Recent News
On November 12, 2025 the company’s board authorized a new $400 million stock repurchase program, effective immediately. On September 27, 2025 Wall Street Zen revised its rating on the company from Strong Buy to Buy, reflecting a change in analyst sentiment.
Technical Analysis
ADX at 18.96 indicates no trend, reducing conviction for a clean breakout; trend strength lacks confirmation and short-term signals carry more weight for directional bias.
DI+ sits at 17.25 with a decreasing trend, which signals weakening upside momentum and reduces the probability of an immediate rally relative to prior strength.
DI- at 27.48 shows a peak-and-reversal pattern, which signals easing seller dominance and presents a countervailing bullish influence against DI+ weakness.
MACD reads -10.12 with a dip-and-reversal trend while the signal line sits at -8.91; momentum shows early improvement from depressed levels, but MACD remains below the signal line so a bullish confirmation has not occurred.
MRO at -28.97 indicates the price sits below the model target and, given its negative value, suggests upward pressure toward that target; the magnitude implies a material potential.
RSI at 49.12 with a decreasing trend places momentum near neutral but slipping, increasing the chance of short-term consolidation before any sustained move.
Price sits at $313.04, below the 20-day average ($318.76) and the 50-day average ($347.60) but above the 200-day average ($255.55); this alignment points to short-term weakness inside a longer-term uptrend, where reclaiming the 20-day would matter for momentum.
Ichimoku components show price below the Kijun-sen ($340.00) and beneath the cloud boundaries (Senkou A $371.94, Senkou B $342.63), implying short-term resistance concentrated near the mid-300s. Bollinger bands place immediate support near $302.91 and resistance near $334.60.
Volume at 369,155 runs materially below the 10-, 50-, and 200-day averages, reducing follow-through risk for recent directional moves. Short-term beta (42-day) of 4.29 signals elevated volatility risk for the next several weeks.
Fundamental Analysis
Total revenue reached $689,019,000 with EBITDA of $150,899,000 and EBIT of $130,986,000. Operating income of $132,001,000 and net income of $92,088,000 support operating leverage across segments.
EBIT margin of 19.01% improved QoQ by 4.80% and improved YoY by 18.72%; this margin sits above the industry peer mean and median while below the peer high, indicating stronger-than-typical profitability relative to peers. Operating margin of 19.16% shows comparable strength.
YoY revenue growth reads 547.78% while recent quarter-over-quarter revenue change shows a -71.51% movement; these figures indicate large period-to-period variation in top-line comps that merits attention when interpreting short-term rate changes.
EPS came in at $3.48 versus an estimate of $2.84, a surprise of $0.64 or a 22.54% beat. Forward EPS stands at $2.96 with a forward P/E of 182.15, indicating street expectations embed material future growth at a premium multiple.
Return on equity at 8.76% and return on assets at 3.90% measure above the industry peer means, while return on invested capital at 7.39% also exceeds its peer mean, supporting the quality of current returns. Interest coverage of 31.64x remains robust and points to low near-term default risk on current debt levels (total debt $359,201,000).
Capital structure shows debt-to-assets at 14.02% and debt-to-equity at 34.17%, both below the industry peer means, providing financial flexibility. Cash and short-term investments total $306,395,000 while operating cash flow totaled $83,626,000 and free cash flow was $63,965,000; free cash flow yield stands at 0.64%, below the industry peer mean, indicating valuation outpaces current cash generation.
Price multiples show elevated investor valuation: P/E ~93.95x, P/B ~9.55x (above the industry peer mean and median), and P/S ~14.57x. These multiples, combined with a forward P/E of 182.15x and an enterprise multiple of 66.88, support the WMDST determination that the current valuation is over-valued.
WMDST values the stock as over-valued given high market multiples versus cash-generation metrics, despite above-peer margins and robust interest coverage that support earnings quality.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-03 |
| NEXT REPORT DATE: | 2026-02-02 |
| CASH FLOW | Begin Period Cash Flow | $ 699.4 M |
| Operating Cash Flow | $ 83.6 M | |
| Capital Expenditures | $ -19.66 M | |
| Change In Working Capital | $ -41.95 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -392.98 M | |
| End Period Cash Flow | $ 306.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 689.0 M | |
| Forward Revenue | $ 169.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 518.8 M | |
| Depreciation | $ 13.9 M | |
| Depreciation and Amortization | $ 19.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 557.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 170.2 M | |
| EBITDA | $ 150.9 M | |
| EBIT | $ 131.0 M | |
| Operating Income | $ 132.0 M | |
| Interest Income | $ 5.7 M | |
| Interest Expense | $ 4.1 M | |
| Net Interest Income | $ 1.5 M | |
| Income Before Tax | $ 126.8 M | |
| Tax Provision | $ 30.5 M | |
| Tax Rate | 24.1 % | |
| Net Income | $ 92.1 M | |
| Net Income From Continuing Operations | $ 96.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.84 | |
| EPS Actual | $ 3.48 | |
| EPS Difference | $ 0.64 | |
| EPS Surprise | 22.535 % | |
| Forward EPS | $ 2.96 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.6 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ -91.15 M | |
| Total Current Assets | $ 963.1 M | |
| Cash and Short-Term Investments | $ 306.4 M | |
| Cash | $ 306.4 M | |
| Net Receivables | $ 496.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 16.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 198.3 M | |
| Short-Term Debt | $ 15.2 M | |
| Total Current Liabilities | $ 966.8 M | |
| Net Debt | — | |
| Total Debt | $ 359.2 M | |
| Total Liabilities | $ 1.5 B | |
| EQUITY | ||
| Total Equity | $ 1.1 B | |
| Retained Earnings | $ 785.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 34.23 | |
| Shares Outstanding | 30.708 M | |
| Revenue Per-Share | $ 22.44 | |
| VALUATION | Market Capitalization | $ 10.0 B |
| Enterprise Value | $ 10.1 B | |
| Enterprise Multiple | 66.884 | |
| Enterprise Multiple QoQ | 18.495 % | |
| Enterprise Multiple YoY | 103.412 % | |
| Enterprise Multiple IPRWA | high: 131.097 STRL: 66.884 median: 59.103 mean: 53.615 low: -45.941 |
|
| EV/R | 14.648 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.438 | |
| Asset To Liability | 1.734 | |
| Debt To Capital | 0.255 | |
| Debt To Assets | 0.14 | |
| Debt To Assets QoQ | -11.719 % | |
| Debt To Assets YoY | 973.43 % | |
| Debt To Assets IPRWA | high: 0.792 median: 0.241 mean: 0.218 STRL: 0.14 low: 0.002 |
|
| Debt To Equity | 0.342 | |
| Debt To Equity QoQ | -12.188 % | |
| Debt To Equity YoY | 826.6 % | |
| Debt To Equity IPRWA | high: 1.946 median: 0.744 mean: 0.681 STRL: 0.342 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 9.552 | |
| Price To Book QoQ | 10.201 % | |
| Price To Book YoY | 58.459 % | |
| Price To Book IPRWA | high: 11.745 STRL: 9.552 mean: 6.341 median: 5.243 low: -0.303 |
|
| Price To Earnings (P/E) | 93.951 | |
| Price To Earnings QoQ | 8.105 % | |
| Price To Earnings YoY | 31.528 % | |
| Price To Earnings IPRWA | high: 138.015 STRL: 93.951 median: 86.428 mean: 84.49 low: -31.573 |
|
| PE/G Ratio | 2.431 | |
| Price To Sales (P/S) | 14.571 | |
| Price To Sales QoQ | 17.156 % | |
| Price To Sales YoY | 100.312 % | |
| Price To Sales IPRWA | high: 24.589 STRL: 14.571 mean: 6.316 median: 5.826 low: 0.204 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 182.149 | |
| Forward PE/G | 4.713 | |
| Forward P/S | 111.508 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.443 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.292 | |
| Asset Turnover Ratio QoQ | -0.396 % | |
| Asset Turnover Ratio YoY | -2.012 % | |
| Asset Turnover Ratio IPRWA | high: 0.643 mean: 0.375 median: 0.342 STRL: 0.292 low: 0.019 |
|
| Receivables Turnover | 1.633 | |
| Receivables Turnover Ratio QoQ | -15.818 % | |
| Receivables Turnover Ratio YoY | -3.08 % | |
| Receivables Turnover Ratio IPRWA | high: 6.931 mean: 1.767 median: 1.665 STRL: 1.633 low: 0.72 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 55.869 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 21.255 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 152.993 median: 28.775 mean: 27.852 STRL: 21.255 low: -36.642 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -189.031 | |
| CapEx To Revenue | -0.029 | |
| CapEx To Depreciation | -1.417 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ -91.15 M | |
| Net Working Capital | $ -3.65 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.317 | |
| Current Ratio | 0.996 | |
| Current Ratio QoQ | -29.945 % | |
| Current Ratio YoY | -22.865 % | |
| Current Ratio IPRWA | high: 3.71 mean: 1.515 median: 1.27 STRL: 0.996 low: 0.103 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.38 | |
| Cost Of Debt | 0.895 % | |
| Interest Coverage Ratio | 31.639 | |
| Interest Coverage Ratio QoQ | 41.782 % | |
| Interest Coverage Ratio YoY | 109.168 % | |
| Interest Coverage Ratio IPRWA | high: 88.977 STRL: 31.639 mean: 13.503 median: 7.704 low: -42.909 |
|
| Operating Cash Flow Ratio | 0.003 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 34.614 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 18.575 % | |
| Revenue Growth | 12.133 % | |
| Revenue Growth QoQ | -71.509 % | |
| Revenue Growth YoY | 547.784 % | |
| Revenue Growth IPRWA | high: 45.722 % STRL: 12.133 % median: 7.381 % mean: 6.262 % low: -30.219 % |
|
| Earnings Growth | 38.645 % | |
| Earnings Growth QoQ | -28.419 % | |
| Earnings Growth YoY | 115.125 % | |
| Earnings Growth IPRWA | high: 156.25 % STRL: 38.645 % median: 22.835 % mean: 21.736 % low: -96.429 % |
|
| MARGINS | ||
| Gross Margin | 24.704 % | |
| Gross Margin QoQ | 6.049 % | |
| Gross Margin YoY | 13.005 % | |
| Gross Margin IPRWA | high: 49.439 % STRL: 24.704 % mean: 20.071 % median: 19.419 % low: -13.331 % |
|
| EBIT Margin | 19.011 % | |
| EBIT Margin QoQ | 4.802 % | |
| EBIT Margin YoY | 18.715 % | |
| EBIT Margin IPRWA | high: 23.417 % STRL: 19.011 % median: 9.431 % mean: 9.214 % low: -14.014 % |
|
| Return On Sales (ROS) | 19.158 % | |
| Return On Sales QoQ | 8.593 % | |
| Return On Sales YoY | 19.633 % | |
| Return On Sales IPRWA | STRL: 19.158 % high: 17.967 % median: 9.431 % mean: 8.896 % low: -66.34 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 64.0 M | |
| Free Cash Flow Yield | 0.637 % | |
| Free Cash Flow Yield QoQ | -32.45 % | |
| Free Cash Flow Yield YoY | -80.1 % | |
| Free Cash Flow Yield IPRWA | high: 16.122 % median: 1.862 % mean: 1.72 % STRL: 0.637 % low: -15.175 % |
|
| Free Cash Growth | -11.271 % | |
| Free Cash Growth QoQ | -247.083 % | |
| Free Cash Growth YoY | -122.476 % | |
| Free Cash Growth IPRWA | high: 583.204 % mean: 63.42 % median: 49.671 % STRL: -11.271 % low: -490.961 % |
|
| Free Cash To Net Income | 0.695 | |
| Cash Flow Margin | 0.387 % | |
| Cash Flow To Earnings | 0.029 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.899 % | |
| Return On Assets QoQ | 15.219 % | |
| Return On Assets YoY | 26.797 % | |
| Return On Assets IPRWA | high: 6.641 % STRL: 3.899 % mean: 2.309 % median: 1.988 % low: -12.201 % |
|
| Return On Capital Employed (ROCE) | 8.21 % | |
| Return On Equity (ROE) | 0.088 | |
| Return On Equity QoQ | 8.819 % | |
| Return On Equity YoY | 2.372 % | |
| Return On Equity IPRWA | high: 0.131 STRL: 0.088 mean: 0.061 median: 0.058 low: -0.333 |
|
| DuPont ROE | 9.528 % | |
| Return On Invested Capital (ROIC) | 7.388 % | |
| Return On Invested Capital QoQ | 5.257 % | |
| Return On Invested Capital YoY | -165.636 % | |
| Return On Invested Capital IPRWA | high: 12.406 % STRL: 7.388 % mean: 5.255 % median: 3.699 % low: -6.036 % |
|