Technical Analysis
ADX & Directional Indicators: ADX at 28.76 indicates a strong underlying trend in play. DI- decreasing registers as bullish pressure easing, implying selling momentum has diminished. DI+ decreasing registers as bearish pressure weakening, implying prior buying pressure also faded; together these shifts signal a loss of directional conviction even as trend strength persists.
MACD: MACD trades at -0.98 and has completed a dip & reversal; MACD sits above its signal line (-1.14), which constitutes a bullish signal for near-term momentum and aligns with the possibility of a corrective rally back toward short-term moving averages.
MRO (Momentum/Regression Oscillator): MRO at -26.89 sits negative, indicating price below WMDST’s target and implying upside potential for convergence toward that target; the magnitude suggests material reversion pressure rather than a marginal move.
RSI: RSI at 41.43 shows relative weakness and the RSI trend registered a peak & reversal, a bearish development that warns any bounce may encounter resistance and could stall without follow-through buying.
Price vs Averages, Ichimoku and Bands: Price closed at $30.68, below the 50-day ($34.51) and 200-day ($39.24) averages and beneath the Ichimoku cloud (Senkou A $35.65, Senkou B $36.91), which preserves a medium-term bearish bias. Price sits near the lower Bollinger band range (lower band ~ $30.36), a location often associated with short-term mean reversion. Short-term EMAs skew lower (12-day EMA $31.16 decreasing; 26-day EMA $32.08), so any rebound will need to clear falling EMAs to shift momentum more sustainably.
Volume and Volatility: Ten-day average volume (858,880) exceeds the most recent session (505,724), suggesting reduced participation on the last move; 42-day volatility at 4% implies relatively contained intraday swings compared with longer-term volatility.
Fundamental Analysis
Profitability & Margins: Operating (EBIT) stands at $25,983,000 with an EBIT margin of 6.94%. That margin sits below the industry peer mean of 26.35% and below the industry peer median of 24.87%, placing operating efficiency on the low side versus peers. QoQ operating margin contracted -55.74%, while YoY operating margin improved 6.82%.
Top-Line and Earnings Growth: Revenue growth shows a YoY decline of -19.59% and a QoQ drop of -131.84%, indicating near-term revenue pressure. Reported earnings growth registers YoY at -9.93% and QoQ at -125.14%, confirming compressed profitability over recent reporting periods.
Cash Flow & Liquidity: Free cash flow totaled -$28,098,000 and free cash flow yield stands negative at -1.08%, with free cash flow contracting sharply QoQ and YoY. Operating cash flow sits negative at -$16,721,000 while cash and short-term investments total $105,695,000. Current ratio of 1.23 places short-term coverage above the industry peer mean of 1.02, providing a modest liquidity cushion despite negative operating cash flow.
Leverage: Total debt equals $1,704,520,000 with net debt $1,517,134,000; debt-to-equity reads 2.70 and debt-to-EBITDA runs 31.78, reflecting elevated leverage relative to earnings. Debt-to-assets at 45.59% and a year-over-year debt-to-equity change of 632.74% underscore materially higher leverage compared with prior periods.
Valuation Metrics: PE at 95.39 and forward PE at 82.47 sit near the industry peer mean (PE mean ~101.23) and above the industry peer median (PE median ~94.28) in absolute terms; price-to-book at 4.14 sits above the industry peer median book multiple of 3.75. WMDST values the stock as over-valued, a conclusion supported by negative free cash flow, elevated leverage, and stretched multiples despite modest positive operating income.
Earnings Per Share: Reported EPS $0.42 matched estimate $0.42, producing a modest EPS surprise ratio of 1.03%. Forward EPS of $0.49 implies limited upside in forward earnings relative to current market multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-05 |
| NEXT REPORT DATE: | 2025-11-04 |
| CASH FLOW | Begin Period Cash Flow | $ 299.1 M |
| Operating Cash Flow | $ -16.72 M | |
| Capital Expenditures | $ -11.38 M | |
| Change In Working Capital | $ -49.90 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 84.6 M | |
| End Period Cash Flow | $ 383.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 374.3 M | |
| Forward Revenue | $ -1.03 B | |
| COSTS | ||
| Cost Of Revenue | $ 269.1 M | |
| Depreciation | $ 1.6 M | |
| Depreciation and Amortization | $ 27.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 348.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 105.3 M | |
| EBITDA | $ 53.6 M | |
| EBIT | $ 26.0 M | |
| Operating Income | $ 26.0 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | $ -31.32 M | |
| Income Before Tax | $ -4.46 M | |
| Tax Provision | $ 685.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -3.16 M | |
| Net Income From Continuing Operations | $ -5.14 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.42 | |
| EPS Actual | $ 0.42 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 1.03 % | |
| Forward EPS | $ 0.49 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.7 B | |
| Intangible Assets | $ 2.3 B | |
| Net Tangible Assets | $ -1.72 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 105.7 M | |
| Cash | $ 105.7 M | |
| Net Receivables | $ 349.6 M | |
| Inventory | — | |
| Long-Term Investments | $ 64.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 72.0 M | |
| Short-Term Debt | $ 16.1 M | |
| Total Current Liabilities | $ 1.0 B | |
| Net Debt | $ 1.5 B | |
| Total Debt | $ 1.7 B | |
| Total Liabilities | $ 2.7 B | |
| EQUITY | ||
| Total Equity | $ 630.8 M | |
| Retained Earnings | $ -200.65 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.85 | |
| Shares Outstanding | 71.279 M | |
| Revenue Per-Share | $ 5.25 | |
| VALUATION | Market Capitalization | $ 2.6 B |
| Enterprise Value | $ 4.2 B | |
| Enterprise Multiple | 78.463 | |
| Enterprise Multiple QoQ | 59.353 % | |
| Enterprise Multiple YoY | 57.66 % | |
| Enterprise Multiple IPRWA | high: 115.782 BWIN: 78.463 mean: 73.819 median: 71.611 low: -56.203 |
|
| EV/R | 11.243 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.927 | |
| Asset To Liability | 1.391 | |
| Debt To Capital | 0.73 | |
| Debt To Assets | 0.456 | |
| Debt To Assets QoQ | -1.091 % | |
| Debt To Assets YoY | 669.938 % | |
| Debt To Assets IPRWA | high: 1.647 median: 0.735 mean: 0.7 BWIN: 0.456 low: 0.002 |
|
| Debt To Equity | 2.702 | |
| Debt To Equity QoQ | 2.366 % | |
| Debt To Equity YoY | 632.741 % | |
| Debt To Equity IPRWA | high: 10.498 BWIN: 2.702 median: -1.551 mean: -4.633 low: -20.242 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.137 | |
| Price To Book QoQ | -13.212 % | |
| Price To Book YoY | 0.715 % | |
| Price To Book IPRWA | high: 19.124 BWIN: 4.137 median: 3.747 mean: -0.328 low: -25.016 |
|
| Price To Earnings (P/E) | 95.392 | |
| Price To Earnings QoQ | 47.449 % | |
| Price To Earnings YoY | -11.076 % | |
| Price To Earnings IPRWA | high: 289.09 mean: 101.23 BWIN: 95.392 median: 94.276 low: -27.296 |
|
| PE/G Ratio | -2.696 | |
| Price To Sales (P/S) | 6.972 | |
| Price To Sales QoQ | -3.571 % | |
| Price To Sales YoY | -2.715 % | |
| Price To Sales IPRWA | high: 31.824 mean: 18.367 median: 16.293 BWIN: 6.972 low: 0.286 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 82.475 | |
| Forward PE/G | -2.331 | |
| Forward P/S | -2.526 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.098 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.103 | |
| Asset Turnover Ratio QoQ | -10.949 % | |
