Recent News
On July 31, 2025 the company released its second-quarter 2025 results, increased the lower end of full-year 2025 revenue guidance to a $650 million–$700 million range, and the Board approved a $0.45 per-share quarterly dividend payable September 30, 2025.
Technical Analysis
Directional Indicators (ADX / DI+ / DI-): ADX at 14.27 indicates no established trend, while DI+ at 26.37 is increasing and DI- at 19.97 is decreasing, which signals bullish directional pressure without strong trend strength; that pattern aligns with a constructive but not yet extended price backdrop relative to the valuation.
MACD: MACD at 0.91 is increasing and has crossed above its 0.38 signal line, signaling a bullish momentum shift that supports the possibility of near-term upside versus the current fair-valued assessment.
MRO (Momentum/Regression Oscillator): MRO stands at -5.24, indicating the price sits below the WMDST target and therefore has potential to increase toward fair value; the negative reading suggests upside potential rather than immediate downside pressure.
RSI: RSI at 49.37 with a dip & reversal indicates momentum recovering from a short-term pullback while not yet overbought, which complements the MACD bullish cross for a controlled re-acceleration.
Price Versus Moving Averages and Bands: Price closed at $146.87 above the 12-day EMA ($144.69, increasing), above the 20-day average ($144.45) and slightly above the 200-day average ($144.80); the close sits inside the upper Bollinger band (1x) near $148.21, suggesting upside room while volatility remains subdued.
Fundamental Analysis
Profitability & Margins: Operating (EBIT) margin registers 39.90%, above the industry peer mean of 37.46% and below the industry peer median of 42.57%; year-over-year operating margin rose 12.05% while quarter-over-quarter it declined 4.77%, reflecting improved annual profitability but short-term margin compression.
Earnings Per Share: Reported EPS came in at $1.41 versus an estimate of $1.16, producing an EPS surprise of 21.55% and an EPS beat of $0.25; that beat supports the company’s ability to translate licensing and royalties into bottom-line upside relative to expectations.
Revenue Growth: Sequential revenue growth (QoQ) equals 35.15%, while the reported year-over-year revenue growth value shows -181.18%; quarter-over-quarter strength pairs with the company’s updated 2025 revenue guidance to $650 million–$700 million.
- Cash & Liquidity: Cash and short-term investments total $525,208,000, with free cash flow $37,459,000 and a free cash flow yield of 0.54%, which lies below the industry peer mean free cash flow yield of 0.72%.
- Balance Sheet Leverage: Total debt equals $17,789,000 with debt-to-assets at 0.92% and debt-to-equity about 1.04%; the capital structure emphasizes minimal leverage against $1.71 billion in total equity.
- Capital Allocation: Management authorized a third-quarter dividend of $0.45 per share; combined with a previously announced repurchase authorization, the actions indicate allocation of excess cash to shareholders while retaining liquidity.
- Efficiency Metrics: Gross margin sits at 77.18%; asset turnover equals 9.05% (industry peer mean 19.44%), and the cash conversion cycle measures 481.5 days versus an industry peer high of 374.5 days—reporting the absolute level without further inference due to its position beyond the industry peer range.
Valuation: WMDST values the stock as fair-valued. Market multiples show a P/E of 106.31 (above the industry peer mean of 99.61) and a P/B of 4.03 (below the industry peer mean of 8.30). Enterprise multiple and EV-to-revenue metrics remain elevated relative to historical norms, consistent with a growth-linked premium priced into the shares.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-31 |
| NEXT REPORT DATE: | 2025-10-30 |
| CASH FLOW | Begin Period Cash Flow | $ 157.5 M |
| Operating Cash Flow | $ 51.9 M | |
| Capital Expenditures | $ -14.48 M | |
| Change In Working Capital | $ -33.97 M | |
| Dividends Paid | $ -21.40 M | |
