Recent News
On October 30, 2025 the company announced third-quarter 2025 results and highlighted a 20% increase in net new orders and an expanded backlog; the release also referenced the issuance of $300 million in senior notes due 2030. On November 12, 2025 the Board approved an additional $50 million in share repurchases, doubling the program authorization to $100 million and extending the program through June 30, 2027. In late December 2025 the CEO issued a shareholder letter addressing his October 2025 acquisition of the Tampa Bay Rays, stating DFH equity did not fund the purchase and no material stock sales were planned. The stock traded to new intraday lows in late December, with commentary noting elevated volatility.
Technical Analysis
Directional indicators (ADX/DI+/DI-): ADX sits at 19.56, indicating no established trend. DI+ measures 25.71 with a peak-and-reversal pattern, and DI- measures 19.18 with a dip-and-reversal pattern; both signals point toward bearish directional pressure despite the low ADX strength.
MACD and signal line: MACD stands at 0.12 with the signal line at 0.02; the MACD shows a peak-and-reversal pattern, indicating bearish momentum even though the MACD currently sits above its signal line.
MRO: The MRO reads 29.31 with a peak-and-reversal trajectory; a positive MRO at this level implies the current price sits above the model target and therefore faces downward pressure relative to valuation models.
RSI: RSI at 44.28 with a peak-and-reversal pattern shows momentum tipping toward the downside, consistent with the DI and MACD signals.
Price vs moving averages and cloud: The last close of $18.59 trades below the 20-day average of $19.09, below the 50-day average of $18.73 and well below the 200-day average of $23.15, reflecting shorter- and longer-term weakness. The Tenkan/Kijun readings align near $18.52 and Senkou A at $18.97, with price below Senkou A and the cloud’s Senkou B at $22.40, underscoring a bearish technical placement.
Bollinger bands, volatility and volume: Price sits between the 1x Bollinger bounds ($17.94–$20.24), closer to the lower band, and the 42-day and 52-week volatilities remain subdued at 3%. Current volume of ~357,863 roughly matches the 10-day average and sits below the 200-day average, indicating muted participation on recent moves.
Support/resistance context: SuperTrend lower support at $18.06 provides a nearby downside reference, while the 20-day average near $19.09 and the lower Bollinger band near $17.94 serve as short-term resistance and support zones—technical configuration implies choppy, slightly bearish price action into the near term.
Fundamental Analysis
Profitability and margins: Operating (EBIT) margin measures 6.11%. QoQ operating margin improved by 21.49%, while operating margin declined by 35.70% year-over-year. The operating margin sits above the industry peer low but below the industry peer mean (≈14.25%) and median (≈14.12%), indicating compressed profitability relative to typical peers.
Earnings and payouts: Reported EPS equaled $0.47 versus an estimate of $0.50, a miss of about -6%; net income for the period totaled $46,997,000. Dividend yield remains minimal at 0.14% with a payout ratio near 7.18%, leaving most earnings retained for operations or capital use.
Cash flow and capital allocation: Free cash flow totaled negative $135,729,000 and free cash flow yield registered about -5.76%, though QoQ free cash flow yield improved materially. Operating cash flow remained negative at -$130,981,000. The Board’s expansion of the repurchase program to $100 million reflects active capital return but contrasts with negative free cash flow and elevated net debt.
Balance sheet and leverage: Cash and short-term investments at $251.0 million contrast with total debt of $1,766.1 million and net debt of $1,515.1 million. Debt-to-assets at 46.05% sits well above the industry peer mean and closer to the industry peer high; debt-to-equity at 1.286 indicates materially higher leverage than the industry peer mean while remaining below the peer high. Enterprise multiple registers at 58.81 and exceeds the industry peer high, amplifying valuation tension given negative free cash flow.
Operational efficiency: Asset turnover stands at 0.259 and receivables turnover at ~20.0x; cash conversion cycle measures 185 days, shorter than the industry peer mean of ~222 days, which helps working-capital dynamics but inventory remains elevated in absolute dollars. Return on equity reads 3.42% and return on assets about 1.26%, both below peer means, showing modest returns on invested capital.
