Recent News
On September 29 and October 1, 2025 the company announced multiple contract awards to reactivate idle facilities, collectively expected to add hundreds of millions in annual revenue once fully activated. On November 10, 2025 the board increased the repurchase authorization by $200 million, raising the total program to $700 million. On December 1, 2025 management amended the revolving credit facility, expanding capacity and increasing available borrowing to $575 million.
Technical Analysis
Directional indicators show an emerging trend: ADX at 21.34 signals an emerging trend rather than a strong one, implying current price movement carries limited directional conviction.
DI+ sits at 31.15 and shows a peak-and-reversal pattern, which represents a bearish shift in directional pressure; DI- at 18.57 is decreasing, which supports bullish bias from declining downside pressure but does not negate the DI+ reversal.
MACD registers 0.10 with the MACD line rising above the signal at -0.12; that crossover constitutes a bullish momentum signal and aligns with short-term upside pressure on price.
MRO reads -11.14 and trends higher; the negative level implies the market price remains below the model target and therefore carries potential upside pressure as the oscillator moves toward zero.
RSI at 47.9 and rising reflects improving momentum without overbought conditions, supporting further consolidation or modest gains rather than an immediate extension.
Price sits at $18.78, above the 20-day average ($17.93) and the 50-day average ($18.13), while remaining below the 200-day average ($20.18); that configuration indicates short-term strength inside a longer-term neutral-to-slightly-bearish frame. The 12-day EMA trend rises, reinforcing the short-term bias.
Bollinger positioning shows price just above the 1x upper band ($18.73) and below the 2x upper band ($19.53), which signals a modest premium to short-run volatility rather than extreme extension. The super trend lower at $17.49 provides a near-term structural support reference.
Volatility measures diverge: 42-day beta at 1.35 points to elevated recent sensitivity to market moves, while the 52-week beta of 0.65 reflects lower longer-term market correlation; expect heightened short-term swings relative to the year-long baseline.
Fundamental Analysis
Top-line and segment drivers: total revenue equals $580,437,000 with YoY revenue growth of 25.54% while sequential revenue fell 22.52% QoQ; the strong year-over-year expansion links to recent contract activations but the large QoQ swing indicates timing and activation differences across quarters.
Profitability shows operating margin at 8.994% and EBIT margin at 9.163%. EBIT margin sits below the industry peer mean of 33.50% and below the industry peer median of 22.76%, signaling thinner operating profitability versus specialized-REIT peers. EBIT margin declined 23.90% QoQ and slipped 2.46% YoY, reflecting margin pressure quarter-to-quarter.
Earnings per share came in at $0.24 versus an estimate of $0.26, producing an EPS surprise of -7.69%. Forward EPS rests at $0.21 with a forward P/E near 99.0, while trailing P/E equals 81.47; those elevated multiples reflect market expectations priced into a relatively modest current absolute EPS level.
Cash flow and liquidity: operating cash flow reached $53,775,000 while free cash flow measured $15,561,000; free cash flow yield equals 0.76% and sits above the industry peer mean of 0.59%, indicating a marginally healthier conversion on a peer-adjusted basis. Cash and short-term investments total $56,551,000 and the current ratio stands at 1.41, which provides short-term coverage though the cash ratio remains low at 0.17.
Leverage and coverage show total debt at $1,043,111,000 and net debt of $986,560,000, producing debt-to-EBITDA around 12.05 and an interest-coverage ratio near 3.20. Debt-to-equity at 0.71 sits in line with the industry peer mean of approximately 0.70, but the elevated debt-to-EBITDA highlights material leverage relative to earnings and reduces flexibility in adverse scenarios.
Operational efficiency: asset turnover equals 0.1878 and sits above the industry peer mean of 0.0526, indicating relatively efficient revenue generation from assets. Return on equity registers 1.79% and return on assets 0.85%, both modest absolute returns consistent with the capital-heavy nature of the business.
WMDST valuation conclusion: WMDST values the stock as under-valued. The valuation judgment reflects the combination of contract-driven revenue upside, expanded buyback capacity, and the company’s current price/multiple profile despite leverage considerations and recent QoQ volatility.
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 | $ 143.0 M |
| Operating Cash Flow | $ 53.8 M | |
| Capital Expenditures | $ -38.21 M | |
| Change In Working Capital | $ -18.57 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -71.18 M | |
| End Period Cash Flow | $ 71.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 580.4 M | |
| Forward Revenue | $ 122.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 449.6 M | |
| Depreciation | $ 33.4 M | |
| Depreciation and Amortization | $ 33.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 528.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 130.9 M | |
| EBITDA | $ 86.6 M | |
| EBIT | $ 53.2 M | |
| Operating Income | $ 52.2 M | |
| Interest Income | — | |
| Interest Expense | $ 16.6 M | |
| Net Interest Income | $ -16.63 M | |
| Income Before Tax | $ 36.6 M | |
| Tax Provision | $ 10.3 M | |
| Tax Rate | 28.039 % | |
| Net Income | $ 26.3 M | |
| Net Income From Continuing Operations | $ 26.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.26 | |
| EPS Actual | $ 0.24 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -7.692 % | |
| Forward EPS | $ 0.21 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.1 B | |
| Intangible Assets | $ 8.6 M | |
| Net Tangible Assets | $ 1.5 B | |
| Total Current Assets | $ 471.6 M | |
| Cash and Short-Term Investments | $ 56.6 M | |
| Cash | $ 56.6 M | |
| Net Receivables | $ 351.4 M | |
| Inventory | — | |
| Long-Term Investments | $ 325.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 319.6 M | |
| Short-Term Debt | $ 14.8 M | |
| Total Current Liabilities | $ 334.4 M | |
| Net Debt | $ 986.6 M | |
| Total Debt | $ 1.0 B | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 1.5 B | |
| Retained Earnings | $ -150.01 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 13.95 | |
| Shares Outstanding | 105.383 M | |
| Revenue Per-Share | $ 5.51 | |
| VALUATION | Market Capitalization | $ 2.1 B |
| Enterprise Value | $ 3.0 B | |
| Enterprise Multiple | 35.196 | |
| Enterprise Multiple QoQ | 8.435 % | |
| Enterprise Multiple YoY | 99.519 % | |
| Enterprise Multiple IPRWA | high: 166.393 median: 90.927 mean: 86.551 CXW: 35.196 low: 6.022 |
|
| EV/R | 5.25 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.115 | |
| Asset To Liability | 1.897 | |
| Debt To Capital | 0.415 | |
| Debt To Assets | 0.335 | |
| Debt To Assets QoQ | 0.954 % | |
| Debt To Assets YoY | 8080.244 % | |
| Debt To Assets IPRWA | high: 1.334 median: 0.705 mean: 0.666 CXW: 0.335 low: 0.104 |
|
| Debt To Equity | 0.709 | |
| Debt To Equity QoQ | 2.709 % | |
| Debt To Equity YoY | 8657.654 % | |
| Debt To Equity IPRWA | high: 1.64 median: 0.875 CXW: 0.709 mean: 0.7 low: -3.043 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.401 | |
| Price To Book QoQ | -6.861 % | |
| Price To Book YoY | 39.845 % | |
| Price To Book IPRWA | high: 5.559 mean: 2.899 median: 2.629 CXW: 1.401 low: -4.36 |
|
| Price To Earnings (P/E) | 81.472 | |
| Price To Earnings QoQ | 40.184 % | |
| Price To Earnings YoY | 15.394 % | |
| Price To Earnings IPRWA | high: 502.419 mean: 214.437 median: 186.142 CXW: 81.472 low: -83.206 |
|
| PE/G Ratio | -2.444 | |
| Price To Sales (P/S) | 3.55 | |
| Price To Sales QoQ | -14.057 % | |
| Price To Sales YoY | 17.97 % | |
| Price To Sales IPRWA | high: 40.655 median: 33.826 mean: 31.568 CXW: 3.55 low: 2.052 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 98.999 | |
| Forward PE/G | -2.97 | |
| Forward P/S | 16.881 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -2.281 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.188 | |
| Asset Turnover Ratio QoQ | 5.976 % | |
| Asset Turnover Ratio YoY | 11.118 % | |
| Asset Turnover Ratio IPRWA | CXW: 0.188 high: 0.183 mean: 0.053 median: 0.043 low: -0.0 |
|
| Receivables Turnover | 1.781 | |
