Recent News
Aug 6, 2025 — Board declared a $0.12 quarterly dividend payable Oct 3, 2025, with a Sept 19 record date. Sep 7, 2025 — Barrington Research reaffirmed an Outperform rating and set a $27.00 price target. Sep 21, 2025 — Rhumbline Advisers reduced its HCKT stake, selling shares reported in a 13F filing.
Technical Analysis
ADX at 31.18 signals a strong trend environment; the ADX strength supports the thesis of near-term directional conviction rather than a neutral market. This strength reinforces the possibility of continued directional moves that will interact with valuation pressures described below.
Directional indicators skew bullish: DI+ registered a dip-and-reversal, indicating DI+ increasing, while DI- registered a decrease. Together these directional moves point toward bullish directional pressure that aligns with stabilization around current prices and supports the case for momentum-driven consolidation.
MACD sits at -0.41 and has crossed above its signal line (-0.46) while the MACD trend registers as increasing. That cross above the signal line constitutes a bullish momentum cue and suggests short-term momentum has shifted from negative to constructive, which could lift near-term price action toward the valuation-implied range.
MRO reads 11.05 with a peak-and-reversal pattern. The positive MRO implies price sits above its internal target and therefore carries latent downside pressure; the peak-and-reversal annotation reinforces a shift toward price-corrective action that counters some bullish directional indicators.
RSI at 38.61 shows prior weakness but a dip-and-reversal pattern indicates the RSI began recovering from oversold or lower levels. That recovery supports the short-term momentum pickup signaled by MACD while leaving room for additional upside before hitting neutral territory.
Price sits at $19.21, marginally above the 12-day EMA ($19.12) and near the 20-day average ($19.05), yet below the 50-day ($20.05) and 200-day ($25.16) averages. Proximity to the upper Bollinger band (~$19.27) and a super trend upper boundary at $19.67 suggests upside faces structural resistance inside the next few sessions; moving-average placement points to medium-term underperformance vs. longer-term levels but near-term technical consolidation.
Fundamental Analysis
Total revenue measured $78,899,000 with revenue growth year-over-year at 118.42% and an overall revenue growth figure of 1.33%. The top-line expansion on a YoY basis contrasts with sequential softness (revenue growth QoQ -176.807%), indicating the recent annual comparison includes significant comp effects while quarter-to-quarter activity weakened.
Operating income (EBIT) reached $4,595,000 and EBIT margin registered 5.82%. That EBIT margin sits below the industry peer mean of 15.193% and below the industry peer median of 16.705%, though above the industry peer low of -4.292%. EBIT margin contracted sharply YoY (-63.864%) while improving QoQ by 2.989%, which highlights a recent quarter-of-quarter recovery from deeper year-over-year compression.
Net income totaled $1,661,000. EPS actual $0.38 matched the estimate $0.38, producing an EPS surprise of 0.88%. Trailing PE stands at 64.98x, marginally above the industry peer mean of 63.14x. Forward PE equals 58.85x. Price-to-book came in at 5.24, above the industry peer mean of 4.50, while price-to-sales at 7.96 sits below the industry peer mean of 9.12 — a mixed multiple profile that leaves valuation dependent on cash conversion and margin repair.
Free cash flow reached $3,739,000 with a free cash flow yield of 0.60%, below the industry peer mean of 1.20%. Free cash flow yield improved QoQ by 71.76% yet contracted YoY by 70.29%, indicating volatile cash conversion driven by timing and working capital swings. Operating cash flow registered $5,649,000 and cash on hand totaled $10,142,000.
Leverage profile remains conservative: debt-to-equity at 21.45% sits well below the industry peer mean of 85.15%, and net debt equals $12,632,000. Interest coverage at 12.55x provides ample buffer despite being below the industry peer mean of 26.20x. Return on equity measured 1.39% and return on assets 0.85%, both below industry peer means, underscoring limited current profitability relative to peers.
Dividend policy: the declared quarterly dividend equals $0.12 per share (dividend rate $0.12062) and yields 0.53%; dividends paid totaled $3,318,000. Dividend payout ratio registers 199.76% while dividend coverage ratio reads 50.06%, reflecting a payout that exceeds trailing earnings but remains supported by cash flow levels in the near term.
