Recent News
In May 2026 Choice announced an enterprise expansion of AI tools across operations, standardizing on cloud-based agentic platforms to automate workflows and guest services. In early March 2026 management and board changes accompanied a new quarterly dividend debut; several brokerages updated targets and commentary that month reflecting conservative RevPAR assumptions and updated forecasts.
Technical Analysis
The ADX at 32.95 signals a strong underlying directional environment; DI+ sits at 19.07 and shows a decreasing trend while DI- peaked and has reversed — the peak-and-reversal in DI- reads as a bullish directional inflection even as DI+ declines, creating a mixed directional picture for near-term price direction.
MACD displays a dip-and-reversal pattern (MACD = -0.9, signal = 0.1), which equates to a return of bullish momentum from recent weakness; the MACD remains below its signal line, so momentum improvement requires a cross above the signal for confirmation.
MRO at -10.78 indicates the current price sits below WMDST’s regression-based target and therefore carries potential for upward mean reversion; the negative MRO and its decreasing trend suggest the price sits under target with moderate potential to move toward valuation over the coming weeks.
RSI at 52.17 with a decreasing trend signals neutral-to-leaning-soft momentum and short-term selling pressure; readings near the midline imply scope for continuation of consolidation before a decisive run.
Price relationships show the close at $106.98 slightly under short EMAs (12-day EMA $107.07, 26-day EMA $108.35) while above the 200-day average ($105.24), implying the market trades near its intermediate trend and may test short-term moving averages for direction. Ichimoku baselines (Tenkan $109.05, Kijun $110.36) sit above price and act as resistance reference points for any recovery attempt.
Fundamental Analysis
Revenue totaled $340,575,000 with YoY revenue growth of -12.97% and QoQ change of -0.60%, reflecting top-line contraction. Gross margin at 45.55% declined YoY by 9.74 percentage points; operating margin stands at 17.697% and EBIT margin at 15.935%, both showing pronounced QoQ deterioration (EBIT margin QoQ -38.62%, YoY -34.52%).
WMDST notes EBIT margin at 15.935% sits modestly above the industry peer mean of 15.007% and above the industry peer median of 13.552%, indicating operating profitability marginally ahead of peer central tendency even as margins compress sequentially.
Earnings per share missed consensus: reported EPS $0.44 versus estimate $1.02, an EPS surprise of -56.86%. Forward EPS equals $1.9496 with a forward P/E of 52.82 versus a trailing P/E of 246.07, implying market expectations priced into forward results despite current near-term misses.
Cash flow shows strain: operating cash flow negative $23,174,000 and free cash flow negative $50,058,000, producing a free cash flow yield of -1.01%. Cash and short-term investments totaled $43,872,000 against net debt of $1,959,364,000, while interest coverage equals 2.26—levels that highlight leverage sensitivity to margin swings and cash generation.
Asset efficiency shows weaknesses: asset turnover ratio 0.116 (below the industry peer mean of 0.2016) and current ratio 0.9465 (slightly above the industry peer mean of 0.9021), so liquidity near parity with peers but lower capital turnover. Earnings growth metrics present divergence: a point metric at -72.50% alongside QoQ +108.56% and YoY +435.13% movements, signaling volatile earnings comparatives quarter-to-quarter.
