Recent News
On December 3–4, 2025 the Board declared a one-time cash dividend of $2.00 per share payable January 21, 2026, and disclosed $1,281,863 shares repurchased for roughly $180.9 million during fiscal 2025, with about $434 million in cash and short-term investments reported as of September 27, 2025. On January 9–10, 2026 several brokerages adjusted price targets: Susquehanna raised its target to $160 and TD Cowen moved its target to $150, alongside other firms issuing neutral/hold-level commentary.
Technical Analysis
ADX at 33.38 signals a strong directional environment; the strength supports continuation of recent momentum rather than a trendless market.
DI+ shows a dip & reversal and DI- shows a peak & reversal; those directional moves together produce a bullish directional setup that favors upward price bias in the near term.
MACD at 4.07 with a dip & reversal currently trades above its signal line at 3.59; the MACD crossing above the signal line qualifies as a bullish momentum signal, reinforcing short-term positive momentum versus the current valuation.
MRO reads 8.11 with a dip & reversal and, because MRO sits positive, price currently stands above the modeled target and carries potential for downside toward the target if momentum slows; this contrasts with other bullish indicators and highlights vulnerability to mean reversion.
RSI at 63.11 and increasing shows momentum leaning higher but staying below typical overbought thresholds; momentum retains room to run before extreme readings demand caution.
Price at $155.70 trades above the 12-day EMA $147.82 (12-day EMA trend increasing), above the 20-day average $146.06 and above the 50- and 200-day averages ($135.62 and $133.18 respectively); the price sits above the upper Bollinger 2x band at $155.45, indicating a short-term extension beyond normal volatility bands that may amplify pullback risk.
Fundamental Analysis
Revenue shows contraction: revenue growth stands at -0.49% overall, quarter-over-quarter change reads -109.65%, and year-over-year revenue growth registers -45.77%. Operating margin (EBIT margin) measures 4.41%, up 1.61 percentage points QoQ but down 9.60 percentage points YoY.
Net income equals $19,364,000 while operating income equals $53,137,000; EPS came in at $1.22 versus an estimate of $1.23, an EPS shortfall of $0.01 representing an EPS surprise of -0.81%.
Profitability and returns remain modest: return on equity registers 2.18% and return on assets 1.15%, both below the industry peer mean levels (ROE industry peer mean ~5.42%; ROA industry peer mean ~1.57%). Operating/EBIT margin at 4.41% sits below the industry peer mean of 8.24% and below the industry peer median of 7.95%.
Balance sheet and cash metrics show strength: cash and short-term investments reach $434,418,000, cash conversion ratio equals 192.55% and free cash flow totals $86,043,000, producing a free cash flow yield of 1.93% that sits slightly above the industry peer mean of 1.82%. Debt levels remain modest with debt-to-equity at 14.08% and debt-to-EBITDA near 1.94x.
Market multiples reflect elevated price expectations: P/E at 106.48 and forward P/E near 77.39 both trade above the industry peer mean P/E (~65.07) and industry peer median; price-to-book at 5.02 sits above the industry peer mean of 3.81. Enterprise multiple at 64.23 exceeds the industry peer mean enterprise multiple. Those multiple gaps align with the WMDST valuation verdict.
