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On August 8, 2025 the Board approved an 18% increase in the quarterly common dividend to $0.40 per share, payable September 5, 2025 to shareholders of record on August 22, 2025. Analysts published consensus coverage in August that aggregated a “Hold” recommendation with mixed target revisions and a mid-year average 12‑month price target near $238.40.
Technical Analysis
ADX at 38.4 indicates a strong trend exists; given the directional indicators the prevailing trend carries downside bias. DI+ shows a peak-and-reversal while DI– shows a dip-and-reversal, both signaling bearish directional pressure.
MACD stands at -$5.07 with the MACD line above the -$5.57 signal line and an increasing MACD trend; the MACD crossing above the signal line constitutes a bullish momentum signal despite negative absolute MACD levels.
MRO registers -24.52 with a dip-and-reversal pattern, which signals the price sits below WMDST’s target and implies upward pressure toward target pricing in the near term.
RSI at 38.04 with a peak-and-reversal pattern signals waning momentum and scope for a rebound from oversold-to-neutral territory, but not yet a clear momentum shift to sustained strength.
Price sits below the 20‑, 50‑ and 200‑day averages (20‑day $179.89; 50‑day $194.51; 200‑day $212.49) and the 12‑day EMA trending lower, underscoring longer-term technical weakness. Bollinger indicators show a recent dip and reversal relative to the lower bands, and current volume (628,832) exceeds recent averages, supporting the legitimacy of the short-term move.
Ichimoku components place the Chikou span below the cloud while Tenkan and Kijun sit above the close; that configuration suggests the longer-term cloud structure still favors resistance even as short‑term oscillators and MRO set up for a bounce.
Fundamental Analysis
Total revenue measured $238,095,000 and operating income $44,863,000, producing an operating (EBIT) margin of 18.84%. That operating margin sits essentially in line with the industry peer mean of 18.865% and near the industry peer median of 18.208%. QoQ operating margin declined about 15.29%, while YoY operating margin slipped roughly 1.66%.
Diluted EPS for the reported period equaled $1.17 versus an estimate of $1.25, an EPS surprise of -6.4%. Cash provided by operations improved, and free cash flow totaled $40,648,000 with a free cash flow yield of 0.67%, below the industry peer mean of 1.441%.
Return metrics show return on equity at 5.10% and return on assets at 3.77%, both modestly above the industry peer means (ROE mean 4.654%, ROA mean 1.941%), indicating efficient capital use relative to peers despite slowing earnings growth. Reported earnings growth stands negative at -10.0% with YoY earnings growth showing a larger decline, while reported revenue growth and period growth show mixed signs (revenue growth of 7.15% and YoY revenue growth of -31.15%), reflecting timing and comparability effects across reporting periods.
Valuation multiples present stretched comparatives: price-to-book at 8.95 sits above the industry peer range (industry peer high 5.42158), and price-to-earnings at 201.35 stands well above the industry peer mean and high. Price-to-sales at 25.48 exceeds the industry peer mean but remains within the peer high. Those multiples, combined with a forward P/E near 189.46, drive the current valuation assessment.
Liquidity and balance sheet metrics remain healthy: current ratio 3.23, quick ratio 2.17, cash and short-term investments $165,208,000, and interest coverage extremely robust at 218.84. Working capital and cash conversion cycle (~97.5 days) align with operating dynamics for the business model.
