Bollinger band and trading above the 200-day average of $13.95, while the 12-day EMA trends decreasing. That configuration supports short-term resilience around current levels but lacks confirmation of a sustained advance.
Volume at 463,567 trails the 10‑day and 50‑day averages, reducing the market’s conviction behind recent moves and increasing the chance of choppy trading around prevailing technical levels.
Fundamental Analysis
Total revenue stands at $102,889,000. YoY revenue growth registered at -26.05% while the most recent revenueGrowth metric shows -12.65%, reflecting top-line contraction on both annual and shorter horizons.
Gross margin reached 55.11%, improving by 12.42% YoY, which supports operating leverage even as revenue declined. Operating margin equals 11.48% with an operating margin year-over-year change of -205.57%, and EBIT margin at 11.22% with an EBIT margin year-over-year change of -203.14%—margins remain positive but show material year-over-year variation.
Net income totaled $8,248,000 and operating cash flow produced $11,364,000, while free cash flow recorded a deficit of -$1,680,000. Cash balances sit at $9,228,000 and beginning-to-end period cash flow movement shows a net improvement in liquidity during the period, supporting near-term obligations despite negative free cash flow.
Debt metrics: total debt equals $55,420,000 with debt-to-EBITDA of 3.24 and debt-to-equity of 45.37%; interest coverage sits at 3.50. Those leverage figures indicate manageable coverage but a meaningful leverage load versus earnings in stress scenarios.
Working capital and liquidity ratios show compression: current ratio at 0.67 and quick ratio at 0.26, with net working capital of -$69,381,000. The low current and quick ratios heighten short-term liquidity sensitivity despite improved operating cash flow.
Valuation multiples remain elevated. Price-to-book at 5.77 sits above the industry peer mean of 1.73 and near the industry peer high of 5.82, while forward P/E at 226.55 and enterprise multiple at 43.99 reflect stretched expectations versus historical earnings capacity. WMDST values the stock as over-valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-11 |
| NEXT REPORT DATE: | 2025-11-10 |
| CASH FLOW | Begin Period Cash Flow | $ 16.2 M |
| Operating Cash Flow | $ 11.4 M | |
| Capital Expenditures | $ -13.04 M | |
| Change In Working Capital | $ 24.5 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 16.2 M | |
| End Period Cash Flow | $ 32.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 102.9 M | |
| Forward Revenue | $ 9.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 46.2 M | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 91.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 56.7 M | |
| EBITDA | $ 17.1 M | |
| EBIT | $ 11.5 M | |
| Operating Income | $ 11.8 M | |
| Interest Income | $ -524.00 K | |
| Interest Expense | $ 3.3 M | |
| Net Interest Income | $ -3.82 M | |
| Income Before Tax | $ 8.2 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ 8.2 M | |
| Net Income From Continuing Operations | $ 8.2 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 0.07 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 409.5 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 122.2 M | |
| Total Current Assets | $ 139.9 M | |
| Cash and Short-Term Investments | $ 9.2 M | |
| Cash | $ 9.2 M | |
| Net Receivables | $ 18.7 M | |
| Inventory | $ 86.3 M | |
| Long-Term Investments | $ 4.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 31.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 209.3 M | |
| Net Debt | $ 16.8 M | |
| Total Debt | $ 55.4 M | |
| Total Liabilities | $ 287.4 M | |
| EQUITY | ||
| Total Equity | $ 122.2 M | |
| Retained Earnings | $ -67.21 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.84 | |
| Shares Outstanding | 42.978 M | |
| Revenue Per-Share | $ 2.39 | |
| VALUATION | Market Capitalization | $ 705.3 M |
| Enterprise Value | $ 751.5 M | |
| Enterprise Multiple | 43.987 | |
| Enterprise Multiple QoQ | 114.308 % | |
| Enterprise Multiple YoY | -51.06 % | |
| Enterprise Multiple IPRWA | high: 116.188 HNRG: 43.987 median: 32.257 mean: 30.672 low: -55.05 |
|
| EV/R | 7.304 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.352 | |
| Asset To Liability | 1.425 | |
| Debt To Capital | 0.312 | |
| Debt To Assets | 0.135 | |
| Debt To Assets QoQ | 41.751 % | |
| Debt To Assets YoY | 233.489 % | |
| Debt To Assets IPRWA | high: 0.875 median: 0.478 mean: 0.38 HNRG: 0.135 low: 0.003 |
|
| Debt To Equity | 0.454 | |
| Debt To Equity QoQ | 49.723 % | |
| Debt To Equity YoY | 493.991 % | |
| Debt To Equity IPRWA | high: 3.204 median: 1.386 mean: 1.122 HNRG: 0.454 low: -1.19 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.774 | |
| Price To Book QoQ | 21.014 % | |
