Recent News
Aug. 25, 2025 — Hagens Berman announced an investor investigation after the company reported a sizeable net loss and an impairment charge; the firm questioned disclosures around the abrupt dismissal of auditor Grant Thornton. Aug. 13, 2025 — Bleichmar Fonti & Auld opened a securities investigation citing acquisition integration and internal-control concerns. Aug. 20, 2025 — Market coverage averaged a “Moderate Buy” consensus from seven analysts with a mean 12‑month price target near $26.50. Early August 2025 — Simulations Plus announced support for the FDA’s roadmap to reduce animal testing, highlighting its modeling and simulation capabilities and a new NAM-focused service package.
Technical Analysis
Directional indicators show an emerging trend: ADX at 24.57 signals a developing market direction rather than a strong trend, while DI+ near 27.99 recently peaked and reversed, producing a bearish directional read. DI- at 15.08 recently dipped then reversed higher, reinforcing the bearish tilt on directional indicators.
Momentum reads conflicted: MACD sits at 0.63 above its 0.48 signal line, yet the MACD recently peaked and reversed, indicating bearish momentum despite the current above‑signal position; expect momentum to require confirmation before a sustained move.
MRO reads negative at -6.87, which indicates the price sits below WMDST’s modeled target and therefore carries mean‑reversion potential toward the valuation target; the recent peak-and-reverse on the oscillator reduces immediate upside urgency but leaves room for reversion.
RSI at 53.04 recently peaked and reversed, suggesting loss of short-term strength but no overbought condition; the indicator places price near neutral momentum rather than extreme readings.
Price sits at $17.16, slightly above the 12‑day EMA $17.07 (increasing) and above the 20‑day average $16.67 and 50‑day average $15.38, which creates short‑term technical support, while the 200‑day average $23.09 remains a longer‑term resistance ceiling. SuperTrend lower band at $16.43 provides a clear nearby support reference. Bollinger band width remains contained between $14.09 and $19.25, implying limited immediate volatility expansion.
Volume at 245,991 undercuts short-, medium- and long‑term averages (10/50/200‑day average volumes all above ~450,000), which reduces conviction behind directional moves and increases the chance of range trading until volume normalizes.
Fundamental Analysis
Profitability and margins show mixed signals. The company reports $2,995,000 in EBIT and $5,313,000 in EBITDA; operating (EBIT) margin stands at 14.71%, up 21.65% QoQ and up 45.08% YoY, yet below the industry peer mean and median (industry peer mean EBIT margin 22.60%, median 30.79%). Gross margin sits at 63.998%, with a modest QoQ increase and a slight YoY decline.
Revenue and earnings: total revenue reached $20,363,000 while revenue growth measured -9.22% on the primary revenue metric provided. Reported net income shows a loss of $67,317,000 for the period ending 2025-05-31, while quarterly EPS came in at $0.45 versus an estimate of $0.25, producing an EPS surprise of +80% relative to the estimate.
Cash flow and balance sheet: free cash flow equals $7,054,000 with a free cash flow yield of 2.04%, which slightly exceeds the industry peer mean free cash flow yield of 1.46%; the company holds $28,450,000 in cash and short‑term investments and reports a current ratio of 5.11 (industry peer mean 4.45). Total debt remains negligible at $719,000, producing a debt‑to‑assets ratio near 0.54%, below the peer mean.
Returns and growth measures skew negative: return on equity equals -54.39% and return on assets equals -40.10%, reflecting the reported net loss and retained deficit of $33,683,000. Earnings-growth metrics present volatility: headline earningsGrowth registers positive in one measure but quarter‑to‑quarter and year‑over‑year earnings growth figures show material declines, underscoring uneven earnings dynamics.
Valuation context: P/E registers at 53.93 while forward P/E sits at 120.10; price‑to‑book stands at 2.79, below the industry peer mean P/B of 6.39. Enterprise value measures and an EV/R multiple near 15.60 place market pricing at a premium to near‑term revenue but the company’s substantial cash position and low leverage compress true enterprise exposure. WMDST values the stock as under‑valued based on the firm’s cash cushion, positive free cash flow yield relative to peers, and low net leverage, balanced against the reported net loss and depressed returns.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-05-31 |
| REPORT DATE: | 2025-07-14 |
| NEXT REPORT DATE: | 2025-09-29 |
| CASH FLOW | Begin Period Cash Flow | $ 11.0 M |
| Operating Cash Flow | $ 8.1 M | |
| Capital Expenditures | $ -1.09 M | |
| Change In Working Capital | $ 1.6 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 16.0 M | |
| End Period Cash Flow | $ 26.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 20.4 M | |
| Forward Revenue | $ -391.72 K | |
| COSTS | ||
| Cost Of Revenue | $ 7.3 M | |
| Depreciation | $ 2.3 M | |
| Depreciation and Amortization | $ 2.3 M | |
| Research and Development | $ 1.2 M | |
| Total Operating Expenses | $ 17.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 13.0 M | |
| EBITDA | $ 5.3 M | |
| EBIT | $ 3.0 M | |
| Operating Income | $ 3.0 M | |
| Interest Income | $ 170.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 170.0 K | |
| Income Before Tax | $ -74.04 M | |
| Tax Provision | $ -6.73 M | |
| Tax Rate | 9.085 % | |
| Net Income | $ -67.32 M | |
| Net Income From Continuing Operations | $ -67.32 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.25 | |
| EPS Actual | $ 0.45 | |
| EPS Difference | $ 0.20 | |
| EPS Surprise | 80.0 % | |
| Forward EPS | $ 0.26 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 134.4 M | |
| Intangible Assets | $ 73.6 M | |
| Net Tangible Assets | $ 50.2 M | |
| Total Current Assets | $ 51.8 M | |
| Cash and Short-Term Investments | $ 28.4 M | |
| Cash | $ 26.9 M | |
| Net Receivables | $ 14.8 M | |
| Inventory | — | |
| Long-Term Investments | $ 430.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 1.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 10.1 M | |
| Net Debt | — | |
| Total Debt | $ 719.0 K | |
| Total Liabilities | $ 10.6 M | |
| EQUITY | ||
| Total Equity | $ 123.8 M | |
| Retained Earnings | $ -33.68 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.15 | |
| Shares Outstanding | 20.116 M | |
| Revenue Per-Share | $ 1.01 | |
| VALUATION | Market Capitalization | $ 345.3 M |
| Enterprise Value | $ 317.6 M | |
| Enterprise Multiple | 59.776 | |
| Enterprise Multiple QoQ | -46.822 % | |
| Enterprise Multiple YoY | -76.959 % | |
| Enterprise Multiple IPRWA | high: 187.312 median: 129.932 mean: 124.276 SLP: 59.776 low: -61.072 |
|
| EV/R | 15.596 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.085 | |
| Asset To Liability | 12.698 | |
| Debt To Capital | 0.006 | |
| Debt To Assets | 0.005 | |
| Debt To Assets QoQ | 35.443 % | |
| Debt To Assets YoY | 25.587 % | |
| Debt To Assets IPRWA | high: 0.603 mean: 0.052 median: 0.01 low: 0.008 SLP: 0.005 |
|
| Debt To Equity | 0.006 | |
| Debt To Equity QoQ | 38.333 % | |
| Debt To Equity YoY | 28.256 % | |
| Debt To Equity IPRWA | high: 1.265 mean: 0.086 median: 0.012 SLP: 0.006 low: -1.054 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.79 | |
| Price To Book QoQ | -8.991 % | |
| Price To Book YoY | -45.952 % | |
| Price To Book IPRWA | high: 11.276 mean: 6.385 median: 6.06 SLP: 2.79 low: -6.059 |
|
| Price To Earnings (P/E) | 53.925 | |
| Price To Earnings QoQ | -72.003 % | |
| Price To Earnings YoY | -82.664 % | |
| Price To Earnings IPRWA | high: 163.345 median: 117.241 mean: 111.999 SLP: 53.925 low: -99.343 |
|
| PE/G Ratio | 1.194 | |
| Price To Sales (P/S) | 16.958 | |
| Price To Sales QoQ | -34.531 % | |
| Price To Sales YoY | -66.314 % | |
| Price To Sales IPRWA | high: 93.726 median: 49.584 mean: 48.374 SLP: 16.958 low: 0.843 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 120.097 | |
| Forward PE/G | 2.659 | |
| Forward P/S | -881.538 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.131 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.121 | |
| Asset Turnover Ratio QoQ | 7.689 % | |
| Asset Turnover Ratio YoY | 26.449 % | |
| Asset Turnover Ratio IPRWA | high: 0.368 SLP: 0.121 mean: 0.112 median: 0.101 low: 0.0 |
|
| Receivables Turnover | 1.302 | |
| Receivables Turnover Ratio QoQ | -14.959 % | |
| Receivables Turnover Ratio YoY | -18.334 % | |
| Receivables Turnover Ratio IPRWA | high: 3.6 SLP: 1.302 mean: 1.164 median: 1.006 low: 0.882 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 70.07 | |
| 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 | 0.489 | |
| CapEx To Revenue | -0.054 | |
| CapEx To Depreciation | -0.47 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 123.8 M | |
| Net Invested Capital | $ 123.8 M | |
| Invested Capital | $ 123.8 M | |
| Net Tangible Assets | $ 50.2 M | |
| Net Working Capital | $ 41.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.808 | |
| Current Ratio | 5.111 | |
| Current Ratio QoQ | 16.997 % | |
| Current Ratio YoY | -57.342 % | |
| Current Ratio IPRWA | high: 6.468 SLP: 5.111 median: 4.605 mean: 4.448 low: 0.014 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.135 | |
| Cost Of Debt | 88.19 % | |
| Interest Coverage Ratio | 4.076 | |
| Interest Coverage Ratio QoQ | 10.435 % | |
| Interest Coverage Ratio YoY | 59.309 % | |
| Interest Coverage Ratio IPRWA | high: 23.544 median: 7.727 mean: 6.315 SLP: 4.076 low: -10.0 |
|
| Operating Cash Flow Ratio | -6.202 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 14.068 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -33.296 % | |
| Revenue Growth | -9.223 % | |
| Revenue Growth QoQ | -149.755 % | |
| Revenue Growth YoY | -806.202 % | |
| Revenue Growth IPRWA | high: 33.14 % median: 5.293 % mean: 3.97 % SLP: -9.223 % low: -46.267 % |
|
| Earnings Growth | 45.161 % | |
| Earnings Growth QoQ | -96.774 % | |
| Earnings Growth YoY | -280.644 % | |
| Earnings Growth IPRWA | high: 675.0 % SLP: 45.161 % median: 13.218 % mean: 7.874 % low: -275.0 % |
|
| MARGINS | ||
| Gross Margin | 63.998 % | |
| Gross Margin QoQ | 9.363 % | |
| Gross Margin YoY | -10.479 % | |
| Gross Margin IPRWA | high: 96.642 % median: 77.1 % mean: 75.724 % SLP: 63.998 % low: 13.884 % |
|
| EBIT Margin | 14.708 % | |
| EBIT Margin QoQ | 21.654 % | |
| EBIT Margin YoY | 45.078 % | |
| EBIT Margin IPRWA | high: 37.363 % median: 30.793 % mean: 22.598 % SLP: 14.708 % low: -171.354 % |
|
| Return On Sales (ROS) | 14.708 % | |
| Return On Sales QoQ | 21.654 % | |
| Return On Sales YoY | 45.078 % | |
| Return On Sales IPRWA | high: 37.363 % median: 30.793 % mean: 22.721 % SLP: 14.708 % low: -171.354 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.1 M | |
| Free Cash Flow Yield | 2.043 % | |
| Free Cash Flow Yield QoQ | 150.675 % | |
| Free Cash Flow Yield YoY | 303.755 % | |
| Free Cash Flow Yield IPRWA | high: 4.882 % median: 2.331 % SLP: 2.043 % mean: 1.455 % low: -22.063 % |
|
| Free Cash Growth | 48.881 % | |
| Free Cash Growth QoQ | -115.428 % | |
| Free Cash Growth YoY | 380.828 % | |
| Free Cash Growth IPRWA | high: 297.281 % SLP: 48.881 % median: -37.992 % mean: -44.797 % low: -350.863 % |
|
| Free Cash To Net Income | -0.105 | |
| Cash Flow Margin | -308.545 % | |
| Cash Flow To Earnings | 0.933 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -40.095 % | |
| Return On Assets QoQ | -2698.509 % | |
| Return On Assets YoY | -2570.425 % | |
| Return On Assets IPRWA | high: 5.168 % median: 3.021 % mean: 2.338 % low: -27.619 % SLP: -40.095 % |
|
| Return On Capital Employed (ROCE) | 2.411 % | |
| Return On Equity (ROE) | -0.544 | |
| Return On Equity QoQ | -3452.959 % | |
| Return On Equity YoY | -3234.582 % | |
| Return On Equity IPRWA | high: 0.169 median: 0.037 mean: 0.027 low: -0.35 SLP: -0.544 |
|
| DuPont ROE | -42.971 % | |
| Return On Invested Capital (ROIC) | 2.2 % | |
| Return On Invested Capital QoQ | -119.061 % | |
| Return On Invested Capital YoY | -270.675 % | |
| Return On Invested Capital IPRWA | high: 8.024 % median: 2.875 % mean: 2.477 % SLP: 2.2 % low: -12.189 % |
|