Recent News
On June 2 the company held its annual meeting and shareholders approved an amended and restated equity incentive plan that increases authorized awards. On June 19 the Compensation Committee approved changes to the CFO’s compensation package tied to potential change‑in‑control thresholds. On August 6 the company highlighted a cultural partnership activation with a major artist as an example of its engagement and marketing strategy.
Technical Analysis
ADX at 18.79 indicates no clear prevailing trend; directional indicators split signals: DI+ shows a peak‑and‑reversal (bearish), while DI‑ also shows a peak‑and‑reversal (bullish), producing a short‑term tug‑of‑war that favors range behavior rather than sustained directional moves.
MACD sits at 0.06 with a decreasing trend and remains below its signal line at 0.25, signaling bearish momentum and that upside momentum has not reasserted.
MRO registers positive at 22.04 with a decreasing trend, indicating the current price sits above the model target and therefore carries measurable downside potential as momentum eases.
RSI at 56.58 and falling shows momentum cooling from neutral territory rather than an overbought or oversold extreme, consistent with expectation of limited, range‑bound moves unless momentum reverses.
Price relationships to moving averages appear mixed: the close at $15.69 sits below the 12‑ and 20‑day averages (12‑day EMA $15.88; 20‑day avg $15.98) but above the 50‑day average ($15.47) and well above the 200‑day average ($13.33), reflecting short‑term weakness inside a longer‑term constructive base.
Bollinger bands show the price trading near the lower 1x band ($15.47) while the Ichimoku conversion and base lines (Tenkan $16.42; Kijun $16.30) lie above price, emphasizing short‑term resistance and a low‑volatility, lower‑band posture. Volume at ~1.34M under recent averages suggests moves lack conviction.
Fundamental Analysis
Total revenue reached $138,138,000 for the period ending 2026‑06‑30. Net income totaled $17,743,000 and EBIT equaled $29,421,000, supporting an EBIT margin of 21.30% (EBIT margin QoQ down 34.92%; YoY down 10.70%). Gross margin measured 74.98% while operating margin registered 23.53%, both indicating strong unit economics despite recent margin compression QoQ.
EPS came in at $0.13 versus an estimate of $0.15, an EPS surprise of -13.33%. Forward EPS stands at $0.1925 with a forward PE of 66.45. Reported PE of 112.80 reflects elevated trailing multiples; the price target mean of $17.89 sits roughly 14.0% above the current close of $15.69.
Cash flow metrics show operating cash flow of $40,806,000 and free cash flow of $37,961,000, producing a free cash flow yield of approximately 1.49% and year‑over‑year free cash flow improvement. WMDST values the stock as under‑valued, citing improved cash generation as a key input to that valuation.
Leverage and balance‑sheet composition present material considerations: total debt stands at $389,595,000 with net debt of $379,816,000 and debt‑to‑assets at 84.18%, while total equity remains negative at -$11,738,000. Debt to EBITDA measures ~12.85x, signaling high leverage relative to current earnings. Cash of $6,504,000 versus short‑term debt of $20,000,000 contributes to liquidity pressure despite a current ratio of 1.10.
Operational growth shows mixed cadence: revenue growth QoQ registered ~100.32% while revenue growth YoY declined ~42.37%, reflecting strong sequential recovery from a weak prior period but still lower year‑on‑year comparatives. Asset turnover improved (YoY +74.17%), and return on assets stands positive at 3.80% even as return on equity remains deeply negative due to negative shareholder equity.