| Receivables Turnover Ratio QoQ | -3.615 % | |
| Receivables Turnover Ratio YoY | -2.447 % | |
| Receivables Turnover Ratio IPRWA | high: 14.187 mean: 2.808 median: 2.031 CXW: 1.781 low: -0.544 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 51.237 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 51.237 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 96.791 CXW: 51.237 median: -7.374 mean: -58.018 low: -257.611 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 4.231 | |
| CapEx To Revenue | -0.066 | |
| CapEx To Depreciation | -1.145 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.5 B | |
| Net Invested Capital | $ 2.5 B | |
| Invested Capital | $ 2.5 B | |
| Net Tangible Assets | $ 1.5 B | |
| Net Working Capital | $ 137.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.169 | |
| Current Ratio | 1.41 | |
| Current Ratio QoQ | -12.051 % | |
| Current Ratio YoY | -6.899 % | |
| Current Ratio IPRWA | high: 8.81 CXW: 1.41 mean: 0.997 median: 0.659 low: 0.259 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.049 | |
| Cost Of Debt | 1.16 % | |
| Interest Coverage Ratio | 3.199 | |
| Interest Coverage Ratio QoQ | -38.102 % | |
| Interest Coverage Ratio YoY | 10.816 % | |
| Interest Coverage Ratio IPRWA | high: 9.909 median: 3.648 CXW: 3.199 mean: 3.036 low: -1.735 |
|
| Operating Cash Flow Ratio | 0.026 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.253 % | |
| Revenue Growth | 7.855 % | |
| Revenue Growth QoQ | -22.519 % | |
| Revenue Growth YoY | 2553.716 % | |
| Revenue Growth IPRWA | high: 66.636 % CXW: 7.855 % mean: 3.533 % median: 2.66 % low: -8.864 % |
|
| Earnings Growth | -33.333 % | |
| Earnings Growth QoQ | -158.973 % | |
| Earnings Growth YoY | -383.323 % | |
| Earnings Growth IPRWA | high: 300.0 % mean: 35.229 % median: 2.639 % CXW: -33.333 % low: -78.571 % |
|
| MARGINS | ||
| Gross Margin | 22.549 % | |
| Gross Margin QoQ | -13.21 % | |
| Gross Margin YoY | -8.199 % | |
| Gross Margin IPRWA | high: 96.533 % mean: 61.128 % median: 54.969 % CXW: 22.549 % low: 11.881 % |
|
| EBIT Margin | 9.163 % | |
| EBIT Margin QoQ | -23.902 % | |
| EBIT Margin YoY | -2.459 % | |
| EBIT Margin IPRWA | high: 86.291 % mean: 33.503 % median: 22.755 % CXW: 9.163 % low: 6.407 % |
|
| Return On Sales (ROS) | 8.994 % | |
| Return On Sales QoQ | -25.342 % | |
| Return On Sales YoY | -4.258 % | |
| Return On Sales IPRWA | high: 84.797 % mean: 32.581 % median: 20.941 % CXW: 8.994 % low: 3.96 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 15.6 M | |
| Free Cash Flow Yield | 0.755 % | |
| Free Cash Flow Yield QoQ | -72.91 % | |
| Free Cash Flow Yield YoY | -84.787 % | |
| Free Cash Flow Yield IPRWA | high: 3.049 % median: 1.082 % CXW: 0.755 % mean: 0.594 % low: -4.057 % |
|
| Free Cash Growth | -74.881 % | |
| Free Cash Growth QoQ | -131.529 % | |
| Free Cash Growth YoY | -252.417 % | |
| Free Cash Growth IPRWA | high: 171.111 % mean: 21.532 % median: 1.802 % CXW: -74.881 % low: -700.297 % |
|
| Free Cash To Net Income | 0.591 | |
| Cash Flow Margin | 1.506 % | |
| Cash Flow To Earnings | 0.332 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.851 % | |
| Return On Assets QoQ | -32.939 % | |
| Return On Assets YoY | 17.379 % | |
| Return On Assets IPRWA | high: 4.657 % mean: 0.995 % median: 0.973 % CXW: 0.851 % low: 0.064 % |
|
| Return On Capital Employed (ROCE) | 1.916 % | |
| Return On Equity (ROE) | 0.018 | |
| Return On Equity QoQ | -31.43 % | |
| Return On Equity YoY | 25.192 % | |
| Return On Equity IPRWA | high: 0.216 mean: 0.06 median: 0.026 CXW: 0.018 low: -0.096 |
|
| DuPont ROE | 1.785 % | |
| Return On Invested Capital (ROIC) | 1.523 % | |
| Return On Invested Capital QoQ | -20.387 % | |
| Return On Invested Capital YoY | -104.525 % | |
| Return On Invested Capital IPRWA | high: 6.565 % mean: 2.025 % median: 1.757 % CXW: 1.523 % low: -0.509 % |
|