Technical Analysis
ADX / DI+ / DI-: ADX at 26.43 signals a strong trend in place; the directional indicators show DI- at 32.34 and rising while DI+ sits at 23.09 and falling, producing a bearish directional bias that pressures near-term price action relative to valuation.
MACD: MACD equals -0.69 and trends downward while the signal line sits at -0.14, a configuration that indicates continuing bearish momentum rather than an immediate bullish crossover, which tempers any rally despite fundamental support.
MRO (Momentum/Regression Oscillator): MRO reads -18.32, indicating price trades below the WMDST target and therefore presents upside potential; the MRO trend decreasing implies that the gap below target enlarged, enhancing potential upward correction pressure relative to valuation.
RSI: RSI at 51.5 with a dip-and-reversal reflects a short-term bullish shift in momentum, supporting a near-term bounce attempt even while trend-following indicators remain adverse.
Price Versus Averages & Bands: Last close $22.49 sits below the 12-day EMA $23.84 (12-day EMA trending down) and below the 20-day average $24.78, which keeps short-term technical context tilted lower. Price lies above the 200-day average $21.00, preserving longer-term support. Bollinger boundaries place lower 1x std dev at $21.73, so current price trades modestly above the lower band and nearer the lower volatility range.
Volatility & Volume: 42-day and 52-week volatility both register 0.04; 10-day average volume 2,507,690 exceeds the latest session volume 734,252, indicating subdued immediate trading interest versus recent norms and leaving room for strength to surface if catalysts emerge.
Fundamental Analysis
Liquidity And Capital Structure: Cash $709,871,000 and cash plus short-term investments $735,547,000 contrast with market capitalization $1,195,412,810 and enterprise value $1,182,993,810, leaving an unusually large cash cushion relative to market value. Current ratio 2.62 and quick ratio 2.24 underline ample near-term coverage of obligations. Debt to assets stands at 40.11% and debt to equity at 1.24x, reflecting meaningful leverage while interest coverage at 19.69x indicates strong capacity to service debt.
Profitability And Margins: EBIT margin registers 3.48% (EBIT $11,282,000); that margin sits well below the industry peer mean of 33.405% and below the industry peer median of 33.651%, indicating weaker operating profitability versus peers. Operating margin equals 4.668%, and gross margin equals 29.324%.
Growth Dynamics: Revenue totaled $324,251,000 with revenue growth at -11.29% and revenue growth year-over-year at -3.04%; EBIT margin quarter-over-quarter declined by 31.98% while EBIT margin year-over-year slid by 5.54%. Earnings growth displays a positive figure of 422.22% and earnings growth year-over-year of 1,040.00% (reflecting base effects); QoQ earnings growth rose sharply by 67.97%. These mixed growth signals show pockets of earnings recovery against contracting top-line trends.
Cash Generation: Free cash flow $90,905,000 yields 7.60% free cash flow yield, above the industry peer mean free cash flow yield of 0.881% and above the industry peer high reference, indicating relatively strong free cash generation versus peers. Operating cash flow $92,821,000 and cash conversion ratio 41.94% corroborate healthy cash conversion despite lower revenue.
Valuation Multiples & Earnings Data: Trailing PE equals 40.56 while forward PE equals 32.82; both sit below the industry peer mean PE of 55.42 and the forward peer mean of 43.21, respectively. Price-to-book stands at 2.04, essentially in line with the industry peer mean of 2.07. EPS actual $0.43 beat estimate $0.37 by $0.06, an EPS surprise of 16.22%.
Operational Efficiency: Asset turnover 0.179 indicates low turnover relative to the industry peer mean of 0.10486 (note: Pengrowth’s asset turnover sits above that mean), while receivables turnover 1.04 and inventory turnover 1.19 point to slower working-capital cycles; cash conversion cycle 65.57 days fits inside the peer range but toward the longer end versus the industry peer mean of -11.41 days.
