Technical Analysis
ADX / DI+/DI-: ADX at 15.07 indicates no dominant trend, reducing conviction for directional breakouts. DI+ shows a peak-and-reverse pattern, a bearish read, while DI- also shows a peak-and-reverse pattern that reads bullish; combined with the low ADX, these opposing signals imply range-bound action rather than an immediate directional follow-through.
MACD: MACD at 0.39 sits slightly beneath the signal line at 0.40 and displays a peak-and-reverse pattern, signaling bearish momentum. That bearish MACD momentum tempers confidence that short-term rallies will extend without fresh positive catalysts.
MRO: MRO reads -22.35, indicating the market price sits below the oscillator’s target and therefore carries potential upward pressure toward the model target. That potential aligns with valuation indicators that suggest under-valuation, but momentum indicators must confirm any advance.
RSI: RSI at 52.7 with a peak-and-reverse pattern suggests momentum losing its recent crest and implies limited near-term upside thrust absent renewed buyer participation.
Price Vs. Moving Averages & Bands: Price closed at $35.95, below the 200-day average of $45.50, a long-term bearish placement, but near the 50-day average of $35.35 and just under the 20-day average of $36.12, reflecting consolidation around intermediate moving averages. Bollinger bands place the 1x lower at $35.03 and 1x upper at $37.22; the stock trades near the middle of that short-term band, consistent with the range-bound reading from ADX.
Support, Resistance & Volume: SuperTrend lower support sits at $33.92. Volume at 6.93M trails 10- and 50-day averages, indicating muted participation on recent moves and reducing conviction in any breakout until volume normalizes.
Fundamental Analysis
Earnings And Adjusted Results: Adjusted EPS came in at $0.50 versus an estimate of -$0.16, producing an EPS surprise of 412.5% and prompting management to raise full-year adjusted guidance. The reported GAAP net loss reflects a sizeable non-cash goodwill impairment disclosed alongside the quarter, which drove the negative headline net income while adjusted operating performance showed improvement.
Profitability Metrics: EBIT totaled -$6.504B, yielding an EBIT margin of -13.09%. That EBIT margin sits below the industry peer range, below the peer low of -10.679% and well under the peer mean of 5.161%, signaling a material earnings-pressure outlier versus peers. Operating margin registers -0.425% and gross margin 6.543%, both consistent with pressure on profitability despite pockets of revenue scale.
Top-Line And Growth: Reported total revenue reached $49.69B while revenue growth year-over-year shows -64.572% and revenue growth (general) reads 1.945%; quarter-to-quarter dynamics show a sharp QoQ decline of -57.272%, indicating volatile near-term revenue trends that require monitoring for stabilizing demand or pricing effects.
Cash Flow, Liquidity And Leverage: Cash and short-term investments total $19.237B with free cash flow of $1.145B and a free cash flow yield of 6.654%, above the industry peer mean free cash flow yield of 2.099%. Net debt sits modestly at $525M against a market cap of $17.206B, and debt-to-equity equals 0.839, reflecting manageable net leverage given the cash position. Current ratio reads 1.084, close to the industry peer mean of 1.057, indicating near-par short-term liquidity.