| Asset Turnover Ratio YoY | 9.033 % | |
| Asset Turnover Ratio IPRWA | high: 0.621 mean: 0.199 median: 0.147 BWIN: 0.103 low: 0.02 |
|
| Receivables Turnover | 1.099 | |
| Receivables Turnover Ratio QoQ | 39.047 % | |
| Receivables Turnover Ratio YoY | 137.714 % | |
| Receivables Turnover Ratio IPRWA | high: 42.739 mean: 8.28 median: 5.157 BWIN: 1.099 low: 0.692 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 83.005 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.612 | |
| CapEx To Revenue | -0.03 | |
| CapEx To Depreciation | -6.929 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.2 B | |
| Net Invested Capital | $ 2.3 B | |
| Invested Capital | $ 2.3 B | |
| Net Tangible Assets | $ -1.72 B | |
| Net Working Capital | $ 232.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.105 | |
| Current Ratio | 1.23 | |
| Current Ratio QoQ | 8.784 % | |
| Current Ratio YoY | 25.111 % | |
| Current Ratio IPRWA | high: 2.698 BWIN: 1.23 mean: 1.017 median: 1.012 low: 0.137 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 31.78 | |
| Cost Of Debt | 1.492 % | |
| Interest Coverage Ratio | 0.824 | |
| Interest Coverage Ratio QoQ | -59.451 % | |
| Interest Coverage Ratio YoY | 18.051 % | |
| Interest Coverage Ratio IPRWA | high: 46.029 mean: 9.035 median: 6.755 BWIN: 0.824 low: -26.646 |
|
| Operating Cash Flow Ratio | -0.009 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 27.569 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.362 % | |
| Revenue Growth | -8.376 % | |
| Revenue Growth QoQ | -131.837 % | |
| Revenue Growth YoY | -19.593 % | |
| Revenue Growth IPRWA | high: 52.655 % median: 14.912 % mean: 13.737 % BWIN: -8.376 % low: -34.396 % |
|
| Earnings Growth | -35.385 % | |
| Earnings Growth QoQ | -125.142 % | |
| Earnings Growth YoY | -9.93 % | |
| Earnings Growth IPRWA | high: 214.286 % mean: 24.567 % median: 19.476 % BWIN: -35.385 % low: -246.809 % |
|
| MARGINS | ||
| Gross Margin | 28.12 % | |
| Gross Margin QoQ | -20.601 % | |
| Gross Margin YoY | 0.915 % | |
| Gross Margin IPRWA | high: 82.429 % mean: 42.149 % median: 41.612 % BWIN: 28.12 % low: -15.915 % |
|
| EBIT Margin | 6.942 % | |
| EBIT Margin QoQ | -55.741 % | |
| EBIT Margin YoY | 6.816 % | |
| EBIT Margin IPRWA | high: 47.508 % mean: 26.347 % median: 24.865 % BWIN: 6.942 % low: -17.348 % |
|
| Return On Sales (ROS) | 6.942 % | |
| Return On Sales QoQ | -55.741 % | |
| Return On Sales YoY | 6.816 % | |
| Return On Sales IPRWA | high: 47.655 % mean: 25.747 % median: 24.801 % BWIN: 6.942 % low: -15.426 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -28.10 M | |
| Free Cash Flow Yield | -1.077 % | |
| Free Cash Flow Yield QoQ | -56.379 % | |
| Free Cash Flow Yield YoY | -137.266 % | |
| Free Cash Flow Yield IPRWA | high: 7.323 % mean: 0.999 % median: 0.675 % BWIN: -1.077 % low: -3.222 % |
|
| Free Cash Growth | -61.465 % | |
| Free Cash Growth QoQ | -96.584 % | |
| Free Cash Growth YoY | -95.719 % | |
| Free Cash Growth IPRWA | high: 178.828 % median: -33.191 % BWIN: -61.465 % mean: -61.99 % low: -447.422 % |
|
| Free Cash To Net Income | 8.881 | |
| Cash Flow Margin | -2.487 % | |
| Cash Flow To Earnings | 2.942 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -0.087 % | |
| Return On Assets QoQ | -122.081 % | |
| Return On Assets YoY | -82.172 % | |
| Return On Assets IPRWA | high: 7.107 % mean: 2.944 % median: 2.755 % BWIN: -0.087 % low: -4.298 % |
|
| Return On Capital Employed (ROCE) | 0.951 % | |
| Return On Equity (ROE) | -0.005 | |
| Return On Equity QoQ | -122.311 % | |
| Return On Equity YoY | -83.103 % | |
| Return On Equity IPRWA | high: 0.488 median: 0.037 mean: 0.011 BWIN: -0.005 low: -0.628 |
|
| DuPont ROE | -0.506 % | |
| Return On Invested Capital (ROIC) | 0.911 % | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | -99.499 % | |
| Return On Invested Capital IPRWA | high: 16.565 % mean: 7.224 % median: 6.805 % BWIN: 0.911 % low: -8.237 % |
|