Recent News
On November 25, 2025 analysts modestly raised price targets after management reported the completion of a multi‑year buyback and a materially smaller goodwill impairment; the company also reaffirmed 2025 revenue guidance. These updates highlighted continued share repurchases through mid‑2025 and the company’s stated focus on cash returns.
Technical Analysis
Directional indicators: ADX at 34.97 indicates a strong trend environment; DI+ at 12.72 decreasing signals recent loss of upward directional pressure, while DI‑ displayed a peak & reversal that implies DI‑ has started to decline—together these signals mark a recent shift in directional forces away from sellers.
MACD momentum: MACD at -1.44 with the MACD line decreasing and below the signal (-0.82) reflects bearish momentum; the current MACD profile does not yet signal a bullish crossover.
MRO: MRO reads -2.44, indicating the price sits below the regression target and therefore carries potential to move higher toward that target; the MRO trend is decreasing, tempering the immediacy of that potential.
RSI and price rhythm: RSI at 46.06 and declining shows mild downward pressure without oversold breadth; the 12‑day EMA and 26‑day EMA sit above the close and are trending down, placing the price below short‑term moving averages and signalling near‑term resistance against rallies.
Price vs averages and bands: Last close at $30.46 trades below the 50‑day ($35.40) and 200‑day ($34.45) averages, while hovering just above the 1‑sigma lower Bollinger band ($29.84). That configuration places the stock near lower‑band support inside a down‑sloping moving‑average structure.
Fundamental Analysis
Profitability and margins: EBIT of $15,638,000 produces an EBIT margin of 4.3%, which sits well below the industry peer mean of 41.15% and the industry peer median of 24.84%. Quarter‑over‑quarter EBIT margin contracted by 52.73% and year‑over‑year by 147.61%, signalling sizable recent margin compression relative to prior periods.
Top line and growth: Reported total revenue of $363,711,000 with revenue growth shown as 3.27% in one metric, but revenue growth QoQ listed at -54.47% and revenue growth YoY at -68.04%; those QoQ and YoY declines indicate acute recent cycle weakness in reported top‑line comparisons despite the smaller positive growth metric elsewhere.
Cash flow and capital allocation: Free cash flow stands at $108,163,000 with a free cash flow yield of 7.50%, above the industry peer mean of 0.81%, and free cash flow growth year‑over‑year of 37.22%. Cash on hand of $503,368,000 and operating cash flow of $138,299,000 underpin the company’s active share repurchase program noted in recent updates.
Leverage and coverage: Total debt of $865,937,000 produces debt/EBITDA of 11.87x, while interest coverage equals 2.41x and declined year‑over‑year. The debt profile therefore reflects elevated leverage relative to operating earnings, with interest coverage remaining marginal but positive.
Capital efficiency and working capital: Cash conversion cycle registers at -143.41 days (industry peer mean ~3.88 days), reflecting very fast cash conversion driven by long payables and slower receivable turns; operating cash conversion supports the company’s capacity to continue buybacks or handle near‑term obligations.
Earnings and valuation metrics: Reported EPS of $1.76 fell $0.02 versus estimate ($1.78), an EPS surprise of -1.12%. Trailing PE sits at 20.48 with forward PE of 19.23 and a PEG near 0.49; price‑to‑book equals 0.80, notably below the industry peer mean of 7.74. WMDST values the stock as under‑valued based on these cash‑flow and balance‑sheet dynamics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 457.3 M |
| Operating Cash Flow | $ 138.3 M | |
| Capital Expenditures | $ -30.14 M | |
| Change In Working Capital | $ 26.5 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 46.1 M | |
| End Period Cash Flow | $ 503.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 363.7 M | |
| Forward Revenue | $ -1.85 B | |
| COSTS | ||
| Cost Of Revenue | $ 53.2 M | |
| Depreciation | $ 57.3 M | |
| Depreciation and Amortization | $ 57.3 M | |
| Research and Development | $ 15.4 M | |
| Total Operating Expenses | $ 335.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 310.6 M | |
| EBITDA | $ 73.0 M | |
| EBIT | $ 15.6 M | |
| Operating Income | $ 28.4 M | |
| Interest Income | — | |
| Interest Expense | $ 6.5 M | |
| Net Interest Income | $ -6.50 M | |
| Income Before Tax | $ 9.1 M | |
| Tax Provision | $ 12.8 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -3.60 M | |
| Net Income From Continuing Operations | $ -3.60 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.78 | |
| EPS Actual | $ 1.76 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -1.124 % | |
| Forward EPS | $ 1.83 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.5 B | |
| Intangible Assets | $ 2.0 B | |
| Net Tangible Assets | $ -182.60 M | |
| Total Current Assets | $ 1.1 B | |
| Cash and Short-Term Investments | $ 503.4 M | |
| Cash | $ 503.4 M | |
| Net Receivables | $ 473.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 36.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 147.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 698.0 M | |
| Net Debt | $ 362.6 M | |
| Total Debt | $ 865.9 M | |
| Total Liabilities | $ 1.7 B | |
| EQUITY | ||
| Total Equity | $ 1.8 B | |
| Retained Earnings | $ 1.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 44.98 | |
| Shares Outstanding | 39.993 M | |
| Revenue Per-Share | $ 9.09 | |
| VALUATION | Market Capitalization | $ 1.4 B |
| Enterprise Value | $ 1.8 B | |
| Enterprise Multiple | 24.728 | |
| Enterprise Multiple QoQ | 21.157 % | |
| Enterprise Multiple YoY | -70.956 % | |
| Enterprise Multiple IPRWA | high: 279.681 mean: 59.406 median: 55.385 ZD: 24.728 low: -157.057 |
|
| EV/R | 4.96 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.933 | |
| Asset To Liability | 2.072 | |
| Debt To Capital | 0.325 | |
| Debt To Assets | 0.249 | |
| Debt To Assets QoQ | 1.285 % | |
| Debt To Assets YoY | 8038.889 % | |
| Debt To Assets IPRWA | high: 0.89 ZD: 0.249 mean: 0.095 median: 0.057 low: 0.001 |
|
| Debt To Equity | 0.481 | |
| Debt To Equity QoQ | 2.498 % | |
| Debt To Equity YoY | 7963.149 % | |
| Debt To Equity IPRWA | high: 1.778 ZD: 0.481 mean: 0.145 median: 0.064 low: -0.923 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.801 | |
| Price To Book QoQ | 3.876 % | |
| Price To Book YoY | -30.78 % | |
| Price To Book IPRWA | high: 11.238 mean: 7.742 median: 7.289 ZD: 0.801 low: -1.614 |
|
| Price To Earnings (P/E) | 20.48 | |
| Price To Earnings QoQ | -22.279 % | |
| Price To Earnings YoY | -29.235 % | |
| Price To Earnings IPRWA | high: 247.775 mean: 80.906 median: 67.083 ZD: 20.48 low: -128.849 |
|
| PE/G Ratio | 0.488 | |
| Price To Sales (P/S) | 3.963 | |
| Price To Sales QoQ | -1.798 % | |
| Price To Sales YoY | -30.918 % | |
| Price To Sales IPRWA | high: 54.08 mean: 29.277 median: 27.551 ZD: 3.963 low: 0.003 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 19.225 | |
| Forward PE/G | 0.458 | |
| Forward P/S | -0.764 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -15.674 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.104 | |
| Asset Turnover Ratio QoQ | 3.835 % | |
| Asset Turnover Ratio YoY | 4.137 % | |
