Recent News
Aug 7, 2025 — Management disclosed a material acquisition (Essco Calibration Laboratory) and a new $150 million syndicated credit facility supporting expansion. Aug 29, 2025 — Broker consensus aggregated to a “Moderate Buy” from several firms noting higher targets. Sep 21–22, 2025 — filings and coverage showed institutional repositioning, including a notable reduction by a large manager and commentary on acquisition-driven leverage.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX at 21.08 signals an emerging trend; DI+ at 16.93 has peaked and reversed, and DI- at 26.46 has dipped then reversed. Together these readings create a near-term bearish directional bias that increases the probability of further downside pressure on price relative to the current valuation.
MACD: MACD sits at -2.11 and trails the signal line (-1.86) with a peak-and-reverse MACD trend, indicating declining momentum and reinforcing the near-term bearish tilt against valuation expectations.
MRO (Momentum/Regression Oscillator): MRO registers -30.54, indicating the market price sits below the model target and therefore creates mechanical upside pressure toward the target; that potential reversion competes with the prevailing bearish momentum.
RSI and momentum breadth: RSI at 45.68 with a decreasing trend signals below-neutral momentum, supporting the case that selling pressure dominates short-horizon movement unless MACD or MRO reverses markedly.
Price vs moving averages and Ichimoku: Close at $73.70 falls below the 20-day ($74.43), 50-day ($79.54), and 200-day ($84.11) averages while the 12-day EMA trends down. Ichimoku Tenkan (75.52) and Kijun (81.30) sit above price, indicating resistance overhead and reinforcing the technical downside bias relative to the current valuation.
Bollinger and volatility context: Price trades near the lower Bollinger band (1× lower = $72.29), implying limited immediate downside room inside recent volatility bands but not enough to negate the bearish momentum signals tied to valuation pressure.
Fundamental Analysis
Revenue and top-line dynamics: Total revenue stands at $76,424,000 with revenue growth quarter-over-quarter of -105.92% and revenue growth year-over-year of -84.49%, indicating a sharp contraction in the reported period versus prior comparisons.
Profitability: Gross margin equals 33.79% while operating margin registers 6.99% and EBIT margin 6.56%. EBIT margin fell QoQ by 24.74% and YoY by 17.08%. EBIT margin of 6.56% sits below the industry peer mean of 17.215% and the industry peer median of 20.455%, reflecting compressed operating leverage versus peers.
Earnings and valuation multiples: Reported EPS of $0.59 exceeded the $0.40 estimate by $0.19, a 47.5% surprise. Trailing P/E stands at 139.14 and forward P/E at 133.67, with PEG near 6.07 and forward PEG at 5.83. Price/book equals 2.64, below the industry peer mean price/book of 5.4393 and below the industry peer median of 6.07532. WMDST values the stock as over-valued.
Cash flow and leverage: Free cash flow totaled -$975,000 and free cash flow yield equals -0.13%. Operating cash flow equals $3,623,000 while net debt equals $32,538,000 against market capitalization of $771,798,343. Debt-to-EBITDA measures 6.19, indicating elevated leverage relative to recent EBITDA levels; interest coverage remains positive at 11.12x but has declined QoQ and YoY. The company raised incremental debt tied to acquisitions and the new credit facility noted in recent news.
Working capital and efficiency: Current ratio stands at 2.92 and quick ratio at 2.36, both above the industry peer mean current ratio of 1.16244. Cash conversion cycle equals 67.52 days, above the industry peer mean of 37.64 days, indicating slower cash conversion relative to peers and heavier working capital absorption during the period.
Returns and growth metrics: Return on equity equals 1.115% and return on assets 0.839%, both down QoQ and YoY. Earnings growth shows short-term volatility: reported earnings growth equals 22.917% over an unstated base but earnings growth QoQ is -59.08% and YoY shows a large negative change, highlighting uneven profitability performance during the reporting window.
