Recent News
On October 1, 2025 People Inc. (the rebranded Dotdash Meredith) announced the acquisition of Feedfeed to expand its food-publishing and creator capabilities. On August 4, 2025 IAC presented corporate slides that highlighted a rebrand of Dotdash Meredith to People Inc. and strategic moves to streamline operations and focus on core digital publishing and services businesses.
Technical Analysis
Directional Indicators (ADX/DI+/DI-): ADX at 14.24 indicates no strong trend; DI- at 29.07 increasing while DI+ at 22.53 decreasing signals a bearish directional bias that currently lacks trend strength. That bias implies near-term downside or consolidation risk that could slow any immediate re-rating despite attractive fundamentals.
MACD: MACD at -0.52 with the MACD signal at -0.36 and MACD trend decreasing denotes bearish momentum; MACD sits below its signal line, reducing the likelihood of a sustained upside breakout until momentum reverses. Momentum conditions therefore pressure short-term price action relative to the valuation case.
MRO (Momentum/Regression Oscillator): MRO at -27.7 (negative) places the current price below the WMDST target, indicating headroom for price appreciation toward valuation; the MRO trend decreasing strengthens that divergence, supporting potential mean reversion if momentum stabilizes.
RSI: RSI at 45.73 and decreasing shows weakening near-term momentum below the 50 midpoint, favoring further consolidation or modest downside before a trend shift can form; this reading aligns with the bearish directional indicators and MACD momentum.
Price vs. Moving Averages and Bands: Price closed at $34.18, under the 20-day average $35.54, 50-day average $36.42 and 200-day average $36.57, indicating short-to-medium-term downward pressure. The 12-day EMA at $35.13 trends down and sits above the close. Price slightly undercut the lower 1x Bollinger band ($34.23), suggesting a mild short-term overshoot below recent trading bandwidth that could invite short-covering or stabilization.
Volatility, Beta, Volume: 42-day beta 1.39 versus 52-week beta 1.08 implies elevated recent sensitivity to the market. Average volume measures show the last session roughly in line with recent averages, so current technical signals reflect genuine position adjustments rather than thin-volume distortion.
Fundamental Analysis
Profitability and Margins: EBIT of $310,840,000 yields an EBIT margin of 52.96%, which sits above the industry peer range high of 47.41% (industry peer mean 35.46%, median 30.97%). Gross margin of 65.59% slightly exceeds the industry peer mean (65.30%). High operating profitability provides valuation support and reinforces WMDST’s under-valued assessment.
Earnings, EPS, and Growth: Reported EPS actual $2.57 versus an estimate of -$0.31 produced an EPS surprise of +929.03% and an EPS difference of $2.88, reflecting a large outperformance of consensus on the period reported. YoY revenue growth stands at +34.99% while quarter-over-quarter revenue dipped -1.07%. Earnings growth YoY registered -54.66% and QoQ fell -19.87%; those declines reflect earnings variability even as revenue expansion appears meaningful on an annual basis.
Cash, Liquidity, and Leverage: Cash and short-term investments total $1,093,866,000 with a cash ratio of 195.81% and a current ratio of 286.69%, signaling strong near-term liquidity. Net debt $339,466,000 and debt-to-EBITDA 4.19 indicate moderate leverage; interest coverage at 8.36 provides ample buffer for interest obligations.
Capital Efficiency and Returns: Asset turnover 0.0807 lags the industry peer mean of 0.1867, indicating lower sales per dollar of assets. Return on equity of 4.31% sits below the industry peer mean of 7.87%, pointing to lower capital efficiency despite strong margins; return on assets equals 2.91%.
Cash Flow and Investment: Operating cash flow ended at $1,103,459,000 with free cash flow negative at -$9,966,000 and free cash flow yield slightly negative. Cash flow-to-earnings at 122.63% indicates cash conversion above reported earnings, while the cash conversion ratio of 56.28% highlights reasonable conversion dynamics overall.
Valuation: Price-to-earnings at 14.95, price-to-book at 0.60 and enterprise multiple ~9.65x align with WMDST’s view that the stock appears under-valued, given strong cash reserves, elevated EBIT margin relative to the industry peer range, and a clear operational focus after recent portfolio moves. WMDST values the stock as under-valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-04 |
| NEXT REPORT DATE: | 2025-11-03 |
| CASH FLOW | Begin Period Cash Flow | $ 1.2 B |
| Operating Cash Flow | $ -5.51 M | |
| Capital Expenditures | $ -4.46 M | |
| Change In Working Capital | $ -46.04 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -64.88 M | |
| End Period Cash Flow | $ 1.1 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 586.9 M | |
| Forward Revenue | $ -1.94 M | |
| COSTS | ||
| Cost Of Revenue | $ 202.0 M | |
| Depreciation | $ 8.0 M | |
| Depreciation and Amortization | $ 31.4 M | |
| Research and Development | $ 49.8 M | |
| Total Operating Expenses | $ 586.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 385.0 M | |
| EBITDA | $ 342.2 M | |
| EBIT | $ 310.8 M | |
| Operating Income | $ 575.0 K | |
| Interest Income | $ 11.3 M | |
| Interest Expense | $ 37.2 M | |
| Net Interest Income | $ -25.90 M | |
| Income Before Tax | $ 273.7 M | |
| Tax Provision | $ 63.0 M | |
| Tax Rate | 23.0 % | |
| Net Income | $ 211.5 M | |
| Net Income From Continuing Operations | $ 210.6 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.31 | |
| EPS Actual | $ 2.57 | |
| EPS Difference | $ 2.88 | |
| EPS Surprise | 929.032 % | |
| Forward EPS | $ -0.04 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 7.4 B | |
| Intangible Assets | $ 2.5 B | |
| Net Tangible Assets | $ 2.4 B | |
| Total Current Assets | $ 1.6 B | |
| Cash and Short-Term Investments | $ 1.1 B | |
| Cash | $ 1.1 B | |
| Net Receivables | $ 376.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 317.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 47.9 M | |
| Short-Term Debt | $ 21.0 M | |
| Total Current Liabilities | $ 558.6 M | |
| Net Debt | $ 339.5 M | |
| Total Debt | $ 1.4 B | |
| Total Liabilities | $ 2.4 B | |
| EQUITY | ||
| Total Equity | $ 4.9 B | |
| Retained Earnings | $ -544.33 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 61.47 | |
| Shares Outstanding | 79.897 M | |
| Revenue Per-Share | $ 7.35 | |
| VALUATION | Market Capitalization | $ 3.0 B |
| Enterprise Value | $ 3.3 B | |
| Enterprise Multiple | 9.654 | |
| Enterprise Multiple QoQ | -173.978 % | |
| Enterprise Multiple YoY | -124.34 % | |
| Enterprise Multiple IPRWA | high: 158.356 mean: 62.346 median: 57.644 IAC: 9.654 low: -131.816 |
|
| EV/R | 5.629 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.499 | |
| Asset To Liability | 3.07 | |
| Debt To Capital | 0.226 | |
| Debt To Assets | 0.195 | |
| Debt To Assets QoQ | -4.258 % | |
| Debt To Assets YoY | 5024.737 % | |
| Debt To Assets IPRWA | high: 0.886 IAC: 0.195 mean: 0.105 median: 0.071 low: 0.001 |
|
| Debt To Equity | 0.292 | |
| Debt To Equity QoQ | -5.894 % | |
| Debt To Equity YoY | 4424.961 % | |
| Debt To Equity IPRWA | high: 2.013 IAC: 0.292 mean: 0.159 median: 0.098 low: -1.528 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.604 | |
| Price To Book QoQ | -1.849 % | |
| Price To Book YoY | -15.363 % | |
| Price To Book IPRWA | high: 12.172 mean: 6.994 median: 6.389 IAC: 0.604 low: -6.612 |
|
| Price To Earnings (P/E) | 14.948 | |
| Price To Earnings QoQ | -209.096 % | |
| Price To Earnings YoY | -151.373 % | |
| Price To Earnings IPRWA | high: 257.071 mean: 82.072 median: 66.348 IAC: 14.948 low: -196.621 |
|
| PE/G Ratio | -0.076 | |
| Price To Sales (P/S) | 5.051 | |
| Price To Sales QoQ | -0.6 % | |
| Price To Sales YoY | 11.918 % | |
| Price To Sales IPRWA | high: 35.986 mean: 26.711 median: 24.046 IAC: 5.051 low: 0.003 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -1046.466 | |
| Forward PE/G | 5.303 | |
| Forward P/S | -1527.686 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -73.119 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.081 | |
| Asset Turnover Ratio QoQ | 18.348 % | |
| Asset Turnover Ratio YoY | -12.626 % | |
| Asset Turnover Ratio IPRWA | high: 0.588 median: 0.188 mean: 0.187 IAC: 0.081 low: 0.021 |
|
| Receivables Turnover | 1.528 | |
| Receivables Turnover Ratio QoQ | 22.105 % | |
| Receivables Turnover Ratio YoY | -23.246 % | |
| Receivables Turnover Ratio IPRWA | high: 7.018 mean: 2.159 median: 1.819 IAC: 1.528 low: 0.147 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 59.7 | |
| 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 | 0.563 | |
| CapEx To Revenue | -0.008 | |
| CapEx To Depreciation | -0.558 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 6.3 B | |
| Net Invested Capital | $ 6.3 B | |
| Invested Capital | $ 6.3 B | |
| Net Tangible Assets | $ 2.4 B | |
| Net Working Capital | $ 1.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.958 | |
| Current Ratio | 2.867 | |
| Current Ratio QoQ | 6.195 % | |
| Current Ratio YoY | 7.134 % | |
| Current Ratio IPRWA | high: 8.003 IAC: 2.867 mean: 1.914 median: 1.904 low: 0.138 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.188 | |
| Cost Of Debt | 1.976 % | |
| Interest Coverage Ratio | 8.363 | |
| Interest Coverage Ratio QoQ | -184.33 % | |
| Interest Coverage Ratio YoY | -341.948 % | |
| Interest Coverage Ratio IPRWA | high: 183.313 mean: 112.733 median: 64.63 IAC: 8.363 low: -91.892 |
|
| Operating Cash Flow Ratio | 0.464 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 21.083 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.411 % | |
| Revenue Growth | 2.882 % | |
| Revenue Growth QoQ | -106.808 % | |
| Revenue Growth YoY | 34.988 % | |
| Revenue Growth IPRWA | high: 32.915 % mean: 8.282 % median: 5.951 % IAC: 2.882 % low: -24.903 % |
|
| Earnings Growth | -197.348 % | |
| Earnings Growth QoQ | -1986.692 % | |
| Earnings Growth YoY | -54.663 % | |
| Earnings Growth IPRWA | high: 228.571 % mean: -9.468 % median: -18.182 % IAC: -197.348 % low: -233.333 % |
|
| MARGINS | ||
| Gross Margin | 65.588 % | |
| Gross Margin QoQ | 2.456 % | |
| Gross Margin YoY | -8.687 % | |
| Gross Margin IPRWA | high: 99.585 % IAC: 65.588 % mean: 65.303 % median: 57.404 % low: -5.811 % |
|
| EBIT Margin | 52.96 % | |
| EBIT Margin QoQ | -207.596 % | |
| EBIT Margin YoY | -468.161 % | |
| EBIT Margin IPRWA | IAC: 52.96 % high: 47.414 % mean: 35.46 % median: 30.974 % low: -66.239 % |
|
| Return On Sales (ROS) | 0.098 % | |
| Return On Sales QoQ | -100.199 % | |
| Return On Sales YoY | -100.681 % | |
| Return On Sales IPRWA | high: 75.933 % mean: 33.108 % median: 26.795 % IAC: 0.098 % low: -66.239 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -9.97 M | |
| Free Cash Flow Yield | -0.336 % | |
| Free Cash Flow Yield QoQ | 112.658 % | |
| Free Cash Flow Yield YoY | -120.883 % | |
| Free Cash Flow Yield IPRWA | high: 16.991 % mean: 0.357 % median: 0.23 % IAC: -0.336 % low: -11.555 % |
|
| Free Cash Growth | 117.004 % | |
| Free Cash Growth QoQ | -211.435 % | |
| Free Cash Growth YoY | 174.722 % | |
| Free Cash Growth IPRWA | high: 246.161 % IAC: 117.004 % mean: -53.649 % median: -85.386 % low: -696.812 % |
|
| Free Cash To Net Income | -0.047 | |
| Cash Flow Margin | 44.181 % | |
| Cash Flow To Earnings | 1.226 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.907 % | |
| Return On Assets QoQ | -212.196 % | |
| Return On Assets YoY | -310.195 % | |
| Return On Assets IPRWA | high: 6.379 % mean: 5.554 % median: 4.433 % IAC: 2.907 % low: -13.071 % |
|
| Return On Capital Employed (ROCE) | 4.57 % | |
| Return On Equity (ROE) | 0.043 | |
| Return On Equity QoQ | -193.609 % | |
| Return On Equity YoY | -281.918 % | |
| Return On Equity IPRWA | high: 0.22 mean: 0.079 median: 0.058 IAC: 0.043 low: -0.378 |
|
| DuPont ROE | 4.394 % | |
| Return On Invested Capital (ROIC) | 3.771 % | |
| Return On Invested Capital QoQ | -211.502 % | |
| Return On Invested Capital YoY | -43.053 % | |
| Return On Invested Capital IPRWA | high: 14.585 % mean: 7.015 % median: 5.337 % IAC: 3.771 % low: -23.653 % |
|