Recent News
On February 3, 2026 Mesa Labs released third-quarter fiscal 2026 results and published an investor presentation; the company also presented at the J.P. Morgan Healthcare Conference on January 14, 2026. On April 2, 2026 the Board declared a regular quarterly dividend of $0.16 per share. In March 2026 multiple insider purchases and institutional filings disclosed new or increased stakes (early–mid March filings). The company disclosed a CEO transition: Gary Owens’ departure as President and CEO effective on or about April 13, 2026 with a transition arrangement extending his service through June 22, 2026.
Technical Analysis
Directional indicators show an emerging trend: ADX at 23.85 signals an emerging trend strength while DI+ stands at 28.10 and trends higher, and DI- sits at 18.68 and trends lower — a directional structure that biases price action upward into the near term.
MACD reads 2.66 with the MACD line above the signal line at 1.18 and the MACD trend increasing; that crossover and rising MACD represent accelerating bullish momentum for price action over shorter horizons.
MRO stands at -12.09 and the MRO trend increases; the negative MRO indicates price sits below the model target and therefore carries upside potential as the oscillator moves toward zero while its rising trajectory reduces near-term downside pressure.
RSI at 56.67 and rising shows constructive momentum without overbought readings, supporting a continuation bias while leaving room for further gains before reaching overbought thresholds.
Price sits above the 20-day average ($90.59), the 50-day average ($88.51), and the 200-day average ($78.81); the 12-day EMA ($92.70) trends higher and the super trend lower support at $88.34 provides a nearby technical floor. Bollinger band width implies moderate intraday volatility given the 20-day standard deviation of $6.46.
Fundamental Analysis
Total revenue reached $65,126,000 with gross profit of $41,795,000 and gross margin at 64.18%, a stable gross margin that supports operating leverage. Operating income measures $7,975,000 and EBIT equals $7,632,000, producing an EBIT margin of 11.72%; that EBIT margin sits below the industry peer mean of 20.75% and below the industry peer median of 20.88%.
Quarter-over-quarter dynamics show operating margin QoQ +0.57431% and EBIT margin QoQ +0.46433%, while YoY operating margin improved by 11.31% and EBIT margin improved by 10.78% YoY, signaling expanding operating efficiency versus last year.
Reported EPS of $1.76 exceeded the $1.47 estimate by $0.29, an EPS surprise of approximately 19.73%, reflecting stronger-than-expected profitability in the reported quarter. Forward EPS stands at $1.3475 with a forward P/E of 57.09; the trailing P/E reads 45.51.
Balance-sheet and cash metrics paint a mixed picture: cash and short-term investments total $28,975,000 while net debt measures $137,152,000 and debt-to-EBITDA equals 13.56x, reflecting material leverage relative to earnings. Interest coverage equals 2.51x, sufficient but tighter than typical conservative benchmarks.
Free cash flow reached $18,022,000 and free cash flow yield stands at 4.07%, above the industry peer mean free cash flow yield figure provided. Operating cash flow totaled $18,754,000 and cash conversion ratio measures 1.27, indicating cash generation exceeds reported earnings by a meaningful margin.
Liquidity metrics include a current ratio of 1.94 and a quick ratio of 1.45, showing adequate near-term liquidity. Asset turnover sits at 0.1506 and return on equity equals 1.94%, reflecting a capital-intensive business model and modest returns on invested capital.
WMDST values the stock as under-valued based on the dataset provided, a conclusion supported by free cash flow yield above the peer mean and an EPS beat, while leverage and lower-than-peer EBIT margin represent offsetting valuation risks.