Valuation context: enterprise value approximates $2.93B and enterprise multiple sits at 96.72; trailing and forward multiples remain elevated even as WMDST’s valuation process marks the security as under‑valued based on cash flow improvements and forward expectations. Price targets display a range from $9.42 to $28.77 with a mean of $17.89 versus the close at $15.69.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-06 |
| NEXT REPORT DATE: | 2026-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 24.4 M |
| Operating Cash Flow | $ 40.8 M | |
| Capital Expenditures | $ -2.85 M | |
| Change In Working Capital | $ -1.33 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -17.31 M | |
| End Period Cash Flow | $ 7.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 138.1 M | |
| Forward Revenue | $ 65.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 34.6 M | |
| Depreciation | $ 895.0 K | |
| Depreciation and Amortization | $ 895.0 K | |
| Research and Development | $ 20.3 M | |
| Total Operating Expenses | $ 105.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 103.6 M | |
| EBITDA | $ 30.3 M | |
| EBIT | $ 29.4 M | |
| Operating Income | $ 32.5 M | |
| Interest Income | — | |
| Interest Expense | $ 6.5 M | |
| Net Interest Income | $ -6.53 M | |
| Income Before Tax | $ 22.9 M | |
| Tax Provision | $ 5.1 M | |
| Tax Rate | 22.493 % | |
| Net Income | $ 17.7 M | |
| Net Income From Continuing Operations | $ 17.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.15 | |
| EPS Actual | $ 0.13 | |
| EPS Difference | $ -0.02 | |
| EPS Surprise | -13.333 % | |
| Forward EPS | $ 0.19 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 462.8 M | |
| Intangible Assets | $ 358.8 M | |
| Net Tangible Assets | $ -370.53 M | |
| Total Current Assets | $ 93.0 M | |
| Cash and Short-Term Investments | $ 6.5 M | |
| Cash | $ 6.5 M | |
| Net Receivables | $ 69.7 M | |
| Inventory | — | |
| Long-Term Investments | $ 3.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 3.1 M | |
| Short-Term Debt | $ 20.0 M | |
| Total Current Liabilities | $ 84.5 M | |
| Net Debt | $ 379.8 M | |
| Total Debt | $ 389.6 M | |
| Total Liabilities | $ 474.6 M | |
| EQUITY | ||
| Total Equity | $ -11.74 M | |
| Retained Earnings | $ -52.57 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -0.07 | |
| Shares Outstanding | 173.825 M | |
| Revenue Per-Share | $ 0.79 | |
| VALUATION | Market Capitalization | $ 2.5 B |
| Enterprise Value | $ 2.9 B | |
| Enterprise Multiple | 96.715 | |
| Enterprise Multiple QoQ | 60.855 % | |
| Enterprise Multiple YoY | -28.177 % | |
| Enterprise Multiple IPRWA | high: 151.041 GRND: 96.715 mean: 34.268 median: 28.715 low: -29.635 |
|
| EV/R | 21.225 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -39.431 | |
| Asset To Liability | 0.975 | |
| Debt To Capital | 1.031 | |
| Debt To Assets | 0.842 | |
| Debt To Assets QoQ | 0.36 % | |
| Debt To Assets YoY | 60.257 % | |
| Debt To Assets IPRWA | high: 1.032 GRND: 0.842 mean: 0.144 median: 0.122 low: 0.001 |
|
| Debt To Equity | -33.191 | |
| Debt To Equity QoQ | -107.05 % | |
| Debt To Equity YoY | -2265.774 % | |
| Debt To Equity IPRWA | high: 1.435 mean: 0.225 median: 0.181 low: 0.001 GRND: -33.191 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -217.144 | |
| Price To Book QoQ | -108.108 % | |
| Price To Book YoY | -1234.195 % | |
| Price To Book IPRWA | high: 12.13 median: 6.956 mean: 6.817 low: -3.536 GRND: -217.144 |
|
| Price To Earnings (P/E) | 112.798 | |
| Price To Earnings QoQ | 24.656 % | |
| Price To Earnings YoY | -56.122 % | |
| Price To Earnings IPRWA | GRND: 112.798 high: 99.926 mean: 48.198 median: 34.631 low: -47.824 |
|
| PE/G Ratio | -15.791 | |
| Price To Sales (P/S) | 18.452 | |
| Price To Sales QoQ | 6.811 % | |
| Price To Sales YoY | -46.482 % | |
| Price To Sales IPRWA | high: 36.351 median: 36.141 mean: 34.374 GRND: 18.452 low: 0.003 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 66.447 | |
| Forward PE/G | -9.302 | |
| Forward P/S | 39.137 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -4.885 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.296 | |
| Asset Turnover Ratio QoQ | 14.073 % | |
