Recent News
Jan. 2, 2026 — The company completed the previously announced merger with CAC Group, closing the transaction and enlarging its specialty and middle‑market distribution footprint. Jan. 2, 2026 — Management financed the transaction with a $600.0 million incremental Term Loan B add‑on. Jan. 1–12, 2026 — Leadership adjustments followed the combination, including the appointment of CAC’s Paul Sparks to the board. Feb. 26, 2026 — Q4 2025 results released: revenue reported higher year‑over‑year while net losses widened and management provided 2026 guidance including revenue and adjusted EBITDA ranges.
Technical Analysis
ADX at 20.95 signals an emerging trend strength, indicating price action recently developed directional character but lacks the force of a strong trend; this constrains confidence in sustained breakout conviction.
DI+ registered a peak-and-reversal, a bearish directional signal that reflects waning upward dominance; conversely, DI- sits lower and decreasing, a bullish directional signal that indicates diminishing downside pressure — these offsetting directional signals suggest short-term directional contention rather than a clean trend change.
MACD currently sits above its signal line (MACD 0.16 vs signal -0.06), having crossed higher; that crossing represents bullish momentum and supports near-term upside attempts from the price band.
MRO at 4.75 remains positive, implying the market price sits above the model target and therefore carries mild downside pressure; the magnitude points to limited mean‑reversion force rather than a strong overvaluation shock.
RSI of 47.13, rising, indicates improving momentum without reaching overbought levels — price retains room to run within the short-term band before triggering exhaustion signals.
Price at $21.64 trades above the 12‑day and 26‑day EMAs (12‑day EMA $21.01; 26‑day EMA $20.74) and above the 20‑day and 50‑day simple averages, supporting short-term constructive bias; price remains below the 200‑day average ($28.71) and under the Ichimoku cloud (Senkou A $22.29 / Senkou B $23.23), which preserves longer-term resistance.
Bollinger positioning finds the close inside the upper band (upper 1σ $21.96), indicating the move carries some proximity to short-term resistance but not an extreme extension. Volume at 6,044,138 well exceeds 10‑day and 50/200‑day averages, showing notable participation behind the recent move and increasing the validity of near-term price attempts above short‑term averages.
Fundamental Analysis
Earnings and margins: EPS came in at -$0.37 versus an estimate of -$0.25 (an EPS miss of -$0.12, a -48% surprise), with net income of -$25,861,000 and operating income of -$15,727,000. Adjusted EBITDA remains positive at $24,943,000, indicating underlying operating cash generation despite negative reported operating profit and per‑share losses; the gap between EBITDA and net earnings reflects elevated non‑operating charges and interest costs.
Revenue and growth: Total revenue stood at $342,897,000. YoY revenue growth reads 44.91% and QoQ growth 73.93%, both showing strong top‑line expansion over recent reporting periods; gross profit of $90,697,000 produced a gross margin of 26.45% with a large YoY improvement in gross margin reported.
Margins versus peers: EBIT margin at -4.59% sits well below the industry peer mean of 13.52% and median of 11.62%, signaling material profitability lag relative to peer operating performance; operating margin mirrors that shortfall and weighs on valuation multiples.
Working capital and cash flow: Cash conversion cycle stands at -49.18 days, materially shorter than the industry peer mean of 10.05 days and median of 16.20 days, reflecting efficient receivables collection and vendor timing that supports cash generation. Operating cash flow of $10,269,000 turned positive, but free cash flow recorded a small negative result (‑$84,000) and free cash flow growth remains negative, limiting immediate balance‑sheet repair capacity.
Leverage and coverage: Total debt $1,770,442,000 with net debt $1,571,034,000 compares to market capitalization $1,600,047,138; net debt approximates market cap and produces elevated leverage metrics (debt-to-EBITDA ~71.0, debt-to-equity ~2.95). Interest coverage sits negative, indicating operating earnings do not cover net interest expense. These leverage characteristics materially increase execution and refinancing risk tied to recent M&A financing.
Valuation context: Price-to-earnings stands near 71.91 while forward P/E reads ~40.94; enterprise multiple sits at 130.17, above the industry peer high of ~123.67, and signals rich enterprise valuation relative to reported earnings power. Book multiple and P/S positions (P/B ~2.67, P/S ~4.67) sit unevenly against peer medians and means supplied. The current valuation as determined by WMDST: over‑valued, driven by high leverage, negative reported earnings, limited free cash flow conversion, and an enterprise multiple above the peer range.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-26 |
| NEXT REPORT DATE: | 2026-05-28 |
| CASH FLOW | Begin Period Cash Flow | $ 325.9 M |
| Operating Cash Flow | $ 10.3 M | |
| Capital Expenditures | $ -10.35 M | |
| Change In Working Capital | $ -4.54 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 21.0 M | |
| End Period Cash Flow | $ 346.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 342.9 M | |
| Forward Revenue | $ -151.39 M | |
| COSTS | ||
| Cost Of Revenue | $ 252.2 M | |
| Depreciation | $ 1.6 M | |
| Depreciation and Amortization | $ 40.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 358.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 90.7 M | |
| EBITDA | $ 24.9 M | |
| EBIT | $ -15.73 M | |
| Operating Income | $ -15.73 M | |
| Interest Income | $ -29.00 M | |
| Interest Expense | — | |
| Net Interest Income | $ -29.00 M | |
| Income Before Tax | $ -42.63 M | |
| Tax Provision | $ 1.0 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -25.86 M | |
| Net Income From Continuing Operations | $ -43.67 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.25 | |
| EPS Actual | $ -0.37 | |
| EPS Difference | $ -0.12 | |
| EPS Surprise | -48.0 % | |
| Forward EPS | $ 0.64 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.9 B | |
| Intangible Assets | $ 2.5 B | |
| Net Tangible Assets | $ -1.90 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 123.7 M | |
| Cash | $ 123.7 M | |
| Net Receivables | $ 342.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 82.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 771.2 M | |
| Short-Term Debt | $ 21.6 M | |
| Total Current Liabilities | $ 1.0 B | |
| Net Debt | $ 1.6 B | |
| Total Debt | $ 1.8 B | |
| Total Liabilities | $ 2.8 B | |
| EQUITY | ||
| Total Equity | $ 600.2 M | |
| Retained Earnings | $ -245.24 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 8.36 | |
| Shares Outstanding | 71.780 M | |
| Revenue Per-Share | $ 4.78 | |
| VALUATION | Market Capitalization | $ 1.6 B |
| Enterprise Value | $ 3.2 B | |
| Enterprise Multiple | 130.17 | |
| Enterprise Multiple QoQ | 30.465 % | |
| Enterprise Multiple YoY | -98.754 % | |
| Enterprise Multiple IPRWA | BWIN: 130.17 high: 123.675 median: 91.512 mean: 87.908 low: 5.064 |
|
| EV/R | 9.469 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 6.435 | |
| Asset To Liability | 1.39 | |
| Debt To Capital | 0.747 | |
| Debt To Assets | 0.458 | |
| Debt To Assets QoQ | 0.0 % | |
| Debt To Assets YoY | 932.2 % | |
| Debt To Assets IPRWA | high: 1.609 mean: 0.65 median: 0.62 BWIN: 0.458 low: 0.019 |
|
| Debt To Equity | 2.95 | |
| Debt To Equity QoQ | 5.099 % | |
| Debt To Equity YoY | 995.843 % | |
| Debt To Equity IPRWA | high: 12.912 BWIN: 2.95 mean: -0.781 median: -1.801 low: -7.692 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.666 | |
| Price To Book QoQ | -20.041 % | |
| Price To Book YoY | -45.102 % | |
| Price To Book IPRWA | high: 26.123 BWIN: 2.666 mean: -2.854 median: -5.751 low: -26.316 |
|
| Price To Earnings (P/E) | 71.907 | |
| Price To Earnings QoQ | -22.945 % | |
| Price To Earnings YoY | -53.397 % | |
| Price To Earnings IPRWA | high: 247.068 mean: 139.598 median: 119.266 BWIN: 71.907 low: -244.749 |
|
| PE/G Ratio | -0.328 | |
| Price To Sales (P/S) | 4.666 | |
| Price To Sales QoQ | -18.101 % | |
| Price To Sales YoY | -46.708 % | |
| Price To Sales IPRWA | high: 27.836 mean: 14.58 median: 12.243 BWIN: 4.666 low: 0.273 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 40.942 | |
| Forward PE/G | -0.187 | |
| Forward P/S | -10.47 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 74.066 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.09 | |