WMDST values the stock as over-valued based on the combination of stretched multiples versus modest returns and recent margin contraction, despite healthy cash generation and very manageable leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-28 |
| NEXT REPORT DATE: | 2026-01-27 |
| CASH FLOW | Begin Period Cash Flow | $ 359.2 M |
| Operating Cash Flow | $ 89.3 M | |
| Capital Expenditures | $ -3.29 M | |
| Change In Working Capital | $ 11.8 M | |
| Dividends Paid | $ -13.86 M | |
| Cash Flow Delta | $ 16.0 M | |
| End Period Cash Flow | $ 375.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 733.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.0 B | |
| Depreciation | $ 11.5 M | |
| Depreciation and Amortization | $ 11.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 158.7 M | |
| EBITDA | $ 64.6 M | |
| EBIT | $ 53.1 M | |
| Operating Income | $ 53.1 M | |
| Interest Income | $ -217.00 K | |
| Interest Expense | — | |
| Net Interest Income | $ -217.00 K | |
| Income Before Tax | $ 26.1 M | |
| Tax Provision | $ 6.7 M | |
| Tax Rate | 25.8 % | |
| Net Income | $ 19.4 M | |
| Net Income From Continuing Operations | $ 19.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.23 | |
| EPS Actual | $ 1.22 | |
| EPS Difference | $ -0.01 | |
| EPS Surprise | -0.813 % | |
| Forward EPS | $ 1.37 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.7 B | |
| Intangible Assets | $ 34.0 M | |
| Net Tangible Assets | $ 854.7 M | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 434.4 M | |
| Cash | $ 375.2 M | |
| Net Receivables | $ 696.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 120.6 M | |
| LIABILITIES | ||
| Accounts Payable | $ 402.8 M | |
| Short-Term Debt | $ 48.0 M | |
| Total Current Liabilities | $ 619.1 M | |
| Net Debt | — | |
| Total Debt | $ 125.1 M | |
| Total Liabilities | $ 773.5 M | |
| EQUITY | ||
| Total Equity | $ 888.7 M | |
| Retained Earnings | $ 2.9 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 25.88 | |
| Shares Outstanding | 34.345 M | |
| Revenue Per-Share | $ 35.10 | |
| VALUATION | Market Capitalization | $ 4.5 B |
| Enterprise Value | $ 4.2 B | |
| Enterprise Multiple | 64.228 | |
| Enterprise Multiple QoQ | -6.571 % | |
| Enterprise Multiple YoY | -19.003 % | |
| Enterprise Multiple IPRWA | high: 65.174 LSTR: 64.228 mean: 35.923 median: 35.364 low: -41.64 |
|
| EV/R | 3.445 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.87 | |
| Asset To Liability | 2.149 | |
| Debt To Capital | 0.123 | |
| Debt To Assets | 0.075 | |
| Debt To Assets QoQ | -10.88 % | |
| Debt To Assets YoY | 160.665 % | |
| Debt To Assets IPRWA | high: 0.772 mean: 0.379 median: 0.287 LSTR: 0.075 low: 0.001 |
|
| Debt To Equity | 0.141 | |
| Debt To Equity QoQ | -9.599 % | |
| Debt To Equity YoY | 181.862 % | |
| Debt To Equity IPRWA | high: 2.857 mean: 1.451 median: 0.809 LSTR: 0.141 low: 0.001 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.02 | |
| Price To Book QoQ | -2.173 % | |
| Price To Book YoY | -20.229 % | |
| Price To Book IPRWA | high: 8.329 LSTR: 5.02 median: 4.683 mean: 3.809 low: 0.234 |
|
| Price To Earnings (P/E) | 106.475 | |
| Price To Earnings QoQ | -9.415 % | |
| Price To Earnings YoY | -17.034 % | |
| Price To Earnings IPRWA | high: 189.606 LSTR: 106.475 mean: 65.068 median: 50.719 low: -68.609 |
|
| PE/G Ratio | 63.872 | |
| Price To Sales (P/S) | 3.701 | |
| Price To Sales QoQ | -5.22 % | |
| Price To Sales YoY | -29.728 % | |
| Price To Sales IPRWA | high: 13.643 LSTR: 3.701 median: 3.46 mean: 3.212 low: 0.942 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 77.393 | |
| Forward PE/G | 46.426 | |
| Forward P/S | 4.917 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -2.26 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.717 | |
| Asset Turnover Ratio QoQ | 1.104 % | |
| Asset Turnover Ratio YoY | 3.752 % | |
| Asset Turnover Ratio IPRWA | high: 0.784 LSTR: 0.717 mean: 0.31 median: 0.285 low: 0.017 |
|
| Receivables Turnover | 1.706 | |
| Receivables Turnover Ratio QoQ | 0.013 % | |
| Receivables Turnover Ratio YoY | -0.284 % | |
| Receivables Turnover Ratio IPRWA | high: 2.965 mean: 1.994 median: 1.944 LSTR: 1.706 low: 0.549 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 53.491 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 18.632 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -31.669 % | |
| Cash Conversion Cycle Days IPRWA | high: 97.015 LSTR: 18.632 mean: 18.493 median: 12.525 low: -7.471 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.925 | |
| CapEx To Revenue | -0.003 | |
| CapEx To Depreciation | -0.286 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 888.7 M | |
| Net Invested Capital | $ 936.7 M | |
| Invested Capital | $ 936.7 M | |
| Net Tangible Assets | $ 854.7 M | |
| Net Working Capital | $ 626.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.702 | |
| Current Ratio | 2.011 | |
| Current Ratio QoQ | 0.637 % | |
| Current Ratio YoY | -9.108 % | |
| Current Ratio IPRWA | high: 2.063 LSTR: 2.011 median: 1.305 mean: 1.239 low: 0.008 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.936 | |
| Cost Of Debt | 0.646 % | |
| Interest Coverage Ratio | 45.455 | |
| Interest Coverage Ratio QoQ | 1.115 % | |
| Interest Coverage Ratio YoY | -10.232 % | |
| Interest Coverage Ratio IPRWA | high: 50.302 LSTR: 45.455 mean: 11.968 median: 6.522 low: -67.891 |
|
| Operating Cash Flow Ratio | 0.086 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 34.86 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.397 | |
| Dividend Payout Ratio | 0.716 | |
| Dividend Rate | $ 0.40 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.203 % | |
| Revenue Growth | -0.493 % | |
| Revenue Growth QoQ | -109.65 % | |
| Revenue Growth YoY | -45.765 % | |
| Revenue Growth IPRWA | high: 7.099 % mean: 0.965 % median: 0.914 % LSTR: -0.493 % low: -17.851 % |
|
| Earnings Growth | 1.667 % | |
| Earnings Growth QoQ | -93.665 % | |
| Earnings Growth YoY | -135.243 % | |
| Earnings Growth IPRWA | high: 38.596 % median: 8.889 % LSTR: 1.667 % mean: -2.958 % low: -121.875 % |
|
| MARGINS | ||
| Gross Margin | 13.168 % | |
| Gross Margin QoQ | 0.765 % | |
| Gross Margin YoY | 2.467 % | |
| Gross Margin IPRWA | high: 52.201 % mean: 17.341 % median: 16.278 % LSTR: 13.168 % low: 3.353 % |
|
| EBIT Margin | 4.408 % | |
| EBIT Margin QoQ | 1.614 % | |
| EBIT Margin YoY | -9.598 % | |
| EBIT Margin IPRWA | high: 23.115 % mean: 8.242 % median: 7.948 % LSTR: 4.408 % low: -124.368 % |
|
| Return On Sales (ROS) | 4.408 % | |
| Return On Sales QoQ | 1.614 % | |
| Return On Sales YoY | -9.598 % | |
| Return On Sales IPRWA | high: 23.115 % median: 8.424 % mean: 8.063 % LSTR: 4.408 % low: -56.543 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 86.0 M | |
| Free Cash Flow Yield | 1.929 % | |
| Free Cash Flow Yield QoQ | 1868.367 % | |
| Free Cash Flow Yield YoY | 63.06 % | |
| Free Cash Flow Yield IPRWA | high: 6.576 % median: 2.04 % LSTR: 1.929 % mean: 1.817 % low: -9.344 % |
|
| Free Cash Growth | 1747.606 % | |
| Free Cash Growth QoQ | -2013.235 % | |
| Free Cash Growth YoY | 1930.282 % | |
| Free Cash Growth IPRWA | LSTR: 1747.606 % high: 323.982 % mean: -127.532 % median: -234.921 % low: -455.228 % |
|
| Free Cash To Net Income | 4.443 | |
| Cash Flow Margin | 4.4 % | |
| Cash Flow To Earnings | 2.739 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.152 % | |
| Return On Assets QoQ | -53.037 % | |
| Return On Assets YoY | -59.565 % | |
| Return On Assets IPRWA | high: 3.09 % median: 1.842 % mean: 1.566 % LSTR: 1.152 % low: -7.152 % |
|
| Return On Capital Employed (ROCE) | 5.094 % | |
| Return On Equity (ROE) | 0.022 | |
| Return On Equity QoQ | -52.057 % | |
| Return On Equity YoY | -55.756 % | |
| Return On Equity IPRWA | high: 0.088 mean: 0.054 median: 0.045 LSTR: 0.022 low: -0.129 |
|
| DuPont ROE | 2.138 % | |
| Return On Invested Capital (ROIC) | 4.209 % | |
| Return On Invested Capital QoQ | 4.132 % | |
| Return On Invested Capital YoY | -143.917 % | |
| Return On Invested Capital IPRWA | high: 5.768 % LSTR: 4.209 % mean: 3.057 % median: 2.714 % low: -4.511 % |
|