Technical Analysis
Directional indicators (ADX/DI+/DI-): ADX at 25.31 indicates a strong trend strength without direction; the DI+ reported at 19.50 with a dip & reversal constitutes a bullish directional shift, and the DI- at 28.08 with a peak & reversal likewise reads as bullish, implying directional conviction has recently shifted toward buyers even as overall trend strength sits near the lower bound of “strong.”
MACD and signal line: MACD stands at -0.73 and the MACD trend is decreasing, with the MACD below its signal line at -0.39; this represents bearish momentum and suggests the short-term moving-average structure still favors the downside until MACD halts its decline or crosses back above the signal line.
MRO (Momentum/Regression Oscillator): MRO at -11.7 with a peak & reversal shows the price sits below the model target and implies upward potential if momentum re-accelerates from here; the negative MRO supports a mean-reversion element to any near-term bounce.
RSI: RSI at 43.58 with a dip & reversal indicates the oscillator moved upward from a recent dip and now gives limited upward room before neutral territory, consistent with a short-term recovery bias rather than strong breakout momentum.
Price vs moving averages and bands: Last close $23.67 sits below the 20-day average $25.24 and the 50-day average $25.59, and well below the 200-day average $34.91; the 12-day EMA (price12dayEMA) at $24.45 trends down. Price resides just above the 1x lower Bollinger band ($22.77), which constrains immediate downside and supports a rebound scenario if the MACD deterioration halts.
Volatility & volume context: 42-day beta 0.52 and 52-week beta 0.90 show below-market-to-market-correlated volatility. Recent volume (1,017,974) trails the 10-day average (1,637,681) but sits near the 50-day average (1,103,791), so any directional conviction will need accompanying volume to validate continuation moves.
Fundamental Analysis
Profitability & margins: Operating (EBIT) margin equals 1.43% and operating income $5,196,000; EBIT margin contracted QoQ by -79.36% and YoY by -66.68%. That EBIT margin sits well below the industry peer mean of 24.75% and below the peer median of 24.46%, indicating materially weaker operating profitability compared with peers.
Income statement dynamics: Total revenue $362,611,000 with gross profit $90,469,000 gives a gross margin of 24.95%, a QoQ decline of -11.28% and a YoY decline of -5.64%. Reported EPS actual $0.31 matched the estimate $0.31 with an EPS surprise of -0.57%, showing reported earnings aligned with expectations.
Growth rates: Revenue growth overall stands at -3.13%; quarter-over-quarter revenue change showed a sharp decline of -62.68%, while the year-over-year revenue figure in the dataset reads as +299.74% — use caution reconciling period definitions, but the most consistent signal across operating margins and QoQ changes points to near-term revenue pressure.
Cash flow and liquidity: Cash and short-term investments total $89,723,000 and operating cash flow $41,017,000 with free cash flow $32,153,000; free cash flow yield equals 1.56%. The cash ratio registers at 0.09 and current ratio at 1.15, indicating working-capital coverage sits near one-turn coverage but limited excess liquidity relative to short-term obligations.
Leverage and coverage: Total debt $1,739,200,000 produces net debt $1,570,963,000 and debt-to-equity of 280.66%; debt-to-assets at 45.84%. Debt-to-EBITDA sits at 46.7x, and interest coverage at roughly 0.16x, signaling elevated leverage and very limited ability to service interest from current operating earnings.
Valuation multiples vs peers: Price-to-book at 3.33 sits above the industry peer mean of 1.90 but below the peer median of 9.01. Price-to-earnings at 93.32 remains above the industry peer mean of 79.93 and the peer median of 76.87, reflecting compressed earnings relative to market price. PEG ratio of -3.56 sits slightly below the industry peer mean of -3.21, consistent with negative or complex growth expectations embedded in multiples.
Additional operating metrics: Asset turnover measures 0.096, below the industry peer mean of 0.2109 and median of 0.1917, indicating lower revenue generation per dollar of assets. Return on equity at -3.02% and return on assets at -0.50% remain negative, signaling the company did not generate positive returns on capital during the reported period.
