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On December 18, 2025, Howard Hughes announced a definitive agreement to acquire Vantage Group Holdings, a Bermuda-based specialty insurer, for approximately $2.1 billion; the transaction will use cash and up to $1.0 billion of non-interest-bearing preferred stock and is expected to close in the second quarter of 2026.
Technical Analysis
Directional indicators show a bearish tilt: DI+ stands at 21.19 and is decreasing while DI- sits at 25.93 and is increasing, indicating sellers currently hold the directional edge; ADX at 16.55 indicates no established trend, implying any directional move may lack strong conviction in the near term.
MACD reads -0.89 and the MACD trend is decreasing while the signal line sits at 0.09; the negative, declining MACD points to ongoing bearish momentum, and no bullish MACD crossover appears present.
MRO at 12.97 with a peak-and-reversal pattern indicates price sits above target and carries potential to move lower; the oscillator’s configuration reinforces the momentum-based downside risk implied by MACD and directional indicators.
RSI at 48.65 and declining confirms loss of short-term bullish internals without reaching oversold territory, supporting a scenario of range-bound weakness rather than a near-term rebound.
Price sits at $78.11 below the 20-day and 50-day averages ($83.43 and $83.20 respectively) while remaining above the 200-day average ($74.98); the 12-day EMA is decreasing. Bollinger bands (1x: $80.17–$86.69) contain price near the lower half, and the super trend upper band at $83.54 acts as nearby resistance. Volume approximates its 10-day average, suggesting recent moves carry normal participation.
Fundamental Analysis
Revenue showed robust top-line momentum: total revenue equals $390,235,000 with YoY revenue growth of 15.16% and quarter-over-quarter revenue growth of 60.57%, reflecting accelerating sales activity across segments.
Profitability displays sizable margins: EBIT stands at $202,156,000 and EBIT margin equals 51.80%, well above the industry peer mean of 4.95% and the industry peer median of 3.00%; operating margin equals 44.88% and gross margin equals 64.15%, both supporting a high-return operating profile.
EPS outperformance occurred versus expectations: actual EPS of $2.02 exceeded the estimate of $1.53, producing an EPS surprise of +32.03% and an EPS beat of $0.49, signaling near-term earnings strength compared with consensus.
Cash and liquidity remain substantial: cash and short-term investments total $1,456,934,000; the current ratio equals 4.53x and the quick ratio equals 4.53x, indicating large near-term liquidity cushions relative to liabilities.
Free cash flow shows positive generation but deteriorating growth: free cash flow equals $149,082,000 with a free cash flow yield of 3.20%; free cash flow growth displays negative momentum year-over-year and QoQ declines, signaling the company generates cash today while growth in free cash contraction requires monitoring.
Leverage and coverage raise caution: total debt equals $5,292,622,000 and net debt equals $3,830,435,000; debt-to-EBITDA runs around 21.3x and debt-to-equity equals 140.48%, while interest coverage sits near 4.61x. Those measures indicate significant leverage relative to reported EBITDA despite adequate interest coverage.
Valuation context: WMDST values the stock as over-valued. Market multiples present mixed signals—PE equals 38.86 while forward PE climbs to 296.17 driven by low forward EPS—yet price-to-book sits at 1.24x, below the industry peer mean of 3.04x. Free cash flow yield at 3.20% sits above the industry peer mean of 1.63%, which partially offsets multiple expansion but does not change the WMDST valuation conclusion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-10 |
| NEXT REPORT DATE: | 2026-02-09 |
| CASH FLOW | Begin Period Cash Flow | $ 1.8 B |
| Operating Cash Flow | $ 149.8 M | |
| Capital Expenditures | $ -676.00 K | |
