Recent News
Between early December 2025 and mid‑January 2026 management detailed a transformation program targeting high‑single‑digit annual revenue growth and 50–150 basis points of adjusted operating‑margin expansion through fiscal 2030, alongside a multi‑year ~$20M annualized cost‑savings plan. The company reaffirmed its fiscal 2025 outlook in mid‑January ahead of investor conference appearances and scheduled a fourth‑quarter and fiscal‑2025 earnings release and conference call for February 18, 2026. These announcements emphasize margin recovery, moderated near‑term store openings and continued investment in technology and customer segmentation.
Technical Analysis
ADX at 11.58 indicates no dominant trend; directional momentum lacks conviction, reducing the probability of a sustained breakout in either direction over the coming weeks.
DI+ sits at 18.29 with a peak-and-reversal pattern, a bearish signal because DI+ has rolled over; DI‑ at 16.71 shows a dip-and-reversal, which also registers as bearish. Together the directional indicators favor downside pressure despite the low ADX reading.
MACD at 0.08 with a peak-and-reversal and a MACD signal at 0.10 indicates bearish momentum; MACD remains below its signal line and shows a declining profile rather than a bullish cross.
MRO at 17.47 registers positive and, given its peak-and-reversal, implies the current price sits above the oscillator’s target and carries potential for downward mean reversion in the near term.
RSI at 50.79 with a peak-and-reversal reads as neutral-to-weakening momentum rather than oversold or overbought; the oscillator suggests limited upside impulse while sellers retain influence.
Price sits at $27.35, below the 20‑day average ($27.76) and the 50‑day average ($27.58) but above the 200‑day average ($24.96), a configuration that favors short‑term consolidation or pullback while longer‑term bias remains positive. Ichimoku conversion and base lines (Tenkan 27.73, Kijun 27.75) bracket the price above the cloud’s Senkou B (25.93) but price trading under Tenkan/Kijun signals near‑term pressure. Bollinger bands place the close near the lower 1‑sigma band ($27.11), supporting a limited consolidation range rather than an immediate trend reversal. Volume runs below 10‑ and 50‑day averages, lowering conviction behind recent moves.
Fundamental Analysis
WMDST values the stock as over‑valued. Total revenue for the period stands at $487.33M with YoY revenue change recorded as a decline of 4.875% and recent quarter revenue growth near 0.19% (quarter‑to‑date). Gross margin at 58.30% remains a structural strength and sits well above the industry peer mean of 27.83% and industry peer median of 25.60%, supporting above‑average product margin economics.
Operating (EBIT) income equals $9.61M and the operating margin at 1.97% ranks below the industry peer mean of 5.54% but above the industry peer median of 1.20%. The operating margin compressed quarter‑over‑quarter by roughly 41.7% even as year‑over‑year change measures near a modest -2.12%, reflecting recent cost dynamics and timing of initiatives.
Cash generation shows operating cash flow of $46.63M and free cash flow of $30.27M, delivering a free‑cash‑flow yield of about 1.50%. Free cash growth trends negative year over year, consistent with elevated near‑term investment and moderated store openings. Cash conversion cycle of 17.3 days runs slightly longer than the industry peer mean of 11.46 days but within the industry peer range, indicating manageable working‑capital intensity.
Balance sheet leverage carries total debt of $693.57M and net debt of $197.34M; debt‑to‑assets sits at ~35.4% and debt‑to‑equity at ~0.81x while interest coverage near 2.33x provides limited cushion versus cyclical earnings pressure. Book value per share at $10.83 and P/B of 2.35 sits below the industry peer mean of 3.65 but above the industry peer median of 1.78.
