Technical Analysis
ADX / DI+ / DI-: ADX registers at 46.46, indicating a very strong trend environment. DI+ sits at 12.79 and shows an increasing trend while DI- sits at 29.92 and shows a decreasing trend; that combination signals a shift toward bullish directional pressure even though DI- currently exceeds DI+.
MACD: MACD stands at -1.75 and has been increasing; the MACD line sits above the signal line (-2.23), a bullish crossing that suggests momentum has begun to turn positive despite MACD remaining negative in absolute terms.
MRO: MRO reads -23.13 with a dip & reversal. The negative value indicates price sits below the WMDST target and the dip & reversal pattern points to potential mean reversion toward that target.
RSI: RSI at 38.26 shows recent weakening but the indicator’s dip & reversal pattern signals easing downward momentum and the possibility of a near-term bounce as buying interest returns.
Price vs Moving Averages and Bands: The close at $50.98 sits above the 20-day average ($49.55) and 12-day EMA ($49.88) but below the 50-day ($55.08) and 200-day ($65.32) averages, implying short-term stabilization inside a longer-term downtrend. Price trades marginally above the Bollinger upper 1x standard-deviation band ($50.88), suggesting short-term strength but still below the cloud (Senkou A $58.71 / Senkou B $65.31), which denotes multi-week resistance overhead. The super trend upper at $51.45 aligns with the 26-day EMA, marking a near-term resistance reference for momentum confirmation.
Fundamental Analysis
Profitability & Margins: EBIT totals $53,872,000 and EBITDA totals $82,630,000. Operating (EBIT) margin equals 16.76%. That margin sits below the industry peer mean of 18.47% and close to the industry peer median of 17.48%. EBIT margin contracted QoQ by 22.32% but expanded YoY by 41.74%, showing notable year-over-year improvement offset by a recent quarterly compression.
Revenue & Growth: Total revenue registers $321,394,000. YoY revenue growth measures 34.30%, while sequential revenue fell QoQ by 45.92%. The mix of strong annual growth and a large quarter-to-quarter decline suggests timing and portfolio changes affected the most recent period.
Earnings & Cash Flow: Reported EPS equaled $1.10 versus an estimate of $1.02, producing an EPS surprise of 7.84%. Operating cash flow reached $17,395,000 with free cash flow at $13,641,000 and a free cash flow yield of 0.44%. Free cash flow declined significantly QoQ and YoY, consistent with the reported negative free cash flow growth rates.
Balance Sheet & Leverage: Cash and short-term investments total $292,898,000 while net debt stands at $931,884,000. Debt to EBITDA measures 14.82x and debt to equity equals 1.39, reflecting elevated leverage. Interest coverage registers 6.19x, indicating the company covers interest expense but operates with meaningful indebtedness.
Returns & Efficiency: Return on equity equals 3.86% and return on assets equals 1.39%; both show QoQ declines and modest absolute returns. Asset turnover sits at 0.131, near the industry peer mean of 0.121, indicating revenue generation per asset sits around peer average.
Valuation Metrics: Trailing P/E equals 65.75 and forward P/E equals 51.23; price-to-book stands at 3.52. Forward PEG and PEG metrics show negative values, reflecting a growth-rate dynamic that produces unconventional PEG readings. WMDST values the stock as under-valued, a valuation view that must be weighed against the company’s elevated leverage and near-term cash-flow compression.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-07 |
| NEXT REPORT DATE: | 2025-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 306.8 M |
| Operating Cash Flow | $ 17.4 M | |
| Capital Expenditures | $ -3.75 M | |
| Change In Working Capital | $ -55.48 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -13.87 M | |
| End Period Cash Flow | $ 292.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 321.4 M | |
| Forward Revenue | $ 151.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 129.2 M | |
| Depreciation | $ 17.4 M | |
| Depreciation and Amortization | $ 28.8 M | |
| Research and Development | $ 16.3 M | |
| Total Operating Expenses | $ 267.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 192.2 M | |
| EBITDA | $ 82.6 M | |
| EBIT | $ 53.9 M | |
| Operating Income | $ 53.9 M | |
| Interest Income | — | |
| Interest Expense | $ 8.7 M | |
| Net Interest Income | $ -8.70 M | |
| Income Before Tax | $ 45.2 M | |
| Tax Provision | $ 11.1 M | |
| Tax Rate | 24.7 % | |
| Net Income | $ 34.0 M | |
| Net Income From Continuing Operations | $ 34.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.02 | |
| EPS Actual | $ 1.10 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 7.843 % | |
| Forward EPS | $ 1.33 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ -175.63 M | |
| Total Current Assets | $ 913.2 M | |
| Cash and Short-Term Investments | $ 292.9 M | |
| Cash | $ 292.9 M | |
| Net Receivables | $ 200.8 M | |
| Inventory | $ 360.5 M | |
| Long-Term Investments | $ 196.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 46.0 M | |
| Short-Term Debt | $ 303.9 M | |
| Total Current Liabilities | $ 531.4 M | |
| Net Debt | $ 931.9 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 882.3 M | |
| Retained Earnings | $ 356.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 18.30 | |
| Shares Outstanding | 48.159 M | |
| Revenue Per-Share | $ 6.67 | |
| VALUATION | Market Capitalization | $ 3.1 B |
| Enterprise Value | $ 4.0 B | |
| Enterprise Multiple | 48.875 | |
| Enterprise Multiple QoQ | 20.985 % | |
| Enterprise Multiple YoY | -18.639 % | |
| Enterprise Multiple IPRWA | high: 123.29 median: 110.415 mean: 94.203 HAE: 48.875 low: -147.649 |
|
| EV/R | 12.566 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.791 | |
| Asset To Liability | 1.558 | |
| Debt To Capital | 0.581 | |
| Debt To Assets | 0.497 | |
| Debt To Assets QoQ | -0.452 % | |
| Debt To Assets YoY | 24649.254 % | |
| Debt To Assets IPRWA | high: 0.843 HAE: 0.497 mean: 0.298 median: 0.289 low: 0.0 |
|
| Debt To Equity | 1.388 | |
| Debt To Equity QoQ | -6.967 % | |
| Debt To Equity YoY | 24512.943 % | |
| Debt To Equity IPRWA | high: 3.369 HAE: 1.388 mean: 0.627 median: 0.579 low: -0.395 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.521 | |
| Price To Book QoQ | -6.865 % | |
| Price To Book YoY | -28.807 % | |
| Price To Book IPRWA | high: 16.759 median: 6.869 mean: 6.297 HAE: 3.521 low: -5.981 |
|
| Price To Earnings (P/E) | 65.753 | |
| Price To Earnings QoQ | 26.683 % | |
| Price To Earnings YoY | -23.383 % | |
| Price To Earnings IPRWA | high: 249.6 mean: 136.779 median: 121.658 HAE: 65.753 low: -167.592 |
|
| PE/G Ratio | -5.824 | |
| Price To Sales (P/S) | 9.666 | |
| Price To Sales QoQ | 2.977 % | |
| Price To Sales YoY | -27.431 % | |
| Price To Sales IPRWA | high: 73.117 mean: 32.511 median: 24.499 HAE: 9.666 low: 0.6 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 51.229 | |
| Forward PE/G | -4.538 | |
| Forward P/S | 20.442 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 8.792 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.131 | |
| Asset Turnover Ratio QoQ | -1.417 % | |
| Asset Turnover Ratio YoY | -7.834 % | |
| Asset Turnover Ratio IPRWA | high: 0.412 HAE: 0.131 median: 0.124 mean: 0.121 low: 0.008 |
|
| Receivables Turnover | 1.593 | |
| Receivables Turnover Ratio QoQ | -0.086 % | |
| Receivables Turnover Ratio YoY | -3.297 % | |
| Receivables Turnover Ratio IPRWA | high: 3.133 mean: 1.735 median: 1.672 HAE: 1.593 low: 0.374 |
|
| Inventory Turnover | 0.356 | |
| Inventory Turnover Ratio QoQ | -6.223 % | |
| Inventory Turnover Ratio YoY | -23.734 % | |
| Inventory Turnover Ratio IPRWA | high: 2.014 mean: 0.649 median: 0.568 HAE: 0.356 low: 0.084 |
|
