Technical Analysis
ADX at 37.63 indicates a strong directional condition; with DI- increasing and DI+ decreasing the directional bias favors sellers, reinforcing the intro’s near-term downside view.
MACD stands negative at -0.20 and trending lower while remaining below its signal (0.21), which signals ongoing bearish momentum that supports pressure on short-term price levels.
MRO at -23.11 and decreasing implies price sits below mechanistic target levels, indicating available mean-reversion potential; that potential contrasts with the prevailing bearish momentum and suggests any rebounds could prove limited relative to the valuation stretch.
RSI at 53.78 and decreasing shows momentum sliding from neutral territory, aligning with moving averages that lie above current price: the 20-day average ($16.39) and 50-day average ($15.65) sit higher than the close ($14.05), while the 200-day average ($14.54) also exceeds the last trade, reinforcing near-term resistance and the downward bias.
Price sits near the lower Bollinger band (1x lower $14.67), with the SuperTrend upper at $15.50 acting as a nearer-term resistance level; price momentum indicators and decreasing short-term EMAs suggest the path of least resistance remains lower unless momentum indicators reverse.
Fundamental Analysis
Revenue for the period totals $32.0M, with operating income of $3.662M and net income of $3.874M. Reported gross margin stands at 64.24% while operating margin measures 11.44%. The company reported EPS of $0.07 for the quarter in filings dated November 5, 2025.
Margins and profitability show mixed dynamics versus peers: EBIT margin registers 11.44%, below the industry peer mean of 23.84% and well below the industry peer median of 27.69%, while gross margin at 64.24% exceeds the industry peer mean of 44.47%, indicating strong product-level economics but elevated operating cost absorption relative to peers.
Quarter-over-quarter metrics show EBIT margin up roughly 17.77% QoQ, while year-over-year EBIT margin declined about 37.43% YoY. Revenue presents a sharp YoY contraction of 66.37% and a large sequential decline QoQ of 94.32% per the supplied figures; those shifts drive much of the operating margin compression despite healthy gross margin levels.
Balance sheet and liquidity display clear strength: cash and short-term investments total $70,381,000 and the current ratio reads 7.33x with a quick ratio of 5.75x, both well above the industry peer mean current ratio of 2.25x and quick ratio of 1.58x, providing substantial cushioning for operations and strategic flexibility.
Capital structure remains conservative with total debt of $9,999,000, debt-to-assets at 4.77%, and an interest coverage ratio of 366.2x, reflecting minimal leverage relative to industry peer means and supporting the firm’s ability to fund R&D and product development without meaningful interest burden.
Cash generation shows strain: operating cash flow registers negative $5.75M and free cash flow equals negative $3.47M (free cash flow yield -0.42%), while retained earnings and cash balances provide runway. Free cash flow trends year-over-year improved by ~30.03% but remain negative in absolute terms.
Efficiency metrics highlight working-capital intensity: the cash conversion cycle sits at 371.47 days versus an industry peer mean of 124.11 days, driven by elevated inventory days (299.25) and receivables dynamics, which could pressure near-term cash conversion despite strong liquidity reserves.
On earnings detail, diluted EPS outperformed the supplied estimate ($0.12 actual versus $0.10 estimate; EPS surprise ratio 20%), though headline profitability and revenue cadence show volatility that undercuts valuation support. The current valuation as determined by WMDST: over-valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 57.2 M |
| Operating Cash Flow | $ -5.75 M | |
| Capital Expenditures | $ -342.00 K | |
| Change In Working Capital | $ -11.54 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -10.08 M | |
