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Effective June 11, 2026 the company executed a ten‑for‑one forward stock split and adjusted trading on a split‑adjusted basis; the board recommended shareholders reject a mini‑tender offer; on August 6, 2026 the board declared a quarterly cash dividend of $0.230 per share payable in September.
Technical Analysis
ADX reads 17.72, indicating no established trend; this weak trend strength dampens conviction for a sustained directional move despite other bullish signals and supports a short-term consolidation bias relative to the current over-valued assessment.
DI+ shows a dip & reversal, a bullish signal; DI- shows a peak & reversal, also bullish. The paired DI behavior signals directional pressure that favors buyers, but the low ADX suggests that pressure lacks trend strength and may produce range-bound action against the current valuation.
MACD currently sits at -4.25 with a MACD signal at -5.93 and the MACD has dipped and reversed above its signal line; that crossover represents bullish momentum initiation even though MACD remains below zero, implying momentum improving from negative territory.
MRO stands at 6.95 (positive), indicating the current price sits above the WMDST target and therefore points to downward pressure on price; this over-target reading conflicts with MACD’s bullish crossover and raises the prospect of short-term mean reversion toward the valuation baseline.
RSI at 45.16 with a dip & reversal shows recovery from a recent pullback; the RSI remains below 50, consistent with limited upside momentum that can support consolidation rather than a decisive breakout.
Price sits near the 20‑day average ($177.37) and above the 12‑day EMA ($178.44) and 200‑day average ($174.79), while remaining under the 50‑day average ($191.12); the super trend upper band at $188.38 sits almost equal to the close, creating a clear near‑term supply reference that reinforces the consolidation view.
Bollinger bands range roughly $160–$195 (2x band high/low), and 42‑day and 52‑week betas near 2.8 signal elevated sensitivity to market swings; heightened beta and above‑average volatility increase the chance of sharp intrarange moves during the next six weeks.
Fundamental Analysis
EPS for the latest reported period: actual $1.05 versus estimate $1.00, a positive surprise of 5.0%, reported on July 28, 2026. Earnings beat supports near‑term sentiment but does not alter the WMDST valuation judgement below.
Revenue totaled $3,657,556,000 with YoY revenue growth of 94.68% and QoQ revenue growth of 98.49%; these large growth rates reflect strong top‑line expansion over the reported intervals and underpin operating leverage.
Operating income measures $1,553,948,000 with an operating margin of 42.486%. EBIT equals $1,622,659,000 and the EBIT margin of 44.365% sits above the industry peer mean (36.787%) and industry peer median (37.057%), and below the industry peer high (47.037%), indicating margin strength relative to peers while remaining within the peer range.
Return metrics: return on equity 21.466% and return on assets 7.828% reflect efficient capital use; return on equity QoQ rose 4.214 percentage points even as return on equity YoY declined -16.26% (reflecting prior period comparisons).
Cash and liquidity stand out: cash and short‑term investments $4,902,408,000, current ratio 2.876 (above the industry peer mean 2.158 and median 2.508), and cash ratio 1.138. Free cash flow $817,142,000 yields 0.294%; that free cash flow yield sits above the industry peer mean (0.211%) and slightly below the industry peer median (0.318%).
Leverage and coverage: total debt $6,151,713,000, net debt $4,237,573,000, debt/EBITDA 3.57, and interest coverage ~22.15x. Debt metrics tightened QoQ and YoY, and the interest coverage ratio provides margin for servicing debt while funding operations.