| Asset Turnover Ratio IPRWA | high: 0.5 mean: 0.189 median: 0.182 ZD: 0.104 low: 0.003 |
|
| Receivables Turnover | 0.73 | |
| Receivables Turnover Ratio QoQ | 7.899 % | |
| Receivables Turnover Ratio YoY | -4.903 % | |
| Receivables Turnover Ratio IPRWA | high: 11.52 mean: 2.135 median: 1.643 ZD: 0.73 low: 0.143 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 124.962 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -143.408 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 125.332 median: 15.557 mean: 3.883 ZD: -143.408 low: -343.916 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.853 | |
| CapEx To Revenue | -0.083 | |
| CapEx To Depreciation | -0.526 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.7 B | |
| Net Invested Capital | $ 2.7 B | |
| Invested Capital | $ 2.7 B | |
| Net Tangible Assets | $ -182.60 M | |
| Net Working Capital | $ 426.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.721 | |
| Current Ratio | 1.611 | |
| Current Ratio QoQ | 1.247 % | |
| Current Ratio YoY | 13.061 % | |
| Current Ratio IPRWA | high: 8.871 mean: 1.816 ZD: 1.611 median: 1.508 low: 0.217 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 11.869 | |
| Cost Of Debt | 0.593 % | |
| Interest Coverage Ratio | 2.407 | |
| Interest Coverage Ratio QoQ | -50.985 % | |
| Interest Coverage Ratio YoY | -130.332 % | |
| Interest Coverage Ratio IPRWA | high: 197.383 mean: 82.775 median: 8.431 ZD: 2.407 low: -113.554 |
|
| Operating Cash Flow Ratio | 0.159 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 268.37 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.207 % | |
| Revenue Growth | 3.266 % | |
| Revenue Growth QoQ | -54.468 % | |
| Revenue Growth YoY | -68.037 % | |
| Revenue Growth IPRWA | high: 25.814 % mean: 6.719 % median: 4.74 % ZD: 3.266 % low: -28.624 % |
|
| Earnings Growth | 41.935 % | |
| Earnings Growth QoQ | 378.055 % | |
| Earnings Growth YoY | 7.573 % | |
| Earnings Growth IPRWA | high: 243.333 % ZD: 41.935 % median: 11.765 % mean: -1.8 % low: -250.0 % |
|
| MARGINS | ||
| Gross Margin | 85.386 % | |
| Gross Margin QoQ | -0.824 % | |
| Gross Margin YoY | 0.523 % | |
| Gross Margin IPRWA | high: 97.596 % ZD: 85.386 % mean: 65.054 % median: 54.61 % low: -1.845 % |
|
| EBIT Margin | 4.3 % | |
| EBIT Margin QoQ | -52.726 % | |
| EBIT Margin YoY | -147.609 % | |
| EBIT Margin IPRWA | high: 49.713 % mean: 41.148 % median: 24.838 % ZD: 4.3 % low: -49.635 % |
|
| Return On Sales (ROS) | 7.82 % | |
| Return On Sales QoQ | -17.745 % | |
| Return On Sales YoY | -186.581 % | |
| Return On Sales IPRWA | high: 49.713 % mean: 31.418 % median: 15.318 % ZD: 7.82 % low: -59.443 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 108.2 M | |
| Free Cash Flow Yield | 7.503 % | |
| Free Cash Flow Yield QoQ | 295.937 % | |
| Free Cash Flow Yield YoY | 89.997 % | |
| Free Cash Flow Yield IPRWA | high: 14.053 % ZD: 7.503 % median: 0.868 % mean: 0.812 % low: -14.281 % |
|
| Free Cash Growth | 301.481 % | |
| Free Cash Growth QoQ | -147.241 % | |
| Free Cash Growth YoY | 37.223 % | |
| Free Cash Growth IPRWA | high: 483.929 % ZD: 301.481 % mean: 265.912 % median: 155.77 % low: -537.101 % |
|
| Free Cash To Net Income | -30.062 | |
| Cash Flow Margin | 30.476 % | |
| Cash Flow To Earnings | -30.807 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -0.103 % | |
| Return On Assets QoQ | -113.752 % | |
| Return On Assets YoY | -92.493 % | |
| Return On Assets IPRWA | high: 8.647 % mean: 5.054 % median: 3.291 % ZD: -0.103 % low: -11.927 % |
|
| Return On Capital Employed (ROCE) | 0.563 % | |
| Return On Equity (ROE) | -0.002 | |
| Return On Equity QoQ | -113.986 % | |
| Return On Equity YoY | -92.785 % | |
| Return On Equity IPRWA | high: 0.135 mean: 0.069 median: 0.037 ZD: -0.002 low: -0.144 |
|
| DuPont ROE | -0.198 % | |
| Return On Invested Capital (ROIC) | 0.464 % | |
| Return On Invested Capital QoQ | -52.846 % | |
| Return On Invested Capital YoY | -93.091 % | |
| Return On Invested Capital IPRWA | high: 16.42 % mean: 7.88 % median: 3.592 % ZD: 0.464 % low: -14.369 % |
|