Technical Analysis
ADX / DI+: ADX at 23.04 signals an emerging trend strength. DI+ at 18.95, increasing, combined with DI- at 28.12, decreasing, indicates directional momentum has shifted toward buyers; that shift supports the near-term price bias implied by other momentum indicators and aligns with the valuation holding at fair-valued.
MACD: MACD registers -1.16 and has completed a dip and reversal, crossing above its signal line at -1.29, a bullish momentum cue. That crossover complements the DI+ increase and points to expanding upside pressure vs. recent consolidation near the 20-day average.
MRO: MRO stands at -22.26 (dip and reversal), which places the price below the internal target and signals potential for upward mean reversion; this adds technical support to a near-term recovery narrative, particularly given cash-rich fundamentals.
RSI: RSI at 40.81 with a dip and reversal indicates building buying interest from lower momentum levels without overbought conditions, consistent with a measured rebound rather than an immediate breakout above longer-term averages.
Price vs. Moving Averages & Bands: Closing price at $92.65 sits essentially on the 20-day average ($92.67) and above the 12-day EMA ($92.80 dip & reversal reflected), but below the 50-day ($95.43) and 200-day ($106.69) averages. Bollinger bands place the one-standard-deviation range roughly $91.29–$94.04, suggesting the stock trades inside a narrow volatility envelope and that a sustained move above the 50-day average would require follow-through momentum.
Fundamental Analysis
Profitability & Margins: EBIT equals $364,000,000 with an EBIT margin of 29.14%. That EBIT margin sits above the industry peer mean of 22.35% and above the industry peer high of 27.09%. Quarter-over-quarter, EBIT margin declined by -15.03% and year-over-year declined by -15.50%, signaling margin compression from the immediate prior periods despite still-elevated absolute margin levels versus peers.
Revenue & Earnings: Total revenue registered $1,249,000,000. YoY revenue growth stands at 46.33%, while QoQ revenue change reads -136.12%. Reported EPS came in at $1.03 versus an estimate of $0.99, producing an EPS surprise of 4.04%.
Cash, Liquidity & Cash Flow: Cash and short-term investments total $8,893,000,000 and operating cash flow equals $325,000,000 with free cash flow of $310,000,000. Free cash flow yield equals 0.93%, above the industry peer mean of 0.83%. The current ratio measures 2.75, above the industry peer mean of 1.20, reflecting a strong near-term liquidity position.
Leverage & Coverage: Total debt sits at $7,731,000,000. Debt-to-assets measures 30.16%, slightly above the industry peer mean of 29.23%. Debt-to-equity equals 0.67, below the industry peer mean of 1.40. Interest coverage stands at 6.87, above the industry peer mean of 5.69, indicating ample earnings coverage for interest expense.
Returns: Return on equity equals 1.99% and return on assets equals 1.09%; both show material QoQ declines (ROE QoQ -58.95%, ROA QoQ -43.41%). Gross margin registers 48.76%, above the industry peer mean of 42.49%, supporting the higher EBIT margin observed despite recent margin contraction.
Market Multiples: Trailing PE at 105.53 sits below the industry peer mean of 128.75, while price-to-book at 2.87 sits below the industry peer mean of 6.52. PS ratio at 26.67 sits above the industry peer mean of 18.06. Forward PE equals 108.71. The mix of elevated revenue multiples and compressed near-term profitability growth creates a valuation profile consistent with the WMDST determination.
Valuation: The current valuation as determined by WMDST: fair-valued. High absolute cash balances, above-mean margins, and manageable leverage support that assessment even as QoQ margin and return metrics show a pullback.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-28 |
| NEXT REPORT DATE: | 2025-10-27 |
| CASH FLOW | Begin Period Cash Flow | $ 2.4 B |
| Operating Cash Flow | $ 325.0 M | |
| Capital Expenditures | $ -15.00 M | |
| Change In Working Capital | $ -13.00 M | |
| Dividends Paid | $ -43.00 M | |
| Cash Flow Delta | $ 8.5 B | |
| End Period Cash Flow | $ 10.9 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 455.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 640.0 M | |
| Depreciation | $ 12.0 M | |
| Depreciation and Amortization | $ 62.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 912.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 609.0 M | |
| EBITDA | $ 426.0 M | |
| EBIT | $ 364.0 M | |
| Operating Income | $ 337.0 M | |
| Interest Income | — | |
| Interest Expense | $ 53.0 M | |
| Net Interest Income | $ -53.00 M | |
| Income Before Tax | $ 311.0 M | |
| Tax Provision | $ 77.0 M | |
| Tax Rate | 24.8 % | |
| Net Income | $ 231.0 M | |
| Net Income From Continuing Operations | $ 235.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.99 | |
| EPS Actual | $ 1.03 | |
| EPS Difference | $ 0.04 | |
| EPS Surprise | 4.04 % | |
| Forward EPS | $ 1.02 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 25.6 B | |
| Intangible Assets | $ 10.2 B | |
| Net Tangible Assets | $ 1.4 B | |
| Total Current Assets | $ 14.4 B | |
| Cash and Short-Term Investments | $ 8.9 B | |
| Cash | $ 8.9 B | |
| Net Receivables | $ 1.4 B | |
| Inventory | — | |
| Long-Term Investments | $ 430.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 382.0 M | |
| Short-Term Debt | $ 75.0 M | |
| Total Current Liabilities | $ 5.3 B | |
| Net Debt | — | |
| Total Debt | $ 7.7 B | |
| Total Liabilities | $ 14.0 B | |
| EQUITY | ||
| Total Equity | $ 11.6 B | |
| Retained Earnings | $ 6.6 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 35.15 | |
| Shares Outstanding | 329.817 M | |
| Revenue Per-Share | $ 3.79 | |
| VALUATION | Market Capitalization | $ 33.3 B |
| Enterprise Value | $ 32.1 B | |
| Enterprise Multiple | 75.465 | |
| Enterprise Multiple QoQ | 11.63 % | |
| Enterprise Multiple YoY | 37.401 % | |
| Enterprise Multiple IPRWA | high: 176.827 BRO: 75.465 median: 74.741 mean: 73.444 low: -7.424 |
|
| EV/R | 25.739 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.211 | |
| Asset To Liability | 1.829 | |
| Debt To Capital | 0.4 | |
| Debt To Assets | 0.302 | |
| Debt To Assets QoQ | 26.609 % | |
| Debt To Assets YoY | 563.229 % | |
| Debt To Assets IPRWA | high: 0.804 median: 0.337 BRO: 0.302 mean: 0.292 low: 0.013 |
|
| Debt To Equity | 0.667 | |
| Debt To Equity QoQ | 13.936 % | |
| Debt To Equity YoY | 454.243 % | |
| Debt To Equity IPRWA | high: 5.988 mean: 1.402 median: 1.371 BRO: 0.667 low: -4.467 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.873 | |
| Price To Book QoQ | -40.821 % | |
| Price To Book YoY | -31.491 % | |
| Price To Book IPRWA | high: 12.99 median: 6.587 mean: 6.518 BRO: 2.873 low: 0.141 |
|
| Price To Earnings (P/E) | 105.532 | |
| Price To Earnings QoQ | 17.833 % | |
| Price To Earnings YoY | 10.684 % | |
| Price To Earnings IPRWA | high: 227.166 mean: 128.746 BRO: 105.532 median: 103.153 low: -111.006 |
|
| PE/G Ratio | -5.236 | |
| Price To Sales (P/S) | 26.669 | |
| Price To Sales QoQ | 11.542 % | |
| Price To Sales YoY | 21.785 % | |
| Price To Sales IPRWA | high: 28.058 BRO: 26.669 median: 18.88 mean: 18.06 low: 1.133 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 108.713 | |
| Forward PE/G | -5.394 | |
| Forward P/S | 73.072 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.38 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.059 | |
| Asset Turnover Ratio QoQ | -26.889 % | |
| Asset Turnover Ratio YoY | -21.503 % | |