| Price To Book YoY | 470.073 % | |
| Price To Book IPRWA | high: 5.817 HNRG: 5.774 median: 1.748 mean: 1.727 low: -2.823 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 6.855 | |
| Price To Sales QoQ | 46.709 % | |
| Price To Sales YoY | 94.615 % | |
| Price To Sales IPRWA | high: 53.325 mean: 9.031 median: 7.99 HNRG: 6.855 low: 0.06 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 226.554 | |
| Forward PE/G | — | |
| Forward P/S | 77.961 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.995 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.265 | |
| Asset Turnover Ratio QoQ | -17.197 % | |
| Asset Turnover Ratio YoY | 72.268 % | |
| Asset Turnover Ratio IPRWA | high: 0.337 HNRG: 0.265 median: 0.092 mean: 0.092 low: 0.002 |
|
| Receivables Turnover | 6.569 | |
| Receivables Turnover Ratio QoQ | -21.862 % | |
| Receivables Turnover Ratio YoY | 20.405 % | |
| Receivables Turnover Ratio IPRWA | high: 7.033 HNRG: 6.569 mean: 2.281 median: 2.09 low: 0.6 |
|
| Inventory Turnover | 0.568 | |
| Inventory Turnover Ratio QoQ | -14.352 % | |
| Inventory Turnover Ratio YoY | -13.007 % | |
| Inventory Turnover Ratio IPRWA | high: 23.002 mean: 6.606 median: 6.498 HNRG: 0.568 low: 0.051 |
|
| Days Sales Outstanding (DSO) | 13.89 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 109.173 | |
| Cash Conversion Cycle Days QoQ | -29.072 % | |
| Cash Conversion Cycle Days YoY | 76.738 % | |
| Cash Conversion Cycle Days IPRWA | HNRG: 109.173 high: 81.332 median: 4.142 mean: -10.07 low: -128.225 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -1.483 | |
| CapEx To Revenue | -0.127 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 148.2 M | |
| Net Invested Capital | $ 148.2 M | |
| Invested Capital | $ 148.2 M | |
| Net Tangible Assets | $ 122.2 M | |
| Net Working Capital | $ -69.38 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.044 | |
| Current Ratio | 0.668 | |
| Current Ratio QoQ | 10.552 % | |
| Current Ratio YoY | 25.791 % | |
| Current Ratio IPRWA | high: 8.099 mean: 1.116 median: 0.748 HNRG: 0.668 low: 0.062 |
|
| Quick Ratio | 0.256 | |
| Quick Ratio QoQ | 48.082 % | |
| Quick Ratio YoY | 57.09 % | |
| Quick Ratio IPRWA | high: 3.73 mean: 0.958 median: 0.652 HNRG: 0.256 low: 0.024 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 3.244 | |
| Cost Of Debt | 7.094 % | |
| Interest Coverage Ratio | 3.503 | |
| Interest Coverage Ratio QoQ | -14.416 % | |
| Interest Coverage Ratio YoY | -217.824 % | |
| Interest Coverage Ratio IPRWA | high: 53.876 mean: 8.744 median: 3.541 HNRG: 3.503 low: -16.867 |
|
| Operating Cash Flow Ratio | -0.011 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 51.961 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 11.859 % | |
| Revenue Growth | -12.648 % | |
| Revenue Growth QoQ | -150.564 % | |
| Revenue Growth YoY | -26.052 % | |
| Revenue Growth IPRWA | high: 49.139 % median: -8.459 % mean: -8.748 % HNRG: -12.648 % low: -36.994 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 55.107 % | |
| Gross Margin QoQ | -3.622 % | |
| Gross Margin YoY | 12.424 % | |
| Gross Margin IPRWA | high: 82.166 % HNRG: 55.107 % mean: 39.588 % median: 38.132 % low: -6.422 % |
|
| EBIT Margin | 11.219 % | |
| EBIT Margin QoQ | 0.071 % | |
| EBIT Margin YoY | -203.144 % | |
| EBIT Margin IPRWA | high: 116.328 % mean: 33.342 % median: 30.183 % HNRG: 11.219 % low: -68.326 % |
|
| Return On Sales (ROS) | 11.483 % | |
| Return On Sales QoQ | 2.426 % | |
| Return On Sales YoY | -205.571 % | |
| Return On Sales IPRWA | high: 95.08 % mean: 25.802 % median: 22.871 % HNRG: 11.483 % low: -20.431 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.68 M | |
| Free Cash Flow Yield | -0.238 % | |
| Free Cash Flow Yield QoQ | -104.901 % | |
| Free Cash Flow Yield YoY | -107.362 % | |
| Free Cash Flow Yield IPRWA | high: 10.402 % median: 1.594 % mean: 1.495 % HNRG: -0.238 % low: -11.887 % |
|
| Free Cash Growth | -106.286 % | |
| Free Cash Growth QoQ | -1840.681 % | |
| Free Cash Growth YoY | -117.94 % | |
| Free Cash Growth IPRWA | high: 182.182 % mean: -7.771 % median: -19.008 % HNRG: -106.286 % low: -264.064 % |
|
| Free Cash To Net Income | -0.204 | |
| Cash Flow Margin | -2.276 % | |
| Cash Flow To Earnings | -0.284 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 2.127 % | |
| Return On Assets QoQ | -21.657 % | |
| Return On Assets YoY | -223.019 % | |
| Return On Assets IPRWA | high: 9.576 % HNRG: 2.127 % mean: 1.506 % median: 1.172 % low: -11.591 % |
|
| Return On Capital Employed (ROCE) | 5.764 % | |
| Return On Equity (ROE) | 0.068 | |
| Return On Equity QoQ | -21.951 % | |
| Return On Equity YoY | -309.235 % | |
| Return On Equity IPRWA | high: 0.111 HNRG: 0.068 median: 0.037 mean: 0.033 low: -0.277 |
|
| DuPont ROE | 6.945 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |