Technical Analysis
ADX at 40.08 indicates a very strong directional trend in place; the strength reading supports the persistence of recent price action but raises the probability of an extended move resolving into consolidation rather than immediate momentum expansion.
Directional indicators show bearish alignment: DI+ experienced a peak-and-reverse, and DI- registered a dip-and-reversal, together signaling renewed downside dominance among directional flows despite the broader trend strength.
MACD stands at 7.03 and is increasing, with the MACD line above its 5.97 signal line; that crossover conveys continuing bullish momentum in the shorter-term oscillator even as directional indicators shift.
MRO reads 32.93 with a dip-and-reversal; the positive MRO level implies price sits above the model target and faces downside pressure consistent with the dip-and-reversal behavior.
RSI at 67.27 with a peak-and-reverse signals elevated momentum and a heightened risk of a near-term pullback from current levels rather than an immediate breakout continuation.
Price sits well above key averages: the close at $126.93 exceeds the 20-day average $119.62, the 50-day average $102.64, and the 200-day average $76.49; the 12-day EMA is increasing, reinforcing short-term bullish bias while the 20-day standard deviation and Bollinger upper band (1x: $127.22; 2x: $134.82) place current price near the upper volatility band.
Ichimoku components (Tenkan-sen $120.58; Kijun-sen $116.28; Senkou A $93.46; Senkou B $89.08) sit below price, and the super trend lower support at $121.24 provides a proximate reference for consolidation; daily volume above the 50-day average supports conviction behind recent moves without implying continued directional expansion.
Fundamental Analysis
Operating performance shows strong margin and cash metrics that align with the current fair valuation. EBIT totaled $2,559,000,000 and EBITDA reached $3,202,000,000, delivering an EBIT margin of 46.33%, above the industry peer mean of 24.245% and inside the industry peer range (low -25.528%, high 55.997%). The EBIT margin contracted QoQ by -22.62% but expanded YoY by +86.31%.
Net income reached $1,832,000,000 and operating cash flow totaled $2,298,000,000, supporting free cash flow of $1,571,000,000 and a free cash flow yield of 1.83%, modestly above the industry peer mean of 1.315%. Free cash flow shows negative growth dynamics YoY and QoQ, with free cash growth YoY at -135.699% and QoQ at -119.397% (interpreted from supplied growth figures).
Balance-sheet metrics emphasize liquidity and low leverage: cash and short-term investments sum to $5,967,000,000, current ratio stands at 2.04 (below the industry peer mean of 2.48013), quick ratio equals 1.558 (near the industry peer mean of 1.51004), and debt-to-assets reads 10.33%, below the industry peer mean of 13.632%.
Return metrics present moderate capital efficiency: return on equity at 5.51% and return on assets at 3.34% both exceed the respective industry peer means (ROE mean 3.039%; ROA mean 1.985%), while asset turnover at 0.1006 remains below the industry peer mean of 0.17077, reflecting the capital-intensive nature of the business after portfolio changes.
Valuation multiples show a premium in earnings multiples but mixed picture overall: trailing PE at 45.95 and forward PE at 74.25, while price-to-book equals 2.585 (below the industry peer mean of 3.7873). EPS reported $1.71 versus an estimate of $1.44, an EPS surprise of +18.75%, supporting near-term investor sentiment toward the shares.
WMDST values the stock as fair-valued based on the combination of elevated margins, strong cash conversion, conservative leverage, and premium earnings multiples relative to forward earnings assumptions.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-23 |
| NEXT REPORT DATE: | 2026-01-22 |
| CASH FLOW | Begin Period Cash Flow | $ 6.2 B |
| Operating Cash Flow | $ 2.3 B | |
| Capital Expenditures | $ -727.00 M | |
| Change In Working Capital | $ -286.00 M | |
| Dividends Paid | $ -273.00 M | |
| Cash Flow Delta | $ -546.00 M | |
| End Period Cash Flow | $ 5.7 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 5.5 B | |
| Forward Revenue | $ 1.7 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.6 B | |
| Depreciation | $ 643.0 M | |
| Depreciation and Amortization | $ 643.0 M | |
| Research and Development | $ 40.0 M | |
| Total Operating Expenses | $ 2.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.9 B | |
| EBITDA | $ 3.2 B | |
| EBIT | $ 2.6 B | |
| Operating Income | $ 2.6 B | |
| Interest Income | $ 56.0 M | |
| Interest Expense | $ 52.0 M | |
| Net Interest Income | $ 4.0 M | |
| Income Before Tax | $ 2.5 B | |
| Tax Provision | $ 787.0 M | |
| Tax Rate | 31.0 % | |
| Net Income | $ 1.8 B | |
| Net Income From Continuing Operations | $ 1.8 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.44 | |
| EPS Actual | $ 1.71 | |
| EPS Difference | $ 0.27 | |
| EPS Surprise | 18.75 % | |
| Forward EPS | $ 2.10 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 54.7 B | |
| Intangible Assets | $ 2.7 B | |
| Net Tangible Assets | $ 30.6 B | |
| Total Current Assets | $ 10.4 B | |
| Cash and Short-Term Investments | $ 6.0 B | |
| Cash | $ 5.6 B | |
| Net Receivables | $ 1.0 B | |
| Inventory | $ 2.4 B | |
| Long-Term Investments | $ 3.5 B | |
| LIABILITIES | ||
| Accounts Payable | $ 832.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 5.1 B | |
| Net Debt | — | |
| Total Debt | $ 5.7 B | |
| Total Liabilities | $ 21.3 B | |
| EQUITY | ||
| Total Equity | $ 33.2 B | |
| Retained Earnings | $ 2.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 30.40 | |
| Shares Outstanding | 1.093 B | |
| Revenue Per-Share | $ 5.05 | |
| VALUATION | Market Capitalization | $ 85.9 B |
| Enterprise Value | $ 85.6 B | |
| Enterprise Multiple | 26.722 | |
| Enterprise Multiple QoQ | 43.23 % | |
| Enterprise Multiple YoY | -14.884 % | |
| Enterprise Multiple IPRWA | high: 157.603 mean: 57.649 median: 28.677 NEM: 26.722 low: -220.72 |
|
| EV/R | 15.49 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.646 | |
| Asset To Liability | 2.57 | |
| Debt To Capital | 0.145 | |
| Debt To Assets | 0.103 | |
| Debt To Assets QoQ | -25.069 % | |
| Debt To Assets YoY | 5092.462 % | |
| Debt To Assets IPRWA | high: 0.574 mean: 0.136 NEM: 0.103 median: 0.102 low: 0.001 |
|
| Debt To Equity | 0.17 | |
| Debt To Equity QoQ | -28.203 % | |
| Debt To Equity YoY | 4411.406 % | |
| Debt To Equity IPRWA | high: 2.001 mean: 0.262 median: 0.189 NEM: 0.17 low: 0.001 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.585 | |
| Price To Book QoQ | 18.576 % | |
| Price To Book YoY | 30.822 % | |
| Price To Book IPRWA | high: 8.202 mean: 3.787 median: 3.406 NEM: 2.585 low: 0.704 |
|
| Price To Earnings (P/E) | 45.95 | |
| Price To Earnings QoQ | 18.02 % | |
| Price To Earnings YoY | -27.47 % | |
| Price To Earnings IPRWA | high: 163.615 mean: 74.734 median: 50.899 NEM: 45.95 low: -173.761 |
|
| PE/G Ratio | 2.347 | |
| Price To Sales (P/S) | 15.547 | |
| Price To Sales QoQ | 18.092 % | |
| Price To Sales YoY | 21.955 % | |
| Price To Sales IPRWA | high: 28.634 NEM: 15.547 median: 15.037 mean: 13.897 low: 0.628 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 74.255 | |
| Forward PE/G | 3.792 | |
| Forward P/S | 108.861 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -5.036 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.101 | |
| Asset Turnover Ratio QoQ | 4.673 % | |
| Asset Turnover Ratio YoY | 22.14 % | |
| Asset Turnover Ratio IPRWA | high: 0.462 mean: 0.171 median: 0.167 NEM: 0.101 low: 0.006 |
|
| Receivables Turnover | 6.561 | |
| Receivables Turnover Ratio QoQ | -5.978 % | |
| Receivables Turnover Ratio YoY | 37.409 % | |
| Receivables Turnover Ratio IPRWA | high: 43.106 mean: 6.772 NEM: 6.561 median: 2.553 low: 1.388 |
|
| Inventory Turnover | 1.1 | |
| Inventory Turnover Ratio QoQ | -4.451 % | |
| Inventory Turnover Ratio YoY | -19.132 % | |
| Inventory Turnover Ratio IPRWA | high: 2.678 NEM: 1.1 mean: 1.063 median: 0.867 low: 0.336 |
|