Valuation: WMDST values the stock as over‑valued. Market multiples reflect premium positioning—P/E ~202.25x (above industry peer mean 181.71x and median 175.28x), P/B ~43.71x (well above industry peer mean 21.71x and median 29.29x)—indicating expectations priced into shares exceed typical peer multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-28 |
| NEXT REPORT DATE: | 2026-10-27 |
| CASH FLOW | Begin Period Cash Flow | $ 1.8 B |
| Operating Cash Flow | $ 906.4 M | |
| Capital Expenditures | $ -89.29 M | |
| Change In Working Capital | $ -748.73 M | |
| Dividends Paid | $ -305.33 M | |
| Cash Flow Delta | $ -137.17 M | |
| End Period Cash Flow | $ 1.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 3.7 B | |
| Forward Revenue | $ 1.5 B | |
| COSTS | ||
| Cost Of Revenue | $ 1.4 B | |
| Depreciation | $ 98.6 M | |
| Depreciation and Amortization | $ 98.6 M | |
| Research and Development | $ 399.0 M | |
| Total Operating Expenses | $ 2.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 2.2 B | |
| EBITDA | $ 1.7 B | |
| EBIT | $ 1.6 B | |
| Operating Income | $ 1.6 B | |
| Interest Income | $ 177.1 M | |
| Interest Expense | $ 73.3 M | |
| Net Interest Income | $ 103.8 M | |
| Income Before Tax | $ 1.5 B | |
| Tax Provision | $ 186.3 M | |
| Tax Rate | 12.026 % | |
| Net Income | $ 1.4 B | |
| Net Income From Continuing Operations | $ 1.4 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.00 | |
| EPS Actual | $ 1.05 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 5.0 % | |
| Forward EPS | $ 1.68 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 18.0 B | |
| Intangible Assets | $ 2.0 B | |
| Net Tangible Assets | $ 4.3 B | |
| Total Current Assets | $ 12.4 B | |
| Cash and Short-Term Investments | $ 4.9 B | |
| Cash | $ 1.6 B | |
| Net Receivables | $ 2.9 B | |
| Inventory | $ 3.6 B | |
| Long-Term Investments | $ 175.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 623.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 4.3 B | |
| Net Debt | $ 4.2 B | |
| Total Debt | $ 6.2 B | |
| Total Liabilities | $ 11.6 B | |
| EQUITY | ||
| Total Equity | $ 6.3 B | |
| Retained Earnings | $ 3.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 4.86 | |
| Shares Outstanding | 1.307 B | |
| Revenue Per-Share | $ 2.80 | |
| VALUATION | Market Capitalization | $ 277.6 B |
| Enterprise Value | $ 278.8 B | |
| Enterprise Multiple | 161.974 | |
| Enterprise Multiple QoQ | 23.905 % | |
| Enterprise Multiple YoY | 108.326 % | |
| Enterprise Multiple IPRWA | high: 204.721 KLAC: 161.974 median: 146.579 mean: 146.093 low: -293.876 |
|
| EV/R | 76.226 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.827 | |
| Asset To Liability | 1.547 | |
| Debt To Capital | 0.492 | |
| Debt To Assets | 0.343 | |
| Debt To Assets QoQ | -5.909 % | |
| Debt To Assets YoY | -9.562 % | |
| Debt To Assets IPRWA | high: 0.423 KLAC: 0.343 median: 0.159 mean: 0.114 low: 0.002 |
|
| Debt To Equity | 0.969 | |
| Debt To Equity QoQ | -8.083 % | |
| Debt To Equity YoY | -25.331 % | |
| Debt To Equity IPRWA | high: 1.213 KLAC: 0.969 median: 0.299 mean: 0.216 low: -0.075 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 43.71 | |
| Price To Book QoQ | 23.608 % | |
| Price To Book YoY | 78.525 % | |
| Price To Book IPRWA | KLAC: 43.71 high: 29.291 median: 29.291 mean: 21.709 low: -9.2 |
|
| Price To Earnings (P/E) | 202.248 | |
| Price To Earnings QoQ | 20.864 % | |
| Price To Earnings YoY | 123.106 % | |
| Price To Earnings IPRWA | high: 234.604 KLAC: 202.248 mean: 181.71 median: 175.276 low: -129.292 |
|
| PE/G Ratio | 17.283 | |
| Price To Sales (P/S) | 75.884 | |
| Price To Sales QoQ | 25.693 % | |
| Price To Sales YoY | 109.69 % | |
| Price To Sales IPRWA | KLAC: 75.884 high: 68.545 median: 59.344 mean: 55.978 low: 5.453 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 123.552 | |
| Forward PE/G | 10.558 | |
| Forward P/S | 193.341 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.283 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.21 | |
| Asset Turnover Ratio QoQ | 3.31 % | |
| Asset Turnover Ratio YoY | 3.402 % | |
| Asset Turnover Ratio IPRWA | high: 0.342 mean: 0.223 KLAC: 0.21 median: 0.203 low: 0.004 |
|
| Receivables Turnover | 1.408 | |
| Receivables Turnover Ratio QoQ | -9.719 % | |
| Receivables Turnover Ratio YoY | -1.869 % | |
| Receivables Turnover Ratio IPRWA | high: 1.831 mean: 1.477 median: 1.419 KLAC: 1.408 low: 0.55 |