| Asset Turnover Ratio YoY | 74.174 % | |
| Asset Turnover Ratio IPRWA | high: 0.426 GRND: 0.296 mean: 0.147 median: 0.144 low: 0.002 |
|
| Receivables Turnover | 1.976 | |
| Receivables Turnover Ratio QoQ | 5.012 % | |
| Receivables Turnover Ratio YoY | 4.578 % | |
| Receivables Turnover Ratio IPRWA | high: 6.708 mean: 2.017 GRND: 1.976 median: 1.813 low: 0.137 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 46.181 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 36.009 | |
| Cash Conversion Cycle Days QoQ | -10.203 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 49.326 GRND: 36.009 median: 4.16 mean: -7.66 low: -436.789 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 16.204 | |
| CapEx To Revenue | -0.021 | |
| CapEx To Depreciation | -3.179 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 354.6 M | |
| Net Invested Capital | $ 374.6 M | |
| Invested Capital | $ 374.6 M | |
| Net Tangible Assets | $ -370.53 M | |
| Net Working Capital | $ 8.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.077 | |
| Current Ratio | 1.101 | |
| Current Ratio QoQ | -16.308 % | |
| Current Ratio YoY | -55.564 % | |
| Current Ratio IPRWA | high: 7.2 median: 2.719 mean: 2.628 GRND: 1.101 low: 0.476 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 12.851 | |
| Cost Of Debt | 1.29 % | |
| Interest Coverage Ratio | 4.506 | |
| Interest Coverage Ratio QoQ | -30.009 % | |
| Interest Coverage Ratio YoY | -35.387 % | |
| Interest Coverage Ratio IPRWA | high: 33.898 median: 24.223 mean: 22.415 GRND: 4.506 low: -47.177 |
|
| Operating Cash Flow Ratio | 0.214 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 10.172 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.717 % | |
| Revenue Growth | 6.308 % | |
| Revenue Growth QoQ | 100.318 % | |
| Revenue Growth YoY | -42.372 % | |
| Revenue Growth IPRWA | high: 17.855 % mean: 8.726 % median: 7.974 % GRND: 6.308 % low: -18.891 % |
|
| Earnings Growth | -7.143 % | |
| Earnings Growth QoQ | -117.857 % | |
| Earnings Growth YoY | -64.285 % | |
| Earnings Growth IPRWA | high: 250.0 % mean: 59.172 % median: 54.839 % GRND: -7.143 % low: -191.304 % |
|
| MARGINS | ||
| Gross Margin | 74.976 % | |
| Gross Margin QoQ | 0.08 % | |
| Gross Margin YoY | 1.729 % | |
| Gross Margin IPRWA | high: 95.295 % GRND: 74.976 % mean: 64.635 % median: 61.649 % low: 14.256 % |
|
| EBIT Margin | 21.298 % | |
| EBIT Margin QoQ | -34.92 % | |
| EBIT Margin YoY | -10.7 % | |
| EBIT Margin IPRWA | high: 32.136 % median: 30.129 % mean: 29.167 % GRND: 21.298 % low: -69.708 % |
|
| Return On Sales (ROS) | 23.529 % | |
| Return On Sales QoQ | -28.444 % | |
| Return On Sales YoY | 0.723 % | |
| Return On Sales IPRWA | high: 34.033 % mean: 32.998 % median: 30.879 % GRND: 23.529 % low: -24.437 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 38.0 M | |
| Free Cash Flow Yield | 1.489 % | |
| Free Cash Flow Yield QoQ | 4.933 % | |
| Free Cash Flow Yield YoY | 45.98 % | |
| Free Cash Flow Yield IPRWA | high: 12.447 % GRND: 1.489 % mean: -0.083 % median: -0.134 % low: -13.895 % |
|
| Free Cash Growth | 19.164 % | |
| Free Cash Growth QoQ | -58.115 % | |
| Free Cash Growth YoY | -67.05 % | |
| Free Cash Growth IPRWA | high: 376.923 % GRND: 19.164 % mean: -146.004 % median: -157.879 % low: -468.573 % |
|
| Free Cash To Net Income | 2.139 | |
| Cash Flow Margin | 13.108 % | |
| Cash Flow To Earnings | 1.021 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.8 % | |
| Return On Assets QoQ | -28.839 % | |
| Return On Assets YoY | 40.118 % | |
| Return On Assets IPRWA | high: 16.895 % mean: 12.071 % median: 10.842 % GRND: 3.8 % low: -15.635 % |
|
| Return On Capital Employed (ROCE) | 7.776 % | |
| Return On Equity (ROE) | -1.512 | |
| Return On Equity QoQ | -104.741 % | |
| Return On Equity YoY | -1805.121 % | |
| Return On Equity IPRWA | high: 0.472 mean: 0.16 median: 0.136 low: -0.429 GRND: -1.512 |
|
| DuPont ROE | -325.575 % | |
| Return On Invested Capital (ROIC) | 6.088 % | |
| Return On Invested Capital QoQ | -24.653 % | |
| Return On Invested Capital YoY | 47.695 % | |
| Return On Invested Capital IPRWA | high: 15.712 % mean: 13.796 % median: 8.219 % GRND: 6.088 % low: -11.818 % |
|