Recent News
On September 13, 2025, Value Line received an analyst rating upgrade to “Hold” from Wall Street Zen, reflecting a reassessment of near-term prospects. On July 18, 2025 the company declared a quarterly cash dividend of $0.325 per share payable August 11, 2025 to holders of record July 28, 2025.
Technical Analysis
ADX and Directional Indicators: ADX at 10.98 indicates no established trend, yet DI+ at 22.78 sits above DI- at 19.95 and DI+ recently crossed above DI-, signaling a bullish directional tilt despite overall trend weakness; this supports the case for short-run upside rather than a sustained breakout.
MACD Momentum: MACD registers 0.07 and trends higher with the MACD above its signal line (-0.02). The MACD crossing above the signal line confirms bullish momentum, aligning with the DI+ advance and implying momentum-driven upside over coming weeks.
MRO (Momentum/Regression Oscillator): MRO reads 23.0 with a dip-and-reversal pattern. Because MRO stands positive, the price sits above the model target and faces pressure to mean-revert; the dip-and-reversal suggests that the recent push higher may moderate rather than extend sharply without fundamental follow-through.
RSI and Short-Term Strength: RSI at 50.78 showing a dip-and-reversal indicates momentum has recovered from a pullback and sits near equilibrium; this supports a balanced, range-bound move with room to run before overbought conditions appear.
Price Structure and Moving Averages: Last close $38.85 lies above the 12-day and 26-day EMAs (price12day EMA $38.21, price26day EMA $38.12) and above the 20- and 50-day averages, but below the 200-day average ($40.54). Price recently crossed above the -1x standard deviation Bollinger band, consistent with a mean-reversion lift that still faces the 200-day average as a structural resistance.
Volume, Volatility, Ichimoku: Daily volume near 8,198 tracks higher than 10/50/200-day averages, supporting the recent momentum. Chikou span sits within the Ichimoku cloud, signaling consolidation rather than a clear trend; short-term resistance aligns with the super-trend upper level near $39.08 and Bollinger upper bands around $38.75–$39.39.
Fundamental Analysis
Profitability: EBIT measured $830,000 with an EBIT margin of 9.90%, down QoQ by 43.26% and down YoY by 40.13%. The EBIT margin sits well below the industry peer mean of 51.86% and below the industry peer median of 46.11%, indicating compressed operating profitability relative to peers.
Revenue and Cash Flow: Total revenue reached $8,387,000 while net income amounted to $3,951,000. Reported free cash flow totaled $5,520,000, producing a free cash flow yield of 1.53% (slightly below the industry peer mean of 1.75%). Operating cash flow of $5,540,000 and a cash position including short-term investments of $77,391,000 create substantial liquidity cushions on the balance sheet.
Balance Sheet and Leverage: Current ratio at 3.38 and cash ratio at 3.27 show strong near-term liquidity, each positioned above the industry peer mean and median. Debt-to-assets at 2.48% and debt-to-equity at 3.59% remain well below industry peer mean levels, confirming minimal financial leverage.
Returns and Efficiency: Return on assets stands at 2.74% and return on equity at 3.96%, each down QoQ and YoY. Asset turnover at 0.058 (above the industry peer mean of 0.042) suggests modest efficiency in generating revenue from the asset base but not enough to offset margin declines.
Valuation Context: Enterprise multiple measures 251.27, a multiple far above the industry peer mean of 63.90 and peer median of 57.97; price-to-book sits at 3.62, above the industry peer mean of 3.24 and marginally above the peer median of 3.55. WMDST values the stock as fair-valued, a conclusion that reflects solid liquidity and cash flow but also elevated multiples and compressed operating margins.
Earnings Note: The company reported fiscal updates and comparable-period results in its filings after the quarter close; net income trends and retained earnings show growth in the most recent quarterly filings and will remain key to validating the current fair-value assessment.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-04-30 |
| REPORT DATE: | 2025-06-13 |
| NEXT REPORT DATE: | 2025-09-12 |
| CASH FLOW | Begin Period Cash Flow | $ 27.1 M |
| Operating Cash Flow | $ 5.5 M | |
| Capital Expenditures | $ -20.00 K | |
| Change In Working Capital | $ 858.0 K | |
| Dividends Paid | $ -2.83 M | |
| Cash Flow Delta | $ 7.3 M | |
| End Period Cash Flow | $ 34.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 8.4 M | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 3.7 M | |
| Depreciation | $ 312.0 K | |
| Depreciation and Amortization | $ 312.0 K | |
| Research and Development | — | |
| Total Operating Expenses | $ 7.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 4.7 M | |
| EBITDA | $ 1.1 M | |
| EBIT | $ 830.0 K | |
| Operating Income | $ 830.0 K | |
| Interest Income | $ 608.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 608.0 K | |
| Income Before Tax | $ 5.0 M | |
| Tax Provision | $ 1.1 M | |
| Tax Rate | 21.731 % | |
| Net Income | $ 4.0 M | |
| Net Income From Continuing Operations | $ 4.0 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | — | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 144.5 M | |
| Intangible Assets | $ 63.0 K | |
| Net Tangible Assets | $ 99.6 M | |
| Total Current Assets | $ 79.9 M | |
| Cash and Short-Term Investments | $ 77.4 M | |
| Cash | $ 34.1 M | |
| Net Receivables | $ 1.3 M | |
| Inventory | — | |
| Long-Term Investments | $ 305.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 1.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 23.7 M | |
| Net Debt | — | |
| Total Debt | $ 3.6 M | |
| Total Liabilities | $ 44.9 M | |
| EQUITY | ||
| Total Equity | $ 99.7 M | |
| Retained Earnings | $ 113.4 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.59 | |
| Shares Outstanding | 9.411 M | |
| Revenue Per-Share | $ 0.89 | |
| VALUATION | Market Capitalization | $ 360.8 M |
| Enterprise Value | $ 286.9 M | |
| Enterprise Multiple | 251.266 | |
| Enterprise Multiple QoQ | 47.737 % | |
| Enterprise Multiple YoY | 42.212 % | |
| Enterprise Multiple IPRWA | high: 382.869 VALU: 251.266 mean: 63.896 median: 57.97 low: -385.981 |
|
| EV/R | 34.213 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.45 | |
| Asset To Liability | 3.222 | |
| Debt To Capital | 0.035 | |
| Debt To Assets | 0.025 | |
| Debt To Assets QoQ | -8.635 % | |
| Debt To Assets YoY | 39.65 % | |
| Debt To Assets IPRWA | high: 0.84 mean: 0.189 median: 0.188 VALU: 0.025 low: 0.0 |
|
| Debt To Equity | 0.036 | |
| Debt To Equity QoQ | -8.649 % | |
| Debt To Equity YoY | 35.152 % | |
| Debt To Equity IPRWA | high: 2.968 mean: 0.865 median: 0.815 VALU: 0.036 low: -0.953 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.619 | |
| Price To Book QoQ | -10.464 % | |
| Price To Book YoY | -16.08 % | |
| Price To Book IPRWA | high: 6.103 VALU: 3.619 median: 3.546 mean: 3.244 low: -0.233 |
|
| 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) | 43.014 | |
| Price To Sales QoQ | -3.568 % | |
| Price To Sales YoY | -1.1 % | |
| Price To Sales IPRWA | high: 81.86 VALU: 43.014 mean: 29.811 median: 25.612 low: -43.485 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | — | |
| Forward PE/G | — | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.256 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.058 | |
| Asset Turnover Ratio QoQ | -7.937 % | |
| Asset Turnover Ratio YoY | -12.502 % | |
| Asset Turnover Ratio IPRWA | high: 0.28 VALU: 0.058 mean: 0.042 median: 0.017 low: -0.117 |
|
