Technical Analysis
ADX at 10.05 indicates no trend strength; directional movement lacks conviction and suggests range-bound action rather than a sustained trend.
DI- at 22.97 (dip & reversal) and DI+ at 22.41 (decreasing) signal bearish directional pressure on price momentum and weigh against bullish continuation in the near term.
MACD at -0.79 with the signal at -0.57 and a decreasing MACD_trend signals bearish momentum; the MACD sits below its signal line, reinforcing downward momentum pressure.
MRO at -26.02 (peak & reversal) registers price below target and implies upward mean-reversion potential; the negative MRO suggests latent upside if momentum shifts.
RSI at 46.61 with a decreasing trend shows weakening near-term momentum but not an oversold condition, indicating room for either consolidation or a corrective bounce.
Price sits below short- and medium-term averages: last close $58.43 versus the 20-day average $60.66, 50-day average $62.52, and 200-day average $61.72; the 12-day EMA trends downward, so moving averages act as resistance and contain near-term rallies.
Bollinger structure places the close slightly beneath the 1x lower band ($59.05), suggesting proximity to a short-term support zone that could prompt mean-reversion attempts; the SuperTrend upper at $61.96 marks a nearby resistance ceiling.
Fundamental Analysis
Revenue registered $1,188,000,000 with revenue growth down 16.40% year-over-year and down 106.81% quarter-over-quarter signal pressure on top-line demand compared with prior periods.
EBIT at $239,100,000 and EBITDA at $257,700,000 translate to an EBIT margin of 20.13%. That margin sits below the industry peer mean of 26.51% and below the industry peer median of 28.75%, while EBIT margin improved 9.08% year-over-year but contracted 15.26% sequentially.
GAAP EPS recorded $2.59 versus an estimate of $2.26, a $0.33 beat and a 14.60% EPS surprise; non-GAAP adjusted earnings align at $2.59 per the report, supporting reported profit quality for the quarter.
Free cash flow at $437,500,000 produces a free cash flow yield of 12.18%, substantially above the industry peer mean of 1.56%, reflecting strong cash conversion relative to peers and providing flexibility despite elevated leverage.
Balance-sheet metrics show total debt $2,188,300,000 and net debt $2,137,200,000 alongside total equity of $-170,900,000; debt-to-assets stands at 70.81%, markedly above the industry peer mean of 11.88%, and debt-to-equity registers negative at -1,280.46% driven by negative equity—factors that elevate capital-structure risk.
Liquidity measures read current ratio 1.61 and quick ratio 0.93, both slightly below the industry peer means (current ratio mean 1.73, quick ratio mean 1.23), while the cash conversion cycle at 87.20 days runs shorter than the industry peer mean of 132.01 days, supporting working-capital efficiency.
Return metrics show return on assets 4.50% above the industry peer mean of 2.78%, while return on equity registers negative due to the negative equity base. Interest coverage near 7.52x provides a buffer versus interest expense, which management projects lower year-over-year.
WMDST values the stock as under-valued based on elevated free cash flow yield and operating cash conversion, balanced against leverage and negative equity that compress traditional solvency metrics. Valuation context: forward EPS $1.06 and forward PE approximately 56.80 reflect near-term earnings acceleration uncertainty versus trailing PE 24.77.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 16.9 M |
| Operating Cash Flow | $ 454.4 M | |
| Capital Expenditures | $ -16.90 M | |
| Change In Working Capital | $ 258.7 M | |
| Dividends Paid | $ -38.20 M | |
| Cash Flow Delta | $ 34.2 M | |
| End Period Cash Flow | $ 51.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 121.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 810.0 M | |
| Depreciation | $ 15.5 M | |
| Depreciation and Amortization | $ 18.6 M | |
| Research and Development | $ 9.0 M | |
| Total Operating Expenses | $ 970.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 378.0 M | |
| EBITDA | $ 257.7 M | |
| EBIT | $ 239.1 M | |
| Operating Income | $ 217.4 M | |
| Interest Income | — | |
| Interest Expense | $ 31.8 M | |
| Net Interest Income | $ -31.80 M | |
| Income Before Tax | $ 207.3 M | |
| Tax Provision | $ 58.2 M | |
| Tax Rate | 28.075 % | |
| Net Income | $ 149.1 M | |
| Net Income From Continuing Operations | $ 149.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.26 | |
| EPS Actual | $ 2.59 | |
| EPS Difference | $ 0.33 | |
| EPS Surprise | 14.602 % | |
| Forward EPS | $ 1.06 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.1 B | |
| Intangible Assets | $ 653.5 M | |
| Net Tangible Assets | $ -824.40 M | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 51.1 M | |
| Cash | $ 51.1 M | |
| Net Receivables | $ 573.8 M | |
| Inventory | $ 544.3 M | |
| Long-Term Investments | $ 478.5 M | |
| LIABILITIES | ||
| Accounts Payable | $ 261.7 M | |
| Short-Term Debt | $ 52.1 M | |
| Total Current Liabilities | $ 798.6 M | |
| Net Debt | $ 2.1 B | |
| Total Debt | $ 2.2 B | |
| Total Liabilities | $ 3.3 B | |
| EQUITY | ||
| Total Equity | $ -170.90 M | |
| Retained Earnings | $ 485.2 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -2.96 | |
| Shares Outstanding | 57.715 M | |
| Revenue Per-Share | $ 20.58 | |
| VALUATION | Market Capitalization | $ 3.6 B |
| Enterprise Value | $ 5.7 B | |
| Enterprise Multiple | 22.237 | |
| Enterprise Multiple QoQ | 34.48 % | |
| Enterprise Multiple YoY | 56.744 % | |
| Enterprise Multiple IPRWA | high: 28.373 mean: 23.638 median: 23.356 SMG: 22.237 low: 20.169 |
|
| EV/R | 4.824 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -18.084 | |
| Asset To Liability | 0.948 | |
| Debt To Capital | 1.085 | |
| Debt To Assets | 0.708 | |
| Debt To Assets QoQ | -1.713 % | |
| Debt To Assets YoY | 4570.515 % | |
| Debt To Assets IPRWA | SMG: 0.708 high: 0.575 mean: 0.119 low: 0.087 median: 0.087 |
|
| Debt To Equity | -12.805 | |
| Debt To Equity QoQ | 45.796 % | |
| Debt To Equity YoY | 3438.833 % | |
| Debt To Equity IPRWA | high: 1.812 mean: 0.223 low: 0.14 median: 0.14 SMG: -12.805 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -21.025 | |
| Price To Book QoQ | 81.316 % | |
| Price To Book YoY | -16.083 % | |
| Price To Book IPRWA | high: 2.831 median: 1.887 mean: 1.823 low: 1.145 SMG: -21.025 |
|
| Price To Earnings (P/E) | 24.772 | |
| Price To Earnings QoQ | 68.817 % | |
| Price To Earnings YoY | -11.266 % | |
| Price To Earnings IPRWA | high: 73.614 mean: 38.649 SMG: 24.772 low: -5.072 median: -5.072 |
|
| PE/G Ratio | -0.709 | |
| Price To Sales (P/S) | 3.025 | |
| Price To Sales QoQ | 27.764 % | |
| Price To Sales YoY | -0.733 % | |
| Price To Sales IPRWA | high: 7.573 median: 7.573 mean: 7.072 low: 3.751 SMG: 3.025 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 56.798 | |
| Forward PE/G | -1.626 | |
| Forward P/S | 29.486 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.778 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.359 | |
| Asset Turnover Ratio QoQ | -15.392 % | |
| Asset Turnover Ratio YoY | 10.542 % | |
| Asset Turnover Ratio IPRWA | SMG: 0.359 high: 0.168 median: 0.154 mean: 0.154 low: 0.131 |
|
| Receivables Turnover | 1.73 | |
| Receivables Turnover Ratio QoQ | -38.328 % | |
| Receivables Turnover Ratio YoY | -0.577 % | |
| Receivables Turnover Ratio IPRWA | high: 3.659 SMG: 1.73 mean: 0.998 low: 0.884 median: 0.884 |
|
| Inventory Turnover | 1.23 | |
| Inventory Turnover Ratio QoQ | 18.51 % | |
| Inventory Turnover Ratio YoY | 3.743 % | |
| Inventory Turnover Ratio IPRWA | high: 1.821 SMG: 1.23 mean: 0.667 low: 0.621 median: 0.621 |
|
| Days Sales Outstanding (DSO) | 52.734 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 87.197 | |
| Cash Conversion Cycle Days QoQ | -49.011 % | |
| Cash Conversion Cycle Days YoY | 7.129 % | |
