Recent News
On June 1, 2026 the Board authorized a $0.35 per-share quarterly dividend payable July 29, 2026 to holders of record July 15, 2026. The company reported comparable-store net sales gains for the 4‑ and 5‑week periods ended May 30 and July 4, 2026, respectively (comps up low-single digits vs. last year).
Technical Analysis
ADX at 22.11 signals an emerging trend strength without dominant directional conviction; that strength supports a near-term directional bias but avoids labeling a strong trend.
Directional indicators show bullish alignment: DI+ near 19.84 has turned higher while DI‑ at 24.44 moved lower, which favors upside bias from directional momentum.
MACD equals -0.77 with the signal at -1.09 and a rising MACD trend; MACD crossed above its signal line, producing a bullish momentum signal despite MACD remaining negative.
MRO sits at -25.11 with a recent dip-and-reversal pattern; the negative reading implies price trades below the model target and therefore carries measured upside potential into any follow-through move.
RSI at 41.54 climbed recently, indicating building buying pressure without overbought risk; that supports continuation of the small bullish tilt from momentum indicators.
Price action presents a mixed horizon: the close at $42.98 trades above the 20‑day average ($42.10) and the 12‑day EMA has completed a dip‑and‑reversal, supporting short-term strength, while the $44.90 50‑day and $49.85 200‑day averages sit above price and cap broader upside scope until breached.
Bollinger levels place price slightly above the 1× upper band, suggesting near‑term volatility toward the upper short‑term range; Ichimoku components keep price below the cloud, which limits the conviction for a sustained trend extension.
Fundamental Analysis
Operating performance shows resilience in margin structure: operating/EBIT margin equals 20.59%, which sits above the industry peer mean of 13.084% and above the industry peer high of 19.082%, supporting stronger per-dollar profitability than typical specialty-retail peers.
QoQ and YoY motion carry divergent signals. EBIT margin contracted QoQ by 18.338% but expanded YoY by 28.678%, reflecting recent period-level pressure against a stronger twelve‑month backdrop. Revenue growth stands negative overall; revenue growth YoY equals -2.043% with a QoQ decline of -213.337%, indicating recent top-line softening that pressured sequential margin dynamics.
Earnings per share outperformed expectations this quarter: reported EPS $0.92 versus estimate $0.74, an EPS surprise of roughly 24.3%, with net income for the fiscal quarter around $46.9 million and proceeds from an interchange fee settlement contributing cash during the period.
Liquidity and cash flow present strength: cash of $266,164,000 with cash and short‑term investments of $289,982,000 and a cash ratio of 1.26; operating cash flow reached $49,318,000 and free cash flow $34,655,000, although free cash flow growth turned negative QoQ. Dividend coverage and payout remain sustainable on reported earnings (dividend payout ratio 38.46%, dividend coverage roughly 2.6x), supporting the Board’s $0.35 quarterly distribution.
Leverage and returns show middling leverage with total debt $410,869,000, debt/equity ~0.90 and debt-to-EBITDA ~6.23; return on equity equals 10.22%, above the industry peer mean and median but below the industry peer high, signaling respectable shareholder returns against moderate leverage.
Valuation context: P/E about 56.0x, forward P/E about 50.5x, P/S roughly 9.19x, and P/B about 5.78x combine with a free cash flow yield near 1.31%, producing stretched multiples relative to cash-flow generation and sequential top‑line weakness. The current valuation as determined by WMDST values the stock as over-valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-04-30 |
| REPORT DATE: | 2026-05-29 |
| NEXT REPORT DATE: | 2026-08-28 |
| CASH FLOW | Begin Period Cash Flow | $ 249.5 M |
| Operating Cash Flow | $ 49.3 M | |
| Capital Expenditures | $ -14.66 M | |
| Change In Working Capital | $ -8.23 M | |
| Dividends Paid | $ -18.03 M | |
| Cash Flow Delta | $ 16.7 M | |
| End Period Cash Flow | $ 266.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 288.7 M | |
| Forward Revenue | $ 83.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 155.3 M | |
| Depreciation | $ 6.5 M | |
| Depreciation and Amortization | $ 6.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 229.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 133.5 M | |
| EBITDA | $ 65.9 M | |
| EBIT | $ 59.5 M | |
| Operating Income | $ 59.5 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 62.1 M | |
| Tax Provision | $ 15.2 M | |
| Tax Rate | 24.5 % | |
| Net Income | $ 46.9 M | |
| Net Income From Continuing Operations | $ 46.9 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.74 | |
| EPS Actual | $ 0.92 | |
| EPS Difference | $ 0.18 | |
| EPS Surprise | 24.324 % | |
| Forward EPS | $ 1.05 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.0 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 458.9 M | |
| Total Current Assets | $ 471.0 M | |
| Cash and Short-Term Investments | $ 290.0 M | |
| Cash | $ 266.2 M | |
| Net Receivables | $ 7.3 M | |
| Inventory | $ 150.2 M | |
| Long-Term Investments | $ 10.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 60.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 230.7 M | |
| Net Debt | — | |
| Total Debt | $ 410.9 M | |
| Total Liabilities | $ 589.9 M | |
| EQUITY | ||
| Total Equity | $ 458.9 M | |
| Retained Earnings | $ 231.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.91 | |
| Shares Outstanding | 51.518 M | |
| Revenue Per-Share | $ 5.60 | |
| VALUATION | Market Capitalization | $ 2.7 B |
| Enterprise Value | $ 2.8 B | |
| Enterprise Multiple | 42.086 | |
| Enterprise Multiple QoQ | 61.317 % | |
| Enterprise Multiple YoY | 1.664 % | |
| Enterprise Multiple IPRWA | high: 177.335 mean: 50.236 median: 47.746 BKE: 42.086 low: -78.249 |
|
| EV/R | 9.608 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.286 | |
| Asset To Liability | 1.778 | |
| Debt To Capital | 0.472 | |
| Debt To Assets | 0.392 | |
| Debt To Assets QoQ | 1.18 % | |
| Debt To Assets YoY | 3.569 % | |
| Debt To Assets IPRWA | high: 1.056 mean: 0.46 median: 0.437 BKE: 0.392 low: 0.214 |
|
| Debt To Equity | 0.895 | |
| Debt To Equity QoQ | -0.936 % | |
| Debt To Equity YoY | 7.846 % | |
| Debt To Equity IPRWA | high: 4.366 mean: 1.183 BKE: 0.895 median: 0.892 low: -2.006 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.782 | |
| Price To Book QoQ | -9.234 % | |
| Price To Book YoY | 30.864 % | |
| Price To Book IPRWA | BKE: 5.782 high: 5.122 mean: 2.464 median: 2.392 low: -3.375 |
|
| Price To Earnings (P/E) | 55.979 | |
| Price To Earnings QoQ | 68.323 % | |
| Price To Earnings YoY | 1.892 % | |
| Price To Earnings IPRWA | high: 141.649 median: 77.251 mean: 73.726 BKE: 55.979 low: -72.826 |
|
| PE/G Ratio | -1.328 | |
| Price To Sales (P/S) | 9.189 | |
| Price To Sales QoQ | 35.587 % | |
| Price To Sales YoY | 27.1 % | |
| Price To Sales IPRWA | BKE: 9.189 high: 7.406 mean: 3.665 median: 3.413 low: 0.213 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 50.515 | |
| Forward PE/G | -1.199 | |
| Forward P/S | 31.826 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.48 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.283 | |
| Asset Turnover Ratio QoQ | -26.613 % | |
| Asset Turnover Ratio YoY | -1.674 % | |
| Asset Turnover Ratio IPRWA | high: 0.612 mean: 0.313 median: 0.293 BKE: 0.283 low: 0.078 |
|
| Receivables Turnover | 31.623 | |
| Receivables Turnover Ratio QoQ | -23.933 % | |
| Receivables Turnover Ratio YoY | -14.673 % | |
| Receivables Turnover Ratio IPRWA | high: 84.878 BKE: 31.623 mean: 12.016 median: 9.17 low: 0.276 |
|
| Inventory Turnover | 1.072 | |
| Inventory Turnover Ratio QoQ | -13.513 % | |
| Inventory Turnover Ratio YoY | -6.515 % | |
| Inventory Turnover Ratio IPRWA | high: 2.152 BKE: 1.072 mean: 0.751 median: 0.694 low: 0.308 |
|
| Days Sales Outstanding (DSO) | 2.886 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 46.62 | |
