Recent News
On February 24, 2026 the company announced Q4/FY25 results and related corporate actions; the quarter included a share repurchase of roughly 210,000 shares for about $6.9 million and a new $20 million repurchase authorization through January 2028. A regular quarterly dividend paid in March and a special cash distribution occurred in mid-January 2026. Management continues negotiating and placing multi-year reinsurance capacity for the 2026 season, supporting catastrophe protection.
Technical Analysis
Directional indicators show offsetting signals: DI+ registered a dip-and-reversal, which signals a bullish shift in directional pressure, while DI- also registered a dip-and-reversal, which signals renewed downside pressure; ADX at 13.87 indicates no established trend. The combination suggests short-term directional contention rather than a sustained trending move.
MACD has exhibited a dip-and-reversal, indicating a return of bullish momentum, but the MACD value (0.18) sits below the signal line (0.31), so momentum remains constrained until a bullish MACD cross occurs. Near-term upside requires MACD to clear the signal line to confirm expanding momentum.
MRO at 26.93 sits positive, indicating price currently trades above the modeled target and therefore carries a measured risk of downward mean reversion; the magnitude implies non-trivial but not extreme mean-reversion potential, which weighs against impulsive upside in the coming weeks.
RSI at 53.64 with a peak-and-reversal pattern signals waning short-term upside and raises the probability of a consolidation or modest pullback from recent highs. Short-term moving averages show the price trading above the 20-day average (price $34.13 vs 20-day avg $33.74) and well above the 200-day average ($29.26), but the 12-day EMA has peaked and reversed, reinforcing the case for sideways-to-modest-down price action while the market digests gains.
Price sits near the upper Bollinger band (upper 1σ $34.46) with below-average volume (134k vs a 50-day avg ~183k), a combination that often precedes either a low-volume continuation or a high-probability retracement; absent rising volume, expect consolidation rather than breakout expansion.
Fundamental Analysis
Profitability and margins: EBIT stands at $89.9 million and EBIT margin equals 22.03%. That margin sits slightly above the industry peer mean of 20.92% and above the peer median of 16.50%. EBIT margin expanded QoQ by roughly 62.98% and improved YoY by about 8.65%, supporting the valuation case and reflecting operating leverage on recent revenue. Return on equity reached 12.08%, above the industry peer mean of 6.90%, indicating comparatively efficient equity deployment.
Revenue and earnings: Total revenue totaled $407.9 million with revenue growth year‑over‑year of -3.45% and quarter‑over‑quarter growth of 7.25%, showing a recovery in sequential sales despite slight annual contraction. Reported EPS came in at $2.17 versus an estimate of $1.30, producing an EPS surprise of about 66.92%, confirming stronger-than-expected profitability for the reported period. Free cash flow totaled $25.0 million, but free cash flow growth remains negative year-over-year; free cash flow yield measures ~2.88%.
Capital structure and liquidity: Cash and short-term investments total $571.8 million against total debt of $100.5 million, yielding a debt-to-assets ratio of 3.54% and an interest-coverage ratio near 63.2x—both underscoring a conservative balance sheet and high capacity to absorb underwriting volatility. Book value per share stands at $19.67 with shares outstanding ~28.01 million and market cap ~$868.9 million; retained earnings remain substantial at $757.4 million.
Valuation context: Price multiples show a trailing PE of ~14.30 and a forward PE near 31.50, with a price-to-book of 1.58 that falls below the industry peer mean price-to-book of 2.58. WMDST values the stock as under-valued based on the combination of above-peer profitability metrics, conservative leverage, and available capital for dividends and buybacks. Earnings outperformance, margin expansion and ample liquidity drive the valuation disconnect; forward multiples embed higher growth expectations that the company must meet to compress the gap.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-24 |
| NEXT REPORT DATE: | 2026-05-26 |
| CASH FLOW | Begin Period Cash Flow | $ 474.2 M |
| Operating Cash Flow | $ 26.1 M | |
| Capital Expenditures | $ -1.08 M | |
| Change In Working Capital | $ -40.51 M | |
| Dividends Paid | $ -8.35 M | |
| Cash Flow Delta | $ 3.6 M | |
| End Period Cash Flow | $ 477.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 407.9 M | |
| Forward Revenue | $ 42.9 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 319.5 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 89.9 M | |
| Operating Income | — | |
| Interest Income | $ -177.00 K | |
| Interest Expense | $ 1.4 M | |
| Net Interest Income | $ -1.60 M | |
| Income Before Tax | $ 88.5 M | |
| Tax Provision | $ 21.9 M | |
| Tax Rate | 24.716 % | |
| Net Income | $ 66.6 M | |
| Net Income From Continuing Operations | $ 66.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.30 | |
| EPS Actual | $ 2.17 | |
| EPS Difference | $ 0.87 | |
| EPS Surprise | 66.923 % | |
| Forward EPS | $ 1.00 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.8 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 551.0 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 571.8 M | |