Valuation summary: High P/E multiples, negative free cash flow, elevated debt-to-EBITDA, and margins below the industry peer mean/median together support WMDST’s determination that the current valuation rates as over-valued. Analysts’ price-target mean ($62.50) sits below the market close ($73.70), adding a second signal of valuation dispersion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-06 |
| NEXT REPORT DATE: | 2025-10-27 |
| CASH FLOW | Begin Period Cash Flow | $ 1.5 M |
| Operating Cash Flow | $ 3.6 M | |
| Capital Expenditures | $ -4.60 M | |
| Change In Working Capital | $ -7.48 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 344.0 K | |
| End Period Cash Flow | $ 1.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 76.4 M | |
| Forward Revenue | $ 33.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 50.6 M | |
| Depreciation | $ 5.6 M | |
| Depreciation and Amortization | $ 5.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 71.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 25.8 M | |
| EBITDA | $ 10.6 M | |
| EBIT | $ 5.0 M | |
| Operating Income | $ 5.3 M | |
| Interest Income | $ 11.0 K | |
| Interest Expense | $ 451.0 K | |
| Net Interest Income | $ -440.00 K | |
| Income Before Tax | $ 4.6 M | |
| Tax Provision | $ 1.3 M | |
| Tax Rate | 28.565 % | |
| Net Income | $ 3.3 M | |
| Net Income From Continuing Operations | $ 3.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.40 | |
| EPS Actual | $ 0.59 | |
| EPS Difference | $ 0.19 | |
| EPS Surprise | 47.5 % | |
| Forward EPS | $ 0.61 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 392.5 M | |
| Intangible Assets | $ 229.0 M | |
| Net Tangible Assets | $ 63.5 M | |
| Total Current Assets | $ 79.7 M | |
| Cash and Short-Term Investments | $ 1.9 M | |
| Cash | $ 1.9 M | |
| Net Receivables | $ 57.7 M | |
| Inventory | $ 15.4 M | |
| Long-Term Investments | $ 1.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 13.5 M | |
| Short-Term Debt | $ 1.2 M | |
| Total Current Liabilities | $ 27.3 M | |
| Net Debt | $ 32.5 M | |
| Total Debt | $ 65.7 M | |
| Total Liabilities | $ 100.0 M | |
| EQUITY | ||
| Total Equity | $ 292.5 M | |
| Retained Earnings | $ 95.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 31.39 | |
| Shares Outstanding | 9.318 M | |
| Revenue Per-Share | $ 8.20 | |
| VALUATION | Market Capitalization | $ 771.8 M |
| Enterprise Value | $ 835.7 M | |
| Enterprise Multiple | 78.68 | |
| Enterprise Multiple QoQ | 19.346 % | |
| Enterprise Multiple YoY | -34.267 % | |
| Enterprise Multiple IPRWA | high: 171.369 mean: 95.876 TRNS: 78.68 median: 72.34 low: -118.296 |
|
| EV/R | 10.935 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.342 | |
| Asset To Liability | 3.925 | |
| Debt To Capital | 0.183 | |
| Debt To Assets | 0.167 | |
| Debt To Assets QoQ | 11.732 % | |
| Debt To Assets YoY | 2193.562 % | |
| Debt To Assets IPRWA | high: 0.943 mean: 0.245 TRNS: 0.167 median: 0.147 low: 0.012 |
|
| Debt To Equity | 0.225 | |
| Debt To Equity QoQ | 11.654 % | |
| Debt To Equity YoY | 2393.563 % | |
| Debt To Equity IPRWA | high: 2.453 mean: 0.547 median: 0.284 TRNS: 0.225 low: 0.013 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.638 | |
| Price To Book QoQ | -0.171 % | |
| Price To Book YoY | -39.542 % | |
| Price To Book IPRWA | high: 12.431 median: 6.075 mean: 5.439 TRNS: 2.638 low: 0.627 |
|
| Price To Earnings (P/E) | 139.144 | |
| Price To Earnings QoQ | -33.323 % | |
| Price To Earnings YoY | -46.639 % | |
| Price To Earnings IPRWA | high: 226.006 mean: 154.296 TRNS: 139.144 median: 129.666 low: -61.189 |
|
| PE/G Ratio | 6.072 | |
| Price To Sales (P/S) | 10.099 | |
| Price To Sales QoQ | 2.743 % | |
| Price To Sales YoY | -41.144 % | |
| Price To Sales IPRWA | high: 47.117 mean: 28.375 median: 20.173 TRNS: 10.099 low: 0.602 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 133.671 | |
| Forward PE/G | 5.833 | |
| Forward P/S | 22.986 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 27.632 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.197 | |
| Asset Turnover Ratio QoQ | -1.75 % | |
| Asset Turnover Ratio YoY | -9.969 % | |
| Asset Turnover Ratio IPRWA | high: 0.495 TRNS: 0.197 mean: 0.143 median: 0.101 low: 0.019 |
|
| Receivables Turnover | 1.346 | |
| Receivables Turnover Ratio QoQ | -6.18 % | |
| Receivables Turnover Ratio YoY | -3.242 % | |