Valuation context: price-to-book 36.05 and price-to-sales 14.55 contrast with industry peer medians that sit materially lower; WMDST values the stock as over-valued given elevated multiples, negative free cash flow, and meaningful leverage. Forward multiple compression versus the trailing P/E suggests contingent improvement priced into future results rather than current cash conversion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-30 |
| NEXT REPORT DATE: | 2026-07-30 |
| CASH FLOW | Begin Period Cash Flow | $ 45.0 M |
| Operating Cash Flow | $ -23.17 M | |
| Capital Expenditures | $ -26.88 M | |
| Change In Working Capital | $ -56.30 M | |
| Dividends Paid | $ -13.12 M | |
| Cash Flow Delta | $ -1.12 M | |
| End Period Cash Flow | $ 43.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 340.6 M | |
| Forward Revenue | $ 373.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 185.4 M | |
| Depreciation | $ 21.9 M | |
| Depreciation and Amortization | $ 21.9 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 280.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 155.1 M | |
| EBITDA | $ 76.2 M | |
| EBIT | $ 54.3 M | |
| Operating Income | $ 60.3 M | |
| Interest Income | $ 1.2 M | |
| Interest Expense | $ 24.0 M | |
| Net Interest Income | $ -22.75 M | |
| Income Before Tax | $ 30.3 M | |
| Tax Provision | $ 10.0 M | |
| Tax Rate | 33.012 % | |
| Net Income | $ 20.3 M | |
| Net Income From Continuing Operations | $ 20.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.02 | |
| EPS Actual | $ 0.44 | |
| EPS Difference | $ -0.58 | |
| EPS Surprise | -56.863 % | |
| Forward EPS | $ 1.95 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.9 B | |
| Intangible Assets | $ 1.4 B | |
| Net Tangible Assets | $ -1.26 B | |
| Total Current Assets | $ 410.8 M | |
| Cash and Short-Term Investments | $ 43.9 M | |
| Cash | $ 43.9 M | |
| Net Receivables | $ 243.5 M | |
| Inventory | — | |
| Long-Term Investments | $ 121.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 146.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 434.0 M | |
| Net Debt | $ 2.0 B | |
| Total Debt | $ 2.1 B | |
| Total Liabilities | $ 2.8 B | |
| EQUITY | ||
| Total Equity | $ 137.4 M | |
| Retained Earnings | $ 2.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 3.00 | |
| Shares Outstanding | 45.617 M | |
| Revenue Per-Share | $ 7.44 | |
| VALUATION | Market Capitalization | $ 5.0 B |
| Enterprise Value | $ 7.0 B | |
| Enterprise Multiple | 92.114 | |
| Enterprise Multiple QoQ | 69.253 % | |
| Enterprise Multiple YoY | 13.548 % | |
| Enterprise Multiple IPRWA | high: 150.145 median: 96.157 CHH: 92.114 mean: 86.575 low: -109.403 |
|
| EV/R | 20.612 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 21.427 | |
| Asset To Liability | 1.049 | |
| Debt To Capital | 0.939 | |
| Debt To Assets | 0.716 | |
| Debt To Assets QoQ | 3.375 % | |
| Debt To Assets YoY | -7.064 % | |
| Debt To Assets IPRWA | high: 1.456 CHH: 0.716 mean: 0.621 median: 0.596 low: 0.018 |
|
| Debt To Equity | 15.351 | |
| Debt To Equity QoQ | 37.557 % | |
| Debt To Equity YoY | -149.391 % | |
| Debt To Equity IPRWA | CHH: 15.351 high: 12.878 mean: 0.458 median: 0.332 low: -5.69 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 36.049 | |
| Price To Book QoQ | 37.994 % | |
| Price To Book YoY | -137.561 % | |
| Price To Book IPRWA | CHH: 36.049 high: 18.76 median: 10.414 mean: 3.49 low: -12.042 |
|
| Price To Earnings (P/E) | 246.067 | |
| Price To Earnings QoQ | 227.518 % | |
| Price To Earnings YoY | 150.352 % | |
| Price To Earnings IPRWA | high: 249.745 CHH: 246.067 mean: 127.495 median: 105.586 low: -71.726 |
|
| PE/G Ratio | -3.394 | |
| Price To Sales (P/S) | 14.546 | |
| Price To Sales QoQ | 19.874 % | |
| Price To Sales YoY | -21.092 % | |
| Price To Sales IPRWA | high: 29.695 median: 21.243 mean: 19.73 CHH: 14.546 low: 0.815 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 52.822 | |
| Forward PE/G | -0.729 | |
| Forward P/S | 13.386 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.653 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.116 | |
| Asset Turnover Ratio QoQ | -13.26 % | |
| Asset Turnover Ratio YoY | -10.857 % | |
| Asset Turnover Ratio IPRWA | high: 0.533 mean: 0.202 median: 0.177 CHH: 0.116 low: 0.078 |
|
| Receivables Turnover | 1.51 | |
| Receivables Turnover Ratio QoQ | -14.064 % | |
| Receivables Turnover Ratio YoY | -15.846 % | |
| Receivables Turnover Ratio IPRWA | high: 28.617 median: 14.207 mean: 11.005 CHH: 1.51 low: 1.107 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 60.418 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -14.864 | |
| Cash Conversion Cycle Days QoQ | -8.063 % | |
| Cash Conversion Cycle Days YoY | 120.346 % | |
| Cash Conversion Cycle Days IPRWA | high: 24.74 median: -3.593 mean: -12.596 CHH: -14.864 low: -88.233 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -14.671 | |
| CapEx To Revenue | -0.079 | |
| CapEx To Depreciation | -1.226 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.1 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ -1.26 B | |
| Net Working Capital | $ -23.21 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.101 | |
| Current Ratio | 0.947 | |
| Current Ratio QoQ | 8.941 % | |
| Current Ratio YoY | 12.941 % | |
| Current Ratio IPRWA | high: 1.693 CHH: 0.947 mean: 0.902 median: 0.651 low: 0.387 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 27.682 | |
| Cost Of Debt | 0.777 % | |
| Interest Coverage Ratio | 2.265 | |
| Interest Coverage Ratio QoQ | -47.046 % | |
| Interest Coverage Ratio YoY | -40.606 % | |
| Interest Coverage Ratio IPRWA | high: 16.515 mean: 5.27 median: 4.198 CHH: 2.265 low: -3.148 |
|
| Operating Cash Flow Ratio | -0.009 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 75.282 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.548 | |
| Dividend Payout Ratio | 0.646 | |
| Dividend Rate | $ 0.29 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.904 % | |
| Revenue Growth | -12.707 % | |
| Revenue Growth QoQ | -0.602 % | |
| Revenue Growth YoY | -12.972 % | |
| Revenue Growth IPRWA | high: 9.738 % median: -3.6 % mean: -3.817 % CHH: -12.707 % low: -18.131 % |
|
| Earnings Growth | -72.5 % | |
| Earnings Growth QoQ | 108.561 % | |
| Earnings Growth YoY | 435.134 % | |
| Earnings Growth IPRWA | high: 103.226 % median: -13.636 % mean: -16.928 % CHH: -72.5 % low: -155.556 % |
|
| MARGINS | ||
| Gross Margin | 45.551 % | |
| Gross Margin QoQ | -14.079 % | |
| Gross Margin YoY | -9.743 % | |
| Gross Margin IPRWA | high: 78.305 % CHH: 45.551 % mean: 42.9 % median: 29.043 % low: 11.09 % |
|
| EBIT Margin | 15.935 % | |
| EBIT Margin QoQ | -38.617 % | |
| EBIT Margin YoY | -34.521 % | |
| EBIT Margin IPRWA | high: 34.862 % CHH: 15.935 % mean: 15.007 % median: 13.552 % low: -18.79 % |
|
| Return On Sales (ROS) | 17.697 % | |
| Return On Sales QoQ | -33.749 % | |
| Return On Sales YoY | -27.281 % | |
| Return On Sales IPRWA | high: 37.003 % CHH: 17.697 % mean: 14.725 % median: 13.552 % low: -18.79 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -50.06 M | |
| Free Cash Flow Yield | -1.01 % | |
| Free Cash Flow Yield QoQ | -191.735 % | |
| Free Cash Flow Yield YoY | 142.788 % | |
| Free Cash Flow Yield IPRWA | high: 4.364 % mean: 1.376 % median: 1.043 % CHH: -1.01 % low: -1.18 % |
|
| Free Cash Growth | -196.027 % | |
| Free Cash Growth QoQ | -779.847 % | |
| Free Cash Growth YoY | 33.089 % | |
| Free Cash Growth IPRWA | high: 296.696 % median: 224.715 % mean: 156.723 % low: -128.946 % CHH: -196.027 % |
|
| Free Cash To Net Income | -2.465 | |
| Cash Flow Margin | -1.134 % | |
| Cash Flow To Earnings | -0.19 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.693 % | |
| Return On Assets QoQ | -68.298 % | |
| Return On Assets YoY | -60.264 % | |
| Return On Assets IPRWA | high: 5.266 % median: 2.322 % mean: 2.261 % CHH: 0.693 % low: -0.379 % |
|
| Return On Capital Employed (ROCE) | 2.162 % | |
| Return On Equity (ROE) | 0.148 | |
| Return On Equity QoQ | -57.956 % | |
| Return On Equity YoY | -121.21 % | |
| Return On Equity IPRWA | high: 0.315 CHH: 0.148 mean: 0.021 median: 0.021 low: -0.065 |
|
| DuPont ROE | 12.744 % | |
| Return On Invested Capital (ROIC) | 1.698 % | |
| Return On Invested Capital QoQ | -57.358 % | |
| Return On Invested Capital YoY | -49.055 % | |
| Return On Invested Capital IPRWA | high: 18.09 % median: 7.79 % mean: 6.684 % CHH: 1.698 % low: -1.732 % |
|