Valuation multiples highlight the disconnect between current price and fundamentals: trailing P/E near 196x and enterprise multiple above 83x reflect elevated market expectations relative to near‑term profitability; forward P/E near 184x and modest free‑cash‑flow yield corroborate the WMDST over‑valued determination.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 50.0 M |
| Operating Cash Flow | $ 46.6 M | |
| Capital Expenditures | $ -16.37 M | |
| Change In Working Capital | $ 2.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 7.6 M | |
| End Period Cash Flow | $ 57.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 487.3 M | |
| Forward Revenue | $ 663.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 203.2 M | |
| Depreciation | $ 22.2 M | |
| Depreciation and Amortization | $ 22.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 477.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 284.1 M | |
| EBITDA | $ 31.8 M | |
| EBIT | $ 9.6 M | |
| Operating Income | $ 9.6 M | |
| Interest Income | — | |
| Interest Expense | $ 4.1 M | |
| Net Interest Income | $ -4.12 M | |
| Income Before Tax | $ 5.5 M | |
| Tax Provision | $ 2.1 M | |
| Tax Rate | 38.6 % | |
| Net Income | $ 3.4 M | |
| Net Income From Continuing Operations | $ 3.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.13 | |
| EPS Actual | $ 0.13 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 0.16 % | |
| Forward EPS | $ 0.23 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.0 B | |
| Intangible Assets | $ 948.9 M | |
| Net Tangible Assets | $ -90.15 M | |
| Total Current Assets | $ 220.2 M | |
| Cash and Short-Term Investments | $ 56.0 M | |
| Cash | $ 56.0 M | |
| Net Receivables | $ 46.1 M | |
| Inventory | $ 88.0 M | |
| Long-Term Investments | $ 62.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 74.3 M | |
| Short-Term Debt | $ 16.9 M | |
| Total Current Liabilities | $ 417.0 M | |
| Net Debt | $ 197.3 M | |
| Total Debt | $ 693.6 M | |
| Total Liabilities | $ 1.1 B | |
| EQUITY | ||
| Total Equity | $ 858.8 M | |
| Retained Earnings | $ 252.4 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.83 | |
| Shares Outstanding | 79.260 M | |
| Revenue Per-Share | $ 6.15 | |
| VALUATION | Market Capitalization | $ 2.0 B |
| Enterprise Value | $ 2.7 B | |
| Enterprise Multiple | 83.453 | |
| Enterprise Multiple QoQ | 32.224 % | |
| Enterprise Multiple YoY | 39.421 % | |
| Enterprise Multiple IPRWA | high: 190.244 EYE: 83.453 median: 48.181 mean: -0.806 low: -219.035 |
|
| EV/R | 5.444 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.281 | |
| Asset To Liability | 1.781 | |
| Debt To Capital | 0.447 | |
| Debt To Assets | 0.354 | |
| Debt To Assets QoQ | -3.095 % | |
| Debt To Assets YoY | 608.422 % | |
| Debt To Assets IPRWA | high: 0.956 EYE: 0.354 mean: 0.323 median: 0.309 low: 0.0 |
|
| Debt To Equity | 0.808 | |
| Debt To Equity QoQ | -4.502 % | |
| Debt To Equity YoY | 571.746 % | |
| Debt To Equity IPRWA | high: 2.466 mean: 1.047 median: 0.879 EYE: 0.808 low: -1.645 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.347 | |
| Price To Book QoQ | 11.556 % | |
| Price To Book YoY | 128.799 % | |
| Price To Book IPRWA | high: 27.592 mean: 3.646 EYE: 2.347 median: 1.785 low: -9.335 |
|
| Price To Earnings (P/E) | 195.625 | |
| Price To Earnings QoQ | 61.286 % | |
| Price To Earnings YoY | 114.368 % | |
| Price To Earnings IPRWA | high: 431.61 EYE: 195.625 mean: 74.897 median: 64.535 low: -80.57 |
|
| PE/G Ratio | -7.042 | |
| Price To Sales (P/S) | 4.136 | |
| Price To Sales QoQ | 12.419 % | |
| Price To Sales YoY | 116.719 % | |
| Price To Sales IPRWA | high: 28.774 mean: 6.117 EYE: 4.136 median: 3.476 low: 0.079 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 183.959 | |
| Forward PE/G | -6.622 | |
| Forward P/S | 5.414 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -223.042 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.248 | |
| Asset Turnover Ratio QoQ | 1.513 % | |
| Asset Turnover Ratio YoY | 14.52 % | |
| Asset Turnover Ratio IPRWA | high: 0.945 median: 0.397 mean: 0.334 EYE: 0.248 low: 0.001 |
|
| Receivables Turnover | 10.584 | |
| Receivables Turnover Ratio QoQ | 7.84 % | |
| Receivables Turnover Ratio YoY | -6.344 % | |