| Cash Flow Delta | $ -61.67 M | |
| End Period Cash Flow | $ 95.8 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 171.8 M | |
| Forward Revenue | $ 40.6 M | |
| COSTS | ||
| Cost Of Revenue | $ 39.2 M | |
| Depreciation | $ 6.9 M | |
| Depreciation and Amortization | $ 11.4 M | |
| Research and Development | $ 36.4 M | |
| Total Operating Expenses | $ 103.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 132.6 M | |
| EBITDA | $ 79.9 M | |
| EBIT | $ 68.5 M | |
| Operating Income | $ 68.5 M | |
| Interest Income | $ 9.8 M | |
| Interest Expense | — | |
| Net Interest Income | $ 9.8 M | |
| Income Before Tax | $ 83.9 M | |
| Tax Provision | $ 16.6 M | |
| Tax Rate | 19.8 % | |
| Net Income | $ 67.3 M | |
| Net Income From Continuing Operations | $ 67.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.16 | |
| EPS Actual | $ 1.41 | |
| EPS Difference | $ 0.25 | |
| EPS Surprise | 21.552 % | |
| Forward EPS | $ 1.34 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.9 B | |
| Intangible Assets | $ 85.4 M | |
| Net Tangible Assets | $ 1.6 B | |
| Total Current Assets | $ 1.0 B | |
| Cash and Short-Term Investments | $ 525.2 M | |
| Cash | $ 95.8 M | |
| Net Receivables | $ 147.0 M | |
| Inventory | $ 208.2 M | |
| Long-Term Investments | $ 2.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 38.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 125.6 M | |
| Net Debt | — | |
| Total Debt | $ 17.8 M | |
| Total Liabilities | $ 217.1 M | |
| EQUITY | ||
| Total Equity | $ 1.7 B | |
| Retained Earnings | $ 1.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.04 | |
| Shares Outstanding | 47.534 M | |
| Revenue Per-Share | $ 3.61 | |
| VALUATION | Market Capitalization | $ 6.9 B |
| Enterprise Value | $ 6.4 B | |
| Enterprise Multiple | 80.177 | |
| Enterprise Multiple QoQ | 8.887 % | |
| Enterprise Multiple YoY | -40.182 % | |
| Enterprise Multiple IPRWA | high: 246.222 OLED: 80.177 median: 77.751 mean: 71.648 low: -86.607 |
|
| EV/R | 37.309 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.127 | |
| Asset To Liability | 8.898 | |
| Debt To Capital | 0.01 | |
| Debt To Assets | 0.009 | |
| Debt To Assets QoQ | -8.631 % | |
| Debt To Assets YoY | 349.268 % | |
| Debt To Assets IPRWA | high: 0.594 median: 0.198 mean: 0.179 OLED: 0.009 low: 0.006 |
|
| Debt To Equity | 0.01 | |
| Debt To Equity QoQ | -8.392 % | |
| Debt To Equity YoY | 335.714 % | |
| Debt To Equity IPRWA | high: 1.065 mean: 0.301 median: 0.21 OLED: 0.01 low: -0.023 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.034 | |
| Price To Book QoQ | 3.001 % | |
| Price To Book YoY | -35.633 % | |
| Price To Book IPRWA | high: 12.365 mean: 8.295 median: 6.565 OLED: 4.034 low: -3.361 |
|
| Price To Earnings (P/E) | 106.311 | |
| Price To Earnings QoQ | 5.057 % | |
| Price To Earnings YoY | -42.014 % | |
| Price To Earnings IPRWA | high: 442.069 OLED: 106.311 mean: 99.606 median: 90.651 low: -85.349 |
|
| PE/G Ratio | 23.922 | |
| Price To Sales (P/S) | 40.263 | |
| Price To Sales QoQ | 3.015 % | |
| Price To Sales YoY | -33.308 % | |
| Price To Sales IPRWA | high: 73.382 OLED: 40.263 median: 36.189 mean: 30.099 low: 2.027 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 109.995 | |
| Forward PE/G | 24.751 | |
| Forward P/S | 170.256 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.486 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.091 | |
| Asset Turnover Ratio QoQ | 0.611 % | |
| Asset Turnover Ratio YoY | -1.201 % | |
| Asset Turnover Ratio IPRWA | high: 0.318 median: 0.203 mean: 0.194 low: 0.094 OLED: 0.091 |
|
| Receivables Turnover | 1.199 | |
| Receivables Turnover Ratio QoQ | -8.72 % | |
| Receivables Turnover Ratio YoY | -7.739 % | |
| Receivables Turnover Ratio IPRWA | high: 2.444 median: 1.566 mean: 1.478 OLED: 1.199 low: 0.524 |
|
| Inventory Turnover | 0.193 | |
| Inventory Turnover Ratio QoQ | -3.6 % | |
| Inventory Turnover Ratio YoY | -13.06 % | |
| Inventory Turnover Ratio IPRWA | high: 2.241 mean: 0.462 median: 0.379 OLED: 0.193 low: 0.176 |
|