Valuation Summary: WMDST values the stock as under-valued. The valuation case rests on sizable cash on the balance sheet, a strong free cash flow yield of 7.60%, and forward PE below peer averages; weaker operating margins and elevated leverage moderate but do not eliminate the revaluation argument given current cash coverage and interest coverage at 19.69x.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-05-31 |
| REPORT DATE: | 2025-10-07 |
| NEXT REPORT DATE: | 2026-01-06 |
| CASH FLOW | Begin Period Cash Flow | $ 622.0 M |
| Operating Cash Flow | $ 92.8 M | |
| Capital Expenditures | $ -1.92 M | |
| Change In Working Capital | $ 63.1 M | |
| Dividends Paid | $ -2.87 M | |
| Cash Flow Delta | $ 63.1 M | |
| End Period Cash Flow | $ 710.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 324.3 M | |
| Forward Revenue | $ 878.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 229.2 M | |
| Depreciation | $ 14.0 M | |
| Depreciation and Amortization | $ 14.0 M | |
| Research and Development | $ 20.2 M | |
| Total Operating Expenses | $ 309.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 95.1 M | |
| EBITDA | $ 25.3 M | |
| EBIT | $ 11.3 M | |
| Operating Income | $ 15.1 M | |
| Interest Income | — | |
| Interest Expense | $ 573.0 K | |
| Net Interest Income | $ -573.00 K | |
| Income Before Tax | $ 10.7 M | |
| Tax Provision | $ 7.3 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 2.7 M | |
| Net Income From Continuing Operations | $ 3.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.37 | |
| EPS Actual | $ 0.43 | |
| EPS Difference | $ 0.06 | |
| EPS Surprise | 16.216 % | |
| Forward EPS | $ 0.55 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 245.7 M | |
| Net Tangible Assets | $ 339.1 M | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 735.5 M | |
| Cash | $ 709.9 M | |
| Net Receivables | $ 292.5 M | |
| Inventory | $ 184.3 M | |
| Long-Term Investments | $ 67.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 272.1 M | |
| Short-Term Debt | $ 19.9 M | |
| Total Current Liabilities | $ 476.7 M | |
| Net Debt | — | |
| Total Debt | $ 723.1 M | |
| Total Liabilities | $ 1.2 B | |
| EQUITY | ||
| Total Equity | $ 584.8 M | |
| Retained Earnings | $ 40.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 11.07 | |
| Shares Outstanding | 52.417 M | |
| Revenue Per-Share | $ 6.14 | |
| VALUATION | Market Capitalization | $ 1.2 B |
| Enterprise Value | $ 1.2 B | |
| Enterprise Multiple | 46.788 | |
| Enterprise Multiple QoQ | 288.813 % | |
| Enterprise Multiple YoY | -11.398 % | |
| Enterprise Multiple IPRWA | high: 116.188 PENG: 46.788 mean: 28.479 median: 22.553 low: -28.513 |
|
| EV/R | 3.648 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.083 | |
| Asset To Liability | 1.493 | |
| Debt To Capital | 0.553 | |
| Debt To Assets | 0.401 | |
| Debt To Assets QoQ | 3553.188 % | |
| Debt To Assets YoY | -14.938 % | |
| Debt To Assets IPRWA | high: 0.47 PENG: 0.401 mean: 0.156 median: 0.099 low: 0.003 |
|
| Debt To Equity | 1.237 | |
| Debt To Equity QoQ | 3646.168 % | |
| Debt To Equity YoY | -28.179 % | |
| Debt To Equity IPRWA | high: 1.386 PENG: 1.237 mean: 0.3 median: 0.157 low: -0.274 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.044 | |
| Price To Book QoQ | 20.635 % | |
| Price To Book YoY | -24.291 % | |
| Price To Book IPRWA | high: 40.027 median: 2.223 mean: 2.071 PENG: 2.044 low: -0.64 |
|
| Price To Earnings (P/E) | 40.565 | |
| Price To Earnings QoQ | 10.095 % | |
| Price To Earnings YoY | -30.605 % | |
| Price To Earnings IPRWA | high: 164.776 mean: 55.422 median: 50.88 PENG: 40.565 low: 8.944 |
|
| PE/G Ratio | 0.096 | |
| Price To Sales (P/S) | 3.687 | |
| Price To Sales QoQ | 31.981 % | |
| Price To Sales YoY | -3.082 % | |
| Price To Sales IPRWA | high: 47.131 median: 12.14 mean: 11.492 PENG: 3.687 low: 1.605 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.823 | |
| Forward PE/G | 0.078 | |
| Forward P/S | 1.351 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.513 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.179 | |
| Asset Turnover Ratio QoQ | -16.683 % | |
| Asset Turnover Ratio YoY | -8.556 % | |
| Asset Turnover Ratio IPRWA | PENG: 0.179 high: 0.133 median: 0.115 mean: 0.105 low: 0.002 |
|
| Receivables Turnover | 1.041 | |
| Receivables Turnover Ratio QoQ | -13.694 % | |
| Receivables Turnover Ratio YoY | -33.919 % | |