Valuation summary: WMDST values the stock as fair-valued. Multiples show P/E slightly above the industry peer mean, P/B above the industry peer mean, and P/S below the industry peer mean. Cash-generation measures lag the peer mean, and margin recovery remains central to moving valuation toward peer medians.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-05 |
| NEXT REPORT DATE: | 2025-11-03 |
| CASH FLOW | Begin Period Cash Flow | $ 9.2 M |
| Operating Cash Flow | $ 5.6 M | |
| Capital Expenditures | $ -1.91 M | |
| Change In Working Capital | $ -6.15 M | |
| Dividends Paid | $ -3.32 M | |
| Cash Flow Delta | $ 963.0 K | |
| End Period Cash Flow | $ 10.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 78.9 M | |
| Forward Revenue | $ 142.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 50.9 M | |
| Depreciation | $ 1.0 M | |
| Depreciation and Amortization | $ 1.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 74.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 28.0 M | |
| EBITDA | $ 5.9 M | |
| EBIT | $ 4.6 M | |
| Operating Income | $ 4.6 M | |
| Interest Income | — | |
| Interest Expense | $ 366.0 K | |
| Net Interest Income | $ -366.00 K | |
| Income Before Tax | $ 4.2 M | |
| Tax Provision | $ 2.6 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 1.7 M | |
| Net Income From Continuing Operations | $ 1.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.38 | |
| EPS Actual | $ 0.38 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.88 % | |
| Forward EPS | $ 0.43 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 200.5 M | |
| Intangible Assets | $ 95.2 M | |
| Net Tangible Assets | $ 24.6 M | |
| Total Current Assets | $ 80.2 M | |
| Cash and Short-Term Investments | $ 10.1 M | |
| Cash | $ 10.1 M | |
| Net Receivables | $ 40.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 368.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 4.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 47.0 M | |
| Net Debt | $ 12.6 M | |
| Total Debt | $ 25.7 M | |
| Total Liabilities | $ 80.7 M | |
| EQUITY | ||
| Total Equity | $ 119.8 M | |
| Retained Earnings | $ 76.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 4.36 | |
| Shares Outstanding | 27.508 M | |
| Revenue Per-Share | $ 2.87 | |
| VALUATION | Market Capitalization | $ 627.9 M |
| Enterprise Value | $ 643.4 M | |
| Enterprise Multiple | 109.798 | |
| Enterprise Multiple QoQ | -21.103 % | |
| Enterprise Multiple YoY | 137.328 % | |
| Enterprise Multiple IPRWA | high: 140.798 HCKT: 109.798 median: 58.931 mean: 51.691 low: -43.256 |
|
| EV/R | 8.155 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.674 | |
| Asset To Liability | 2.484 | |
| Debt To Capital | 0.177 | |
| Debt To Assets | 0.128 | |
| Debt To Assets QoQ | 17.715 % | |
| Debt To Assets YoY | 1196.057 % | |
| Debt To Assets IPRWA | high: 1.14 mean: 0.25 median: 0.129 HCKT: 0.128 low: 0.006 |
|
| Debt To Equity | 0.215 | |
| Debt To Equity QoQ | 17.556 % | |
| Debt To Equity YoY | 1082.69 % | |
| Debt To Equity IPRWA | high: 4.622 mean: 0.852 median: 0.253 HCKT: 0.215 low: -2.941 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.241 | |
| Price To Book QoQ | -21.502 % | |
| Price To Book YoY | -16.275 % | |
| Price To Book IPRWA | high: 15.778 HCKT: 5.241 median: 4.588 mean: 4.499 low: -1.349 |
|
| Price To Earnings (P/E) | 64.982 | |
| Price To Earnings QoQ | -4.116 % | |
| Price To Earnings YoY | 9.48 % | |
| Price To Earnings IPRWA | high: 227.578 median: 76.338 HCKT: 64.982 mean: 63.143 low: -69.969 |
|
| PE/G Ratio | -8.881 | |
| Price To Sales (P/S) | 7.958 | |
| Price To Sales QoQ | -18.884 % | |
| Price To Sales YoY | -3.423 % | |
| Price To Sales IPRWA | high: 17.197 median: 11.089 mean: 9.122 HCKT: 7.958 low: 0.008 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 58.855 | |
| Forward PE/G | -8.044 | |
| Forward P/S | 4.418 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.284 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.402 | |
| Asset Turnover Ratio QoQ | -0.904 % | |
