Recent News
On February 4, 2026 the company priced $500 million of 2032 notes at 5.875% and $500 million of 2034 notes at 6.125%, and announced intent to use proceeds to redeem all outstanding 5.375% senior notes due 2028 on February 19, 2026. The company previously announced on January 8, 2026 that it will release 2025 fourth-quarter results on February 19, 2026 and host a conference call on February 20, 2026.
Technical Analysis
Directional indicators show a near standoff: DI+ at 21.09 with a dip & reversal and DI- at 21.08 with a peak & reversal, which together imply a short-term bullish tilt but without decisive direction given practically identical readings; ADX at 9.45 confirms no trend and therefore limited conviction for follow-through.
MACD sits negative at -0.29 with a peak & reversal and below its signal line (-0.26), which signals bearish momentum in the oscillator and reduces the odds of a sustained upside move absent fresh buying pressure tied to fundamentals or news.
MRO registers 4.58 and carries a dip & reversal label; the positive MRO indicates the market price sits above the WMDST target, implying downside pressure should price mean-revert toward valuation levels.
RSI near neutral at 49.27 with a peak & reversal shows recent exhaustion and suggests little momentum bias; price trades essentially at the 20-day average ($81.71) and just below the 50-day average ($82.85), while remaining above the 200-day average ($76.38), a configuration consistent with a range-bound market that lacks sustained directional momentum.
Ichimoku cloud levels (Senkou A $83.56, Senkou B $84.27) sit above price ($81.77), creating overhead resistance; Bollinger bands place price between the 1x bands (upper $83.15, lower $80.26), consistent with low volatility and a narrow trading range. Collectively, technicals point to mixed-to-mildly bearish near-term price pressure with limited conviction—consistent with an over-valued equity that lacks trending support.
Fundamental Analysis
Profitability: EBIT totaled $202,156,000 and EBITDA $248,652,000, producing an EBIT margin of 51.80%, well above the industry peer mean of 4.95% and industry peer median of 3.00%, indicating strong operating conversion on reported results. QoQ the EBIT margin expanded by approximately 3.86 percentage points and registered a 12.59% YoY improvement in margin performance.
Top line and earnings: Total revenue reached $390,235,000 with YoY revenue growth of 15.16% and a QoQ increase of 60.57%, showing meaningful sales acceleration. Reported EPS equaled $2.02 versus an estimate of $1.53, a positive EPS surprise of roughly 32.0% (EPS beat of $0.49), while forward EPS sits at $0.255 producing a forward P/E of 296.17—a material disconnect between trailing profitability and muted near-term forward earnings expectations.
Cash flow and liquidity: Operating cash flow totaled $149,758,000 and free cash flow reached $149,082,000, yielding a free cash flow yield of 3.20%, above the industry peer mean of 1.63%. Cash and short-term investments of $1,456,934,000 produce a cash ratio of 2.43 and a current ratio of 4.53, reflecting substantial near-term liquidity.
Leverage and coverage: Total debt stands at $5,292,622,000 with net debt of $3,830,435,000 and a debt-to-EBITDA multiple of 21.29, signalling very high leverage on reported EBITDA; debt-to-equity equals 140.48% while interest coverage of 4.61 provides moderate earnings coverage of interest expense. The recent senior notes offering and planned redemption target longer-term maturity repricing but leave leverage metrics elevated relative to cash flow.
Efficiency and returns: Asset turnover remains low at 0.037 (below the industry peer mean of 0.1926), while return on equity registers 3.17% and return on assets 1.14%, indicating capital-light but low-velocity asset deployment. Revenue growth and strong margins support cash generation, yet returns on capital remain modest versus absolute valuation metrics.
Valuation summary: Enterprise multiple of 34.18 and EV-to-revenue and P/E levels reflect rich market pricing; given the company’s balance of high reported margins and cash balances against elevated leverage, WMDST values the stock as over-valued. That classification aligns with a stretched forward earnings multiple and a modest free-cash yield relative to the capital structure.
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 % |
|