| Change In Working Capital | $ 133.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 175.0 M | |
| End Period Cash Flow | $ 2.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 390.2 M | |
| Forward Revenue | $ 12.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 139.9 M | |
| Depreciation | $ 41.7 M | |
| Depreciation and Amortization | $ 46.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 215.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 250.3 M | |
| EBITDA | $ 248.7 M | |
| EBIT | $ 202.2 M | |
| Operating Income | $ 175.1 M | |
| Interest Income | $ 15.3 M | |
| Interest Expense | $ 43.9 M | |
| Net Interest Income | $ -28.57 M | |
| Income Before Tax | $ 158.3 M | |
| Tax Provision | $ 38.9 M | |
| Tax Rate | 24.6 % | |
| Net Income | $ 119.5 M | |
| Net Income From Continuing Operations | $ 119.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.53 | |
| EPS Actual | $ 2.02 | |
| EPS Difference | $ 0.49 | |
| EPS Surprise | 32.026 % | |
| Forward EPS | $ 0.26 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 10.7 B | |
| Intangible Assets | $ 32.9 M | |
| Net Tangible Assets | $ 3.7 B | |
| Total Current Assets | $ 2.7 B | |
| Cash and Short-Term Investments | $ 1.5 B | |
| Cash | $ 1.5 B | |
| Net Receivables | $ 100.9 M | |
| Inventory | $ 370.0 K | |
| Long-Term Investments | $ 28.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 30.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 599.9 M | |
| Net Debt | $ 3.8 B | |
| Total Debt | $ 5.3 B | |
| Total Liabilities | $ 6.9 B | |
| EQUITY | ||
| Total Equity | $ 3.8 B | |
| Retained Earnings | $ -68.10 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 63.44 | |
| Shares Outstanding | 59.387 M | |
| Revenue Per-Share | $ 6.57 | |
| VALUATION | Market Capitalization | $ 4.7 B |
| Enterprise Value | $ 8.5 B | |
| Enterprise Multiple | 34.176 | |
| Enterprise Multiple QoQ | -69.275 % | |
| Enterprise Multiple YoY | -22.879 % | |
| Enterprise Multiple IPRWA | high: 230.411 mean: 79.269 median: 52.412 HHH: 34.176 low: -130.519 |
|
| EV/R | 21.776 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.839 | |
| Asset To Liability | 1.559 | |
| Debt To Capital | 0.584 | |
| Debt To Assets | 0.495 | |
| Debt To Assets QoQ | -2.556 % | |
| Debt To Assets YoY | -11.954 % | |
| Debt To Assets IPRWA | high: 1.393 HHH: 0.495 mean: 0.234 median: 0.178 low: 0.0 |
|
| Debt To Equity | 1.405 | |
| Debt To Equity QoQ | -2.089 % | |
| Debt To Equity YoY | -30.764 % | |
| Debt To Equity IPRWA | high: 6.25 HHH: 1.405 mean: 0.709 median: 0.311 low: -2.271 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.237 | |
| Price To Book QoQ | 6.351 % | |
| Price To Book YoY | -13.042 % | |
| Price To Book IPRWA | high: 9.572 median: 3.633 mean: 3.039 HHH: 1.237 low: -2.525 |
|
| Price To Earnings (P/E) | 38.864 | |
| Price To Earnings QoQ | -112.318 % | |
| Price To Earnings YoY | -23.542 % | |
| Price To Earnings IPRWA | high: 359.312 mean: 116.889 median: 96.403 HHH: 38.864 low: -207.306 |
|
| PE/G Ratio | -0.038 | |
| Price To Sales (P/S) | 11.947 | |
| Price To Sales QoQ | -26.505 % | |
| Price To Sales YoY | 5.055 % | |
| Price To Sales IPRWA | high: 42.124 mean: 12.846 HHH: 11.947 median: 4.502 low: 0.022 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 296.171 | |
| Forward PE/G | -0.291 | |
| Forward P/S | 377.125 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 12.65 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.037 | |
| Asset Turnover Ratio QoQ | 39.565 % | |
| Asset Turnover Ratio YoY | 9.902 % | |
| Asset Turnover Ratio IPRWA | high: 0.542 mean: 0.193 median: 0.19 HHH: 0.037 low: 0.002 |
|
| Receivables Turnover | 3.883 | |
| Receivables Turnover Ratio QoQ | 48.041 % | |
| Receivables Turnover Ratio YoY | 12.311 % | |
| Receivables Turnover Ratio IPRWA | high: 30.203 HHH: 3.883 mean: 3.87 median: 3.725 low: 0.428 |
|
| Inventory Turnover | 349.772 | |
| Inventory Turnover Ratio QoQ | 49.292 % | |
| Inventory Turnover Ratio YoY | 30.925 % | |
| Inventory Turnover Ratio IPRWA | HHH: 349.772 high: 45.404 mean: 6.674 median: 1.527 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 23.5 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 4.079 | |
| Cash Conversion Cycle Days QoQ | -72.696 % | |
| Cash Conversion Cycle Days YoY | -67.777 % | |
| Cash Conversion Cycle Days IPRWA | high: 213.002 mean: 12.267 median: 5.125 HHH: 4.079 low: -232.925 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.184 | |
| CapEx To Revenue | -0.002 | |
| CapEx To Depreciation | -0.016 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 9.1 B | |
| Net Invested Capital | $ 9.1 B | |
| Invested Capital | $ 9.1 B | |
| Net Tangible Assets | $ 3.7 B | |
| Net Working Capital | $ 2.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.429 | |
| Current Ratio | 4.527 | |
| Current Ratio QoQ | 23.053 % | |
| Current Ratio YoY | 73.056 % | |
| Current Ratio IPRWA | high: 9.753 HHH: 4.527 mean: 1.978 median: 1.606 low: 0.464 |
|
| Quick Ratio | 4.527 | |
| Quick Ratio QoQ | 23.057 % | |
| Quick Ratio YoY | 73.09 % | |
| Quick Ratio IPRWA | HHH: 4.527 high: 2.062 median: 1.443 mean: 1.353 low: 0.278 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 21.285 | |
| Cost Of Debt | 0.629 % | |
| Interest Coverage Ratio | 4.61 | |
| Interest Coverage Ratio QoQ | 624.577 % | |
| Interest Coverage Ratio YoY | 34.135 % | |
| Interest Coverage Ratio IPRWA | high: 17.743 median: 5.0 mean: 4.883 HHH: 4.61 low: -14.849 |
|
| Operating Cash Flow Ratio | 0.295 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 19.747 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.869 % | |
| Revenue Growth | 49.584 % | |
| Revenue Growth QoQ | 60.57 % | |
| Revenue Growth YoY | 1516.167 % | |
| Revenue Growth IPRWA | high: 59.698 % HHH: 49.584 % median: 4.165 % mean: 2.67 % low: -61.164 % |
|
| Earnings Growth | -1018.182 % | |
| Earnings Growth QoQ | 397.251 % | |
| Earnings Growth YoY | -511.189 % | |
| Earnings Growth IPRWA | high: 161.538 % median: 10.0 % mean: 4.128 % low: -200.0 % HHH: -1018.182 % |
|
| MARGINS | ||
| Gross Margin | 64.148 % | |
| Gross Margin QoQ | 12.31 % | |
| Gross Margin YoY | 18.291 % | |
| Gross Margin IPRWA | high: 100.0 % HHH: 64.148 % mean: 40.257 % median: 21.408 % low: -32.26 % |
|
| EBIT Margin | 51.804 % | |
| EBIT Margin QoQ | 386.194 % | |
| EBIT Margin YoY | 12.59 % | |
| EBIT Margin IPRWA | high: 72.188 % HHH: 51.804 % mean: 4.946 % median: 3.004 % low: -58.511 % |
|
| Return On Sales (ROS) | 44.876 % | |
| Return On Sales QoQ | 76.844 % | |
| Return On Sales YoY | -2.467 % | |
| Return On Sales IPRWA | HHH: 44.876 % high: 41.794 % mean: 4.378 % median: 3.004 % low: -51.265 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 149.1 M | |
| Free Cash Flow Yield | 3.198 % | |
| Free Cash Flow Yield QoQ | -23.42 % | |
| Free Cash Flow Yield YoY | -52.018 % | |
| Free Cash Flow Yield IPRWA | high: 19.492 % HHH: 3.198 % mean: 1.633 % median: 1.326 % low: -6.369 % |
|
| Free Cash Growth | -15.809 % | |
| Free Cash Growth QoQ | -91.15 % | |
| Free Cash Growth YoY | -98.946 % | |
| Free Cash Growth IPRWA | high: 718.027 % median: 147.517 % mean: 115.719 % HHH: -15.809 % low: -915.652 % |
|
| Free Cash To Net Income | 1.247 | |
| Cash Flow Margin | 45.314 % | |
| Cash Flow To Earnings | 1.48 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 1.139 % | |
| Return On Assets QoQ | -1018.548 % | |
| Return On Assets YoY | 51.463 % | |
| Return On Assets IPRWA | high: 3.419 % HHH: 1.139 % median: 0.617 % mean: 0.613 % low: -1.694 % |
|
| Return On Capital Employed (ROCE) | 2.002 % | |
| Return On Equity (ROE) | 0.032 | |
| Return On Equity QoQ | -1052.553 % | |
| Return On Equity YoY | 13.978 % | |
| Return On Equity IPRWA | high: 0.084 HHH: 0.032 mean: 0.02 median: 0.011 low: -0.027 |
|
| DuPont ROE | 3.225 % | |
| Return On Invested Capital (ROIC) | 1.683 % | |
| Return On Invested Capital QoQ | 607.143 % | |
| Return On Invested Capital YoY | -39.351 % | |
| Return On Invested Capital IPRWA | high: 6.799 % HHH: 1.683 % mean: 1.414 % median: 0.757 % low: -3.044 % |
|