| Cash | $ 408.9 M | |
| Net Receivables | $ 308.6 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 257.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 100.5 M | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 551.0 M | |
| Retained Earnings | $ 757.4 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.67 | |
| Shares Outstanding | 28.008 M | |
| Revenue Per-Share | $ 14.56 | |
| VALUATION | Market Capitalization | $ 868.9 M |
| Enterprise Value | $ 397.6 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 0.975 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.153 | |
| Asset To Liability | 1.241 | |
| Debt To Capital | 0.154 | |
| Debt To Assets | 0.035 | |
| Debt To Assets QoQ | 8.594 % | |
| Debt To Assets YoY | -0.702 % | |
| Debt To Assets IPRWA | high: 0.14 median: 0.056 mean: 0.054 UVE: 0.035 low: 0.005 |
|
| Debt To Equity | 0.182 | |
| Debt To Equity QoQ | -10.331 % | |
| Debt To Equity YoY | -32.774 % | |
| Debt To Equity IPRWA | high: 0.705 mean: 0.228 median: 0.227 UVE: 0.182 low: 0.012 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.577 | |
| Price To Book QoQ | 5.309 % | |
| Price To Book YoY | 4.501 % | |
| Price To Book IPRWA | high: 6.563 mean: 2.581 median: 1.861 UVE: 1.577 low: 0.322 |
|
| Price To Earnings (P/E) | 14.297 | |
| Price To Earnings QoQ | -26.43 % | |
| Price To Earnings YoY | -82.17 % | |
| Price To Earnings IPRWA | high: 103.837 mean: 40.889 median: 40.504 UVE: 14.297 low: 12.348 |
|
| PE/G Ratio | 0.24 | |
| Price To Sales (P/S) | 2.13 | |
| Price To Sales QoQ | 15.224 % | |
| Price To Sales YoY | 45.533 % | |
| Price To Sales IPRWA | high: 19.182 mean: 5.878 median: 5.676 UVE: 2.13 low: 1.58 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 31.499 | |
| Forward PE/G | 0.529 | |
| Forward P/S | 20.257 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 37.994 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.138 | |
| Asset Turnover Ratio QoQ | 9.215 % | |
| Asset Turnover Ratio YoY | -1.798 % | |
| Asset Turnover Ratio IPRWA | high: 0.259 UVE: 0.138 mean: 0.112 median: 0.087 low: 0.008 |
|
| Receivables Turnover | 1.154 | |
| Receivables Turnover Ratio QoQ | 24.314 % | |
| Receivables Turnover Ratio YoY | 39.155 % | |
| Receivables Turnover Ratio IPRWA | high: 1.703 UVE: 1.154 mean: 0.717 median: 0.604 low: 0.073 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 79.075 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 79.075 | |
| Cash Conversion Cycle Days QoQ | -19.559 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 438.402 mean: 120.442 median: 80.405 UVE: 79.075 low: 33.334 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.003 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 651.5 M | |
| Net Invested Capital | $ 651.5 M | |
| Invested Capital | $ 651.5 M | |
| Net Tangible Assets | $ 551.0 M | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.064 % | |
| Interest Coverage Ratio | 63.201 | |
| Interest Coverage Ratio QoQ | 66.273 % | |
| Interest Coverage Ratio YoY | 932.956 % | |
| Interest Coverage Ratio IPRWA | high: 143.716 UVE: 63.201 mean: 38.626 median: 37.5 low: -0.995 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 7.971 | |
| Dividend Payout Ratio | 0.125 | |
| Dividend Rate | $ 0.30 | |
| Dividend Yield | 0.01 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -8.09 % | |
| Revenue Growth | 1.732 % | |
| Revenue Growth QoQ | 724.762 % | |
| Revenue Growth YoY | -344.633 % | |
| Revenue Growth IPRWA | high: 21.706 % mean: 3.728 % median: 2.421 % UVE: 1.732 % low: -20.344 % |
|
| Earnings Growth | 59.559 % | |
| Earnings Growth QoQ | 463.525 % | |
| Earnings Growth YoY | -144.365 % | |
| Earnings Growth IPRWA | UVE: 59.559 % high: 47.959 % median: 5.18 % mean: 4.741 % low: -43.137 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 22.031 % | |
| EBIT Margin QoQ | 62.975 % | |
| EBIT Margin YoY | 865.425 % | |
| EBIT Margin IPRWA | high: 62.969 % UVE: 22.031 % mean: 20.92 % median: 16.497 % low: -17.243 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 25.0 M | |
| Free Cash Flow Yield | 2.877 % | |
| Free Cash Flow Yield QoQ | -65.191 % | |
| Free Cash Flow Yield YoY | -115.85 % | |
| Free Cash Flow Yield IPRWA | high: 13.218 % mean: 3.493 % median: 3.288 % UVE: 2.877 % low: -1.478 % |
|
| Free Cash Growth | -59.188 % | |
| Free Cash Growth QoQ | 41.632 % | |
| Free Cash Growth YoY | -73.842 % | |
| Free Cash Growth IPRWA | high: 101.01 % mean: -31.9 % median: -36.48 % UVE: -59.188 % low: -205.847 % |
|
| Free Cash To Net Income | 0.375 | |
| Cash Flow Margin | -21.635 % | |
| Cash Flow To Earnings | 0.392 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.246 % | |
| Return On Assets QoQ | 79.536 % | |
| Return On Assets YoY | 925.571 % | |
| Return On Assets IPRWA | high: 4.006 % UVE: 2.246 % mean: 1.756 % median: 1.737 % low: -1.129 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.121 | |
| Return On Equity QoQ | 50.186 % | |
| Return On Equity YoY | 649.628 % | |
| Return On Equity IPRWA | high: 0.134 UVE: 0.121 median: 0.076 mean: 0.069 low: -0.041 |
|
| DuPont ROE | 12.732 % | |
| Return On Invested Capital (ROIC) | 10.385 % | |
| Return On Invested Capital QoQ | 51.164 % | |
| Return On Invested Capital YoY | -559.31 % | |
| Return On Invested Capital IPRWA | high: 11.649 % UVE: 10.385 % median: 6.141 % mean: 5.973 % low: -2.346 % |
|