Recent News
Jan 20, 2026 — ACRES priced a managed CLO that will fund roughly $1.0 billion of commercial first mortgage loans at a weighted-average cost of one‑month Term SOFR +168 bps. Dec 15, 2025 — the company declared quarterly cash dividends on its Series C and Series D preferred stock, setting the Series C dividend at $0.6103331 per share (floating rate tied to three‑month Term SOFR plus spread).
Technical Analysis
ADX and Directional Indicators: ADX at 20.51 indicates an emerging trend strength while DI‑ (26.37) increases and DI+ (16.09) decreases, a configuration that produces a bearish directional bias and suggests sellers currently exert more influence than buyers.
MACD: MACD shows a dip-and-reversal pattern, which signals bullish momentum development; however MACD remains slightly negative at -0.56 and sits below the signal line (-0.51), so momentum improvement requires confirmation from a cross above the signal line to gain conviction.
MRO: MRO at -7.45 indicates the price sits below the model target and therefore carries measured upside potential; the MRO dip-and-reversal trend supports a move toward the target over the near term if momentum sustains.
RSI and Momentum: RSI measures 44.53 and is decreasing, reflecting short-term weakness and limited upside conviction until momentum stabilizes above 50.
Price vs Averages and Bands: Last close $19.51 sits below the 20‑day average ($19.84), 12‑day EMA ($19.73, decreasing) and below the 26‑day EMA ($20.32), indicating immediate resistance near those averages. Bollinger bands compress (upper ~$20.37, lower ~$19.30), consistent with the low 42‑day volatility and a likely near-term range bound market until a directional breakout emerges.
Fundamental Analysis
Data through period ending 2025-09-30 (report dated 2025-10-29). EPS came in at $1.01 versus an estimate of $0.01, recorded as a 100.0% surprise. GAAP net income for the most recent reported quarter and year periods appears positive, yet operating and free cash flow show stress: operating cash flow and free cash flow both negative at $-9,417,000, producing a free cash flow yield of -6.37%.
Revenue and earnings growth: Reported revenue growth shows strong expansion — QoQ revenue growth +96.36% and YoY revenue growth +179.16% — while reported earnings growth reads -11.1% on one measure but a positive year‑over‑year earnings figure of 19.97% on another, indicating mixed signals across periods and calls for attention to underlying drivers of the swings.
Balance sheet and leverage: Cash balances total $40,925,000 against net debt of $1,147,007,000; debt to assets at 73.06% and debt to equity at 284.96% indicate high leverage. Debt to equity sits well above the industry peer mean (industry peer mean = 0.69796 and industry peer median = 0.39816), projecting materially higher leverage than peers.
Valuation metrics: Trailing P/E stands at 19.84 while forward P/E reaches 42.33; price‑to‑book equals 0.34, well below the industry peer mean (industry peer mean = 3.01068 and industry peer median = 3.63320). The low price‑to‑book relative to peers contrasts with WMDST’s determination that the stock is over‑valued, a conclusion driven by the combination of high leverage, negative free cash flow and an elevated forward P/E.
Dividend and coverage: Dividend yield around 3.57% with a dividend coverage ratio of 2.85, signaling the company covered distributions from available earnings at recent levels. Interest expense ($19,917,000) and cost of debt (~1.536%) remain material items to monitor as financing activity increases.
Valuation summary: WMDST values the stock as over‑valued given negative free cash flow, substantial net debt relative to market capitalization, and a forward multiple that implies stretched expectations despite a low trailing price‑to‑book ratio.