| Days Sales Outstanding (DSO) | 13.909 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 68.586 | |
| Cash Conversion Cycle Days QoQ | 6.417 % | |
| Cash Conversion Cycle Days YoY | 3.049 % | |
| Cash Conversion Cycle Days IPRWA | high: 277.604 median: 76.918 NEM: 68.586 mean: 65.914 low: -2045.19 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.045 | |
| CapEx To Revenue | -0.132 | |
| CapEx To Depreciation | -1.131 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 38.4 B | |
| Net Invested Capital | $ 38.4 B | |
| Invested Capital | $ 38.4 B | |
| Net Tangible Assets | $ 30.6 B | |
| Net Working Capital | $ 5.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.173 | |
| Current Ratio | 2.039 | |
| Current Ratio QoQ | -8.418 % | |
| Current Ratio YoY | 3.904 % | |
| Current Ratio IPRWA | high: 12.496 mean: 2.48 median: 2.458 NEM: 2.039 low: 0.005 |
|
| Quick Ratio | 1.558 | |
| Quick Ratio QoQ | -10.528 % | |
| Quick Ratio YoY | -4.021 % | |
| Quick Ratio IPRWA | high: 2.957 NEM: 1.558 mean: 1.51 median: 1.422 low: 0.315 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.765 | |
| Cost Of Debt | 0.541 % | |
| Interest Coverage Ratio | 49.212 | |
| Interest Coverage Ratio QoQ | 0.495 % | |
| Interest Coverage Ratio YoY | 269.624 % | |
| Interest Coverage Ratio IPRWA | NEM: 49.212 high: 47.486 mean: 12.892 median: 11.763 low: -194.931 |
|
| Operating Cash Flow Ratio | 0.388 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 27.399 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.711 | |
| Dividend Payout Ratio | 0.149 | |
| Dividend Rate | $ 0.25 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.861 % | |
| Revenue Growth | 3.893 % | |
| Revenue Growth QoQ | -36.472 % | |
| Revenue Growth YoY | -15.59 % | |
| Revenue Growth IPRWA | high: 121.571 % mean: 4.761 % NEM: 3.893 % median: 0.769 % low: -4.838 % |
|
| Earnings Growth | 19.58 % | |
| Earnings Growth QoQ | 35.972 % | |
| Earnings Growth YoY | 56.64 % | |
| Earnings Growth IPRWA | high: 257.143 % NEM: 19.58 % median: 2.326 % mean: -7.542 % low: -150.0 % |
|
| MARGINS | ||
| Gross Margin | 53.041 % | |
| Gross Margin QoQ | 4.607 % | |
| Gross Margin YoY | 46.786 % | |
| Gross Margin IPRWA | high: 83.6 % NEM: 53.041 % mean: 31.982 % median: 18.577 % low: -5.37 % |
|
| EBIT Margin | 46.325 % | |
| EBIT Margin QoQ | -22.618 % | |
| EBIT Margin YoY | 86.314 % | |
| EBIT Margin IPRWA | high: 55.997 % NEM: 46.325 % mean: 24.245 % median: 10.809 % low: -25.528 % |
|
| Return On Sales (ROS) | 47.357 % | |
| Return On Sales QoQ | 4.177 % | |
| Return On Sales YoY | 90.464 % | |
| Return On Sales IPRWA | high: 51.244 % NEM: 47.357 % mean: 23.89 % median: 10.421 % low: -31.756 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.6 B | |
| Free Cash Flow Yield | 1.829 % | |
| Free Cash Flow Yield QoQ | -25.133 % | |
| Free Cash Flow Yield YoY | 39.299 % | |
| Free Cash Flow Yield IPRWA | high: 11.174 % NEM: 1.829 % median: 1.692 % mean: 1.315 % low: -7.163 % |
|
| Free Cash Growth | -8.129 % | |
| Free Cash Growth QoQ | -119.397 % | |
| Free Cash Growth YoY | -135.699 % | |
| Free Cash Growth IPRWA | high: 537.296 % NEM: -8.129 % median: -44.567 % mean: -76.44 % low: -339.64 % |
|
| Free Cash To Net Income | 0.858 | |
| Cash Flow Margin | 35.735 % | |
| Cash Flow To Earnings | 1.078 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.335 % | |
| Return On Assets QoQ | -10.446 % | |
| Return On Assets YoY | 102.244 % | |
| Return On Assets IPRWA | high: 6.16 % NEM: 3.335 % mean: 1.985 % median: 1.76 % low: -14.746 % |
|
| Return On Capital Employed (ROCE) | 5.159 % | |
| Return On Equity (ROE) | 0.055 | |
| Return On Equity QoQ | -14.085 % | |
| Return On Equity YoY | 77.699 % | |
| Return On Equity IPRWA | high: 0.115 NEM: 0.055 mean: 0.03 median: 0.029 low: -0.432 |
|
| DuPont ROE | 5.608 % | |
| Return On Invested Capital (ROIC) | 4.597 % | |
| Return On Invested Capital QoQ | -12.77 % | |
| Return On Invested Capital YoY | -115.366 % | |
| Return On Invested Capital IPRWA | high: 9.171 % NEM: 4.597 % mean: 3.771 % median: 2.581 % low: -12.191 % |
|