| Receivables Turnover | 6.299 | |
| Receivables Turnover Ratio QoQ | -8.856 % | |
| Receivables Turnover Ratio YoY | -8.626 % | |
| Receivables Turnover Ratio IPRWA | high: 10.527 VALU: 6.299 mean: 2.08 median: 0.175 low: 0.035 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 14.487 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.149 | |
| CapEx To Revenue | -0.002 | |
| CapEx To Depreciation | -0.064 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 99.7 M | |
| Net Invested Capital | $ 99.7 M | |
| Invested Capital | $ 99.7 M | |
| Net Tangible Assets | $ 99.6 M | |
| Net Working Capital | $ 56.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 3.272 | |
| Current Ratio | 3.377 | |
| Current Ratio QoQ | -1.596 % | |
| Current Ratio YoY | 5.821 % | |
| Current Ratio IPRWA | high: 7.864 VALU: 3.377 mean: 1.688 median: 1.547 low: 0.007 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 3.134 | |
| Cost Of Debt | 100.39 % | |
| Interest Coverage Ratio | 0.173 | |
| Interest Coverage Ratio QoQ | -46.93 % | |
| Interest Coverage Ratio YoY | -44.22 % | |
| Interest Coverage Ratio IPRWA | high: 98.692 mean: 19.168 median: 13.204 VALU: 0.173 low: -58.51 |
|
| Operating Cash Flow Ratio | 0.199 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 33.057 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.399 | |
| Dividend Payout Ratio | 0.715 | |
| Dividend Rate | $ 0.30 | |
| Dividend Yield | 0.008 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.681 % | |
| Revenue Growth | -6.468 % | |
| Revenue Growth QoQ | -553.895 % | |
| Revenue Growth YoY | 361.341 % | |
| Revenue Growth IPRWA | high: 108.319 % mean: 7.844 % median: 3.987 % VALU: -6.468 % low: -129.816 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 55.717 % | |
| Gross Margin QoQ | -6.509 % | |
| Gross Margin YoY | -5.497 % | |
| Gross Margin IPRWA | high: 99.211 % median: 70.28 % mean: 64.916 % VALU: 55.717 % low: 0.618 % |
|
| EBIT Margin | 9.896 % | |
| EBIT Margin QoQ | -43.263 % | |
| EBIT Margin YoY | -40.126 % | |
| EBIT Margin IPRWA | high: 123.183 % mean: 51.864 % median: 46.113 % VALU: 9.896 % low: -61.06 % |
|
| Return On Sales (ROS) | 9.896 % | |
| Return On Sales QoQ | -43.263 % | |
| Return On Sales YoY | -40.126 % | |
| Return On Sales IPRWA | high: 66.743 % median: 38.96 % mean: 34.89 % VALU: 9.896 % low: -44.966 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 5.5 M | |
| Free Cash Flow Yield | 1.53 % | |
| Free Cash Flow Yield QoQ | -8.766 % | |
| Free Cash Flow Yield YoY | 61.053 % | |
| Free Cash Flow Yield IPRWA | high: 17.702 % mean: 1.753 % median: 1.577 % VALU: 1.53 % low: -16.617 % |
|
| Free Cash Growth | -17.698 % | |
| Free Cash Growth QoQ | -114.427 % | |
| Free Cash Growth YoY | -68.159 % | |
| Free Cash Growth IPRWA | high: 612.912 % VALU: -17.698 % median: -51.153 % mean: -71.381 % low: -602.593 % |
|
| Free Cash To Net Income | 1.397 | |
| Cash Flow Margin | 56.075 % | |
| Cash Flow To Earnings | 1.19 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.05 | |
| Return On Assets (ROA) | 2.743 % | |
| Return On Assets QoQ | -24.684 % | |
| Return On Assets YoY | -22.426 % | |
| Return On Assets IPRWA | high: 6.322 % VALU: 2.743 % mean: 1.285 % median: 0.582 % low: -5.111 % |
|
| Return On Capital Employed (ROCE) | 0.687 % | |
| Return On Equity (ROE) | 0.04 | |
| Return On Equity QoQ | -24.032 % | |
| Return On Equity YoY | -24.768 % | |
| Return On Equity IPRWA | high: 0.196 mean: 0.058 VALU: 0.04 median: 0.038 low: -0.151 |
|
| DuPont ROE | 3.979 % | |
| Return On Invested Capital (ROIC) | 0.652 % | |
| Return On Invested Capital QoQ | -43.007 % | |
| Return On Invested Capital YoY | -139.301 % | |
| Return On Invested Capital IPRWA | high: 16.804 % median: 5.813 % mean: 4.951 % VALU: 0.652 % low: -11.843 % |
|