WMDST values the stock as over-valued based on the present multiples and cash-flow yield relative to the company’s operating profile.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-22 |
| NEXT REPORT DATE: | 2025-10-16 |
| CASH FLOW | Begin Period Cash Flow | $ 131.4 M |
| Operating Cash Flow | $ 44.6 M | |
| Capital Expenditures | $ -3.94 M | |
| Change In Working Capital | $ -1.34 M | |
| Dividends Paid | $ -10.00 M | |
| Cash Flow Delta | $ 33.9 M | |
| End Period Cash Flow | $ 165.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 238.1 M | |
| Forward Revenue | $ 62.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 140.3 M | |
| Depreciation | $ 2.9 M | |
| Depreciation and Amortization | $ 8.8 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 193.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 97.8 M | |
| EBITDA | $ 53.7 M | |
| EBIT | $ 44.9 M | |
| Operating Income | $ 44.9 M | |
| Interest Income | $ 895.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 895.0 K | |
| Income Before Tax | $ 45.8 M | |
| Tax Provision | $ 11.2 M | |
| Tax Rate | 24.5 % | |
| Net Income | $ 34.6 M | |
| Net Income From Continuing Operations | $ 34.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.25 | |
| EPS Actual | $ 1.17 | |
| EPS Difference | $ -0.08 | |
| EPS Surprise | -6.4 % | |
| Forward EPS | $ 1.23 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 936.4 M | |
| Intangible Assets | $ 361.8 M | |
| Net Tangible Assets | $ 315.8 M | |
| Total Current Assets | $ 448.3 M | |
| Cash and Short-Term Investments | $ 165.2 M | |
| Cash | $ 165.2 M | |
| Net Receivables | $ 117.7 M | |
| Inventory | $ 147.3 M | |
| Long-Term Investments | $ 15.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 74.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 138.7 M | |
| Net Debt | — | |
| Total Debt | — | |
| Total Liabilities | $ 258.8 M | |
| EQUITY | ||
| Total Equity | $ 677.6 M | |
| Retained Earnings | $ 600.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 22.99 | |
| Shares Outstanding | 29.469 M | |
| Revenue Per-Share | $ 8.08 | |
| VALUATION | Market Capitalization | $ 6.1 B |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.382 | |
| Asset To Liability | 3.618 | |
| Debt To Capital | — | |
| Debt To Assets | — | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | — | |
| Debt To Equity | — | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | — | |
| Debt To Equity IPRWA | — | |
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 8.952 | |
| Price To Book QoQ | -1.976 % | |
| Price To Book YoY | -7.099 % | |
| Price To Book IPRWA | BMI: 8.952 high: 5.422 median: 3.746 mean: 3.625 low: -0.411 |
|
| Price To Earnings (P/E) | 201.347 | |
| Price To Earnings QoQ | 31.556 % | |
| Price To Earnings YoY | 22.226 % | |
| Price To Earnings IPRWA | BMI: 201.347 high: 120.19 mean: 91.963 median: 87.249 low: -26.525 |
|
| PE/G Ratio | -20.135 | |
| Price To Sales (P/S) | 25.477 | |
| Price To Sales QoQ | -3.396 % | |
| Price To Sales YoY | 1.718 % | |
| Price To Sales IPRWA | high: 40.481 BMI: 25.477 median: 16.349 mean: 16.348 low: 0.28 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 189.46 | |
| Forward PE/G | -18.946 | |
| Forward P/S | 97.629 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.291 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.259 | |
| Asset Turnover Ratio QoQ | 0.143 % | |
| Asset Turnover Ratio YoY | -8.737 % | |
| Asset Turnover Ratio IPRWA | high: 0.44 BMI: 0.259 mean: 0.153 median: 0.118 low: 0.019 |
|
| Receivables Turnover | 2.075 | |
| Receivables Turnover Ratio QoQ | -8.417 % | |
| Receivables Turnover Ratio YoY | -4.951 % | |
| Receivables Turnover Ratio IPRWA | high: 3.248 BMI: 2.075 mean: 1.626 median: 1.568 low: 0.086 |
|
| Inventory Turnover | 0.946 | |
| Inventory Turnover Ratio QoQ | 9.22 % | |
| Inventory Turnover Ratio YoY | 15.871 % | |
| Inventory Turnover Ratio IPRWA | high: 2.85 median: 1.044 mean: 1.02 BMI: 0.946 low: 0.026 |
|
