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On January 12, 2026 the company issued a notice of redemption for all outstanding 8.625% senior secured second‑lien notes due 2027, with a scheduled redemption date of January 22, 2026 and a redemption price of 104.313% plus accrued interest. On February 11, 2026 the company filed an amendment to its Credit Agreement that reduces the aggregate revolving credit capacity to $700 million and increases the term‑loan facility to $150 million with revised repayment terms and extended maturities.
Technical Analysis
ADX sits at 16.39, indicating no established trend; momentum appears short‑lived rather than part of a strong directional move.
Directional indicators favor the bulls: DI+ at 26.50 and rising while DI− at 16.38 declines, a bullish divergence that supports near‑term upside pressure on price.
MACD at 0.26 has crossed above its signal line at 0.02 and the MACD trend shows continuing upward momentum, which constitutes a bullish momentum signal for the coming days.
MRO reads 27.03 and is increasing; because the MRO sits positive, the market price currently trades above the MRO target and the indicator implies pressure for a downward reversion toward fair value.
RSI near 52 with an upward slope reflects neutral-to-positive internals rather than overbought conditions, consistent with limited but constructive buying interest.
Price trades above its short‑ and long‑term averages — 20‑day at $25.97, 50‑day at $25.91 and 200‑day at $25.09 — and above the 12‑day EMA at $26.28, which supports a modest bullish bias; the close at $26.99 sits near the upper Bollinger band, signaling reduced upside room before mean reversion risks rise.
Fundamental Analysis
Revenue totaled $284,763,000 with YoY revenue growth of 6.44% and QoQ growth of 22.29%, showing sequential acceleration even as top‑line trends remain mixed on an annual basis.
Gross margin at 35.00% outpaces many peers’ averages and supports higher‑margin operations, while operating margin sits negative at −5.51% and operating income at −$15,685,000, revealing operating expense pressure despite healthy gross profit of $99,673,000.
EBIT registers at $99,051,000 and EBITDA at $111,747,000, producing an EBIT margin of 34.78%, which stands above the industry peer mean of 22.36% and industry peer median of 23.45% but below the industry peer high of 37.29%; QoQ the EBIT margin contracted by 12.48% even as YoY it expanded by 13.19%.
Net income from continuing operations reached $43,629,000 while EPS came in at −$0.19 versus an estimate of $0.05, a miss of $0.24 (an EPS surprise of −480%). Free cash flow remained negative at −$57,249,000 and free cash flow yield recorded −7.08%, a cash‑generation shortfall that weighs on valuation despite operating profitability at the EBIT level.
Leverage remains elevated: total debt $586,355,000 with net debt $505,670,000 against market capitalization of $809,138,350, so net debt approximates 62.5% of market cap and debt-to-EBITDA stands near 5.25x. Interest coverage at about 6.77x provides room but the company has taken explicit steps to cut high‑coupon obligations (redemption of the 8.625% notes) and amended the credit facility to reshape maturities.
Return on equity sits at 8.03%, above the industry peer mean of 6.82% and the peer median, indicating relatively efficient equity returns despite cash-flow pressure. The balance sheet shows current ratio 1.51 and quick ratio 0.91, both close to industry peer averages; cash conversion cycle at ~85 days exceeds the industry peer mean of ~72 days by roughly 13 days, reflecting working‑capital intensity.
Market multiples reflect valuation stress: trailing PE is negative at −136.82 due to the reported loss per share, forward P/E equals ~83.55, P/B at 1.49 sits below the industry peer mean of 10.21, and enterprise multiple around 12.21. WMDST values the stock as over‑valued, driven by negative free cash flow, elevated leverage metrics, and a stretched forward multiple despite operating-level profitability.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-03 |
| NEXT REPORT DATE: | 2026-05-05 |
| CASH FLOW | Begin Period Cash Flow | $ 32.4 M |