| End Period Cash Flow | $ 47.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 32.0 M | |
| Forward Revenue | $ 15.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 11.4 M | |
| Depreciation | $ 1.4 M | |
| Depreciation and Amortization | $ 1.4 M | |
| Research and Development | $ 3.7 M | |
| Total Operating Expenses | $ 28.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 20.6 M | |
| EBITDA | $ 5.1 M | |
| EBIT | $ 3.7 M | |
| Operating Income | $ 3.7 M | |
| Interest Income | $ 847.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 847.0 K | |
| Income Before Tax | $ 4.6 M | |
| Tax Provision | $ 680.0 K | |
| Tax Rate | 14.9 % | |
| Net Income | $ 3.9 M | |
| Net Income From Continuing Operations | $ 3.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.10 | |
| EPS Actual | $ 0.12 | |
| EPS Difference | $ 0.02 | |
| EPS Surprise | 20.0 % | |
| Forward EPS | $ 0.14 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 209.6 M | |
| Intangible Assets | $ 12.8 M | |
| Net Tangible Assets | $ 168.0 M | |
| Total Current Assets | $ 155.6 M | |
| Cash and Short-Term Investments | $ 70.4 M | |
| Cash | $ 47.1 M | |
| Net Receivables | $ 44.0 M | |
| Inventory | $ 33.6 M | |
| Long-Term Investments | $ 428.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 4.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 21.2 M | |
| Net Debt | — | |
| Total Debt | $ 10.0 M | |
| Total Liabilities | $ 28.8 M | |
| EQUITY | ||
| Total Equity | $ 180.8 M | |
| Retained Earnings | $ 101.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.41 | |
| Shares Outstanding | 52.980 M | |
| Revenue Per-Share | $ 0.60 | |
| VALUATION | Market Capitalization | $ 826.3 M |
| Enterprise Value | $ 765.9 M | |
| Enterprise Multiple | 150.977 | |
| Enterprise Multiple QoQ | -36.748 % | |
| Enterprise Multiple YoY | 48.27 % | |
| Enterprise Multiple IPRWA | ERII: 150.977 high: 117.985 median: 67.118 mean: 64.157 low: 35.894 |
|
| EV/R | 23.935 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.159 | |
| Asset To Liability | 7.276 | |
| Debt To Capital | 0.052 | |
| Debt To Assets | 0.048 | |
| Debt To Assets QoQ | -4.121 % | |
| Debt To Assets YoY | 218.997 % | |
| Debt To Assets IPRWA | high: 0.554 mean: 0.341 median: 0.301 ERII: 0.048 low: 0.005 |
|
| Debt To Equity | 0.055 | |
| Debt To Equity QoQ | -3.017 % | |
| Debt To Equity YoY | 229.107 % | |
| Debt To Equity IPRWA | high: 1.894 median: 0.479 mean: 0.451 ERII: 0.055 low: 0.007 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.569 | |
| Price To Book QoQ | 11.533 % | |
| Price To Book YoY | 8.875 % | |
| Price To Book IPRWA | high: 10.413 ERII: 4.569 mean: 3.944 median: 3.131 low: 0.475 |
|
| Price To Earnings (P/E) | 129.969 | |
| Price To Earnings QoQ | -32.106 % | |
| Price To Earnings YoY | 14.966 % | |
| Price To Earnings IPRWA | high: 179.822 ERII: 129.969 median: 90.943 mean: 90.507 low: 24.386 |
|
| PE/G Ratio | 1.82 | |
| Price To Sales (P/S) | 25.821 | |
| Price To Sales QoQ | -4.541 % | |
| Price To Sales YoY | 1.504 % | |
| Price To Sales IPRWA | ERII: 25.821 high: 25.677 median: 16.43 mean: 15.975 low: 0.672 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 103.8 | |
| Forward PE/G | 1.453 | |
| Forward P/S | 54.927 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.544 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.152 | |
| Asset Turnover Ratio QoQ | 18.341 % | |
| Asset Turnover Ratio YoY | 0.597 % | |
| Asset Turnover Ratio IPRWA | high: 0.337 mean: 0.196 median: 0.173 ERII: 0.152 low: 0.108 |
|
| Receivables Turnover | 0.835 | |
| Receivables Turnover Ratio QoQ | -3.237 % | |
| Receivables Turnover Ratio YoY | -43.143 % | |
| Receivables Turnover Ratio IPRWA | high: 1.96 mean: 1.388 median: 1.388 low: 1.223 ERII: 0.835 |
|
| Inventory Turnover | 0.346 | |
| Inventory Turnover Ratio QoQ | 11.342 % | |
| Inventory Turnover Ratio YoY | -13.918 % | |
| Inventory Turnover Ratio IPRWA | high: 1.312 mean: 1.009 median: 0.993 ERII: 0.346 low: 0.25 |
|
| Days Sales Outstanding (DSO) | 109.219 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 371.474 | |
| Cash Conversion Cycle Days QoQ | -55.889 % | |
| Cash Conversion Cycle Days YoY | 8.83 % | |
| Cash Conversion Cycle Days IPRWA | ERII: 371.474 high: 204.825 mean: 124.107 median: 118.386 low: 21.668 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.238 | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -0.242 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 180.8 M | |
| Net Invested Capital | $ 180.8 M | |
| Invested Capital | $ 180.8 M | |
| Net Tangible Assets | $ 168.0 M | |
| Net Working Capital | $ 134.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 3.317 | |
| Current Ratio | 7.335 | |
| Current Ratio QoQ | -9.18 % | |
| Current Ratio YoY | -27.118 % | |
| Current Ratio IPRWA | ERII: 7.335 high: 4.43 mean: 2.247 median: 1.993 low: 1.049 |
|
| Quick Ratio | 5.753 | |
| Quick Ratio QoQ | -9.299 % | |
| Quick Ratio YoY | -30.611 % | |
| Quick Ratio IPRWA | ERII: 5.753 high: 3.401 mean: 1.583 median: 1.241 low: 0.678 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.971 | |
| Cost Of Debt | 0.083 % | |
| Interest Coverage Ratio | 366.2 | |
| Interest Coverage Ratio QoQ | 148.44 % | |
| Interest Coverage Ratio YoY | -48.108 % | |
| Interest Coverage Ratio IPRWA | ERII: 366.2 high: 29.169 median: 14.987 mean: 12.033 low: -22.023 |
|
| Operating Cash Flow Ratio | -0.271 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 36.999 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.239 % | |
| Revenue Growth | 14.078 % | |
| Revenue Growth QoQ | -94.319 % | |
| Revenue Growth YoY | -66.367 % | |
| Revenue Growth IPRWA | high: 18.995 % ERII: 14.078 % mean: 1.456 % median: 0.843 % low: -10.673 % |
|
| Earnings Growth | 71.429 % | |
| Earnings Growth QoQ | -147.619 % | |
| Earnings Growth YoY | -104.464 % | |
| Earnings Growth IPRWA | ERII: 71.429 % high: 12.81 % median: 7.5 % mean: 3.599 % low: -88.608 % |
|
| MARGINS | ||
| Gross Margin | 64.244 % | |
| Gross Margin QoQ | 0.373 % | |
| Gross Margin YoY | -1.291 % | |
| Gross Margin IPRWA | ERII: 64.244 % high: 54.823 % median: 44.494 % mean: 44.471 % low: 15.923 % |
|
| EBIT Margin | 11.444 % | |
| EBIT Margin QoQ | 117.774 % | |
| EBIT Margin YoY | -37.43 % | |
| EBIT Margin IPRWA | high: 31.134 % median: 27.692 % mean: 23.837 % ERII: 11.444 % low: -6.816 % |
|
| Return On Sales (ROS) | 11.444 % | |
| Return On Sales QoQ | 117.774 % | |
| Return On Sales YoY | -37.43 % | |
| Return On Sales IPRWA | high: 27.728 % median: 26.891 % mean: 23.379 % ERII: 11.444 % low: -3.602 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -3.47 M | |
| Free Cash Flow Yield | -0.42 % | |
| Free Cash Flow Yield QoQ | -179.395 % | |
| Free Cash Flow Yield YoY | 30.031 % | |
| Free Cash Flow Yield IPRWA | high: 3.472 % mean: 1.361 % median: 1.219 % low: -0.385 % ERII: -0.42 % |
|
| Free Cash Growth | -186.587 % | |
| Free Cash Growth QoQ | 202.151 % | |
| Free Cash Growth YoY | 32.996 % | |
| Free Cash Growth IPRWA | high: 119.537 % median: 87.724 % mean: 65.543 % ERII: -186.587 % low: -226.486 % |
|
| Free Cash To Net Income | -0.896 | |
| Cash Flow Margin | -17.969 % | |
| Cash Flow To Earnings | -1.484 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.836 % | |
| Return On Assets QoQ | 95.527 % | |
| Return On Assets YoY | -44.615 % | |
| Return On Assets IPRWA | high: 5.102 % median: 3.609 % mean: 3.443 % ERII: 1.836 % low: -1.389 % |
|
| Return On Capital Employed (ROCE) | 1.943 % | |
| Return On Equity (ROE) | 0.021 | |
| Return On Equity QoQ | 93.147 % | |
| Return On Equity YoY | -40.927 % | |
| Return On Equity IPRWA | high: 0.079 median: 0.042 mean: 0.039 ERII: 0.021 low: -0.018 |
|
| DuPont ROE | 2.117 % | |
| Return On Invested Capital (ROIC) | 1.723 % | |
| Return On Invested Capital QoQ | 151.533 % | |
| Return On Invested Capital YoY | -129.139 % | |
| Return On Invested Capital IPRWA | high: 7.234 % mean: 4.8 % median: 4.796 % ERII: 1.723 % low: -1.211 % |
|