| Asset Turnover Ratio IPRWA | high: 0.661 mean: 0.09 median: 0.08 BRO: 0.059 low: 0.042 |
|
| Receivables Turnover | 0.841 | |
| Receivables Turnover Ratio QoQ | 19.998 % | |
| Receivables Turnover Ratio YoY | -26.132 % | |
| Receivables Turnover Ratio IPRWA | high: 6.234 mean: 0.962 median: 0.872 BRO: 0.841 low: 0.696 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 108.492 | |
| 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 | 0.136 | |
| CapEx To Revenue | -0.012 | |
| CapEx To Depreciation | -1.25 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 19.1 B | |
| Net Invested Capital | $ 19.1 B | |
| Invested Capital | $ 19.1 B | |
| Net Tangible Assets | $ 1.4 B | |
| Net Working Capital | $ 9.2 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.692 | |
| Current Ratio | 2.747 | |
| Current Ratio QoQ | 128.91 % | |
| Current Ratio YoY | 143.243 % | |
| Current Ratio IPRWA | high: 3.027 BRO: 2.747 median: 1.203 mean: 1.199 low: 1.028 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 18.148 | |
| Cost Of Debt | 0.68 % | |
| Interest Coverage Ratio | 6.868 | |
| Interest Coverage Ratio QoQ | -30.598 % | |
| Interest Coverage Ratio YoY | -10.268 % | |
| Interest Coverage Ratio IPRWA | high: 24.118 BRO: 6.868 mean: 5.693 median: 4.316 low: -7.498 |
|
| Operating Cash Flow Ratio | 0.054 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 57.649 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 5.372 | |
| Dividend Payout Ratio | 0.186 | |
| Dividend Rate | $ 0.13 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 52.959 % | |
| Revenue Growth | -9.819 % | |
| Revenue Growth QoQ | -136.124 % | |
| Revenue Growth YoY | 46.334 % | |
| Revenue Growth IPRWA | high: 39.803 % mean: -5.72 % BRO: -9.819 % median: -12.138 % low: -27.136 % |
|
| Earnings Growth | -20.155 % | |
| Earnings Growth QoQ | -140.31 % | |
| Earnings Growth YoY | 9.413 % | |
| Earnings Growth IPRWA | high: 88.462 % BRO: -20.155 % mean: -28.301 % median: -38.448 % low: -166.667 % |
|
| MARGINS | ||
| Gross Margin | 48.759 % | |
| Gross Margin QoQ | -3.802 % | |
| Gross Margin YoY | -1.111 % | |
| Gross Margin IPRWA | BRO: 48.759 % high: 44.15 % median: 43.201 % mean: 42.488 % low: 27.47 % |
|
| EBIT Margin | 29.143 % | |
| EBIT Margin QoQ | -15.025 % | |
| EBIT Margin YoY | -15.501 % | |
| EBIT Margin IPRWA | BRO: 29.143 % high: 27.086 % mean: 22.349 % median: 22.022 % low: 3.605 % |
|
| Return On Sales (ROS) | 26.982 % | |
| Return On Sales QoQ | -21.326 % | |
| Return On Sales YoY | -21.766 % | |
| Return On Sales IPRWA | BRO: 26.982 % high: 26.226 % median: 22.431 % mean: 22.091 % low: -3.629 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 310.0 M | |
| Free Cash Flow Yield | 0.931 % | |
| Free Cash Flow Yield QoQ | 57.264 % | |
| Free Cash Flow Yield YoY | -29.576 % | |
| Free Cash Flow Yield IPRWA | high: 4.211 % median: 0.933 % BRO: 0.931 % mean: 0.833 % low: -22.648 % |
|
| Free Cash Growth | 58.163 % | |
| Free Cash Growth QoQ | -236.783 % | |
| Free Cash Growth YoY | -97.644 % | |
| Free Cash Growth IPRWA | high: 771.429 % BRO: 58.163 % mean: -8.813 % median: -155.18 % low: -572.81 % |
|
| Free Cash To Net Income | 1.342 | |
| Cash Flow Margin | 22.738 % | |
| Cash Flow To Earnings | 1.229 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.09 % | |
| Return On Assets QoQ | -43.406 % | |
| Return On Assets YoY | -34.809 % | |
| Return On Assets IPRWA | high: 2.096 % mean: 1.274 % median: 1.11 % BRO: 1.09 % low: 0.474 % |
|
| Return On Capital Employed (ROCE) | 1.786 % | |
| Return On Equity (ROE) | 0.02 | |
| Return On Equity QoQ | -58.953 % | |
| Return On Equity YoY | -53.294 % | |
| Return On Equity IPRWA | high: 0.086 median: 0.074 mean: 0.055 BRO: 0.02 low: -0.066 |
|
| DuPont ROE | 2.509 % | |
| Return On Invested Capital (ROIC) | 1.431 % | |
| Return On Invested Capital QoQ | -59.056 % | |
| Return On Invested Capital YoY | -101.877 % | |
| Return On Invested Capital IPRWA | high: 8.311 % median: 3.077 % mean: 2.927 % BRO: 1.431 % low: 1.363 % |
|