| Operating Cash Flow | $ -51.99 M | |
| Capital Expenditures | $ -5.26 M | |
| Change In Working Capital | $ -2.05 M | |
| Dividends Paid | $ -9.47 M | |
| Cash Flow Delta | $ -1.08 M | |
| End Period Cash Flow | $ 31.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 284.8 M | |
| Forward Revenue | $ 15.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 185.1 M | |
| Depreciation | $ 9.7 M | |
| Depreciation and Amortization | $ 12.7 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 300.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 99.7 M | |
| EBITDA | $ 111.7 M | |
| EBIT | $ 99.1 M | |
| Operating Income | $ -15.69 M | |
| Interest Income | — | |
| Interest Expense | $ 14.6 M | |
| Net Interest Income | $ -14.63 M | |
| Income Before Tax | $ 84.4 M | |
| Tax Provision | $ 40.8 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 43.6 M | |
| Net Income From Continuing Operations | $ 43.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.05 | |
| EPS Actual | $ -0.19 | |
| EPS Difference | $ -0.24 | |
| EPS Surprise | -480.0 % | |
| Forward EPS | $ 0.30 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.6 B | |
| Intangible Assets | $ 525.6 M | |
| Net Tangible Assets | $ 17.7 M | |
| Total Current Assets | $ 489.1 M | |
| Cash and Short-Term Investments | $ 31.4 M | |
| Cash | $ 31.4 M | |
| Net Receivables | $ 115.5 M | |
| Inventory | $ 192.4 M | |
| Long-Term Investments | $ 7.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 94.7 M | |
| Short-Term Debt | $ 7.3 M | |
| Total Current Liabilities | $ 324.9 M | |
| Net Debt | $ 505.7 M | |
| Total Debt | $ 586.4 M | |
| Total Liabilities | $ 1.0 B | |
| EQUITY | ||
| Total Equity | $ 543.2 M | |
| Retained Earnings | $ 600.5 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.45 | |
| Shares Outstanding | 31.126 M | |
| Revenue Per-Share | $ 9.15 | |
| VALUATION | Market Capitalization | $ 809.1 M |
| Enterprise Value | $ 1.4 B | |
| Enterprise Multiple | 12.207 | |
| Enterprise Multiple QoQ | -95.409 % | |
| Enterprise Multiple YoY | -52.403 % | |
| Enterprise Multiple IPRWA | high: 142.564 median: 101.918 mean: 77.528 MATW: 12.207 low: -99.977 |
|
| EV/R | 4.79 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.859 | |
| Asset To Liability | 1.538 | |
| Debt To Capital | 0.519 | |
| Debt To Assets | 0.378 | |
| Debt To Assets QoQ | -16.266 % | |
| Debt To Assets YoY | 9223.457 % | |
| Debt To Assets IPRWA | high: 0.671 MATW: 0.378 mean: 0.214 median: 0.144 low: 0.009 |
|
| Debt To Equity | 1.079 | |
| Debt To Equity QoQ | -32.061 % | |
| Debt To Equity YoY | 6046.982 % | |
| Debt To Equity IPRWA | high: 4.556 MATW: 1.079 mean: 0.538 median: 0.324 low: -2.644 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.49 | |
| Price To Book QoQ | -2.405 % | |
| Price To Book YoY | -28.071 % | |
| Price To Book IPRWA | high: 18.254 median: 10.907 mean: 10.209 MATW: 1.49 low: -1.952 |
|
| Price To Earnings (P/E) | -136.818 | |
| Price To Earnings QoQ | -387.007 % | |
| Price To Earnings YoY | -169.29 % | |
| Price To Earnings IPRWA | high: 200.469 mean: 119.772 median: 95.223 low: -94.98 MATW: -136.818 |
|
| PE/G Ratio | 0.991 | |
| Price To Sales (P/S) | 2.841 | |
| Price To Sales QoQ | 23.423 % | |
| Price To Sales YoY | 33.374 % | |
| Price To Sales IPRWA | high: 15.262 mean: 6.061 median: 5.144 MATW: 2.841 low: 0.129 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 83.55 | |
| Forward PE/G | -0.605 | |
| Forward P/S | 53.104 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 105.262 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.175 | |
| Asset Turnover Ratio QoQ | -6.479 % | |
| Asset Turnover Ratio YoY | -20.861 % | |
| Asset Turnover Ratio IPRWA | high: 0.436 median: 0.264 mean: 0.212 MATW: 0.175 low: 0.052 |
|
| Receivables Turnover | 2.293 | |
| Receivables Turnover Ratio QoQ | 4.921 % | |
| Receivables Turnover Ratio YoY | 15.614 % | |
| Receivables Turnover Ratio IPRWA | high: 3.25 MATW: 2.293 mean: 2.076 median: 1.927 low: 0.992 |
|
| Inventory Turnover | 0.937 | |
| Inventory Turnover Ratio QoQ | -4.636 % | |
| Inventory Turnover Ratio YoY | -18.683 % | |
| Inventory Turnover Ratio IPRWA | high: 38.326 mean: 5.478 MATW: 0.937 median: 0.845 low: 0.405 |
|
| Days Sales Outstanding (DSO) | 39.801 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 85.215 | |
| Cash Conversion Cycle Days QoQ | -0.042 % | |
| Cash Conversion Cycle Days YoY | 2.292 % | |
| Cash Conversion Cycle Days IPRWA | high: 193.343 median: 125.577 MATW: 85.215 mean: 72.274 low: -135.154 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.733 | |
| CapEx To Revenue | -0.018 | |
| CapEx To Depreciation | -0.54 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.1 B | |
| Net Invested Capital | $ 1.1 B | |
| Invested Capital | $ 1.1 B | |
| Net Tangible Assets | $ 17.7 M | |
| Net Working Capital | $ 164.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.097 | |
| Current Ratio | 1.506 | |
| Current Ratio QoQ | 1.454 % | |
| Current Ratio YoY | -4.422 % | |
| Current Ratio IPRWA | high: 5.872 MATW: 1.506 mean: 1.435 median: 1.026 low: 0.302 |
|
| Quick Ratio | 0.914 | |
| Quick Ratio QoQ | 0.893 % | |
| Quick Ratio YoY | -5.302 % | |
| Quick Ratio IPRWA | high: 3.798 mean: 1.023 MATW: 0.914 median: 0.905 low: 0.26 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.247 | |
| Cost Of Debt | 1.712 % | |
| Interest Coverage Ratio | 6.769 | |
| Interest Coverage Ratio QoQ | -1187.044 % | |
| Interest Coverage Ratio YoY | 977.458 % | |
| Interest Coverage Ratio IPRWA | high: 23.386 median: 17.726 mean: 14.665 MATW: 6.769 low: -34.429 |
|
| Operating Cash Flow Ratio | 0.248 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 43.407 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.605 | |
| Dividend Payout Ratio | 0.217 | |
| Dividend Rate | $ 0.30 | |
| Dividend Yield | 0.012 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -8.355 % | |
| Revenue Growth | -10.688 % | |
| Revenue Growth QoQ | 22.288 % | |
| Revenue Growth YoY | 6.444 % | |
| Revenue Growth IPRWA | high: 31.015 % mean: 6.664 % median: 3.012 % MATW: -10.688 % low: -35.435 % |
|
| Earnings Growth | -138.0 % | |
| Earnings Growth QoQ | -275.637 % | |
| Earnings Growth YoY | 85.123 % | |
| Earnings Growth IPRWA | high: 45.161 % median: 0.833 % mean: -4.864 % low: -115.753 % MATW: -138.0 % |
|
| MARGINS | ||
| Gross Margin | 35.002 % | |
| Gross Margin QoQ | -3.653 % | |
| Gross Margin YoY | 11.903 % | |
| Gross Margin IPRWA | high: 89.385 % median: 50.446 % mean: 48.072 % MATW: 35.002 % low: -10.605 % |
|
| EBIT Margin | 34.784 % | |
| EBIT Margin QoQ | -1247.608 % | |
| EBIT Margin YoY | 1318.597 % | |
| EBIT Margin IPRWA | high: 37.289 % MATW: 34.784 % median: 23.449 % mean: 22.363 % low: -61.357 % |
|
| Return On Sales (ROS) | -5.508 % | |
| Return On Sales QoQ | 86.902 % | |
| Return On Sales YoY | -324.633 % | |
| Return On Sales IPRWA | high: 37.289 % mean: 23.902 % median: 23.418 % MATW: -5.508 % low: -54.444 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -57.25 M | |
| Free Cash Flow Yield | -7.075 % | |
| Free Cash Flow Yield QoQ | -5852.033 % | |
| Free Cash Flow Yield YoY | 75.341 % | |
| Free Cash Flow Yield IPRWA | high: 12.861 % mean: 1.111 % median: 0.553 % low: -5.842 % MATW: -7.075 % |
|
| Free Cash Growth | -6439.867 % | |
| Free Cash Growth QoQ | 6099.81 % | |
| Free Cash Growth YoY | 2534.162 % | |
| Free Cash Growth IPRWA | high: 321.059 % median: 35.98 % mean: 27.125 % low: -171.538 % MATW: -6439.867 % |
|
| Free Cash To Net Income | -1.312 | |
| Cash Flow Margin | 28.253 % | |
| Cash Flow To Earnings | 1.844 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.687 % | |
| Return On Assets QoQ | -266.275 % | |
| Return On Assets YoY | -1506.806 % | |
| Return On Assets IPRWA | high: 5.205 % median: 3.906 % mean: 3.417 % MATW: 2.687 % low: -5.228 % |
|
| Return On Capital Employed (ROCE) | 8.066 % | |
| Return On Equity (ROE) | 0.08 | |
| Return On Equity QoQ | -240.616 % | |
| Return On Equity YoY | -1056.19 % | |
| Return On Equity IPRWA | high: 0.245 MATW: 0.08 mean: 0.068 median: 0.064 low: -0.22 |
|
| DuPont ROE | 8.52 % | |
| Return On Invested Capital (ROIC) | 7.244 % | |
| Return On Invested Capital QoQ | -1230.109 % | |
| Return On Invested Capital YoY | -132.173 % | |
| Return On Invested Capital IPRWA | high: 8.039 % MATW: 7.244 % mean: 4.548 % median: 3.706 % low: -10.593 % |
|