| Cash Conversion Cycle Days QoQ | -7.381 % | |
| Cash Conversion Cycle Days YoY | 19.33 % | |
| Cash Conversion Cycle Days IPRWA | high: 198.78 BKE: 46.62 median: 35.614 mean: 31.843 low: -23.408 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.202 | |
| CapEx To Revenue | -0.051 | |
| CapEx To Depreciation | -2.269 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 458.9 M | |
| Net Invested Capital | $ 458.9 M | |
| Invested Capital | $ 458.9 M | |
| Net Tangible Assets | $ 458.9 M | |
| Net Working Capital | $ 240.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.257 | |
| Current Ratio | 2.042 | |
| Current Ratio QoQ | 7.899 % | |
| Current Ratio YoY | -2.442 % | |
| Current Ratio IPRWA | high: 2.705 BKE: 2.042 median: 1.311 mean: 1.287 low: 0.785 |
|
| Quick Ratio | 1.391 | |
| Quick Ratio QoQ | 6.734 % | |
| Quick Ratio YoY | -6.34 % | |
| Quick Ratio IPRWA | BKE: 1.391 high: 1.084 mean: 0.4 median: 0.382 low: 0.068 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 6.233 | |
| Cost Of Debt | 0.635 % | |
| Interest Coverage Ratio | 18.94 | |
| Interest Coverage Ratio QoQ | -40.927 % | |
| Interest Coverage Ratio YoY | 36.529 % | |
| Interest Coverage Ratio IPRWA | high: 93.279 BKE: 18.94 mean: 13.59 median: 8.361 low: -58.921 |
|
| Operating Cash Flow Ratio | 0.257 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 26.136 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.6 | |
| Dividend Payout Ratio | 0.385 | |
| Dividend Rate | $ 0.35 | |
| Dividend Yield | 0.007 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.802 % | |
| Revenue Growth | -27.661 % | |
| Revenue Growth QoQ | -213.337 % | |
| Revenue Growth YoY | -2.043 % | |
| Revenue Growth IPRWA | high: 34.773 % mean: -10.822 % median: -17.446 % BKE: -27.661 % low: -54.332 % |
|
| Earnings Growth | -42.138 % | |
| Earnings Growth QoQ | -164.21 % | |
| Earnings Growth YoY | -22.323 % | |
| Earnings Growth IPRWA | high: 37.785 % median: -15.556 % mean: -22.416 % BKE: -42.138 % low: -400.0 % |
|
| MARGINS | ||
| Gross Margin | 46.228 % | |
| Gross Margin QoQ | -12.122 % | |
| Gross Margin YoY | -0.93 % | |
| Gross Margin IPRWA | high: 68.334 % BKE: 46.228 % mean: 41.378 % median: 40.74 % low: 10.662 % |
|
| EBIT Margin | 20.591 % | |
| EBIT Margin QoQ | -18.338 % | |
| EBIT Margin YoY | 28.678 % | |
| EBIT Margin IPRWA | BKE: 20.591 % high: 19.082 % median: 14.315 % mean: 13.084 % low: -19.594 % |
|
| Return On Sales (ROS) | 20.591 % | |
| Return On Sales QoQ | -18.338 % | |
| Return On Sales YoY | 28.678 % | |
| Return On Sales IPRWA | BKE: 20.591 % high: 19.082 % median: 14.315 % mean: 12.942 % low: -19.598 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 34.7 M | |
| Free Cash Flow Yield | 1.306 % | |
| Free Cash Flow Yield QoQ | -65.164 % | |
| Free Cash Flow Yield YoY | 31.256 % | |
| Free Cash Flow Yield IPRWA | high: 20.691 % BKE: 1.306 % median: 0.834 % mean: 0.438 % low: -12.625 % |
|
| Free Cash Growth | -65.83 % | |
| Free Cash Growth QoQ | -140.091 % | |
| Free Cash Growth YoY | -20.069 % | |
| Free Cash Growth IPRWA | high: 77.641 % BKE: -65.83 % median: -80.884 % mean: -80.951 % low: -330.672 % |
|
| Free Cash To Net Income | 0.739 | |
| Cash Flow Margin | 20.51 % | |
| Cash Flow To Earnings | 1.263 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.596 % | |
| Return On Assets QoQ | -41.167 % | |
| Return On Assets YoY | 23.449 % | |
| Return On Assets IPRWA | high: 5.232 % BKE: 4.596 % median: 3.102 % mean: 2.873 % low: -7.602 % |
|
| Return On Capital Employed (ROCE) | 7.267 % | |
| Return On Equity (ROE) | 0.102 | |
| Return On Equity QoQ | -46.334 % | |
| Return On Equity YoY | 29.264 % | |
| Return On Equity IPRWA | high: 0.132 BKE: 0.102 median: 0.057 mean: -0.019 low: -0.276 |
|
| DuPont ROE | 10.612 % | |
| Return On Invested Capital (ROIC) | 9.782 % | |
| Return On Invested Capital QoQ | -46.194 % | |
| Return On Invested Capital YoY | 32.476 % | |
| Return On Invested Capital IPRWA | high: 12.645 % median: 11.692 % BKE: 9.782 % mean: 8.124 % low: -8.65 % |
|