| Asset Turnover Ratio YoY | -4.988 % | |
| Asset Turnover Ratio IPRWA | high: 0.719 HCKT: 0.402 median: 0.287 mean: 0.242 low: 0.038 |
|
| Receivables Turnover | 1.992 | |
| Receivables Turnover Ratio QoQ | -3.825 % | |
| Receivables Turnover Ratio YoY | -5.59 % | |
| Receivables Turnover Ratio IPRWA | high: 3.883 HCKT: 1.992 mean: 1.537 median: 1.268 low: 0.415 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 45.807 | |
| 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 | 2.376 | |
| CapEx To Revenue | -0.024 | |
| CapEx To Depreciation | -1.847 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 142.6 M | |
| Net Invested Capital | $ 142.6 M | |
| Invested Capital | $ 142.6 M | |
| Net Tangible Assets | $ 24.6 M | |
| Net Working Capital | $ 33.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.216 | |
| Current Ratio | 1.707 | |
| Current Ratio QoQ | 7.388 % | |
| Current Ratio YoY | -0.469 % | |
| Current Ratio IPRWA | high: 3.358 HCKT: 1.707 mean: 1.677 median: 1.461 low: 0.34 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.386 | |
| Cost Of Debt | 1.241 % | |
| Interest Coverage Ratio | 12.555 | |
| Interest Coverage Ratio QoQ | -42.402 % | |
| Interest Coverage Ratio YoY | -48.642 % | |
| Interest Coverage Ratio IPRWA | high: 46.876 median: 27.435 mean: 26.196 HCKT: 12.555 low: -32.337 |
|
| Operating Cash Flow Ratio | 0.045 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 8.852 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.501 | |
| Dividend Payout Ratio | 1.998 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.566 % | |
| Revenue Growth | 1.328 % | |
| Revenue Growth QoQ | -176.807 % | |
| Revenue Growth YoY | 118.421 % | |
| Revenue Growth IPRWA | high: 15.386 % median: 6.33 % mean: 4.367 % HCKT: 1.328 % low: -11.52 % |
|
| Earnings Growth | -7.317 % | |
| Earnings Growth QoQ | -42.684 % | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | high: 116.406 % median: 18.932 % mean: 0.754 % HCKT: -7.317 % low: -122.222 % |
|
| MARGINS | ||
| Gross Margin | 35.434 % | |
| Gross Margin QoQ | -0.934 % | |
| Gross Margin YoY | -9.784 % | |
| Gross Margin IPRWA | high: 68.47 % HCKT: 35.434 % median: 32.867 % mean: 31.284 % low: 3.216 % |
|
| EBIT Margin | 5.824 % | |
| EBIT Margin QoQ | 2.989 % | |
| EBIT Margin YoY | -63.864 % | |
| EBIT Margin IPRWA | high: 40.753 % median: 16.705 % mean: 15.193 % HCKT: 5.824 % low: -4.292 % |
|
| Return On Sales (ROS) | 5.824 % | |
| Return On Sales QoQ | 2.989 % | |
| Return On Sales YoY | -63.864 % | |
| Return On Sales IPRWA | high: 19.395 % median: 16.057 % mean: 14.653 % HCKT: 5.824 % low: -5.114 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 3.7 M | |
| Free Cash Flow Yield | 0.596 % | |
| Free Cash Flow Yield QoQ | 71.758 % | |
| Free Cash Flow Yield YoY | -70.289 % | |
| Free Cash Flow Yield IPRWA | high: 5.903 % median: 1.788 % mean: 1.195 % HCKT: 0.596 % low: -10.517 % |
|
| Free Cash Growth | 41.094 % | |
| Free Cash Growth QoQ | -147.51 % | |
| Free Cash Growth YoY | -93.106 % | |
| Free Cash Growth IPRWA | high: 539.652 % HCKT: 41.094 % median: 20.62 % mean: 13.051 % low: -467.291 % |
|
| Free Cash To Net Income | 2.251 | |
| Cash Flow Margin | 2.665 % | |
| Cash Flow To Earnings | 1.266 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.847 % | |
| Return On Assets QoQ | -48.322 % | |
| Return On Assets YoY | -82.239 % | |
| Return On Assets IPRWA | high: 8.172 % median: 2.924 % mean: 2.567 % HCKT: 0.847 % low: -6.078 % |
|
| Return On Capital Employed (ROCE) | 2.993 % | |
| Return On Equity (ROE) | 0.014 | |
| Return On Equity QoQ | -49.545 % | |
| Return On Equity YoY | -83.805 % | |
| Return On Equity IPRWA | high: 0.157 median: 0.071 mean: 0.056 HCKT: 0.014 low: -0.139 |
|
| DuPont ROE | 1.418 % | |
| Return On Invested Capital (ROIC) | 2.546 % | |
| Return On Invested Capital QoQ | 2.167 % | |
| Return On Invested Capital YoY | -104.825 % | |
| Return On Invested Capital IPRWA | high: 7.923 % mean: 4.416 % median: 4.105 % HCKT: 2.546 % low: -7.46 % |
|