| Asset Turnover Ratio QoQ | -6.959 % | |
| Asset Turnover Ratio YoY | -2.045 % | |
| Asset Turnover Ratio IPRWA | high: 0.603 median: 0.242 mean: 0.234 BWIN: 0.09 low: 0.078 |
|
| Receivables Turnover | 0.996 | |
| Receivables Turnover Ratio QoQ | -4.407 % | |
| Receivables Turnover Ratio YoY | 109.108 % | |
| Receivables Turnover Ratio IPRWA | high: 47.268 mean: 9.672 median: 7.943 low: 1.083 BWIN: 0.996 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 91.624 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -49.183 | |
| Cash Conversion Cycle Days QoQ | -177.166 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 84.283 median: 16.201 mean: 10.046 low: -43.044 BWIN: -49.183 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.054 | |
| CapEx To Revenue | -0.03 | |
| CapEx To Depreciation | -6.313 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.3 B | |
| Net Invested Capital | $ 2.3 B | |
| Invested Capital | $ 2.3 B | |
| Net Tangible Assets | $ -1.90 B | |
| Net Working Capital | $ 167.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.12 | |
| Current Ratio | 1.162 | |
| Current Ratio QoQ | 0.783 % | |
| Current Ratio YoY | 19.554 % | |
| Current Ratio IPRWA | high: 2.73 BWIN: 1.162 median: 1.047 mean: 0.964 low: 0.36 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 70.98 | |
| Cost Of Debt | 1.42 % | |
| Interest Coverage Ratio | -0.499 | |
| Interest Coverage Ratio QoQ | -402.671 % | |
| Interest Coverage Ratio YoY | -43.222 % | |
| Interest Coverage Ratio IPRWA | high: 16.489 mean: 4.98 median: 4.277 BWIN: -0.499 low: -8.807 |
|
| Operating Cash Flow Ratio | 0.699 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 140.807 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.804 % | |
| Revenue Growth | -5.437 % | |
| Revenue Growth QoQ | 73.928 % | |
| Revenue Growth YoY | 44.909 % | |
| Revenue Growth IPRWA | high: 27.02 % median: 1.758 % mean: -0.855 % BWIN: -5.437 % low: -32.161 % |
|
| Earnings Growth | -219.355 % | |
| Earnings Growth QoQ | 737.553 % | |
| Earnings Growth YoY | 1106.44 % | |
| Earnings Growth IPRWA | high: 100.0 % median: -3.106 % mean: -17.445 % low: -215.0 % BWIN: -219.355 % |
|
| MARGINS | ||
| Gross Margin | 26.45 % | |
| Gross Margin QoQ | 6.016 % | |
| Gross Margin YoY | 90.178 % | |
| Gross Margin IPRWA | high: 82.469 % mean: 33.114 % BWIN: 26.45 % median: 23.421 % low: -4.539 % |
|
| EBIT Margin | -4.587 % | |
| EBIT Margin QoQ | -420.098 % | |
| EBIT Margin YoY | -46.439 % | |
| EBIT Margin IPRWA | high: 34.806 % mean: 13.519 % median: 11.624 % BWIN: -4.587 % low: -8.383 % |
|
| Return On Sales (ROS) | -4.587 % | |
| Return On Sales QoQ | -420.098 % | |
| Return On Sales YoY | -46.439 % | |
| Return On Sales IPRWA | high: 40.032 % mean: 14.093 % median: 11.631 % BWIN: -4.587 % low: -7.947 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -84.00 K | |
| Free Cash Flow Yield | 0.0 % | |
| Free Cash Flow Yield QoQ | -100.0 % | |
| Free Cash Flow Yield YoY | -100.0 % | |
| Free Cash Flow Yield IPRWA | high: 4.629 % mean: 0.941 % median: 0.802 % BWIN: 0.0 % low: -1.958 % |
|
| Free Cash Growth | -100.261 % | |
| Free Cash Growth QoQ | -53.243 % | |
| Free Cash Growth YoY | -34.502 % | |
| Free Cash Growth IPRWA | high: 149.518 % median: -31.246 % mean: -32.581 % BWIN: -100.261 % low: -365.169 % |
|
| Free Cash To Net Income | 0.003 | |
| Cash Flow Margin | 210.458 % | |
| Cash Flow To Earnings | -27.905 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -0.676 % | |
| Return On Assets QoQ | 36.016 % | |
| Return On Assets YoY | 18.596 % | |
| Return On Assets IPRWA | high: 6.953 % mean: 1.931 % median: 1.607 % BWIN: -0.676 % low: -1.777 % |
|
| Return On Capital Employed (ROCE) | -0.556 % | |
| Return On Equity (ROE) | -0.043 | |
| Return On Equity QoQ | 42.588 % | |
| Return On Equity YoY | 24.646 % | |
| Return On Equity IPRWA | high: 0.351 mean: -0.004 median: -0.035 BWIN: -0.043 low: -0.202 |
|
| DuPont ROE | -4.24 % | |
| Return On Invested Capital (ROIC) | -0.541 % | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | -99.825 % | |
| Return On Invested Capital IPRWA | high: 18.398 % mean: 6.468 % median: 5.862 % BWIN: -0.541 % low: -5.359 % |
|