| Days Sales Outstanding (DSO) | 76.117 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 481.513 | |
| Cash Conversion Cycle Days QoQ | 5.874 % | |
| Cash Conversion Cycle Days YoY | 6.842 % | |
| Cash Conversion Cycle Days IPRWA | OLED: 481.513 high: 374.503 mean: 204.461 median: 192.207 low: -16.885 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.194 | |
| CapEx To Revenue | -0.084 | |
| CapEx To Depreciation | -2.112 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.7 B | |
| Net Invested Capital | $ 1.7 B | |
| Invested Capital | $ 1.7 B | |
| Net Tangible Assets | $ 1.6 B | |
| Net Working Capital | $ 885.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 4.183 | |
| Current Ratio | 8.051 | |
| Current Ratio QoQ | -10.594 % | |
| Current Ratio YoY | 27.537 % | |
| Current Ratio IPRWA | high: 9.593 OLED: 8.051 median: 2.21 mean: 2.124 low: 0.842 |
|
| Quick Ratio | 6.392 | |
| Quick Ratio QoQ | -11.941 % | |
| Quick Ratio YoY | 23.362 % | |
| Quick Ratio IPRWA | high: 7.858 OLED: 6.392 median: 1.554 mean: 1.429 low: 0.609 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.223 | |
| Cost Of Debt | 27.469 % | |
| Interest Coverage Ratio | 10.942 | |
| Interest Coverage Ratio QoQ | -1.613 % | |
| Interest Coverage Ratio YoY | 21.445 % | |
| Interest Coverage Ratio IPRWA | high: 120.949 median: 35.147 mean: 34.068 OLED: 10.942 low: -14.178 |
|
| Operating Cash Flow Ratio | 0.562 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 79.875 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.143 | |
| Dividend Payout Ratio | 0.318 | |
| Dividend Rate | $ 0.45 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.605 % | |
| Revenue Growth | 3.318 % | |
| Revenue Growth QoQ | 35.153 % | |
| Revenue Growth YoY | -181.184 % | |
| Revenue Growth IPRWA | high: 44.515 % OLED: 3.318 % mean: 1.925 % median: -0.643 % low: -23.04 % |
|
| Earnings Growth | 4.444 % | |
| Earnings Growth QoQ | -89.061 % | |
| Earnings Growth YoY | -158.76 % | |
| Earnings Growth IPRWA | high: 144.444 % mean: 6.101 % OLED: 4.444 % median: 0.42 % low: -127.273 % |
|
| MARGINS | ||
| Gross Margin | 77.18 % | |
| Gross Margin QoQ | 0.148 % | |
| Gross Margin YoY | 1.795 % | |
| Gross Margin IPRWA | high: 89.444 % OLED: 77.18 % median: 52.572 % mean: 52.496 % low: 11.321 % |
|
| EBIT Margin | 39.897 % | |
| EBIT Margin QoQ | -4.771 % | |
| EBIT Margin YoY | 12.051 % | |
| EBIT Margin IPRWA | high: 44.159 % median: 42.567 % OLED: 39.897 % mean: 37.456 % low: -45.219 % |
|
| Return On Sales (ROS) | 39.897 % | |
| Return On Sales QoQ | -4.771 % | |
| Return On Sales YoY | 12.051 % | |
| Return On Sales IPRWA | high: 42.579 % median: 40.796 % OLED: 39.897 % mean: 36.214 % low: -49.982 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 37.5 M | |
| Free Cash Flow Yield | 0.542 % | |
| Free Cash Flow Yield QoQ | 101.487 % | |
| Free Cash Flow Yield YoY | -10.413 % | |
| Free Cash Flow Yield IPRWA | high: 2.8 % median: 0.852 % mean: 0.716 % OLED: 0.542 % low: -5.198 % |
|
| Free Cash Growth | 114.015 % | |
| Free Cash Growth QoQ | -654.251 % | |
| Free Cash Growth YoY | -1148.125 % | |
| Free Cash Growth IPRWA | high: 408.013 % OLED: 114.015 % median: 7.629 % mean: -32.972 % low: -301.396 % |
|
| Free Cash To Net Income | 0.557 | |
| Cash Flow Margin | 41.071 % | |
| Cash Flow To Earnings | 1.049 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.544 % | |
| Return On Assets QoQ | 1.664 % | |
| Return On Assets YoY | 17.157 % | |
| Return On Assets IPRWA | high: 8.327 % median: 6.382 % mean: 6.294 % OLED: 3.544 % low: -19.735 % |
|
| Return On Capital Employed (ROCE) | 3.795 % | |
| Return On Equity (ROE) | 0.039 | |
| Return On Equity QoQ | 1.004 % | |
| Return On Equity YoY | 14.44 % | |
| Return On Equity IPRWA | high: 0.256 mean: 0.154 median: 0.152 OLED: 0.039 low: -0.233 |
|
| DuPont ROE | 3.987 % | |
| Return On Invested Capital (ROIC) | 3.206 % | |
| Return On Invested Capital QoQ | -5.064 % | |
| Return On Invested Capital YoY | -137.089 % | |
| Return On Invested Capital IPRWA | high: 12.291 % median: 11.998 % mean: 9.786 % OLED: 3.206 % low: -9.445 % |
|