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 | $ 20.4 M |
| Operating Cash Flow | $ 18.8 M | |
| Capital Expenditures | $ -732.00 K | |
| Change In Working Capital | $ 4.5 M | |
| Dividends Paid | $ -884.00 K | |
| Cash Flow Delta | $ 8.6 M | |
| End Period Cash Flow | $ 29.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 65.1 M | |
| Forward Revenue | $ 33.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 23.3 M | |
| Depreciation | $ 1.3 M | |
| Depreciation and Amortization | $ 5.7 M | |
| Research and Development | $ 5.0 M | |
| Total Operating Expenses | $ 57.2 M | |
| PROFITABILITY | ||
| Gross Profit | $ 41.8 M | |
| EBITDA | $ 13.3 M | |
| EBIT | $ 7.6 M | |
| Operating Income | $ 8.0 M | |
| Interest Income | — | |
| Interest Expense | $ 3.0 M | |
| Net Interest Income | $ -3.04 M | |
| Income Before Tax | $ 4.6 M | |
| Tax Provision | $ 966.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ 3.6 M | |
| Net Income From Continuing Operations | $ 3.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.47 | |
| EPS Actual | $ 1.76 | |
| EPS Difference | $ 0.29 | |
| EPS Surprise | 19.728 % | |
| Forward EPS | $ 1.35 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 434.8 M | |
| Intangible Assets | $ 278.9 M | |
| Net Tangible Assets | $ -92.26 M | |
| Total Current Assets | $ 105.6 M | |
| Cash and Short-Term Investments | $ 29.0 M | |
| Cash | $ 29.0 M | |
| Net Receivables | $ 40.2 M | |
| Inventory | $ 26.6 M | |
| Long-Term Investments | $ 17.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 5.3 M | |
| Short-Term Debt | $ 5.2 M | |
| Total Current Liabilities | $ 54.4 M | |
| Net Debt | $ 137.2 M | |
| Total Debt | $ 181.0 M | |
| Total Liabilities | $ 248.2 M | |
| EQUITY | ||
| Total Equity | $ 186.7 M | |
| Retained Earnings | $ -180.73 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 33.79 | |
| Shares Outstanding | 5.525 M | |
| Revenue Per-Share | $ 11.79 | |
| VALUATION | Market Capitalization | $ 442.5 M |
| Enterprise Value | $ 594.5 M | |
| Enterprise Multiple | 44.543 | |
| Enterprise Multiple QoQ | -17.325 % | |
| Enterprise Multiple YoY | -65.041 % | |
| Enterprise Multiple IPRWA | high: 158.913 median: 85.622 mean: 82.996 MLAB: 44.543 low: -144.328 |
|
| EV/R | 9.129 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.329 | |
| Asset To Liability | 1.752 | |
| Debt To Capital | 0.492 | |
| Debt To Assets | 0.416 | |
| Debt To Assets QoQ | -5.946 % | |
| Debt To Assets YoY | 80.294 % | |
| Debt To Assets IPRWA | high: 0.828 MLAB: 0.416 mean: 0.282 median: 0.262 low: 0.002 |
|
| Debt To Equity | 0.969 | |
| Debt To Equity QoQ | -9.15 % | |
| Debt To Equity YoY | 49.104 % | |
| Debt To Equity IPRWA | high: 2.909 MLAB: 0.969 mean: 0.54 median: 0.472 low: -1.334 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.37 | |
| Price To Book QoQ | 3.932 % | |
| Price To Book YoY | -48.189 % | |
| Price To Book IPRWA | high: 15.074 mean: 5.979 median: 5.854 MLAB: 2.37 low: 0.24 |
|
| Price To Earnings (P/E) | 45.508 | |
| Price To Earnings QoQ | 29.79 % | |
| Price To Earnings YoY | -109.054 % | |
| Price To Earnings IPRWA | high: 269.298 mean: 119.739 median: 101.834 MLAB: 45.508 low: -315.07 |
|
| PE/G Ratio | 0.156 | |
| Price To Sales (P/S) | 6.795 | |
| Price To Sales QoQ | 1.394 % | |
| Price To Sales YoY | -39.869 % | |
| Price To Sales IPRWA | high: 52.884 median: 23.476 mean: 20.203 MLAB: 6.795 low: -13.339 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 57.092 | |
| Forward PE/G | 0.196 | |
| Forward P/S | 13.252 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 7.889 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.151 | |
| Asset Turnover Ratio QoQ | 7.344 % | |
| Asset Turnover Ratio YoY | 6.758 % | |
| Asset Turnover Ratio IPRWA | high: 0.512 MLAB: 0.151 median: 0.133 mean: 0.127 low: -0.209 |
|
| Receivables Turnover | 1.622 | |
| Receivables Turnover Ratio QoQ | 5.671 % | |
| Receivables Turnover Ratio YoY | 1.774 % | |
| Receivables Turnover Ratio IPRWA | high: 2.907 mean: 1.881 median: 1.867 MLAB: 1.622 low: 0.47 |
|
| Inventory Turnover | 0.859 | |
| Inventory Turnover Ratio QoQ | 2.52 % | |
| Inventory Turnover Ratio YoY | 7.69 % | |