| Receivables Turnover Ratio IPRWA | EYE: 10.584 high: 7.93 mean: 3.745 median: 2.82 low: 0.147 |
|
| Inventory Turnover | 2.288 | |
| Inventory Turnover Ratio QoQ | 1.73 % | |
| Inventory Turnover Ratio YoY | 7.522 % | |
| Inventory Turnover Ratio IPRWA | high: 6.787 median: 4.872 mean: 4.442 EYE: 2.288 low: 0.207 |
|
| Days Sales Outstanding (DSO) | 8.622 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 17.342 | |
| Cash Conversion Cycle Days QoQ | -34.057 % | |
| Cash Conversion Cycle Days YoY | -40.315 % | |
| Cash Conversion Cycle Days IPRWA | high: 132.972 EYE: 17.342 median: 14.524 mean: 11.455 low: -85.326 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -2.477 | |
| CapEx To Revenue | -0.034 | |
| CapEx To Depreciation | -0.738 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ -90.15 M | |
| Net Working Capital | $ -196.78 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.134 | |
| Current Ratio | 0.528 | |
| Current Ratio QoQ | 1.452 % | |
| Current Ratio YoY | -7.67 % | |
| Current Ratio IPRWA | high: 6.656 mean: 1.26 median: 0.832 EYE: 0.528 low: 0.004 |
|
| Quick Ratio | 0.317 | |
| Quick Ratio QoQ | 3.537 % | |
| Quick Ratio YoY | -13.478 % | |
| Quick Ratio IPRWA | high: 6.866 mean: 1.033 median: 0.509 EYE: 0.317 low: 0.013 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 21.815 | |
| Cost Of Debt | 0.358 % | |
| Interest Coverage Ratio | 2.333 | |
| Interest Coverage Ratio QoQ | -40.299 % | |
| Interest Coverage Ratio YoY | -220.351 % | |
| Interest Coverage Ratio IPRWA | high: 30.491 EYE: 2.333 mean: 1.983 median: 1.758 low: -59.14 |
|
| Operating Cash Flow Ratio | 0.087 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 31.733 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.502 % | |
| Revenue Growth | 0.186 % | |
| Revenue Growth QoQ | -103.972 % | |
| Revenue Growth YoY | -487.5 % | |
| Revenue Growth IPRWA | high: 14.194 % mean: 2.9 % median: 1.992 % EYE: 0.186 % low: -22.095 % |
|
| Earnings Growth | -27.778 % | |
| Earnings Growth QoQ | -40.972 % | |
| Earnings Growth YoY | 38.89 % | |
| Earnings Growth IPRWA | high: 131.373 % mean: -6.052 % median: -11.602 % EYE: -27.778 % low: -234.091 % |
|
| MARGINS | ||
| Gross Margin | 58.304 % | |
| Gross Margin QoQ | -0.855 % | |
| Gross Margin YoY | 0.637 % | |
| Gross Margin IPRWA | high: 87.689 % EYE: 58.304 % mean: 27.829 % median: 25.598 % low: -9.25 % |
|
| EBIT Margin | 1.972 % | |
| EBIT Margin QoQ | -41.691 % | |
| EBIT Margin YoY | -211.855 % | |
| EBIT Margin IPRWA | high: 32.526 % mean: 5.537 % EYE: 1.972 % median: 1.203 % low: -43.522 % |
|
| Return On Sales (ROS) | 1.972 % | |
| Return On Sales QoQ | -41.691 % | |
| Return On Sales YoY | -211.855 % | |
| Return On Sales IPRWA | high: 29.872 % mean: 8.09 % median: 5.889 % EYE: 1.972 % low: -43.781 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 30.3 M | |
| Free Cash Flow Yield | 1.502 % | |
| Free Cash Flow Yield QoQ | -36.624 % | |
| Free Cash Flow Yield YoY | 219.574 % | |
| Free Cash Flow Yield IPRWA | high: 14.006 % mean: 1.536 % EYE: 1.502 % median: 1.231 % low: -18.788 % |
|
| Free Cash Growth | -28.632 % | |
| Free Cash Growth QoQ | -111.316 % | |
| Free Cash Growth YoY | -67.193 % | |
| Free Cash Growth IPRWA | high: 558.205 % mean: -6.43 % EYE: -28.632 % median: -49.804 % low: -423.827 % |
|
| Free Cash To Net Income | 8.976 | |
| Cash Flow Margin | 7.425 % | |
| Cash Flow To Earnings | 10.73 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.172 % | |
| Return On Assets QoQ | -60.82 % | |
| Return On Assets YoY | -142.365 % | |
| Return On Assets IPRWA | high: 7.577 % median: 0.355 % mean: 0.327 % EYE: 0.172 % low: -22.496 % |
|
| Return On Capital Employed (ROCE) | 0.623 % | |
| Return On Equity (ROE) | 0.004 | |
| Return On Equity QoQ | -61.696 % | |
| Return On Equity YoY | -138.988 % | |
| Return On Equity IPRWA | high: 0.378 mean: 0.015 median: 0.011 EYE: 0.004 low: -0.391 |
|
| DuPont ROE | 0.395 % | |
| Return On Invested Capital (ROIC) | 0.53 % | |
| Return On Invested Capital QoQ | -49.234 % | |
| Return On Invested Capital YoY | -101.889 % | |
| Return On Invested Capital IPRWA | high: 8.725 % median: 0.766 % mean: 0.613 % EYE: 0.53 % low: -22.633 % |
|