| Cash Conversion Cycle Days IPRWA | high: 136.653 median: 136.653 mean: 132.009 SMG: 87.197 low: 38.988 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.451 | |
| CapEx To Revenue | -0.014 | |
| CapEx To Depreciation | -1.09 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.0 B | |
| Net Invested Capital | $ 2.0 B | |
| Invested Capital | $ 2.0 B | |
| Net Tangible Assets | $ -824.40 M | |
| Net Working Capital | $ 484.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.064 | |
| Current Ratio | 1.607 | |
| Current Ratio QoQ | -5.876 % | |
| Current Ratio YoY | -10.753 % | |
| Current Ratio IPRWA | high: 3.447 mean: 1.727 low: 1.682 median: 1.682 SMG: 1.607 |
|
| Quick Ratio | 0.925 | |
| Quick Ratio QoQ | -1.932 % | |
| Quick Ratio YoY | -15.132 % | |
| Quick Ratio IPRWA | high: 2.395 median: 1.228 mean: 1.227 low: 1.049 SMG: 0.925 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.492 | |
| Cost Of Debt | 0.966 % | |
| Interest Coverage Ratio | 7.519 | |
| Interest Coverage Ratio QoQ | -18.462 % | |
| Interest Coverage Ratio YoY | 31.529 % | |
| Interest Coverage Ratio IPRWA | high: 35.692 median: 35.692 mean: 30.23 SMG: 7.519 low: 1.519 |
|
| Operating Cash Flow Ratio | 0.61 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 34.385 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.903 | |
| Dividend Payout Ratio | 0.256 | |
| Dividend Rate | $ 0.66 | |
| Dividend Yield | 0.011 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -12.613 % | |
| Revenue Growth | -16.397 % | |
| Revenue Growth QoQ | -106.806 % | |
| Revenue Growth YoY | -22.612 % | |
| Revenue Growth IPRWA | high: 46.163 % median: 46.163 % mean: 39.309 % low: 3.679 % SMG: -16.397 % |
|
| Earnings Growth | -34.925 % | |
| Earnings Growth QoQ | -93.617 % | |
| Earnings Growth YoY | -6.613 % | |
| Earnings Growth IPRWA | high: 3400.0 % mean: 96.663 % low: 94.69 % median: 94.69 % SMG: -34.925 % |
|
| MARGINS | ||
| Gross Margin | 31.818 % | |
| Gross Margin QoQ | -17.478 % | |
| Gross Margin YoY | 8.026 % | |
| Gross Margin IPRWA | high: 54.585 % median: 54.585 % mean: 50.411 % SMG: 31.818 % low: 15.316 % |
|
| EBIT Margin | 20.126 % | |
| EBIT Margin QoQ | -15.263 % | |
| EBIT Margin YoY | 9.084 % | |
| EBIT Margin IPRWA | high: 28.748 % median: 28.748 % mean: 26.508 % SMG: 20.126 % low: 7.916 % |
|
| Return On Sales (ROS) | 18.3 % | |
| Return On Sales QoQ | -22.951 % | |
| Return On Sales YoY | -0.813 % | |
| Return On Sales IPRWA | high: 28.377 % median: 28.377 % mean: 25.595 % SMG: 18.3 % low: 6.935 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 437.5 M | |
| Free Cash Flow Yield | 12.176 % | |
| Free Cash Flow Yield QoQ | 127.802 % | |
| Free Cash Flow Yield YoY | -22.406 % | |
| Free Cash Flow Yield IPRWA | SMG: 12.176 % high: 2.048 % median: 1.696 % mean: 1.558 % low: -0.056 % |
|
| Free Cash Growth | 143.326 % | |
| Free Cash Growth QoQ | -203.946 % | |
| Free Cash Growth YoY | 43.825 % | |
| Free Cash Growth IPRWA | SMG: 143.326 % high: -59.677 % median: -137.631 % mean: -168.752 % low: -368.0 % |
|
| Free Cash To Net Income | 2.934 | |
| Cash Flow Margin | 41.035 % | |
| Cash Flow To Earnings | 3.27 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 4.5 % | |
| Return On Assets QoQ | -30.62 % | |
| Return On Assets YoY | 26.263 % | |
| Return On Assets IPRWA | SMG: 4.5 % high: 3.854 % median: 3.133 % mean: 2.781 % low: 0.261 % |
|
| Return On Capital Employed (ROCE) | 10.432 % | |
| Return On Equity (ROE) | -0.872 | |
| Return On Equity QoQ | 16.366 % | |
| Return On Equity YoY | -3.444 % | |
| Return On Equity IPRWA | high: 0.122 median: 0.051 mean: 0.046 low: 0.006 SMG: -0.872 |
|
| DuPont ROE | -64.689 % | |
| Return On Invested Capital (ROIC) | 8.524 % | |
| Return On Invested Capital QoQ | -21.118 % | |
| Return On Invested Capital YoY | -112.085 % | |
| Return On Invested Capital IPRWA | SMG: 8.524 % high: 4.814 % median: 4.814 % mean: 4.358 % low: 0.924 % |
|