Technical Analysis
Directional Indicators / ADX: ADX at 39.48 indicates a strong trend strength without directional bias. DI+ at 14.70 registered a peak & reversal, a bearish directional development; DI- at 34.94 registered a peak & reversal, a bullish directional development. Together, the directional readouts reflect active directional contestation within a strong trend environment.
MACD: MACD stands at -3.05 with the MACD line above the signal line (-3.46) and the MACD trend increasing; that cross above the signal line constitutes a bullish momentum shift despite negative absolute MACD, signaling improving downside momentum.
MRO: The MRO shows a peak & reversal at -33.22, and its negative value indicates the current price sits below the modeled target, implying potential upward pressure if momentum follows the oscillator reversal.
RSI and Price Action vs Moving Averages: RSI at 36.13 with a decreasing trend signals weakening near-term momentum and proximity to oversold territory. Price closed at $81.54, below the 20-day average ($84.02), the 50-day average ($92.63), and the 200-day average ($102.82). The 12-day EMA trend decreases and the 26-day EMA ($86.83) sits above price, confirming short-to-intermediate bearish bias on moving-average alignment.
Bands, Volatility, Volume: Price sits beneath the 1x Bollinger lower band ($82.70), consistent with an intraday/short-term overshoot below recent volatility bands. SuperTrend upper at $87.10 and Ichimoku components (Kijun Sen $89.69, Senkou A $102.95, Senkou B $107.52) mark nearby resistance structure. Volume at 988,099 slightly exceeds the 10‑day average (919,684) but remains below the 50‑day average (1,018,662), indicating intraday interest without broadening participation. Beta (42‑day 1.29; 52‑week 1.15) confirms above-market volatility sensitivity.
Fundamental Analysis
Profitability & Margins: EBIT equals $136,658,000 and EBIT margin registers 15.98%. EBIT margin sits below the industry peer mean (17.25%) and above the industry peer median (14.86%). Operating margin at 15.22% and return on sales at 15.22% register modest QoQ improvement (operating margin QoQ +7.81%) and YoY improvement (+1.49%), supporting a stable operating profile.
Revenue & Earnings Growth: Total revenue $855,455,000 with revenue growth at 8.88% and revenue growth year-over-year at 338.50% as reported; earnings growth equals 25.56% with earnings growth QoQ at +7.24% and YoY at +26.76%. EPS actual $1.67 exceeded estimate $1.63 by $0.04, a 2.45% surprise.
Cash, Cash Flow, and Capital Allocation: Cash and short-term investments $68,383,000; operating cash flow $93,922,000; free cash flow $22,449,000 yielding 0.38%. Free cash flow yield stands below the industry peer mean (4.13%), reflecting low cash return relative to valuation. Capital expenditures totaled $71,473,000, and capex-to-revenue equals -8.355% (reported as a negative capex figure), showing ongoing capital deployment.
Leverage and Coverage: Total debt $1,297,855,000 with net debt $1,049,382,000. Debt-to-EBITDA equals 6.41x. Debt-to-assets at 21.35% sits below the industry peer mean (35.59%); debt-to-equity at 0.383 sits below the industry peer mean (0.734). Interest coverage at 10.74x exceeds the industry peer mean (2.60x), indicating strong earnings capacity to service interest despite elevated gross leverage by the debt/EBITDA metric.
Valuation Multiples: P/E stands at 67.33 and forward P/E at 63.60, both above the industry peer mean (P/E mean 32.10; forward P/E mean 29.74) and above the industry peer median. Price-to-book at 1.75 remains above the industry peer mean (0.84) and median (0.86). Price-to-sales at 6.92 sits above the industry peer mean (4.64) and median (4.16). Enterprise multiple registers 35.33, above the industry peer mean (26.55). Those multiple levels coincide with a low free cash flow yield and modest cash conversion, pressuring the equity valuation.
Operational Efficiency: Asset turnover equals 0.141, slightly above the industry peer mean (0.110), while inventory turnover at 1.46 lags peer turnover levels. Cash conversion cycle equals 83.89 days, above the industry peer mean (20.02 days), reflecting longer working-capital conversion.