Valuation summary: WMDST values the stock as over-valued. Key drivers: negative free cash flow yield, an enterprise multiple above the industry peer high, elevated leverage relative to peer means, and profitability below peer averages despite recent QoQ margin improvement. Forward P/E sits near 32.22 while trailing P/E rounds to about 54.0x; book value per share about $14.81 provides additional context versus current market pricing.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 258.4 M |
| Operating Cash Flow | $ -130.98 M | |
| Capital Expenditures | $ -4.75 M | |
| Change In Working Capital | $ -201.35 M | |
| Dividends Paid | $ -3.38 M | |
| Cash Flow Delta | $ 31.8 M | |
| End Period Cash Flow | $ 290.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 969.8 M | |
| Forward Revenue | $ 215.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 801.0 M | |
| Depreciation | $ 6.5 M | |
| Depreciation and Amortization | $ 6.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 910.5 M | |
| PROFITABILITY | ||
| Gross Profit | $ 168.8 M | |
| EBITDA | $ 65.8 M | |
| EBIT | $ 59.3 M | |
| Operating Income | $ 59.3 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 60.8 M | |
| Tax Provision | $ 13.7 M | |
| Tax Rate | 22.542 % | |
| Net Income | $ 47.0 M | |
| Net Income From Continuing Operations | $ 47.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.50 | |
| EPS Actual | $ 0.47 | |
| EPS Difference | $ -0.03 | |
| EPS Surprise | -6.0 % | |
| Forward EPS | $ 0.45 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.8 B | |
| Intangible Assets | $ 375.1 M | |
| Net Tangible Assets | $ 1.1 B | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 251.0 M | |
| Cash | $ 251.0 M | |
| Net Receivables | $ 53.0 M | |
| Inventory | $ 2.1 B | |
| Long-Term Investments | $ 294.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 165.3 M | |
| Short-Term Debt | $ 1.2 B | |
| Total Current Liabilities | $ 1.7 B | |
| Net Debt | $ 1.5 B | |
| Total Debt | $ 1.8 B | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 1.4 B | |
| Retained Earnings | $ 1.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 14.81 | |
| Shares Outstanding | 92.755 M | |
| Revenue Per-Share | $ 10.46 | |
| VALUATION | Market Capitalization | $ 2.4 B |
| Enterprise Value | $ 3.9 B | |
| Enterprise Multiple | 58.812 | |
| Enterprise Multiple QoQ | 0.946 % | |
| Enterprise Multiple YoY | 46.545 % | |
| Enterprise Multiple IPRWA | DFH: 58.812 high: 56.389 median: 43.224 mean: 39.521 low: 26.861 |
|
| EV/R | 3.99 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.793 | |
| Asset To Liability | 1.68 | |
| Debt To Capital | 0.563 | |
| Debt To Assets | 0.461 | |
| Debt To Assets QoQ | 6.358 % | |
| Debt To Assets YoY | 31.828 % | |
| Debt To Assets IPRWA | high: 0.48 DFH: 0.461 mean: 0.182 median: 0.17 low: 0.002 |
|
| Debt To Equity | 1.286 | |
| Debt To Equity QoQ | 8.562 % | |
| Debt To Equity YoY | 23.475 % | |
| Debt To Equity IPRWA | high: 1.452 DFH: 1.286 mean: 0.319 median: 0.249 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.715 | |
| Price To Book QoQ | -6.499 % | |
| Price To Book YoY | -37.092 % | |
| Price To Book IPRWA | high: 5.472 mean: 2.463 median: 1.935 DFH: 1.715 low: 0.571 |
|
| Price To Earnings (P/E) | 54.015 | |
| Price To Earnings QoQ | 20.921 % | |
| Price To Earnings YoY | 16.291 % | |
| Price To Earnings IPRWA | high: 92.96 DFH: 54.015 mean: 53.197 median: 52.279 low: 30.727 |
|
| PE/G Ratio | -3.361 | |
| Price To Sales (P/S) | 2.428 | |
| Price To Sales QoQ | 14.185 % | |
| Price To Sales YoY | -19.561 % | |
| Price To Sales IPRWA | high: 14.419 mean: 5.631 median: 4.836 DFH: 2.428 low: 1.863 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 32.218 | |
| Forward PE/G | -2.005 | |
| Forward P/S | 5.858 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.154 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.259 | |
| Asset Turnover Ratio QoQ | -19.618 % | |
| Asset Turnover Ratio YoY | -18.807 % | |
| Asset Turnover Ratio IPRWA | high: 0.437 mean: 0.29 median: 0.269 DFH: 0.259 low: 0.073 |
|
| Receivables Turnover | 20.015 | |
| Receivables Turnover Ratio QoQ | -34.926 % | |
| Receivables Turnover Ratio YoY | -37.179 % | |
| Receivables Turnover Ratio IPRWA | DFH: 20.015 high: 14.207 mean: 6.213 median: 4.799 low: 1.737 |
|
| Inventory Turnover | 0.387 | |
| Inventory Turnover Ratio QoQ | -22.302 % | |
| Inventory Turnover Ratio YoY | -5.296 % | |
| Inventory Turnover Ratio IPRWA | high: 2.707 mean: 0.599 DFH: 0.387 median: 0.292 low: 0.085 |
|
| Days Sales Outstanding (DSO) | 4.559 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 185.412 | |
| Cash Conversion Cycle Days QoQ | -9.561 % | |
| Cash Conversion Cycle Days YoY | -5.342 % | |
| Cash Conversion Cycle Days IPRWA | high: 889.05 mean: 222.148 DFH: 185.412 median: 80.111 low: 46.208 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.046 | |
| CapEx To Revenue | -0.005 | |
| CapEx To Depreciation | -0.728 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.1 B | |
| Net Invested Capital | $ 3.1 B | |
| Invested Capital | $ 3.1 B | |
| Net Tangible Assets | $ 1.1 B | |
| Net Working Capital | $ 926.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.15 | |
| Current Ratio | 1.553 | |
| Current Ratio QoQ | 16.007 % | |
| Current Ratio YoY | 2.286 % | |
| Current Ratio IPRWA | high: 17.394 mean: 9.463 median: 6.11 low: 1.865 DFH: 1.553 |
|
| Quick Ratio | 0.273 | |
| Quick Ratio QoQ | 9.69 % | |
| Quick Ratio YoY | 2.022 % | |
| Quick Ratio IPRWA | high: 4.511 median: 3.154 mean: 2.628 low: 0.47 DFH: 0.273 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 26.841 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | 5927.9 | |
| Interest Coverage Ratio QoQ | 2.422 % | |
| Interest Coverage Ratio YoY | -38.068 % | |
| Interest Coverage Ratio IPRWA | DFH: 5927.9 high: 601.482 mean: 57.819 median: 28.941 low: 1.167 |
|
| Operating Cash Flow Ratio | -0.071 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 16.16 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 13.925 | |
| Dividend Payout Ratio | 0.072 | |
| Dividend Rate | $ 0.04 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.073 % | |
| Revenue Growth | -15.706 % | |
| Revenue Growth QoQ | -196.783 % | |
| Revenue Growth YoY | 239.222 % | |
| Revenue Growth IPRWA | high: 7.522 % median: 2.354 % mean: 2.054 % DFH: -15.706 % low: -19.304 % |
|
| Earnings Growth | -16.071 % | |
| Earnings Growth QoQ | -533.882 % | |
| Earnings Growth YoY | 18.343 % | |
| Earnings Growth IPRWA | high: 9.896 % median: -2.31 % mean: -3.481 % DFH: -16.071 % low: -41.667 % |
|
| MARGINS | ||
| Gross Margin | 17.404 % | |
| Gross Margin QoQ | 3.979 % | |
| Gross Margin YoY | -11.317 % | |
| Gross Margin IPRWA | high: 41.838 % mean: 24.309 % median: 22.682 % DFH: 17.404 % low: 16.745 % |
|
| EBIT Margin | 6.112 % | |
| EBIT Margin QoQ | 21.487 % | |
| EBIT Margin YoY | -35.704 % | |
| EBIT Margin IPRWA | high: 23.986 % mean: 14.248 % median: 14.12 % DFH: 6.112 % low: 5.417 % |
|
| Return On Sales (ROS) | 6.112 % | |
| Return On Sales QoQ | 21.487 % | |
| Return On Sales YoY | -35.704 % | |
| Return On Sales IPRWA | high: 23.986 % median: 14.12 % mean: 14.022 % DFH: 6.112 % low: 5.214 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -135.73 M | |
| Free Cash Flow Yield | -5.764 % | |
| Free Cash Flow Yield QoQ | 78.951 % | |
| Free Cash Flow Yield YoY | -21.278 % | |
| Free Cash Flow Yield IPRWA | high: 5.211 % mean: 3.213 % median: 2.654 % low: -1.138 % DFH: -5.764 % |
|
| Free Cash Growth | 72.258 % | |
| Free Cash Growth QoQ | 11.884 % | |
| Free Cash Growth YoY | -26.23 % | |
| Free Cash Growth IPRWA | high: 250.563 % median: 157.39 % mean: 122.417 % DFH: 72.258 % low: -254.593 % |
|
| Free Cash To Net Income | -2.888 | |
| Cash Flow Margin | -12.286 % | |
| Cash Flow To Earnings | -2.535 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 1.256 % | |
| Return On Assets QoQ | -20.757 % | |
| Return On Assets YoY | -43.904 % | |
| Return On Assets IPRWA | high: 5.723 % mean: 3.184 % median: 2.585 % DFH: 1.256 % low: 0.49 % |
|
| Return On Capital Employed (ROCE) | 2.746 % | |
| Return On Equity (ROE) | 0.034 | |
| Return On Equity QoQ | -19.311 % | |
| Return On Equity YoY | -45.991 % | |
| Return On Equity IPRWA | high: 0.086 mean: 0.047 median: 0.044 DFH: 0.034 low: 0.009 |
|
| DuPont ROE | 3.472 % | |
| Return On Invested Capital (ROIC) | 1.463 % | |
| Return On Invested Capital QoQ | -3.496 % | |
| Return On Invested Capital YoY | -81.14 % | |
| Return On Invested Capital IPRWA | high: 7.144 % mean: 3.888 % median: 3.27 % DFH: 1.463 % low: 0.412 % |
|