Valuation statement: The current valuation as determined by WMDST classifies the stock as under-valued, a view supported by modest free-cash-flow yield relative to peers and a mix of negative short-term momentum with signs of mean reversion; elevated leverage and compressed margins constitute the main valuation risk factors.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 383.7 M |
| Operating Cash Flow | $ 41.0 M | |
| Capital Expenditures | $ -8.86 M | |
| Change In Working Capital | $ 15.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -57.76 M | |
| End Period Cash Flow | $ 325.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 362.6 M | |
| Forward Revenue | $ -178.08 M | |
| COSTS | ||
| Cost Of Revenue | $ 272.1 M | |
| Depreciation | $ 1.6 M | |
| Depreciation and Amortization | $ 32.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 357.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 90.5 M | |
| EBITDA | $ 37.2 M | |
| EBIT | $ 5.2 M | |
| Operating Income | $ 5.2 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | $ -31.13 M | |
| Income Before Tax | $ -30.24 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ -18.73 M | |
| Net Income From Continuing Operations | $ -30.24 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.31 | |
| EPS Actual | $ 0.31 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | -0.57 % | |
| Forward EPS | $ 0.52 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.8 B | |
| Intangible Assets | $ 2.5 B | |
| Net Tangible Assets | $ -1.91 B | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 89.7 M | |
| Cash | $ 89.7 M | |
| Net Receivables | $ 346.5 M | |
| Inventory | — | |
| Long-Term Investments | $ 68.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 68.7 M | |
| Short-Term Debt | $ 27.1 M | |
| Total Current Liabilities | $ 959.7 M | |
| Net Debt | $ 1.6 B | |
| Total Debt | $ 1.7 B | |
| Total Liabilities | $ 2.7 B | |
| EQUITY | ||
| Total Equity | $ 619.7 M | |
| Retained Earnings | $ -219.38 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.68 | |
| Shares Outstanding | 71.417 M | |
| Revenue Per-Share | $ 5.08 | |
| VALUATION | Market Capitalization | $ 2.1 B |
| Enterprise Value | $ 3.7 B | |
| Enterprise Multiple | 99.774 | |
| Enterprise Multiple QoQ | 27.16 % | |
| Enterprise Multiple YoY | 32.117 % | |
| Enterprise Multiple IPRWA | high: 189.281 BWIN: 99.774 median: 65.298 mean: 65.214 low: -119.029 |
|
| EV/R | 10.246 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.122 | |
| Asset To Liability | 1.423 | |
| Debt To Capital | 0.737 | |
| Debt To Assets | 0.458 | |
| Debt To Assets QoQ | 0.562 % | |
| Debt To Assets YoY | 653.517 % | |
| Debt To Assets IPRWA | high: 1.606 mean: 0.594 median: 0.553 BWIN: 0.458 low: 0.003 |
|
| Debt To Equity | 2.807 | |
| Debt To Equity QoQ | 3.865 % | |
| Debt To Equity YoY | 676.027 % | |
| Debt To Equity IPRWA | high: 13.542 BWIN: 2.807 median: 0.398 mean: 0.238 low: -12.738 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.334 | |
| Price To Book QoQ | -19.409 % | |
| Price To Book YoY | -38.108 % | |
| Price To Book IPRWA | high: 33.181 median: 9.008 BWIN: 3.334 mean: 1.896 low: -22.92 |
|
| Price To Earnings (P/E) | 93.318 | |
| Price To Earnings QoQ | -2.174 % | |
| Price To Earnings YoY | -35.148 % | |
| Price To Earnings IPRWA | high: 357.224 BWIN: 93.318 mean: 79.928 median: 76.866 low: -85.409 |
|
| PE/G Ratio | -3.563 | |
| Price To Sales (P/S) | 5.698 | |
| Price To Sales QoQ | -18.274 % | |
| Price To Sales YoY | -40.298 % | |
| Price To Sales IPRWA | high: 20.381 median: 17.023 mean: 14.991 BWIN: 5.698 low: 0.325 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 68.915 | |
| Forward PE/G | -2.631 | |
| Forward P/S | -12.196 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 25.593 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.096 | |
| Asset Turnover Ratio QoQ | -6.269 % | |