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 | $ 44.9 M |
| Operating Cash Flow | $ -9.42 M | |
| Capital Expenditures | $ -609.00 K | |
| Change In Working Capital | $ -13.34 M | |
| Dividends Paid | $ -5.28 M | |
| Cash Flow Delta | $ -2.17 M | |
| End Period Cash Flow | $ 42.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 34.2 M | |
| Forward Revenue | $ 896.3 K | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 1.8 M | |
| Depreciation and Amortization | $ 1.8 M | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | $ 28.3 M | |
| Interest Expense | $ 19.9 M | |
| Net Interest Income | $ 8.4 M | |
| Income Before Tax | $ 18.0 M | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | $ 15.1 M | |
| Net Income From Continuing Operations | $ 18.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.01 | |
| EPS Actual | $ 1.01 | |
| EPS Difference | $ 1.00 | |
| EPS Surprise | 10000.0 % | |
| Forward EPS | $ 0.21 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.7 B | |
| Intangible Assets | $ 6.4 M | |
| Net Tangible Assets | $ 426.5 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | — | |
| Cash | $ 40.9 M | |
| Net Receivables | $ 22.2 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 3.8 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | $ 1.1 B | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 1.3 B | |
| EQUITY | ||
| Total Equity | $ 432.9 M | |
| Retained Earnings | $ -717.08 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 58.66 | |
| Shares Outstanding | 7.381 M | |
| Revenue Per-Share | $ 4.63 | |
| VALUATION | Market Capitalization | $ 147.9 M |
| Enterprise Value | $ 1.4 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 40.421 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.901 | |
| Asset To Liability | 1.346 | |
| Debt To Capital | 0.74 | |
| Debt To Assets | 0.731 | |
| Debt To Assets QoQ | -1.955 % | |
| Debt To Assets YoY | -4.257 % | |
| Debt To Assets IPRWA | high: 1.393 ACR: 0.731 mean: 0.238 median: 0.178 low: 0.0 |
|
| Debt To Equity | 2.85 | |
| Debt To Equity QoQ | -10.556 % | |
| Debt To Equity YoY | -18.944 % | |
| Debt To Equity IPRWA | high: 4.041 ACR: 2.85 mean: 0.698 median: 0.398 low: -2.271 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.342 | |
| Price To Book QoQ | 1.371 % | |
| Price To Book YoY | 25.987 % | |
| Price To Book IPRWA | high: 9.572 median: 3.633 mean: 3.011 ACR: 0.342 low: -2.525 |
|
| Price To Earnings (P/E) | 19.836 | |
| Price To Earnings QoQ | -110.847 % | |
| Price To Earnings YoY | -68.653 % | |
| Price To Earnings IPRWA | high: 359.312 mean: 115.539 median: 96.403 ACR: 19.836 low: -207.306 |
|
| PE/G Ratio | -0.018 | |
| Price To Sales (P/S) | 4.326 | |
| Price To Sales QoQ | -33.96 % | |
| Price To Sales YoY | -8.001 % | |
| Price To Sales IPRWA | high: 42.124 mean: 12.835 median: 4.502 ACR: 4.326 low: 0.022 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 42.333 | |
| Forward PE/G | -0.038 | |
| Forward P/S | 74.378 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.019 | |
| Asset Turnover Ratio QoQ | 60.28 % | |
| Asset Turnover Ratio YoY | 59.102 % | |
| Asset Turnover Ratio IPRWA | high: 0.542 mean: 0.19 median: 0.19 ACR: 0.019 low: 0.002 |
|
| Receivables Turnover | 1.655 | |
| Receivables Turnover Ratio QoQ | 32.762 % | |
| Receivables Turnover Ratio YoY | -12.84 % | |
| Receivables Turnover Ratio IPRWA | high: 30.203 mean: 3.872 median: 3.725 ACR: 1.655 low: 0.428 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 55.143 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 55.143 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -99.285 % | |
| Cash Conversion Cycle Days IPRWA | high: 213.002 ACR: 55.143 mean: 12.061 median: 4.173 low: -232.925 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.018 | |
| CapEx To Depreciation | -0.342 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.6 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 426.5 M | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.536 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.854 | |
| Dividend Payout Ratio | 0.35 | |
| Dividend Rate | $ 0.72 | |
| Dividend Yield | 0.036 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -7.131 % | |
| Revenue Growth | 56.257 % | |
| Revenue Growth QoQ | 96.36 % | |
| Revenue Growth YoY | 179.163 % | |
| Revenue Growth IPRWA | high: 59.698 % ACR: 56.257 % median: 4.165 % mean: 3.413 % low: -61.164 % |
|
| Earnings Growth | -1110.0 % | |
| Earnings Growth QoQ | 1156.054 % | |
| Earnings Growth YoY | 1996.674 % | |
| Earnings Growth IPRWA | high: 161.538 % median: 10.0 % mean: 4.128 % low: -200.0 % ACR: -1110.0 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -9.42 M | |
| Free Cash Flow Yield | -6.369 % | |
| Free Cash Flow Yield QoQ | -177.899 % | |
| Free Cash Flow Yield YoY | -189.591 % | |
| Free Cash Flow Yield IPRWA | high: 19.492 % mean: 1.664 % median: 1.326 % low: -6.355 % ACR: -6.369 % |
|
| Free Cash Growth | -180.384 % | |
| Free Cash Growth QoQ | -48.998 % | |
| Free Cash Growth YoY | -909.078 % | |
| Free Cash Growth IPRWA | high: 718.027 % median: 147.517 % mean: 113.223 % ACR: -180.384 % low: -915.652 % |
|
| Free Cash To Net Income | -0.625 | |
| Cash Flow Margin | 32.17 % | |
| Cash Flow To Earnings | 0.73 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 0.859 % | |
| Return On Assets QoQ | 239.526 % | |
| Return On Assets YoY | 116.373 % | |
| Return On Assets IPRWA | high: 3.419 % ACR: 0.859 % mean: 0.622 % median: 0.617 % low: -1.694 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.035 | |
| Return On Equity QoQ | 225.327 % | |
| Return On Equity YoY | 86.549 % | |
| Return On Equity IPRWA | high: 0.084 ACR: 0.035 mean: 0.02 median: 0.011 low: -0.027 |
|
| DuPont ROE | 3.511 % | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |