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On December 2, 2025 Arizona’s attorney general filed a lawsuit alleging Temu and its parent company collected sensitive user data and embedded code that evaded security reviews. On December 20, 2025 several analysts’ ratings aggregated to a consensus “Hold,” reflecting recent downgrades and mixed analyst targets.
Technical Analysis
Directional indicators show an emerging trend: ADX at 22.94 signals trend strength emerging rather than established, while DI+ at 23.81 increases and DI‑ at 29.93 decreases—both DI movements imply bullish directional pressure relative to recent valuation, lending support to a constructive near‑term price bias.
MACD sits negative at −2.60 but trends upward and has crossed above its signal line (MACD signal −3.46), which constitutes a bullish momentum shift even while the oscillator remains below zero; this crossover aligns with a potential recovery phase against the current WMDST valuation.
MRO registers −32.68, indicating price below model target and therefore potential upward pressure toward fair value; the negative reading suggests mean‑reversion potential into the valuation gap identified by WMDST.
RSI at 43.06 rising indicates momentum building from neutral territory rather than an overbought condition; that supports limited upside without evidence of exhaustion, consistent with constructive short‑term outlook.
Price sits at $113.83, above the 20‑day average ($111.38) and the 12‑day EMA ($112.82) while below the 50‑day ($122.67) and 200‑day ($116.46) averages. The mixed moving‑average positioning implies recovery attempts face medium‑term resistance near the 50‑day and 200‑day averages; Bollinger upper bands near $114–$118 provide short‑term cap, with the super trend lower at $107.10 serving as a nearby support reference.
Short‑term volatility and volume show caution: 42‑day beta at 1.27 exceeds the 52‑week beta of 0.81, and intraday volume (~4.94M) sits below 10‑, 50‑ and 200‑day averages, suggesting price moves currently lack broad participation even as momentum indicators turn constructive.
Fundamental Analysis
Revenue growth year‑over‑year equals 74.58%, demonstrating substantial top‑line expansion; quarter‑over‑quarter revenue contracted by 52.50%, highlighting strong seasonality or one‑off timing effects. Total revenue in the period equaled $108,276,512,000 with operating income (EBIT) of $25,025,924,000 and net income of $29,328,184,000 as reported for the period ending 2025‑09‑30.
Profitability measures remain favorable: operating (EBIT) margin stands at 23.11%, above the industry peer mean of 12.965% and above the industry peer median of 7.585%, placing margins well inside the upper portion of the industry peer range. Gross margin at 56.74% supports strong unit economics despite recent margin compression year‑over‑year of −5.485 percentage points.
EPS came in at $21.08 versus an estimate of $16.57, producing an EPS surprise of +27.22%, a material beat that supported reported profitability. Trailing P/E equals 6.13 while forward P/E sits at 34.20 given forward EPS of $3.11; the divergence reflects significant expected EPS normalization embedded in forward estimates.
Liquidity and balance‑sheet metrics present strength: cash and short‑term investments total $423,769,287,000 and cash ratio equals 1.93 while current ratio measures 2.36—above the industry peer mean current ratio of 1.27918—indicating robust short‑term coverage. Total debt remains low at $10,673,639,000 with debt‑to‑assets near 1.74% and debt‑to‑EBITDA of 0.43, signaling limited leverage risk.
Working‑capital dynamics show efficiency: days sales outstanding at ~5.06 days and days payables outstanding at ~195.10 days create a cash conversion cycle of −190.04 days, far more negative than the industry peer mean of −25.50 days and supporting strong free cash flow conversion; free cash flow totaled $45,660,545,000 and free cash to net income equals 155.688%.
Returns remain positive: return on equity at 7.49% and return on assets at 4.97% both exceed industry peer means (ROE mean 2.792% and ROA mean 1.968%), indicating the company converts assets and equity into profits at above‑average rates for its peer set. Earnings growth shows strain QoQ and YoY (earnings growth QoQ −104.80%, YoY −66.26%), reflecting uneven near‑term operating momentum despite strong annual revenue expansion.
WMDST values the stock as under‑valued given robust liquidity, high YoY revenue growth, strong cash generation, and operating margins above the industry peer mean and median; valuation drivers include the gap between trailing P/E and forward expectations plus the sizable cash reserve that supports optionality.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-18 |
| NEXT REPORT DATE: | 2026-02-17 |
| CASH FLOW | Begin Period Cash Flow | $ 129.9 B |
| Operating Cash Flow | $ 45.7 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 16.3 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 33.5 B | |
| End Period Cash Flow | $ 163.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 108.3 B | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 46.8 B | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | $ 4.3 B | |
| Total Operating Expenses | $ 83.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 61.4 B | |
| EBITDA | $ 25.0 B | |
| EBIT | $ 25.0 B | |
| Operating Income | $ 25.0 B | |
| Interest Income | $ 8.6 B | |
| Interest Expense | — | |
| Net Interest Income | $ 8.6 B | |
| Income Before Tax | $ 33.3 B | |
| Tax Provision | $ 4.0 B | |
| Tax Rate | 11.98 % | |
| Net Income | $ 29.3 B | |
| Net Income From Continuing Operations | $ 29.3 B | |
| EARNINGS | ||
| EPS Estimate | $ 16.57 | |
| EPS Actual | $ 21.08 | |
| EPS Difference | $ 4.51 | |
| EPS Surprise | 27.218 % | |
| Forward EPS | $ 3.11 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 613.7 B | |
| Intangible Assets | $ 16.3 M | |
| Net Tangible Assets | $ 391.4 B | |
| Total Current Assets | $ 516.4 B | |
| Cash and Short-Term Investments | $ 423.8 B | |
| Cash | $ 92.4 B | |
| Net Receivables | $ 6.0 B | |
| Inventory | — | |
| Long-Term Investments | $ 90.5 B | |
| LIABILITIES | ||
| Accounts Payable | $ 100.6 B | |
| Short-Term Debt | $ 5.2 B | |
| Total Current Liabilities | $ 219.2 B | |
| Net Debt | — | |
| Total Debt | $ 10.7 B | |
| Total Liabilities | $ 222.3 B | |
| EQUITY | ||
| Total Equity | $ 391.4 B | |
| Retained Earnings | $ 262.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | — | |
| Shares Outstanding | — | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | — |
| Enterprise Value | — | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.568 | |
| Asset To Liability | 2.761 | |
| Debt To Capital | 0.027 | |
| Debt To Assets | 0.017 | |
| Debt To Assets QoQ | -10.036 % | |
| Debt To Assets YoY | 302.546 % | |
| Debt To Assets IPRWA | high: 1.279 mean: 0.206 median: 0.145 PDD: 0.017 low: 0.008 |
|
| Debt To Equity | 0.027 | |
| Debt To Equity QoQ | -10.0 % | |
| Debt To Equity YoY | 276.657 % | |
| Debt To Equity IPRWA | high: 4.845 mean: 0.251 median: 0.231 PDD: 0.027 low: -3.701 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | — | |
| Price To Book QoQ | — | |
| Price To Book YoY | — | |
| Price To Book IPRWA | — | |
| Price To Earnings (P/E) | 6.129 | |
| Price To Earnings QoQ | 20.894 % | |
| Price To Earnings YoY | 7.038 % | |
| Price To Earnings IPRWA | high: 343.463 mean: 71.472 median: 27.997 PDD: 6.129 low: -249.146 |
|
| PE/G Ratio | -1.366 | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 34.201 | |
| Forward PE/G | -7.624 | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.72 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.183 | |
| Asset Turnover Ratio QoQ | -3.209 % | |
| Asset Turnover Ratio YoY | -16.985 % | |
| Asset Turnover Ratio IPRWA | high: 1.225 mean: 0.21 PDD: 0.183 median: 0.161 low: -0.18 |
|
| Receivables Turnover | 18.037 | |
| Receivables Turnover Ratio QoQ | -0.412 % | |
| Receivables Turnover Ratio YoY | -8.095 % | |
| Receivables Turnover Ratio IPRWA | high: 56.385 PDD: 18.037 mean: 3.887 median: 2.884 low: 0.901 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 5.059 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -190.04 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 180.649 mean: -25.498 median: -39.954 low: -161.363 PDD: -190.04 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.364 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 391.4 B | |
| Net Invested Capital | $ 396.7 B | |
| Invested Capital | $ 396.7 B | |
| Net Tangible Assets | $ 391.4 B | |
| Net Working Capital | $ 297.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.933 | |
| Current Ratio | 2.355 | |
| Current Ratio QoQ | -0.069 % | |
| Current Ratio YoY | 9.602 % | |
| Current Ratio IPRWA | high: 4.047 PDD: 2.355 median: 1.405 mean: 1.279 low: 0.178 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.426 | |
| Cost Of Debt | 0.0 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.208 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 195.099 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.211 % | |
| Revenue Growth | 4.127 % | |
| Revenue Growth QoQ | -52.503 % | |
| Revenue Growth YoY | 74.577 % | |
| Revenue Growth IPRWA | high: 33.577 % mean: 4.918 % PDD: 4.127 % median: -0.022 % low: -44.818 % |
|
| Earnings Growth | -4.486 % | |
| Earnings Growth QoQ | -104.802 % | |
| Earnings Growth YoY | -66.261 % | |
| Earnings Growth IPRWA | high: 282.778 % PDD: -4.486 % mean: -25.622 % median: -70.441 % low: -250.0 % |
|
| MARGINS | ||
| Gross Margin | 56.74 % | |
| Gross Margin QoQ | 1.506 % | |
| Gross Margin YoY | -5.485 % | |
| Gross Margin IPRWA | high: 91.478 % PDD: 56.74 % mean: 43.001 % median: 39.151 % low: 7.503 % |
|
| EBIT Margin | 23.113 % | |
| EBIT Margin QoQ | -6.817 % | |
| EBIT Margin YoY | -21.301 % | |
| EBIT Margin IPRWA | high: 41.852 % PDD: 23.113 % mean: 12.965 % median: 7.585 % low: -75.837 % |
|
| Return On Sales (ROS) | 23.113 % | |
| Return On Sales QoQ | -6.817 % | |
| Return On Sales YoY | -21.301 % | |
| Return On Sales IPRWA | high: 43.739 % PDD: 23.113 % mean: 6.465 % median: 1.748 % low: -50.686 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 45.7 B | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | 110.985 % | |
| Free Cash Growth QoQ | 181.181 % | |
| Free Cash Growth YoY | -398.724 % | |
| Free Cash Growth IPRWA | high: 303.385 % PDD: 110.985 % mean: -17.906 % median: -51.146 % low: -273.469 % |
|
| Free Cash To Net Income | 1.557 | |
| Cash Flow Margin | 31.765 % | |
| Cash Flow To Earnings | 1.557 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 4.967 % | |
| Return On Assets QoQ | -11.351 % | |
| Return On Assets YoY | -10.569 % | |
| Return On Assets IPRWA | high: 9.247 % PDD: 4.967 % mean: 1.968 % median: 0.824 % low: -18.856 % |
|
| Return On Capital Employed (ROCE) | 6.344 % | |
| Return On Equity (ROE) | 0.075 | |
| Return On Equity QoQ | -11.837 % | |
| Return On Equity YoY | -16.466 % | |
| Return On Equity IPRWA | high: 0.31 PDD: 0.075 mean: 0.028 median: 0.02 low: -0.58 |
|
| DuPont ROE | 7.787 % | |
| Return On Invested Capital (ROIC) | 5.553 % | |
| Return On Invested Capital QoQ | -8.547 % | |
| Return On Invested Capital YoY | -168.127 % | |
| Return On Invested Capital IPRWA | high: 24.354 % PDD: 5.553 % mean: 3.81 % median: 1.545 % low: -29.346 % |
|