Recent News
On September 16, 2025 the company announced an Investor Conference at the NASDAQ MarketSite scheduled for October 15, 2025, with executive leadership presenting a refreshed long-term strategy. On October 15, 2025 the company outlined an operational and financial outlook at an Investor Day, reaffirming near-term guidance and highlighting initiatives intended to drive EPS growth in fiscal 2026.
Technical Analysis
ADX sits at 31.4, signaling a strong underlying trend that raises the probability of sustained price direction rather than rangebound action; that strength amplifies any signal from directional indicators.
DI+ shows a peak-and-reversal pattern, which reads as bearish pressure from buyers, while DI- trends lower, which reads as easing selling pressure; those opposing DI signals imply directional tension that the ADX currently favors the dominant trend strength.
MACD stands at 1.90 above its 1.06 signal and trends higher, indicating bullish momentum and a recent bullish MACD alignment versus the signal line.
MRO reads 28.14 and climbs, indicating the market price sits above the model target and therefore carries measurable mean-reversion downside risk despite momentum indicators.
RSI at 53.08 and rising shows modest bullish bias without overbought readings, supporting the potential for additional near-term upside provided momentum holds.
Price at $106.29 trades above short- and long-term averages — 20-day $101.89 and 200-day $91.04 — while the 12-day EMA increases; Ichimoku components place price above the cloud (Senkou B $104.12), reinforcing the technical uphill bias. Volume currently runs below short- and long-term averages, reducing conviction behind intraday moves and increasing the chance that momentum could stall without renewed participation.
Fundamental Analysis
Revenue trends show contraction: revenue growth year-over-year declined by 55.108%, and quarter-to-quarter revenue change reads -99.225%, indicating meaningful top-line pressure when compared against prior periods.
Operational profitability shows recovery on a yearly basis: EBIT at $231,400,000 produces an EBIT margin of 5.063%, up 83.975% year-over-year but down 47.304% quarter-over-quarter; that EBIT margin sits marginally below the industry peer low of 5.10%.
Earnings per share exceeded expectations this period: actual EPS $0.77 versus estimate $0.41, an EPS surprise of 87.8% that reflects timing and discrete items highlighted by management.
Cash generation remains positive with free cash flow $380,100,000 and a free cash flow yield of 1.747%, roughly in line with the industry peer mean for yield; operating cash flow totaled $625,100,000 while cash and short-term investments reached $666,300,000.
Leverage measures present constraints: total debt $7,342,700,000 produces a debt-to-assets ratio of 54.858% and a debt-to-equity ratio of 203.675%; debt-to-EBITDA reads 18.66x, while interest coverage approximates 10.15x, which supplies near-term interest serviceability but leaves limited flexibility for aggressive capital deployment.
Efficiency and returns deliver mixed signals: asset turnover at 0.2886 sits below the industry peer mean of 0.3870, while return on equity equals 5.226%, below the industry peer mean of 6.666%; gross margin expanded 14.415% year-over-year to 34.432%.
WMDST values the stock as over-valued given the combination of stretched valuation multiples, elevated leverage, and revenue contraction despite improving margins and strong EPS beats.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-09-03 |
| NEXT REPORT DATE: | 2025-12-03 |
| CASH FLOW | Begin Period Cash Flow | $ 1.3 B |
| Operating Cash Flow | $ 625.1 M | |
| Capital Expenditures | $ -245.00 M | |
| Change In Working Capital | $ -227.30 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -553.90 M | |
| End Period Cash Flow | $ 757.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.6 B | |
| Forward Revenue | $ 1.9 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.0 B | |
| Depreciation | $ 162.0 M | |
| Depreciation and Amortization | $ 162.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 4.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.6 B | |
| EBITDA | $ 393.4 M | |
| EBIT | $ 231.4 M | |
| Operating Income | $ 231.0 M | |
| Interest Income | — | |
| Interest Expense | $ 22.8 M | |
| Net Interest Income | $ -22.80 M | |
| Income Before Tax | $ 208.6 M | |
| Tax Provision | $ 53.1 M | |
| Tax Rate | 25.455 % | |
| Net Income | $ 188.4 M | |
| Net Income From Continuing Operations | $ 281.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.41 | |
| EPS Actual | $ 0.77 | |
| EPS Difference | $ 0.36 | |
| EPS Surprise | 87.805 % | |
| Forward EPS | $ 1.51 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 13.4 B | |
| Intangible Assets | $ 422.4 M | |
| Net Tangible Assets | $ 3.2 B | |
| Total Current Assets | $ 3.6 B | |
| Cash and Short-Term Investments | $ 666.3 M | |
| Cash | $ 666.3 M | |
| Net Receivables | — | |
| Inventory | $ 2.7 B | |
| Long-Term Investments | $ 217.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.6 B | |
| Short-Term Debt | $ 299.5 M | |
| Total Current Liabilities | $ 3.5 B | |
| Net Debt | $ 2.1 B | |
| Total Debt | $ 7.3 B | |
| Total Liabilities | $ 9.8 B | |
| EQUITY | ||
| Total Equity | $ 3.6 B | |
| Retained Earnings | $ 3.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.62 | |
| Shares Outstanding | 204.634 M | |
| Revenue Per-Share | $ 22.33 | |
| VALUATION | Market Capitalization | $ 21.8 B |
| Enterprise Value | $ 28.4 B | |
| Enterprise Multiple | 72.281 | |
| Enterprise Multiple QoQ | 80.018 % | |
| Enterprise Multiple YoY | 43.205 % | |
| Enterprise Multiple IPRWA | high: 85.579 DLTR: 72.281 median: 46.609 mean: 46.226 low: 17.483 |
|
| EV/R | 6.222 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.713 | |
| Asset To Liability | 1.369 | |
| Debt To Capital | 0.671 | |
| Debt To Assets | 0.549 | |
| Debt To Assets QoQ | 26.895 % | |
| Debt To Assets YoY | 892.725 % | |
| Debt To Assets IPRWA | DLTR: 0.549 high: 0.539 mean: 0.392 median: 0.35 low: 0.345 |
|
| Debt To Equity | 2.037 | |
| Debt To Equity QoQ | 0.578 % | |
| Debt To Equity YoY | 1102.616 % | |
| Debt To Equity IPRWA | high: 2.13 DLTR: 2.037 mean: 1.297 median: 1.295 low: 0.884 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.036 | |
| Price To Book QoQ | 38.092 % | |
| Price To Book YoY | 102.283 % | |
| Price To Book IPRWA | high: 7.904 DLTR: 6.036 mean: 4.802 median: 2.988 low: 0.32 |
|
| Price To Earnings (P/E) | 138.093 | |
| Price To Earnings QoQ | 114.249 % | |
| Price To Earnings YoY | -9.663 % | |
| Price To Earnings IPRWA | high: 158.733 DLTR: 138.093 mean: 71.806 median: 58.392 low: 8.181 |
|
| PE/G Ratio | -3.551 | |
| Price To Sales (P/S) | 4.761 | |
| Price To Sales QoQ | 29.426 % | |
| Price To Sales YoY | 59.544 % | |
| Price To Sales IPRWA | high: 8.195 DLTR: 4.761 mean: 4.527 median: 2.231 low: 0.354 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 65.209 | |
| Forward PE/G | -1.677 | |
| Forward P/S | 11.573 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 32.199 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.289 | |
| Asset Turnover Ratio QoQ | 14.863 % | |
| Asset Turnover Ratio YoY | -12.541 % | |
| Asset Turnover Ratio IPRWA | high: 0.442 mean: 0.387 median: 0.384 DLTR: 0.289 low: 0.227 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | 1.112 | |
| Inventory Turnover Ratio QoQ | 0.112 % | |
| Inventory Turnover Ratio YoY | 9.029 % | |
| Inventory Turnover Ratio IPRWA | high: 1.516 median: 1.381 mean: 1.344 DLTR: 1.112 low: 0.656 |
|
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 33.934 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -35.952 % | |
| Cash Conversion Cycle Days IPRWA | high: 224.823 median: 50.135 mean: 45.547 DLTR: 33.934 low: -57.702 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 35.987 | |
| CapEx To Revenue | -0.054 | |
| CapEx To Depreciation | -1.512 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.0 B | |
| Net Invested Capital | $ 6.3 B | |
| Invested Capital | $ 6.3 B | |
| Net Tangible Assets | $ 3.2 B | |
| Net Working Capital | $ 127.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.191 | |
| Current Ratio | 1.036 | |
| Current Ratio QoQ | -0.697 % | |
| Current Ratio YoY | 2.07 % | |
| Current Ratio IPRWA | high: 1.714 mean: 1.303 median: 1.253 DLTR: 1.036 low: 0.99 |
|
| Quick Ratio | 0.267 | |
| Quick Ratio QoQ | -62.698 % | |
| Quick Ratio YoY | 61.616 % | |
| Quick Ratio IPRWA | high: 0.983 mean: 0.583 median: 0.32 DLTR: 0.267 low: 0.188 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 18.665 | |
| Cost Of Debt | 0.223 % | |
| Interest Coverage Ratio | 10.149 | |
| Interest Coverage Ratio QoQ | -48.321 % | |
| Interest Coverage Ratio YoY | 44.416 % | |
| Interest Coverage Ratio IPRWA | high: 85.038 mean: 38.374 median: 11.5 DLTR: 10.149 low: 3.577 |
|
| Operating Cash Flow Ratio | 0.113 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 48.356 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -26.823 % | |
| Revenue Growth | -1.494 % | |
| Revenue Growth QoQ | -99.225 % | |
| Revenue Growth YoY | -55.108 % | |
| Revenue Growth IPRWA | high: 10.916 % mean: 7.108 % median: 5.724 % low: 2.796 % DLTR: -1.494 % |
|
| Earnings Growth | -38.889 % | |
| Earnings Growth QoQ | -3.463 % | |
| Earnings Growth YoY | -26.827 % | |
| Earnings Growth IPRWA | high: 57.692 % mean: 24.364 % median: 6.122 % low: -5.814 % DLTR: -38.889 % |
|
| MARGINS | ||
| Gross Margin | 34.432 % | |
| Gross Margin QoQ | -3.338 % | |
| Gross Margin YoY | 14.415 % | |
| Gross Margin IPRWA | high: 43.288 % DLTR: 34.432 % mean: 29.34 % median: 28.987 % low: 27.617 % |
|
| EBIT Margin | 5.063 % | |
| EBIT Margin QoQ | -47.304 % | |
| EBIT Margin YoY | 83.975 % | |
| EBIT Margin IPRWA | high: 12.273 % mean: 7.922 % median: 5.55 % low: 5.1 % DLTR: 5.063 % |
|
| Return On Sales (ROS) | 5.054 % | |
| Return On Sales QoQ | -47.398 % | |
| Return On Sales YoY | 83.648 % | |
| Return On Sales IPRWA | high: 11.544 % mean: 7.595 % median: 5.55 % DLTR: 5.054 % low: 4.54 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 380.1 M | |
| Free Cash Flow Yield | 1.747 % | |
| Free Cash Flow Yield QoQ | 27.332 % | |
| Free Cash Flow Yield YoY | -296.292 % | |
| Free Cash Flow Yield IPRWA | high: 2.359 % median: 2.212 % DLTR: 1.747 % mean: 1.711 % low: 0.669 % |
|
| Free Cash Growth | 62.367 % | |
| Free Cash Growth QoQ | -177.836 % | |
| Free Cash Growth YoY | -133.18 % | |
| Free Cash Growth IPRWA | high: 130.623 % DLTR: 62.367 % median: 1.525 % mean: -67.647 % low: -351.485 % |
|
| Free Cash To Net Income | 2.018 | |
| Cash Flow Margin | 8.594 % | |
| Cash Flow To Earnings | 2.085 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.19 % | |
| Return On Assets QoQ | -35.987 % | |
| Return On Assets YoY | 101.014 % | |
| Return On Assets IPRWA | high: 3.528 % mean: 2.224 % median: 1.64 % DLTR: 1.19 % low: 0.944 % |
|
| Return On Capital Employed (ROCE) | 2.338 % | |
| Return On Equity (ROE) | 0.052 | |
| Return On Equity QoQ | -40.573 % | |
| Return On Equity YoY | 191.304 % | |
| Return On Equity IPRWA | high: 0.089 mean: 0.067 median: 0.061 DLTR: 0.052 low: 0.022 |
|
| DuPont ROE | 5.017 % | |
| Return On Invested Capital (ROIC) | 2.723 % | |
| Return On Invested Capital QoQ | -39.543 % | |
| Return On Invested Capital YoY | -88.013 % | |
| Return On Invested Capital IPRWA | high: 7.091 % mean: 4.595 % median: 3.312 % DLTR: 2.723 % low: 2.028 % |
|