| Inventory Turnover Ratio IPRWA | high: 2.05 MLAB: 0.859 mean: 0.67 median: 0.548 low: 0.16 |
|
| Days Sales Outstanding (DSO) | 56.273 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 141.954 | |
| Cash Conversion Cycle Days QoQ | -4.892 % | |
| Cash Conversion Cycle Days YoY | -8.238 % | |
| Cash Conversion Cycle Days IPRWA | high: 453.393 mean: 171.699 median: 165.533 MLAB: 141.954 low: -118.454 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.271 | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -0.576 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 347.7 M | |
| Net Invested Capital | $ 352.8 M | |
| Invested Capital | $ 352.8 M | |
| Net Tangible Assets | $ -92.26 M | |
| Net Working Capital | $ 51.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.533 | |
| Current Ratio | 1.942 | |
| Current Ratio QoQ | -3.743 % | |
| Current Ratio YoY | 173.09 % | |
| Current Ratio IPRWA | high: 20.133 mean: 2.709 MLAB: 1.942 median: 1.893 low: 0.168 |
|
| Quick Ratio | 1.454 | |
| Quick Ratio QoQ | 0.734 % | |
| Quick Ratio YoY | 173.923 % | |
| Quick Ratio IPRWA | high: 12.347 mean: 2.035 median: 1.469 MLAB: 1.454 low: 0.366 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 13.56 | |
| Cost Of Debt | 1.291 % | |
| Interest Coverage Ratio | 2.514 | |
| Interest Coverage Ratio QoQ | 48.006 % | |
| Interest Coverage Ratio YoY | 1043.066 % | |
| Interest Coverage Ratio IPRWA | high: 60.521 median: 25.964 mean: 20.932 MLAB: 2.514 low: -107.569 |
|
| Operating Cash Flow Ratio | 0.194 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 20.161 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.106 | |
| Dividend Payout Ratio | 0.244 | |
| Dividend Rate | $ 0.16 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.045 % | |
| Revenue Growth | 7.226 % | |
| Revenue Growth QoQ | 260.399 % | |
| Revenue Growth YoY | -16.54 % | |
| Revenue Growth IPRWA | high: 54.001 % median: 12.969 % mean: 10.187 % MLAB: 7.226 % low: -28.254 % |
|
| Earnings Growth | 291.111 % | |
| Earnings Growth QoQ | 2279.524 % | |
| Earnings Growth YoY | -319.706 % | |
| Earnings Growth IPRWA | MLAB: 291.111 % high: 100.0 % mean: 10.242 % median: 6.667 % low: -142.105 % |
|
| MARGINS | ||
| Gross Margin | 64.176 % | |
| Gross Margin QoQ | 4.414 % | |
| Gross Margin YoY | 1.445 % | |
| Gross Margin IPRWA | high: 96.557 % median: 64.538 % MLAB: 64.176 % mean: 62.783 % low: -16.207 % |
|
| EBIT Margin | 11.719 % | |
| EBIT Margin QoQ | 46.433 % | |
| EBIT Margin YoY | 1077.789 % | |
| EBIT Margin IPRWA | high: 33.51 % median: 20.883 % mean: 20.746 % MLAB: 11.719 % low: -144.871 % |
|
| Return On Sales (ROS) | 12.245 % | |
| Return On Sales QoQ | 57.431 % | |
| Return On Sales YoY | 1130.653 % | |
| Return On Sales IPRWA | high: 35.479 % mean: 22.001 % median: 21.965 % MLAB: 12.245 % low: -169.778 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 18.0 M | |
| Free Cash Flow Yield | 4.073 % | |
| Free Cash Flow Yield QoQ | 132.477 % | |
| Free Cash Flow Yield YoY | 64.102 % | |
| Free Cash Flow Yield IPRWA | MLAB: 4.073 % high: 3.107 % median: 0.969 % mean: 0.898 % low: -15.714 % |
|
| Free Cash Growth | 152.763 % | |
| Free Cash Growth QoQ | -78.379 % | |
| Free Cash Growth YoY | -62.379 % | |
| Free Cash Growth IPRWA | high: 265.331 % MLAB: 152.763 % mean: 4.868 % median: -0.761 % low: -303.638 % |
|
| Free Cash To Net Income | 4.965 | |
| Cash Flow Margin | 16.195 % | |
| Cash Flow To Earnings | 2.906 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.839 % | |
| Return On Assets QoQ | 46.678 % | |
| Return On Assets YoY | -323.138 % | |
| Return On Assets IPRWA | high: 15.87 % mean: 2.025 % median: 1.556 % MLAB: 0.839 % low: -29.663 % |
|
| Return On Capital Employed (ROCE) | 2.006 % | |
| Return On Equity (ROE) | 0.019 | |
| Return On Equity QoQ | 40.159 % | |
| Return On Equity YoY | -280.0 % | |
| Return On Equity IPRWA | high: 0.174 mean: 0.03 median: 0.028 MLAB: 0.019 low: -0.518 |
|
| DuPont ROE | 1.988 % | |
| Return On Invested Capital (ROIC) | 1.708 % | |
| Return On Invested Capital QoQ | 57.13 % | |
| Return On Invested Capital YoY | 153.037 % | |
| Return On Invested Capital IPRWA | high: 6.199 % mean: 2.689 % median: 2.127 % MLAB: 1.708 % low: -19.559 % |
|