| Days Sales Outstanding (DSO) | 43.982 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 97.517 | |
| Cash Conversion Cycle Days QoQ | -3.605 % | |
| Cash Conversion Cycle Days YoY | 4.239 % | |
| Cash Conversion Cycle Days IPRWA | high: 317.233 mean: 102.436 median: 100.095 BMI: 97.517 low: -23.304 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.769 | |
| CapEx To Revenue | -0.017 | |
| CapEx To Depreciation | -1.351 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 677.6 M | |
| Net Invested Capital | $ 677.6 M | |
| Invested Capital | $ 677.6 M | |
| Net Tangible Assets | $ 315.8 M | |
| Net Working Capital | $ 309.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.191 | |
| Current Ratio | 3.232 | |
| Current Ratio QoQ | 10.728 % | |
| Current Ratio YoY | -12.343 % | |
| Current Ratio IPRWA | high: 12.505 BMI: 3.232 mean: 1.387 median: 1.06 low: 0.411 |
|
| Quick Ratio | 2.17 | |
| Quick Ratio QoQ | 16.725 % | |
| Quick Ratio YoY | -13.858 % | |
| Quick Ratio IPRWA | high: 10.835 BMI: 2.17 mean: 0.912 median: 0.72 low: 0.363 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 42.192 % | |
| Interest Coverage Ratio | 218.844 | |
| Interest Coverage Ratio QoQ | -9.23 % | |
| Interest Coverage Ratio YoY | 8.072 % | |
| Interest Coverage Ratio IPRWA | BMI: 218.844 high: 29.743 mean: 12.927 median: 9.341 low: -10.534 |
|
| Operating Cash Flow Ratio | 0.289 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 53.233 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.457 | |
| Dividend Payout Ratio | 0.289 | |
| Dividend Rate | $ 0.34 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.093 % | |
| Revenue Growth | 7.148 % | |
| Revenue Growth QoQ | -13.869 % | |
| Revenue Growth YoY | -31.15 % | |
| Revenue Growth IPRWA | high: 85.552 % BMI: 7.148 % mean: 5.974 % median: 2.73 % low: -70.165 % |
|
| Earnings Growth | -10.0 % | |
| Earnings Growth QoQ | -140.0 % | |
| Earnings Growth YoY | -176.156 % | |
| Earnings Growth IPRWA | high: 123.077 % median: 15.102 % mean: 11.893 % BMI: -10.0 % low: -44.651 % |
|
| MARGINS | ||
| Gross Margin | 41.08 % | |
| Gross Margin QoQ | -4.352 % | |
| Gross Margin YoY | 4.259 % | |
| Gross Margin IPRWA | high: 94.66 % mean: 42.658 % BMI: 41.08 % median: 40.858 % low: -8.379 % |
|
| EBIT Margin | 18.842 % | |
| EBIT Margin QoQ | -15.286 % | |
| EBIT Margin YoY | -1.66 % | |
| EBIT Margin IPRWA | high: 57.92 % mean: 18.865 % BMI: 18.842 % median: 18.208 % low: -24.26 % |
|
| Return On Sales (ROS) | 18.842 % | |
| Return On Sales QoQ | -15.286 % | |
| Return On Sales YoY | -1.66 % | |
| Return On Sales IPRWA | high: 57.92 % median: 19.943 % mean: 19.448 % BMI: 18.842 % low: -22.305 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 40.6 M | |
| Free Cash Flow Yield | 0.67 % | |
| Free Cash Flow Yield QoQ | 30.604 % | |
| Free Cash Flow Yield YoY | 6.688 % | |
| Free Cash Flow Yield IPRWA | high: 12.901 % mean: 1.441 % median: 1.305 % BMI: 0.67 % low: -14.521 % |
|
| Free Cash Growth | 35.218 % | |
| Free Cash Growth QoQ | -196.285 % | |
| Free Cash Growth YoY | -56.745 % | |
| Free Cash Growth IPRWA | high: 534.416 % mean: 239.119 % median: 185.965 % BMI: 35.218 % low: -312.195 % |
|
| Free Cash To Net Income | 1.175 | |
| Cash Flow Margin | 16.82 % | |
| Cash Flow To Earnings | 1.158 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 3.767 % | |
| Return On Assets QoQ | -15.821 % | |
| Return On Assets YoY | -13.123 % | |
| Return On Assets IPRWA | high: 7.793 % BMI: 3.767 % median: 2.133 % mean: 1.941 % low: -9.75 % |
|
| Return On Capital Employed (ROCE) | 5.624 % | |
| Return On Equity (ROE) | 0.051 | |
| Return On Equity QoQ | -14.706 % | |
| Return On Equity YoY | -13.049 % | |
| Return On Equity IPRWA | high: 0.26 BMI: 0.051 mean: 0.047 median: 0.035 low: -0.14 |
|
| DuPont ROE | 5.243 % | |
| Return On Invested Capital (ROIC) | 5.001 % | |
| Return On Invested Capital QoQ | -14.116 % | |
| Return On Invested Capital YoY | -135.536 % | |
| Return On Invested Capital IPRWA | high: 10.37 % BMI: 5.001 % mean: 3.027 % median: 3.017 % low: -6.012 % |
|