| Receivables Turnover Ratio IPRWA | high: 4.437 median: 1.666 mean: 1.595 TRNS: 1.346 low: 0.685 |
|
| Inventory Turnover | 3.388 | |
| Inventory Turnover Ratio QoQ | -6.494 % | |
| Inventory Turnover Ratio YoY | 36.676 % | |
| Inventory Turnover Ratio IPRWA | high: 22.472 median: 22.472 mean: 12.468 TRNS: 3.388 low: 0.088 |
|
| Days Sales Outstanding (DSO) | 67.814 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 67.516 | |
| Cash Conversion Cycle Days QoQ | 14.232 % | |
| Cash Conversion Cycle Days YoY | -11.51 % | |
| Cash Conversion Cycle Days IPRWA | high: 140.135 TRNS: 67.516 mean: 37.643 median: 13.574 low: -21.012 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.459 | |
| CapEx To Revenue | -0.06 | |
| CapEx To Depreciation | -0.82 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 325.7 M | |
| Net Invested Capital | $ 326.9 M | |
| Invested Capital | $ 326.9 M | |
| Net Tangible Assets | $ 63.5 M | |
| Net Working Capital | $ 52.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.068 | |
| Current Ratio | 2.92 | |
| Current Ratio QoQ | 27.4 % | |
| Current Ratio YoY | -1.48 % | |
| Current Ratio IPRWA | high: 8.802 TRNS: 2.92 mean: 1.162 median: 0.79 low: 0.417 |
|
| Quick Ratio | 2.356 | |
| Quick Ratio QoQ | 26.215 % | |
| Quick Ratio YoY | -1.59 % | |
| Quick Ratio IPRWA | high: 20.32 mean: 5.215 median: 3.855 low: 2.559 TRNS: 2.356 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.188 | |
| Cost Of Debt | 0.522 % | |
| Interest Coverage Ratio | 11.122 | |
| Interest Coverage Ratio QoQ | -67.099 % | |
| Interest Coverage Ratio YoY | -89.047 % | |
| Interest Coverage Ratio IPRWA | high: 38.382 TRNS: 11.122 median: 11.086 mean: 8.65 low: -21.373 |
|
| Operating Cash Flow Ratio | 0.108 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 26.91 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.893 % | |
| Revenue Growth | -0.92 % | |
| Revenue Growth QoQ | -105.916 % | |
| Revenue Growth YoY | -84.488 % | |
| Revenue Growth IPRWA | high: 32.288 % median: 0.931 % mean: -0.296 % TRNS: -0.92 % low: -18.439 % |
|
| Earnings Growth | 22.917 % | |
| Earnings Growth QoQ | -59.077 % | |
| Earnings Growth YoY | -160.849 % | |
| Earnings Growth IPRWA | high: 141.176 % TRNS: 22.917 % mean: 4.862 % median: -9.375 % low: -117.647 % |
|
| MARGINS | ||
| Gross Margin | 33.787 % | |
| Gross Margin QoQ | 0.572 % | |
| Gross Margin YoY | -0.515 % | |
| Gross Margin IPRWA | high: 89.341 % median: 63.601 % mean: 60.896 % TRNS: 33.787 % low: 1.685 % |
|
| EBIT Margin | 6.563 % | |
| EBIT Margin QoQ | -24.745 % | |
| EBIT Margin YoY | -17.081 % | |
| EBIT Margin IPRWA | high: 24.209 % median: 20.455 % mean: 17.215 % TRNS: 6.563 % low: -41.816 % |
|
| Return On Sales (ROS) | 6.985 % | |
| Return On Sales QoQ | -19.906 % | |
| Return On Sales YoY | -11.75 % | |
| Return On Sales IPRWA | high: 24.668 % median: 20.221 % mean: 18.137 % TRNS: 6.985 % low: -31.925 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -975.00 K | |
| Free Cash Flow Yield | -0.126 % | |
| Free Cash Flow Yield QoQ | -112.046 % | |
| Free Cash Flow Yield YoY | -127.451 % | |
| Free Cash Flow Yield IPRWA | high: 8.815 % mean: 1.188 % median: 0.7 % TRNS: -0.126 % low: -2.825 % |
|
| Free Cash Growth | -112.29 % | |
| Free Cash Growth QoQ | 508.288 % | |
| Free Cash Growth YoY | -146.868 % | |
| Free Cash Growth IPRWA | high: 193.85 % median: 98.299 % mean: 45.61 % TRNS: -112.29 % low: -688.42 % |
|
| Free Cash To Net Income | -0.299 | |
| Cash Flow Margin | 3.856 % | |
| Cash Flow To Earnings | 0.904 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.839 % | |
| Return On Assets QoQ | -27.547 % | |
| Return On Assets YoY | -41.817 % | |
| Return On Assets IPRWA | high: 4.179 % median: 1.718 % mean: 1.49 % TRNS: 0.839 % low: -6.317 % |
|
| Return On Capital Employed (ROCE) | 1.373 % | |
| Return On Equity (ROE) | 0.011 | |
| Return On Equity QoQ | -28.342 % | |
| Return On Equity YoY | -33.67 % | |
| Return On Equity IPRWA | high: 0.144 mean: 0.026 median: 0.025 TRNS: 0.011 low: -0.317 |
|
| DuPont ROE | 1.126 % | |
| Return On Invested Capital (ROIC) | 1.096 % | |
| Return On Invested Capital QoQ | -85.273 % | |
| Return On Invested Capital YoY | -104.997 % | |
| Return On Invested Capital IPRWA | high: 6.29 % median: 2.288 % mean: 2.193 % TRNS: 1.096 % low: -4.278 % |
|