Recent News
Jan. 13, 2026: Company presentation scheduled at the 44th Annual J.P. Morgan Healthcare Conference. Feb. 5, 2026: Q3 fiscal 2026 results and slides released, highlighting margin expansion and a plan to settle $300 million in convertible notes due March 2026. Early February 2026: several broker notes adjusted price targets and ratings (including reductions in some objectives). Dec. 21, 2025: a reported institutional stake reduction by a public fund. Late Feb 2026: select analysts lowered near-term EPS estimates for upcoming quarters.
Technical Analysis
Directional indicators: ADX at 20.71 indicates an emerging trend; DI+ shows a peak-and-reversal and DI- shows a dip-and-reversal, both signaling bearish directional pressure that weighs on near-term price momentum despite the stock’s undervaluation.
MACD: MACD sits at -1.09 with a peak-and-reversal trend, indicating bearish momentum; at the same time MACD remains above its signal line (-1.63), which constitutes a bullish crossover signal and creates a short-term momentum conflict the market must resolve before a clear directional move.
MRO (Momentum/Regression Oscillator): MRO registers 5.28 (positive), implying the market price sits above the model target and faces downward pressure toward that target; the positive MRO reinforces the probability of near-term contraction in price toward intrinsic measures used in valuation.
RSI and price structure: RSI at 42.48 with a peak-and-reversal trend reflects weakening momentum and limited upside bias while remaining above extreme-oversold levels. Price at $60.62 trades below the 20-day ($63.02), 50-day ($68.13) and 200-day ($65.96) averages; the 12-day EMA shows a peak-and-reversal. Price sits just below the 1× lower Bollinger band ($61.33) and near the 2× lower band ($59.65), indicating compressed volatility with a downside tilt but scope for mean reversion if momentum indicators shift.
Fundamental Analysis
Profitability: EBIT equals $67,396,000 and EBIT margin measures 19.88%, slightly below the industry peer mean of 20.83%. Operating margin stands at 20.09% with year-over-year improvement of 18.65%. Gross margin at 59.71% improved modestly year-over-year and supports above-average operating leverage.
Earnings and cash flow: Reported EPS actual $0.95 versus estimate $0.90, producing an EPS surprise ratio of 5.56%. Operating cash flow equals $93,564,000 and free cash flow equals $87,215,000; free cash flow yield equals 2.59%, above the industry peer mean of 0.91%, and free cash flow converts to net income at a ratio of 1.95, indicating strong cash conversion relative to reported earnings.
Growth and efficiency: Reported revenue totaled $338,967,000. YoY revenue growth shows 3.56% while quarter-over-quarter revenue growth reads 93.27% per the provided QoQ figure; asset turnover stays low at 0.137 with a slight QoQ uptick. Return on equity equals 4.91% with YoY improvement of 18.75% from the prior-year comparator.
Liquidity and leverage: Cash and short-term investments total $363,367,000 and the current ratio equals 1.75; quick ratio equals 1.15. Total debt equals $1,224,733,000 with net debt of $861,366,000. Debt-to-EBITDA sits at 12.92 and debt-to-assets at 49.17%, above the industry peer mean of 27.82%, reflecting elevated leverage following prior capital actions. Interest coverage reads 9.08, positive but below the industry peer mean of 21.02, signaling adequate near-term interest service capability while leverage appears elevated versus peers.
Valuation summary: Trailing P/E equals 54.99 and forward P/E equals 53.92, both below the industry peer mean P/E of 120.14. Price-to-book equals 3.70 versus an industry peer mean of 5.98, indicating a relatively lower P/B multiple. WMDST values the stock as under-valued based on the combination of cash generation, margins, and the firm’s current multiple profile relative to peer averages.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 296.4 M |
| Operating Cash Flow | $ 93.6 M | |
| Capital Expenditures | $ -6.35 M | |
| Change In Working Capital | $ 11.8 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 66.9 M | |
| End Period Cash Flow | $ 363.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 339.0 M | |
| Forward Revenue | $ 118.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 136.6 M | |
| Depreciation | $ 16.5 M | |
| Depreciation and Amortization | $ 27.4 M | |
| Research and Development | $ 14.2 M | |
| Total Operating Expenses | $ 270.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 202.4 M | |
| EBITDA | $ 94.8 M | |
| EBIT | $ 67.4 M | |
| Operating Income | $ 68.1 M | |
| Interest Income | — | |
| Interest Expense | $ 7.4 M | |
| Net Interest Income | $ -7.42 M | |
| Income Before Tax | $ 60.0 M | |
| Tax Provision | $ 15.2 M | |
| Tax Rate | 25.4 % | |
| Net Income | $ 44.7 M | |
| Net Income From Continuing Operations | $ 44.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.90 | |
| EPS Actual | $ 0.95 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 5.556 % | |
| Forward EPS | $ 1.33 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.5 B | |
| Intangible Assets | $ 1.0 B | |
| Net Tangible Assets | $ -115.11 M | |
| Total Current Assets | $ 943.7 M | |
| Cash and Short-Term Investments | $ 363.4 M | |
| Cash | $ 363.4 M | |
| Net Receivables | $ 195.7 M | |
| Inventory | $ 321.2 M | |
| Long-Term Investments | $ 216.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 48.7 M | |
| Short-Term Debt | $ 304.7 M | |
| Total Current Liabilities | $ 539.9 M | |
| Net Debt | $ 861.4 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 1.6 B | |
| EQUITY | ||
| Total Equity | $ 911.5 M | |
| Retained Earnings | $ 381.1 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.46 | |
| Shares Outstanding | 46.829 M | |
| Revenue Per-Share | $ 7.24 | |
| VALUATION | Market Capitalization | $ 3.4 B |
| Enterprise Value | $ 4.2 B | |
| Enterprise Multiple | 44.677 | |
| Enterprise Multiple QoQ | 12.694 % | |
| Enterprise Multiple YoY | 11.191 % | |
| Enterprise Multiple IPRWA | high: 158.913 median: 85.622 mean: 83.526 HAE: 44.677 low: -144.328 |
|
| EV/R | 12.492 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.733 | |
| Asset To Liability | 1.577 | |
| Debt To Capital | 0.573 | |
| Debt To Assets | 0.492 | |
| Debt To Assets QoQ | -1.956 % | |
| Debt To Assets YoY | 24484.0 % | |
| Debt To Assets IPRWA | high: 0.717 HAE: 0.492 mean: 0.278 median: 0.262 low: 0.009 |
|
| Debt To Equity | 1.344 | |
| Debt To Equity QoQ | -6.832 % | |
| Debt To Equity YoY | 23895.0 % | |
| Debt To Equity IPRWA | high: 1.843 HAE: 1.344 mean: 0.526 median: 0.472 low: 0.01 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.701 | |
| Price To Book QoQ | 25.171 % | |
| Price To Book YoY | -12.913 % | |
| Price To Book IPRWA | high: 10.911 mean: 5.977 median: 5.854 HAE: 3.701 low: 0.42 |
|
| Price To Earnings (P/E) | 54.985 | |
| Price To Earnings QoQ | 30.021 % | |
| Price To Earnings YoY | -14.708 % | |
| Price To Earnings IPRWA | high: 269.298 mean: 120.143 median: 86.718 HAE: 54.985 low: -315.07 |
|
| PE/G Ratio | 17.456 | |
| Price To Sales (P/S) | 9.951 | |
| Price To Sales QoQ | 29.733 % | |
| Price To Sales YoY | -10.0 % | |
| Price To Sales IPRWA | high: 30.65 median: 23.476 mean: 20.177 HAE: 9.951 low: 0.541 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 53.918 | |
| Forward PE/G | 17.117 | |
| Forward P/S | 28.584 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.277 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.137 | |
| Asset Turnover Ratio QoQ | 2.959 % | |
| Asset Turnover Ratio YoY | -0.312 % | |
| Asset Turnover Ratio IPRWA | high: 0.371 HAE: 0.137 median: 0.133 mean: 0.127 low: 0.003 |
|
| Receivables Turnover | 1.683 | |
| Receivables Turnover Ratio QoQ | 4.857 % | |
| Receivables Turnover Ratio YoY | 2.736 % | |
| Receivables Turnover Ratio IPRWA | high: 2.907 mean: 1.882 median: 1.867 HAE: 1.683 low: 0.47 |
|
| Inventory Turnover | 0.416 | |
| Inventory Turnover Ratio QoQ | 9.189 % | |
| Inventory Turnover Ratio YoY | -0.577 % | |
| Inventory Turnover Ratio IPRWA | high: 1.821 mean: 0.672 median: 0.548 HAE: 0.416 low: 0.167 |
|
| Days Sales Outstanding (DSO) | 54.213 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 242.468 | |
| Cash Conversion Cycle Days QoQ | -8.48 % | |
| Cash Conversion Cycle Days YoY | 4.687 % | |
| Cash Conversion Cycle Days IPRWA | high: 453.393 HAE: 242.468 mean: 171.298 median: 165.533 low: -118.454 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.839 | |
| CapEx To Revenue | -0.019 | |
| CapEx To Depreciation | -0.386 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.8 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ -115.11 M | |
| Net Working Capital | $ 403.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.673 | |
| Current Ratio | 1.748 | |
| Current Ratio QoQ | 6.532 % | |
| Current Ratio YoY | -55.994 % | |
| Current Ratio IPRWA | high: 12.891 mean: 2.705 median: 1.893 HAE: 1.748 low: 0.168 |
|
| Quick Ratio | 1.153 | |
| Quick Ratio QoQ | 12.203 % | |
| Quick Ratio YoY | -54.818 % | |
| Quick Ratio IPRWA | high: 12.347 mean: 2.057 median: 1.508 HAE: 1.153 low: 0.437 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.922 | |
| Cost Of Debt | 0.452 % | |
| Interest Coverage Ratio | 9.082 | |
| Interest Coverage Ratio QoQ | 11.886 % | |
| Interest Coverage Ratio YoY | 40.191 % | |
| Interest Coverage Ratio IPRWA | high: 33.446 median: 25.964 mean: 21.023 HAE: 9.082 low: -66.822 |
|
| Operating Cash Flow Ratio | 0.158 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 37.99 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.996 % | |
| Revenue Growth | 3.56 % | |
| Revenue Growth QoQ | 93.268 % | |
| Revenue Growth YoY | 305.929 % | |
| Revenue Growth IPRWA | high: 20.682 % median: 12.969 % mean: 10.174 % HAE: 3.56 % low: -11.548 % |
|
| Earnings Growth | 3.15 % | |
| Earnings Growth QoQ | -79.618 % | |
| Earnings Growth YoY | -49.6 % | |
| Earnings Growth IPRWA | high: 216.667 % mean: 10.387 % median: 6.383 % HAE: 3.15 % low: -142.105 % |
|
| MARGINS | ||
| Gross Margin | 59.707 % | |
| Gross Margin QoQ | 0.353 % | |
| Gross Margin YoY | 7.522 % | |
| Gross Margin IPRWA | high: 89.02 % median: 64.538 % mean: 62.816 % HAE: 59.707 % low: 1.515 % |
|
| EBIT Margin | 19.883 % | |
| EBIT Margin QoQ | 11.265 % | |
| EBIT Margin YoY | 17.401 % | |
| EBIT Margin IPRWA | high: 33.51 % median: 20.883 % mean: 20.827 % HAE: 19.883 % low: -143.917 % |
|
| Return On Sales (ROS) | 20.094 % | |
| Return On Sales QoQ | -1.942 % | |
| Return On Sales YoY | 18.647 % | |
| Return On Sales IPRWA | high: 35.479 % mean: 22.144 % median: 21.965 % HAE: 20.094 % low: -146.78 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 87.2 M | |
| Free Cash Flow Yield | 2.586 % | |
| Free Cash Flow Yield QoQ | -38.923 % | |
| Free Cash Flow Yield YoY | 182.932 % | |
| Free Cash Flow Yield IPRWA | high: 4.073 % HAE: 2.586 % median: 0.969 % mean: 0.905 % low: -10.193 % |
|
| Free Cash Growth | -17.958 % | |
| Free Cash Growth QoQ | -102.644 % | |
| Free Cash Growth YoY | 69.639 % | |
| Free Cash Growth IPRWA | high: 152.763 % mean: 4.95 % median: -0.761 % HAE: -17.958 % low: -446.345 % |
|
| Free Cash To Net Income | 1.949 | |
| Cash Flow Margin | 25.226 % | |
| Cash Flow To Earnings | 1.911 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.814 % | |
| Return On Assets QoQ | 14.956 % | |
| Return On Assets YoY | 22.32 % | |
| Return On Assets IPRWA | high: 5.088 % mean: 2.0 % HAE: 1.814 % median: 1.556 % low: -17.15 % |
|
| Return On Capital Employed (ROCE) | 3.454 % | |
| Return On Equity (ROE) | 0.049 | |
| Return On Equity QoQ | 7.772 % | |
| Return On Equity YoY | 18.747 % | |
| Return On Equity IPRWA | high: 0.174 HAE: 0.049 mean: 0.031 median: 0.028 low: -0.303 |
|
| DuPont ROE | 5.082 % | |
| Return On Invested Capital (ROIC) | 2.354 % | |
| Return On Invested Capital QoQ | 10.672 % | |
| Return On Invested Capital YoY | -116.768 % | |
| Return On Invested Capital IPRWA | high: 5.899 % mean: 2.697 % HAE: 2.354 % median: 2.127 % low: -14.233 % |
|