Valuation Conclusion: WMDST values the stock as over-valued. High P/E and price multiples, very low free cash flow yield, and only modest margin expansion underpin that valuation assessment despite strong interest coverage and positive earnings growth.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 51.1 M |
| Operating Cash Flow | $ 93.9 M | |
| Capital Expenditures | $ -71.47 M | |
| Change In Working Capital | $ -82.86 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 17.3 M | |
| End Period Cash Flow | $ 68.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 855.5 M | |
| Forward Revenue | $ 215.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 628.9 M | |
| Depreciation | $ 65.7 M | |
| Depreciation and Amortization | $ 65.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 725.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 226.5 M | |
| EBITDA | $ 202.3 M | |
| EBIT | $ 136.7 M | |
| Operating Income | $ 130.2 M | |
| Interest Income | — | |
| Interest Expense | $ 12.7 M | |
| Net Interest Income | $ -12.73 M | |
| Income Before Tax | $ 123.9 M | |
| Tax Provision | $ 29.6 M | |
| Tax Rate | 23.845 % | |
| Net Income | $ 94.3 M | |
| Net Income From Continuing Operations | $ 94.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.63 | |
| EPS Actual | $ 1.67 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 2.454 % | |
| Forward EPS | $ 1.70 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.1 B | |
| Intangible Assets | $ 471.9 M | |
| Net Tangible Assets | $ 2.9 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 68.4 M | |
| Cash | $ 68.4 M | |
| Net Receivables | $ 564.2 M | |
| Inventory | $ 426.3 M | |
| Long-Term Investments | $ 131.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 250.1 M | |
| Short-Term Debt | $ 6.4 M | |
| Total Current Liabilities | $ 679.5 M | |
| Net Debt | $ 1.0 B | |
| Total Debt | $ 1.3 B | |
| Total Liabilities | $ 2.7 B | |
| EQUITY | ||
| Total Equity | $ 3.4 B | |
| Retained Earnings | $ 3.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 60.11 | |
| Shares Outstanding | 56.052 M | |
| Revenue Per-Share | $ 15.18 | |
| VALUATION | Market Capitalization | $ 5.9 B |
| Enterprise Value | $ 7.1 B | |
| Enterprise Multiple | 35.326 | |
| Enterprise Multiple QoQ | -10.334 % | |
| Enterprise Multiple YoY | -3.913 % | |
| Enterprise Multiple IPRWA | high: 88.536 KEX: 35.326 mean: 26.548 median: 20.602 low: -3.256 |
|
| EV/R | 8.355 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.795 | |
| Asset To Liability | 2.26 | |
| Debt To Capital | 0.277 | |
| Debt To Assets | 0.213 | |
| Debt To Assets QoQ | 0.301 % | |
| Debt To Assets YoY | 13851.634 % | |
| Debt To Assets IPRWA | high: 0.804 median: 0.425 mean: 0.356 KEX: 0.213 low: 0.001 |
|
| Debt To Equity | 0.383 | |
| Debt To Equity QoQ | -0.463 % | |
| Debt To Equity YoY | 13829.818 % | |
| Debt To Equity IPRWA | high: 2.792 mean: 0.734 median: 0.564 KEX: 0.383 low: 0.001 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.747 | |
| Price To Book QoQ | 2.821 % | |
| Price To Book YoY | -15.914 % | |
| Price To Book IPRWA | high: 1.996 KEX: 1.747 median: 0.86 mean: 0.837 low: 0.004 |
|
| Price To Earnings (P/E) | 67.331 | |
| Price To Earnings QoQ | -10.662 % | |
| Price To Earnings YoY | -17.572 % | |
| Price To Earnings IPRWA | high: 158.195 KEX: 67.331 mean: 32.1 median: 19.107 low: -103.444 |
|
| PE/G Ratio | 2.634 | |
| Price To Sales (P/S) | 6.918 | |
| Price To Sales QoQ | -3.806 % | |
| Price To Sales YoY | -15.822 % | |
| Price To Sales IPRWA | high: 10.636 KEX: 6.918 mean: 4.642 median: 4.157 low: 0.295 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 63.6 | |
| Forward PE/G | 2.488 | |
| Forward P/S | 27.265 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.617 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.141 | |
| Asset Turnover Ratio QoQ | 6.827 % | |
| Asset Turnover Ratio YoY | -0.12 % | |
| Asset Turnover Ratio IPRWA | high: 0.184 KEX: 0.141 mean: 0.11 median: 0.103 low: 0.03 |
|
| Receivables Turnover | 1.599 | |
| Receivables Turnover Ratio QoQ | 1.315 % | |
| Receivables Turnover Ratio YoY | 4.685 % | |
| Receivables Turnover Ratio IPRWA | high: 12.247 mean: 5.247 median: 5.011 KEX: 1.599 low: 1.433 |
|
| Inventory Turnover | 1.461 | |
| Inventory Turnover Ratio QoQ | 5.069 % | |
| Inventory Turnover Ratio YoY | 6.181 % | |
| Inventory Turnover Ratio IPRWA | high: 9.122 mean: 3.957 median: 2.946 low: 2.224 KEX: 1.461 |
|
| Days Sales Outstanding (DSO) | 57.06 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 83.889 | |
| Cash Conversion Cycle Days QoQ | 3.845 % | |
| Cash Conversion Cycle Days YoY | -4.57 % | |
| Cash Conversion Cycle Days IPRWA | KEX: 83.889 high: 65.913 median: 24.465 mean: 20.02 low: -8.255 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.692 | |
| CapEx To Revenue | -0.084 | |
| CapEx To Depreciation | -1.088 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.5 B | |
| Net Invested Capital | $ 4.5 B | |
| Invested Capital | $ 4.5 B | |
| Net Tangible Assets | $ 2.9 B | |
| Net Working Capital | $ 505.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.101 | |
| Current Ratio | 1.744 | |
| Current Ratio QoQ | 10.534 % | |
| Current Ratio YoY | 2.351 % | |
| Current Ratio IPRWA | high: 7.4 mean: 2.195 KEX: 1.744 median: 1.605 low: 0.301 |
|
| Quick Ratio | 1.117 | |
| Quick Ratio QoQ | 16.86 % | |
| Quick Ratio YoY | 5.993 % | |
| Quick Ratio IPRWA | high: 7.35 mean: 2.549 median: 1.638 KEX: 1.117 low: 0.814 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.415 | |
| Cost Of Debt | 0.752 % | |
| Interest Coverage Ratio | 10.735 | |
| Interest Coverage Ratio QoQ | 2.016 % | |
| Interest Coverage Ratio YoY | 11.35 % | |
| Interest Coverage Ratio IPRWA | high: 14.48 KEX: 10.735 mean: 2.596 median: 1.041 low: -1.662 |
|
| Operating Cash Flow Ratio | 0.129 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 41.36 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.087 % | |
| Revenue Growth | 8.884 % | |
| Revenue Growth QoQ | -527.938 % | |
| Revenue Growth YoY | 338.5 % | |
| Revenue Growth IPRWA | high: 60.859 % KEX: 8.884 % median: 6.202 % mean: 0.529 % low: -51.169 % |
|
| Earnings Growth | 25.564 % | |
| Earnings Growth QoQ | 724.379 % | |
| Earnings Growth YoY | 26.755 % | |
| Earnings Growth IPRWA | high: 57.143 % KEX: 25.564 % mean: -51.044 % median: -62.025 % low: -257.143 % |
|
| MARGINS | ||
| Gross Margin | 26.483 % | |
| Gross Margin QoQ | -0.727 % | |
| Gross Margin YoY | 3.631 % | |
| Gross Margin IPRWA | high: 63.912 % KEX: 26.483 % mean: 23.81 % median: 21.686 % low: 5.7 % |
|
| EBIT Margin | 15.975 % | |
| EBIT Margin QoQ | 13.194 % | |
| EBIT Margin YoY | 6.564 % | |
| EBIT Margin IPRWA | high: 59.111 % mean: 17.252 % KEX: 15.975 % median: 14.859 % low: -49.257 % |
|
| Return On Sales (ROS) | 15.215 % | |
| Return On Sales QoQ | 7.808 % | |
| Return On Sales YoY | 1.494 % | |
| Return On Sales IPRWA | high: 58.32 % KEX: 15.215 % mean: 14.08 % median: 12.727 % low: -11.616 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 22.4 M | |
| Free Cash Flow Yield | 0.379 % | |
| Free Cash Flow Yield QoQ | -150.804 % | |
| Free Cash Flow Yield YoY | -71.716 % | |
| Free Cash Flow Yield IPRWA | high: 22.162 % mean: 4.13 % median: 3.656 % KEX: 0.379 % low: -16.024 % |
|
| Free Cash Growth | -153.265 % | |
| Free Cash Growth QoQ | 19.772 % | |
| Free Cash Growth YoY | -233.436 % | |
| Free Cash Growth IPRWA | high: 193.643 % mean: -106.214 % KEX: -153.265 % median: -166.296 % low: -375.872 % |
|
| Free Cash To Net Income | 0.238 | |
| Cash Flow Margin | 10.248 % | |
| Cash Flow To Earnings | 0.93 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.559 % | |
| Return On Assets QoQ | 21.702 % | |
| Return On Assets YoY | 8.189 % | |
| Return On Assets IPRWA | high: 4.556 % KEX: 1.559 % mean: 0.723 % median: 0.202 % low: -5.502 % |
|
| Return On Capital Employed (ROCE) | 2.53 % | |
| Return On Equity (ROE) | 0.028 | |
| Return On Equity QoQ | 21.794 % | |
| Return On Equity YoY | 8.246 % | |
| Return On Equity IPRWA | high: 0.074 KEX: 0.028 median: 0.007 mean: -0.007 low: -0.095 |
|
| DuPont ROE | 2.808 % | |
| Return On Invested Capital (ROIC) | 2.31 % | |
| Return On Invested Capital QoQ | 21.26 % | |
| Return On Invested Capital YoY | -101.099 % | |
| Return On Invested Capital IPRWA | high: 4.186 % KEX: 2.31 % median: 1.823 % mean: 1.551 % low: -1.131 % |
|