| Days Sales Outstanding (DSO) | 57.268 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 260.487 | |
| Cash Conversion Cycle Days QoQ | 12.136 % | |
| Cash Conversion Cycle Days YoY | 28.469 % | |
| Cash Conversion Cycle Days IPRWA | high: 448.876 HAE: 260.487 mean: 170.635 median: 167.784 low: -175.55 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.842 | |
| CapEx To Revenue | -0.012 | |
| CapEx To Depreciation | -0.216 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.8 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ -175.63 M | |
| Net Working Capital | $ 381.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.551 | |
| Current Ratio | 1.718 | |
| Current Ratio QoQ | 6.251 % | |
| Current Ratio YoY | -54.331 % | |
| Current Ratio IPRWA | high: 19.146 mean: 2.552 HAE: 1.718 median: 1.686 low: 0.027 |
|
| Quick Ratio | 1.04 | |
| Quick Ratio QoQ | 5.505 % | |
| Quick Ratio YoY | -55.28 % | |
| Quick Ratio IPRWA | high: 12.697 mean: 1.883 median: 1.167 HAE: 1.04 low: 0.315 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 14.822 | |
| Cost Of Debt | 0.535 % | |
| Interest Coverage Ratio | 6.19 | |
| Interest Coverage Ratio QoQ | -94.811 % | |
| Interest Coverage Ratio YoY | 8.321 % | |
| Interest Coverage Ratio IPRWA | high: 52.298 mean: 15.492 median: 11.456 HAE: 6.19 low: -88.481 |
|
| Operating Cash Flow Ratio | 0.091 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 37.485 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.455 % | |
| Revenue Growth | -2.784 % | |
| Revenue Growth QoQ | -45.921 % | |
| Revenue Growth YoY | 34.298 % | |
| Revenue Growth IPRWA | high: 26.158 % median: 8.281 % mean: 6.347 % HAE: -2.784 % low: -39.052 % |
|
| Earnings Growth | -11.29 % | |
| Earnings Growth QoQ | -368.682 % | |
| Earnings Growth YoY | -184.677 % | |
| Earnings Growth IPRWA | high: 166.667 % mean: 11.407 % median: 9.851 % HAE: -11.29 % low: -180.612 % |
|
| MARGINS | ||
| Gross Margin | 59.816 % | |
| Gross Margin QoQ | 2.435 % | |
| Gross Margin YoY | 14.956 % | |
| Gross Margin IPRWA | high: 91.006 % median: 63.683 % mean: 62.194 % HAE: 59.816 % low: -7.085 % |
|
| EBIT Margin | 16.762 % | |
| EBIT Margin QoQ | -22.319 % | |
| EBIT Margin YoY | 41.739 % | |
| EBIT Margin IPRWA | high: 33.709 % mean: 18.468 % median: 17.478 % HAE: 16.762 % low: -200.872 % |
|
| Return On Sales (ROS) | 16.762 % | |
| Return On Sales QoQ | -22.319 % | |
| Return On Sales YoY | 41.739 % | |
| Return On Sales IPRWA | high: 39.857 % mean: 18.874 % median: 18.374 % HAE: 16.762 % low: -215.416 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 13.6 M | |
| Free Cash Flow Yield | 0.439 % | |
| Free Cash Flow Yield QoQ | -86.501 % | |
| Free Cash Flow Yield YoY | -159.405 % | |
| Free Cash Flow Yield IPRWA | high: 4.685 % median: 0.712 % mean: 0.677 % HAE: 0.439 % low: -19.501 % |
|
| Free Cash Growth | -86.483 % | |
| Free Cash Growth QoQ | -146.365 % | |
| Free Cash Growth YoY | -46.22 % | |
| Free Cash Growth IPRWA | high: 310.383 % mean: 86.228 % median: 14.619 % HAE: -86.483 % low: -376.098 % |
|
| Free Cash To Net Income | 0.401 | |
| Cash Flow Margin | 15.034 % | |
| Cash Flow To Earnings | 1.42 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.385 % | |
| Return On Assets QoQ | -40.507 % | |
| Return On Assets YoY | -14.506 % | |
| Return On Assets IPRWA | high: 16.404 % mean: 1.742 % median: 1.686 % HAE: 1.385 % low: -35.697 % |
|
| Return On Capital Employed (ROCE) | 2.79 % | |
| Return On Equity (ROE) | 0.039 | |
| Return On Equity QoQ | -45.399 % | |
| Return On Equity YoY | -8.99 % | |
| Return On Equity IPRWA | high: 0.175 HAE: 0.039 median: 0.032 mean: 0.028 low: -0.524 |
|
| DuPont ROE | 3.996 % | |
| Return On Invested Capital (ROIC) | 1.926 % | |
| Return On Invested Capital QoQ | -32.61 % | |
| Return On Invested Capital YoY | -120.023 % | |
| Return On Invested Capital IPRWA | high: 5.672 % median: 2.571 % mean: 2.223 % HAE: 1.926 % low: -19.888 % |
|