|
| Inventory Turnover | 0.399 | |
| Inventory Turnover Ratio QoQ | 0.939 % | |
| Inventory Turnover Ratio YoY | 5.193 % | |
| Inventory Turnover Ratio IPRWA | high: 1.395 median: 0.642 mean: 0.589 KLAC: 0.399 low: 0.148 |
|
| Days Sales Outstanding (DSO) | 64.787 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 269.15 | |
| Cash Conversion Cycle Days QoQ | 1.215 % | |
| Cash Conversion Cycle Days YoY | -2.567 % | |
| Cash Conversion Cycle Days IPRWA | high: 567.451 KLAC: 269.15 mean: 225.291 median: 170.295 low: 40.819 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.453 | |
| CapEx To Revenue | -0.024 | |
| CapEx To Depreciation | -0.905 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 12.2 B | |
| Net Invested Capital | $ 12.2 B | |
| Invested Capital | $ 12.2 B | |
| Net Tangible Assets | $ 4.3 B | |
| Net Working Capital | $ 8.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.139 | |
| Current Ratio | 2.876 | |
| Current Ratio QoQ | -4.94 % | |
| Current Ratio YoY | 9.84 % | |
| Current Ratio IPRWA | high: 10.33 KLAC: 2.876 median: 2.508 mean: 2.158 low: 1.334 |
|
| Quick Ratio | 2.029 | |
| Quick Ratio QoQ | -3.833 % | |
| Quick Ratio YoY | 10.713 % | |
| Quick Ratio IPRWA | high: 8.33 KLAC: 2.029 median: 1.804 mean: 1.516 low: 0.804 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 3.574 | |
| Cost Of Debt | 0.975 % | |
| Interest Coverage Ratio | 22.145 | |
| Interest Coverage Ratio QoQ | 4.864 % | |
| Interest Coverage Ratio YoY | 15.51 % | |
| Interest Coverage Ratio IPRWA | high: 150.669 median: 75.705 mean: 63.301 KLAC: 22.145 low: -444.6 |
|
| Operating Cash Flow Ratio | 0.18 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 39.13 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.464 | |
| Dividend Payout Ratio | 0.224 | |
| Dividend Rate | $ 0.23 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 6.389 % | |
| Revenue Growth | 7.1 % | |
| Revenue Growth QoQ | 98.49 % | |
| Revenue Growth YoY | 94.681 % | |
| Revenue Growth IPRWA | high: 36.183 % median: 12.659 % mean: 10.364 % KLAC: 7.1 % low: -6.721 % |
|
| Earnings Growth | 11.702 % | |
| Earnings Growth QoQ | 88.286 % | |
| Earnings Growth YoY | 1.457 % | |
| Earnings Growth IPRWA | high: 126.667 % median: 20.168 % mean: 16.11 % KLAC: 11.702 % low: -43.75 % |
|
| MARGINS | ||
| Gross Margin | 61.365 % | |
| Gross Margin QoQ | 0.396 % | |
| Gross Margin YoY | -0.979 % | |
| Gross Margin IPRWA | high: 85.054 % KLAC: 61.365 % mean: 52.061 % median: 51.75 % low: 13.903 % |
|
| EBIT Margin | 44.365 % | |
| EBIT Margin QoQ | 1.876 % | |
| EBIT Margin YoY | 0.466 % | |
| EBIT Margin IPRWA | high: 47.037 % KLAC: 44.365 % median: 37.057 % mean: 36.787 % low: -55.266 % |
|
| Return On Sales (ROS) | 42.486 % | |
| Return On Sales QoQ | 3.084 % | |
| Return On Sales YoY | -0.218 % | |
| Return On Sales IPRWA | KLAC: 42.486 % high: 37.391 % median: 37.057 % mean: 34.406 % low: -48.45 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 817.1 M | |
| Free Cash Flow Yield | 0.294 % | |
| Free Cash Flow Yield QoQ | -2.649 % | |
| Free Cash Flow Yield YoY | -68.216 % | |
| Free Cash Flow Yield IPRWA | high: 0.775 % median: 0.318 % KLAC: 0.294 % mean: 0.211 % low: -1.49 % |
|
| Free Cash Growth | 31.318 % | |
| Free Cash Growth QoQ | -161.78 % | |
| Free Cash Growth YoY | 310.513 % | |
| Free Cash Growth IPRWA | high: 185.89 % median: 56.632 % KLAC: 31.318 % mean: 10.318 % low: -249.381 % |
|
| Free Cash To Net Income | 0.599 | |
| Cash Flow Margin | 21.164 % | |
| Cash Flow To Earnings | 0.568 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 7.828 % | |
| Return On Assets QoQ | 9.483 % | |
| Return On Assets YoY | 1.702 % | |
| Return On Assets IPRWA | high: 10.276 % KLAC: 7.828 % mean: 7.124 % median: 5.938 % low: -0.013 % |
|
| Return On Capital Employed (ROCE) | 11.891 % | |
| Return On Equity (ROE) | 0.215 | |
| Return On Equity QoQ | 4.214 % | |
| Return On Equity YoY | -16.26 % | |
| Return On Equity IPRWA | high: 0.279 KLAC: 0.215 mean: 0.135 median: 0.134 low: -0.0 |
|
| DuPont ROE | 22.381 % | |
| Return On Invested Capital (ROIC) | 11.665 % | |
| Return On Invested Capital QoQ | 8.421 % | |
| Return On Invested Capital YoY | -2.775 % | |
| Return On Invested Capital IPRWA | high: 14.252 % KLAC: 11.665 % median: 11.037 % mean: 10.927 % low: -11.245 % |
|