Valuation Context: Market multiples show a trailing P/E of 70.0 and a forward P/E of 19.46 with forward EPS of $1.76; book value per share near $42.63 produces a P/B of 0.82, below the industry peer mean and median, while forward multiples imply materially lower forward valuation relative to the trailing multiple. The current valuation as determined by WMDST classifies the stock as under-valued, supported by a strong cash base, modest net debt, and elevated free cash flow yield if adjusted operating trends hold.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-29 |
| NEXT REPORT DATE: | 2026-01-28 |
| CASH FLOW | Begin Period Cash Flow | $ 14.6 B |
| Operating Cash Flow | $ 1.4 B | |
| Capital Expenditures | $ -211.00 M | |
| Change In Working Capital | $ 763.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 2.6 B | |
| End Period Cash Flow | $ 17.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 49.7 B | |
| Forward Revenue | $ -1.62 B | |
| COSTS | ||
| Cost Of Revenue | $ 46.4 B | |
| Depreciation | $ 147.0 M | |
| Depreciation and Amortization | $ 317.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 49.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 3.3 B | |
| EBITDA | $ -6.19 B | |
| EBIT | $ -6.50 B | |
| Operating Income | $ -211.00 M | |
| Interest Income | — | |
| Interest Expense | $ 170.0 M | |
| Net Interest Income | $ -170.00 M | |
| Income Before Tax | $ -6.67 B | |
| Tax Provision | $ -42.00 M | |
| Tax Rate | 0.629 % | |
| Net Income | $ -6.63 B | |
| Net Income From Continuing Operations | $ -6.63 B | |
| EARNINGS | ||
| EPS Estimate | $ -0.16 | |
| EPS Actual | $ 0.50 | |
| EPS Difference | $ 0.66 | |
| EPS Surprise | 412.5 % | |
| Forward EPS | $ 1.76 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 82.1 B | |
| Intangible Assets | $ 15.7 B | |
| Net Tangible Assets | $ 5.3 B | |
| Total Current Assets | $ 44.1 B | |
| Cash and Short-Term Investments | $ 19.2 B | |
| Cash | $ 17.1 B | |
| Net Receivables | $ 23.1 B | |
| Inventory | — | |
| Long-Term Investments | $ 2.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 16.9 B | |
| Short-Term Debt | $ 38.0 M | |
| Total Current Liabilities | $ 40.6 B | |
| Net Debt | $ 525.0 M | |
| Total Debt | $ 17.6 B | |
| Total Liabilities | $ 61.0 B | |
| EQUITY | ||
| Total Equity | $ 20.9 B | |
| Retained Earnings | $ 9.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.63 | |
| Shares Outstanding | 491.414 M | |
| Revenue Per-Share | $ 101.12 | |
| VALUATION | Market Capitalization | $ 17.2 B |
| Enterprise Value | $ 15.6 B | |
| Enterprise Multiple | -2.514 | |
| Enterprise Multiple QoQ | -103.21 % | |
| Enterprise Multiple YoY | -118.73 % | |
| Enterprise Multiple IPRWA | high: 190.244 median: 35.913 mean: 12.268 CNC: -2.514 low: -105.843 |
|
| EV/R | 0.313 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.919 | |
| Asset To Liability | 1.345 | |
| Debt To Capital | 0.456 | |
| Debt To Assets | 0.214 | |
| Debt To Assets QoQ | 5.284 % | |
| Debt To Assets YoY | 15766.667 % | |
| Debt To Assets IPRWA | high: 0.914 mean: 0.346 median: 0.262 CNC: 0.214 low: 0.005 |
|
| Debt To Equity | 0.839 | |
| Debt To Equity QoQ | 30.872 % | |
| Debt To Equity YoY | 20573.892 % | |
| Debt To Equity IPRWA | high: 3.285 CNC: 0.839 median: 0.814 mean: -0.299 low: -5.631 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.821 | |
| Price To Book QoQ | 28.208 % | |
| Price To Book YoY | -38.348 % | |
| Price To Book IPRWA | high: 11.321 mean: 2.209 median: 1.785 CNC: 0.821 low: -0.284 |
|
| Price To Earnings (P/E) | 70.028 | |
| Price To Earnings QoQ | -176.556 % | |
| Price To Earnings YoY | 59.054 % | |
| Price To Earnings IPRWA | high: 167.73 CNC: 70.028 mean: 61.41 median: 54.99 low: -41.31 |
|
| PE/G Ratio | -0.17 | |
| Price To Sales (P/S) | 0.346 | |
| Price To Sales QoQ | -3.873 % | |
| Price To Sales YoY | -60.002 % | |
| Price To Sales IPRWA | high: 17.139 mean: 2.453 median: 1.147 CNC: 0.346 low: 0.138 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 19.463 | |
| Forward PE/G | -0.047 | |
| Forward P/S | -10.619 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3792.345 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.59 | |
| Asset Turnover Ratio QoQ | 4.944 % | |
| Asset Turnover Ratio YoY | 16.144 % | |
| Asset Turnover Ratio IPRWA | high: 1.247 CNC: 0.59 mean: 0.531 median: 0.414 low: 0.029 |
|
| Receivables Turnover | 2.225 | |
| Receivables Turnover Ratio QoQ | 0.409 % | |
| Receivables Turnover Ratio YoY | -7.683 % | |
| Receivables Turnover Ratio IPRWA | high: 9.084 mean: 3.869 median: 3.655 CNC: 2.225 low: 0.147 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 41.007 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 10.725 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 72.266 median: 15.133 CNC: 10.725 mean: 10.538 low: -55.902 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 14.478 | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -1.435 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 38.5 B | |
| Net Invested Capital | $ 38.5 B | |
| Invested Capital | $ 38.5 B | |
| Net Tangible Assets | $ 5.3 B | |
| Net Working Capital | $ 3.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.473 | |
| Current Ratio | 1.084 | |
| Current Ratio QoQ | -1.227 % | |
| Current Ratio YoY | -1.258 % | |
| Current Ratio IPRWA | high: 2.955 CNC: 1.084 mean: 1.057 median: 0.88 low: 0.622 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -2.842 | |
| Cost Of Debt | 0.961 % | |
| Interest Coverage Ratio | -38.259 | |
| Interest Coverage Ratio QoQ | 7375.93 % | |
| Interest Coverage Ratio YoY | -713.816 % | |
| Interest Coverage Ratio IPRWA | high: 19.851 mean: 6.196 median: 5.31 low: -11.697 CNC: -38.259 |
|
| Operating Cash Flow Ratio | -0.111 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 30.282 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -4.986 % | |
| Revenue Growth | 1.945 % | |
| Revenue Growth QoQ | -57.272 % | |
| Revenue Growth YoY | -64.572 % | |
| Revenue Growth IPRWA | high: 13.991 % median: 3.999 % mean: 3.329 % CNC: 1.945 % low: -8.694 % |
|
| Earnings Growth | -412.5 % | |
| Earnings Growth QoQ | 250.807 % | |
| Earnings Growth YoY | 1147.807 % | |
| Earnings Growth IPRWA | high: 131.373 % median: 1.754 % mean: -7.081 % low: -66.667 % CNC: -412.5 % |
|
| MARGINS | ||
| Gross Margin | 6.543 % | |
| Gross Margin QoQ | 8.22 % | |
| Gross Margin YoY | -31.858 % | |
| Gross Margin IPRWA | high: 96.429 % mean: 27.212 % median: 13.421 % CNC: 6.543 % low: -4.713 % |
|
| EBIT Margin | -13.089 % | |
| EBIT Margin QoQ | 7253.371 % | |
| EBIT Margin YoY | -601.494 % | |
| EBIT Margin IPRWA | high: 19.623 % mean: 5.161 % median: 3.465 % low: -10.679 % CNC: -13.089 % |
|
| Return On Sales (ROS) | -0.425 % | |
| Return On Sales QoQ | -48.609 % | |
| Return On Sales YoY | -116.284 % | |
| Return On Sales IPRWA | high: 16.487 % mean: 7.232 % median: 2.448 % CNC: -0.425 % low: -9.146 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.1 B | |
| Free Cash Flow Yield | 6.654 % | |
| Free Cash Flow Yield QoQ | -25.919 % | |
| Free Cash Flow Yield YoY | -314.024 % | |
| Free Cash Flow Yield IPRWA | high: 9.435 % CNC: 6.654 % median: 2.383 % mean: 2.099 % low: -8.76 % |
|
| Free Cash Growth | -27.394 % | |
| Free Cash Growth QoQ | -286.468 % | |
| Free Cash Growth YoY | -82.536 % | |
| Free Cash Growth IPRWA | high: 316.092 % CNC: -27.394 % median: -92.403 % mean: -112.453 % low: -300.903 % |
|
| Free Cash To Net Income | -0.173 | |
| Cash Flow Margin | -9.088 % | |
| Cash Flow To Earnings | 0.681 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -7.871 % | |
| Return On Assets QoQ | 2595.548 % | |
| Return On Assets YoY | -1013.109 % | |
| Return On Assets IPRWA | high: 4.616 % median: 1.207 % mean: 0.953 % low: -6.661 % CNC: -7.871 % |
|
| Return On Capital Employed (ROCE) | -15.689 % | |
| Return On Equity (ROE) | -0.317 | |
| Return On Equity QoQ | 3329.577 % | |
| Return On Equity YoY | -1312.371 % | |
| Return On Equity IPRWA | high: 0.085 median: 0.011 mean: -0.055 CNC: -0.317 low: -0.36 |
|
| DuPont ROE | -27.428 % | |
| Return On Invested Capital (ROIC) | -16.774 % | |
| Return On Invested Capital QoQ | 10863.399 % | |
| Return On Invested Capital YoY | 246.213 % | |
| Return On Invested Capital IPRWA | high: 7.692 % median: 2.476 % mean: 2.367 % low: -1.536 % CNC: -16.774 % |
|