| Receivables Turnover Ratio IPRWA | high: 2.676 median: 2.09 mean: 2.014 low: 1.154 PENG: 1.041 |
|
| Inventory Turnover | 1.193 | |
| Inventory Turnover Ratio QoQ | 2.166 % | |
| Inventory Turnover Ratio YoY | -1.326 % | |
| Inventory Turnover Ratio IPRWA | high: 18.977 mean: 3.877 low: 2.08 median: 2.08 PENG: 1.193 |
|
| Days Sales Outstanding (DSO) | 87.646 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 65.565 | |
| Cash Conversion Cycle Days QoQ | -4.875 % | |
| Cash Conversion Cycle Days YoY | 8.87 % | |
| Cash Conversion Cycle Days IPRWA | high: 81.332 PENG: 65.565 mean: -11.406 low: -24.944 median: -24.944 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.419 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.137 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.2 B | |
| Net Invested Capital | $ 1.2 B | |
| Invested Capital | $ 1.2 B | |
| Net Tangible Assets | $ 339.1 M | |
| Net Working Capital | $ 773.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.543 | |
| Current Ratio | 2.622 | |
| Current Ratio QoQ | -0.228 % | |
| Current Ratio YoY | -2.306 % | |
| Current Ratio IPRWA | high: 6.346 PENG: 2.622 median: 1.786 mean: 1.425 low: 0.065 |
|
| Quick Ratio | 2.235 | |
| Quick Ratio QoQ | 1.314 % | |
| Quick Ratio YoY | 2.587 % | |
| Quick Ratio IPRWA | PENG: 2.235 high: 1.606 median: 1.606 mean: 1.48 low: 0.814 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 28.6 | |
| Cost Of Debt | 0.063 % | |
| Interest Coverage Ratio | 19.689 | |
| Interest Coverage Ratio QoQ | 129.886 % | |
| Interest Coverage Ratio YoY | 996.875 % | |
| Interest Coverage Ratio IPRWA | high: 249.305 median: 35.333 mean: 25.778 PENG: 19.689 low: -50.859 |
|
| Operating Cash Flow Ratio | 0.218 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 89.255 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 0.928 | |
| Dividend Payout Ratio | 1.077 | |
| Dividend Rate | $ 0.05 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.473 % | |
| Revenue Growth | -11.29 % | |
| Revenue Growth QoQ | -257.726 % | |
| Revenue Growth YoY | -304.048 % | |
| Revenue Growth IPRWA | high: 12.94 % median: -8.336 % mean: -8.993 % PENG: -11.29 % low: -36.994 % |
|
| Earnings Growth | 422.222 % | |
| Earnings Growth QoQ | 6796.798 % | |
| Earnings Growth YoY | 1040.001 % | |
| Earnings Growth IPRWA | PENG: 422.222 % high: 144.444 % mean: -14.217 % median: -19.164 % low: -55.693 % |
|
| MARGINS | ||
| Gross Margin | 29.324 % | |
| Gross Margin QoQ | 2.424 % | |
| Gross Margin YoY | -0.859 % | |
| Gross Margin IPRWA | high: 80.13 % median: 64.444 % mean: 52.552 % PENG: 29.324 % low: 14.551 % |
|
| EBIT Margin | 3.479 % | |
| EBIT Margin QoQ | -31.984 % | |
| EBIT Margin YoY | -5.539 % | |
| EBIT Margin IPRWA | high: 114.608 % median: 33.651 % mean: 33.405 % PENG: 3.479 % low: -68.326 % |
|
| Return On Sales (ROS) | 4.668 % | |
| Return On Sales QoQ | -8.739 % | |
| Return On Sales YoY | 26.745 % | |
| Return On Sales IPRWA | high: 93.565 % median: 31.354 % mean: 28.867 % low: 6.348 % PENG: 4.668 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 90.9 M | |
| Free Cash Flow Yield | 7.604 % | |
| Free Cash Flow Yield QoQ | 10.059 % | |
| Free Cash Flow Yield YoY | 14.397 % | |
| Free Cash Flow Yield IPRWA | PENG: 7.604 % high: 5.855 % mean: 0.881 % median: 0.368 % low: -7.353 % |
|
| Free Cash Growth | 28.866 % | |
| Free Cash Growth QoQ | -94.093 % | |
| Free Cash Growth YoY | -107.592 % | |
| Free Cash Growth IPRWA | PENG: 28.866 % high: 25.467 % mean: -63.025 % median: -70.347 % low: -203.311 % |
|
| Free Cash To Net Income | 34.162 | |
| Cash Flow Margin | 32.005 % | |
| Cash Flow To Earnings | 38.998 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.147 % | |
| Return On Assets QoQ | -69.118 % | |
| Return On Assets YoY | -59.946 % | |
| Return On Assets IPRWA | high: 22.476 % median: 2.884 % mean: 2.365 % PENG: 0.147 % low: -11.591 % |
|
| Return On Capital Employed (ROCE) | 0.851 % | |
| Return On Equity (ROE) | 0.005 | |
| Return On Equity QoQ | -66.07 % | |
| Return On Equity YoY | -65.686 % | |
| Return On Equity IPRWA | high: 0.39 median: 0.046 mean: 0.038 PENG: 0.005 low: -0.277 |
|
| DuPont ROE | 0.448 % | |
| Return On Invested Capital (ROIC) | 0.716 % | |
| Return On Invested Capital QoQ | -140.022 % | |
| Return On Invested Capital YoY | -78.589 % | |
| Return On Invested Capital IPRWA | high: 8.04 % median: 4.145 % mean: 3.582 % PENG: 0.716 % low: -28.291 % |
|