| Asset Turnover Ratio YoY | 3.416 % | |
| Asset Turnover Ratio IPRWA | high: 0.723 mean: 0.211 median: 0.192 BWIN: 0.096 low: 0.056 |
|
| Receivables Turnover | 1.042 | |
| Receivables Turnover Ratio QoQ | -5.23 % | |
| Receivables Turnover Ratio YoY | 119.958 % | |
| Receivables Turnover Ratio IPRWA | high: 44.676 mean: 13.233 median: 7.658 low: 1.185 BWIN: 1.042 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 87.586 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 63.737 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 77.037 BWIN: 63.737 mean: -2.082 median: -5.83 low: -127.896 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.475 | |
| CapEx To Revenue | -0.024 | |
| CapEx To Depreciation | -5.375 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.3 B | |
| Net Invested Capital | $ 2.3 B | |
| Invested Capital | $ 2.3 B | |
| Net Tangible Assets | $ -1.91 B | |
| Net Working Capital | $ 146.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.093 | |
| Current Ratio | 1.153 | |
| Current Ratio QoQ | -6.328 % | |
| Current Ratio YoY | 17.225 % | |
| Current Ratio IPRWA | high: 3.125 BWIN: 1.153 mean: 0.999 median: 0.848 low: 0.031 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 46.704 | |
| Cost Of Debt | 1.447 % | |
| Interest Coverage Ratio | 0.165 | |
| Interest Coverage Ratio QoQ | -80.002 % | |
| Interest Coverage Ratio YoY | -64.051 % | |
| Interest Coverage Ratio IPRWA | high: 55.684 mean: 17.633 median: 8.562 BWIN: 0.165 low: -5.084 |
|
| Operating Cash Flow Ratio | 0.014 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 23.85 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.465 % | |
| Revenue Growth | -3.126 % | |
| Revenue Growth QoQ | -62.679 % | |
| Revenue Growth YoY | 299.744 % | |
| Revenue Growth IPRWA | high: 26.865 % mean: 1.638 % median: -0.542 % BWIN: -3.126 % low: -26.062 % |
|
| Earnings Growth | -26.19 % | |
| Earnings Growth QoQ | -25.986 % | |
| Earnings Growth YoY | 790.513 % | |
| Earnings Growth IPRWA | high: 114.563 % mean: 14.666 % median: 9.375 % BWIN: -26.19 % low: -160.0 % |
|
| MARGINS | ||
| Gross Margin | 24.949 % | |
| Gross Margin QoQ | -11.277 % | |
| Gross Margin YoY | -5.643 % | |
| Gross Margin IPRWA | high: 86.593 % mean: 39.738 % median: 38.826 % BWIN: 24.949 % low: 8.241 % |
|
| EBIT Margin | 1.433 % | |
| EBIT Margin QoQ | -79.358 % | |
| EBIT Margin YoY | -66.682 % | |
| EBIT Margin IPRWA | high: 52.4 % mean: 24.754 % median: 24.455 % BWIN: 1.433 % low: -25.213 % |
|
| Return On Sales (ROS) | 1.433 % | |
| Return On Sales QoQ | -79.358 % | |
| Return On Sales YoY | -66.682 % | |
| Return On Sales IPRWA | high: 47.382 % median: 24.789 % mean: 24.089 % BWIN: 1.433 % low: -27.119 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 32.2 M | |
| Free Cash Flow Yield | 1.556 % | |
| Free Cash Flow Yield QoQ | -244.475 % | |
| Free Cash Flow Yield YoY | -717.46 % | |
| Free Cash Flow Yield IPRWA | high: 10.115 % BWIN: 1.556 % mean: 1.43 % median: 1.26 % low: -22.809 % |
|
| Free Cash Growth | -214.432 % | |
| Free Cash Growth QoQ | 248.868 % | |
| Free Cash Growth YoY | 92.271 % | |
| Free Cash Growth IPRWA | high: 271.747 % median: 17.614 % mean: 11.306 % BWIN: -214.432 % low: -398.901 % |
|
| Free Cash To Net Income | -1.717 | |
| Cash Flow Margin | 3.642 % | |
| Cash Flow To Earnings | -0.705 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | -0.497 % | |
| Return On Assets QoQ | 471.264 % | |
| Return On Assets YoY | 114.224 % | |
| Return On Assets IPRWA | high: 8.233 % mean: 3.163 % median: 2.581 % BWIN: -0.497 % low: -8.455 % |
|
| Return On Capital Employed (ROCE) | 0.183 % | |
| Return On Equity (ROE) | -0.03 | |
| Return On Equity QoQ | 501.992 % | |
| Return On Equity YoY | 114.783 % | |
| Return On Equity IPRWA | high: 0.405 median: 0.116 mean: 0.031 BWIN: -0.03 low: -0.352 |
|
| DuPont ROE | -2.995 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |