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On June 16, 2026 the company announced a proposed cash acquisition valued at approximately $375 million, with stockholders to receive $18.50 per share. On July 22, 2026 the company filed a definitive proxy statement related to the proposed merger and shareholder approval process. The required Hart‑Scott‑Rodino waiting period expired and an August 13, 2026 Form 8‑K confirmed the merger remains subject to customary closing conditions including shareholder and certain regulatory approvals in France. In early August 2026 a law firm announced an investigation into the company following prior guidance and accounting disclosures.
Technical Analysis
ADX registers 38.57, indicating a strong directional strength that supports the immediacy of the acquisition-related price narrative and heightens the probability of trend continuation while the deal remains unresolved.
Directional indicators show DI+ at 25.16 with a peak-and-reversal pattern, which signals a bearish shift in positive directional conviction; DI- at 10.83 trends lower, which ordinarily signals easing downside pressure but here the DI+ peak-and-reversal dominates, implying momentum loss for prior bullish runs and raising the chance of near-term price consolidation toward the bid level.
MACD sits at 0.08 and trends downward beneath its signal line at 0.10, producing a bearish momentum reading that favors short-term cooling in price movement despite price remaining above short-term averages.
MRO reads 18.5 and increases; this positive MRO indicates price currently sits above modeled targets and implies mean-reversion risk, adding technical pressure toward a pullback from current levels if buyers pause.
RSI at 63.22 shows a peak-and-reversal pattern, consistent with reduced upside momentum from recent strength and aligning with MACD and MRO signals that point to a greater chance of range compression or modest retracement rather than a sustained breakout.
Price sits at $18.42, above the 12‑day EMA ($18.40, increasing) and the 50‑ and 200‑day averages ($18.32 and $16.34 respectively), which supports a constructive intermediate bias; narrow 20‑day volatility and tight Bollinger band values around $18.37–$18.45 indicate low dispersion, increasing the likelihood of a decisive move when volume confirms direction.
Fundamental Analysis
Revenue totaled $21,886,000 with YoY revenue growth of 7.35% while quarter-over-quarter revenue growth shows a steep contraction of -131.07% QoQ; the YoY expansion contrasts with a volatile QoQ pattern that warrants monitoring for sequential stabilization.
Gross profit reached $15,127,000 and gross margin stands at 69.12%, up 7.999 percentage points YoY and up 4.003 percentage points QoQ, reflecting strong product-level economics in simulation software and services.
Operating income (EBIT) equals $4,499,000 and operating margin measures 20.56%, up 39.767% YoY but down 11.304% QoQ; the company’s operating margin sits slightly below the industry peer mean of 22.914% and below the industry peer median of 30.932%, indicating solid but not top-tier operating leverage relative to peers.
Net income totaled $3,575,000 and EPS came in at $0.30 versus an estimate of $0.23, producing an EPS surprise ratio of 30.44%, a materially positive beat that supports near-term fundamental credibility and reduces execution risk tied to the quarter reported on July 9, 2026.
Balance sheet liquidity proves robust: cash of $35,324,000 and cash and short‑term investments of $49,990,000 produce a cash ratio of 3.68 and a current ratio of 5.54, both above the industry peer mean current ratio of 4.343, supporting operational flexibility and ability to close or transition under a transaction scenario.
Debt remains negligible at $487,000 (debt‑to‑assets 0.32% and debt‑to‑equity 0.35%), well below the industry peer mean debt‑to‑assets of 4.234%, minimizing leverage risk and preserving earnings quality amid integration or regulatory timelines.
Free cash flow equals $7,948,000 with free cash flow yield of 2.42% and free cash growth of 42.44% YoY; operating cash flow of $8,709,000 and a cash‑flow‑to‑earnings ratio of 2.05 indicate strong cash conversion that underpins the WMDST valuation assessment.
Valuation: The current valuation as determined by WMDST classifies the stock as under‑valued. Market multiples show a PE of 54.17x and price‑to‑book of 2.36x, both inside a spectrum where operating strength, high cash balances, and extremely low leverage inform WMDST’s relative under‑valuation conclusion given the pending transaction and fundamental cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-05-31 |
| REPORT DATE: | 2026-07-09 |
| NEXT REPORT DATE: | 2026-10-08 |
| CASH FLOW | Begin Period Cash Flow | $ 25.7 M |
| Operating Cash Flow | $ 8.7 M | |
| Capital Expenditures | $ -761.00 K | |
| Change In Working Capital | — | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 9.6 M | |
| End Period Cash Flow | $ 35.3 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 21.9 M | |
| Forward Revenue | $ 6.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 6.8 M | |
| Depreciation | $ 1.4 M | |
| Depreciation and Amortization | $ 1.4 M | |
| Research and Development | $ 3.4 M | |
| Total Operating Expenses | $ 17.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 15.1 M | |
| EBITDA | $ 5.9 M | |
| EBIT | $ 4.5 M | |
| Operating Income | $ 4.5 M | |
| Interest Income | $ 344.0 K | |
| Interest Expense | — | |
| Net Interest Income | $ 344.0 K | |
| Income Before Tax | $ 4.8 M | |
| Tax Provision | $ 1.2 M | |
| Tax Rate | 26.0 % | |
| Net Income | $ 3.6 M | |
| Net Income From Continuing Operations | $ 3.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.23 | |
| EPS Actual | $ 0.30 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 30.435 % | |
| Forward EPS | $ 0.22 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 153.0 M | |
| Intangible Assets | $ 71.4 M | |
| Net Tangible Assets | $ 67.6 M | |
| Total Current Assets | $ 75.1 M | |
| Cash and Short-Term Investments | $ 50.0 M | |
| Cash | $ 35.3 M | |
| Net Receivables | $ 17.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 2.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 13.6 M | |
| Net Debt | — | |
| Total Debt | $ 487.0 K | |
| Total Liabilities | $ 13.9 M | |
| EQUITY | ||
| Total Equity | $ 139.0 M | |
| Retained Earnings | $ -25.58 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.88 | |
| Shares Outstanding | 20.216 M | |
| Revenue Per-Share | $ 1.08 | |
| VALUATION | Market Capitalization | $ 328.5 M |
| Enterprise Value | $ 279.0 M | |
| Enterprise Multiple | 47.561 | |
| Enterprise Multiple QoQ | 44.688 % | |
| Enterprise Multiple YoY | -20.434 % | |
| Enterprise Multiple IPRWA | high: 137.95 median: 73.952 mean: 67.88 SLP: 47.561 low: -20.4 |
|
| EV/R | 12.75 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.1 | |
| Asset To Liability | 10.973 | |
| Debt To Capital | 0.003 | |
| Debt To Assets | 0.003 | |
| Debt To Assets QoQ | -8.357 % | |
| Debt To Assets YoY | -40.561 % | |
| Debt To Assets IPRWA | high: 0.576 mean: 0.042 median: 0.011 low: 0.009 SLP: 0.003 |
|
| Debt To Equity | 0.004 | |
| Debt To Equity QoQ | -7.895 % | |
| Debt To Equity YoY | -39.759 % | |
| Debt To Equity IPRWA | high: 3.104 mean: 0.107 median: 0.014 low: 0.011 SLP: 0.004 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.363 | |
| Price To Book QoQ | 14.016 % | |
| Price To Book YoY | -15.297 % | |
| Price To Book IPRWA | high: 5.885 median: 3.869 mean: 3.531 SLP: 2.363 low: 0.094 |
|
| Price To Earnings (P/E) | 54.171 | |
| Price To Earnings QoQ | 38.178 % | |
| Price To Earnings YoY | 0.456 % | |
| Price To Earnings IPRWA | high: 220.299 median: 77.436 mean: 72.271 SLP: 54.171 low: -35.545 |
|
| PE/G Ratio | -3.792 | |
| Price To Sales (P/S) | 15.012 | |
| Price To Sales QoQ | 31.524 % | |
| Price To Sales YoY | -11.478 % | |
| Price To Sales IPRWA | high: 50.378 median: 32.011 mean: 26.968 SLP: 15.012 low: 0.761 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 65.611 | |
| Forward PE/G | -4.593 | |
| Forward P/S | 48.129 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.029 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.146 | |
| Asset Turnover Ratio QoQ | -14.455 % | |
| Asset Turnover Ratio YoY | 20.513 % | |
| Asset Turnover Ratio IPRWA | high: 0.353 SLP: 0.146 mean: 0.111 median: 0.098 low: 0.028 |
|
| Receivables Turnover | 1.237 | |
| Receivables Turnover Ratio QoQ | -22.759 % | |
| Receivables Turnover Ratio YoY | -4.975 % | |
| Receivables Turnover Ratio IPRWA | high: 2.963 SLP: 1.237 mean: 1.099 median: 0.966 low: 0.949 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 73.739 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 56.733 | |
| Cash Conversion Cycle Days QoQ | 21.064 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 94.513 median: 69.215 mean: 57.951 SLP: 56.733 low: -15.96 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.356 | |
| CapEx To Revenue | -0.035 | |
| CapEx To Depreciation | -0.556 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 139.0 M | |
| Net Invested Capital | $ 139.0 M | |
| Invested Capital | $ 139.0 M | |
| Net Tangible Assets | $ 67.6 M | |
| Net Working Capital | $ 61.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 3.685 | |
| Current Ratio | 5.538 | |
| Current Ratio QoQ | 1.173 % | |
| Current Ratio YoY | 8.359 % | |
| Current Ratio IPRWA | high: 9.945 SLP: 5.538 median: 4.738 mean: 4.343 low: 1.021 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.083 | |
| Cost Of Debt | 109.867 % | |
| Interest Coverage Ratio | 6.123 | |
| Interest Coverage Ratio QoQ | -20.089 % | |
| Interest Coverage Ratio YoY | 50.217 % | |
| Interest Coverage Ratio IPRWA | high: 33.284 median: 9.029 mean: 8.316 SLP: 6.123 low: -15.488 |
|
| Operating Cash Flow Ratio | 0.541 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 17.006 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 4.432 % | |
| Revenue Growth | -9.901 % | |
| Revenue Growth QoQ | -131.071 % | |
| Revenue Growth YoY | 7.351 % | |
| Revenue Growth IPRWA | high: 7.736 % median: 5.622 % mean: 4.758 % SLP: -9.901 % low: -12.762 % |
|
| Earnings Growth | -14.286 % | |
| Earnings Growth QoQ | -108.442 % | |
| Earnings Growth YoY | -131.633 % | |
| Earnings Growth IPRWA | high: 122.222 % mean: 8.999 % median: 8.738 % SLP: -14.286 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 69.117 % | |
| Gross Margin QoQ | 4.003 % | |
| Gross Margin YoY | 7.999 % | |
| Gross Margin IPRWA | high: 89.522 % median: 74.979 % mean: 72.554 % SLP: 69.117 % low: 12.388 % |
|
| EBIT Margin | 20.557 % | |
| EBIT Margin QoQ | -11.304 % | |
| EBIT Margin YoY | 39.767 % | |
| EBIT Margin IPRWA | high: 30.932 % median: 30.932 % mean: 22.914 % SLP: 20.557 % low: -79.321 % |
|
| Return On Sales (ROS) | 20.557 % | |
| Return On Sales QoQ | -11.304 % | |
| Return On Sales YoY | 39.767 % | |
| Return On Sales IPRWA | high: 30.932 % median: 30.932 % mean: 23.055 % SLP: 20.557 % low: -81.621 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.9 M | |
| Free Cash Flow Yield | 2.419 % | |
| Free Cash Flow Yield QoQ | 20.169 % | |
| Free Cash Flow Yield YoY | 18.404 % | |
| Free Cash Flow Yield IPRWA | high: 6.843 % median: 3.988 % mean: 3.135 % SLP: 2.419 % low: -14.954 % |
|
| Free Cash Growth | 42.437 % | |
| Free Cash Growth QoQ | -37.006 % | |
| Free Cash Growth YoY | -13.183 % | |
| Free Cash Growth IPRWA | high: 219.25 % SLP: 42.437 % mean: -13.127 % median: -52.29 % low: -308.543 % |
|
| Free Cash To Net Income | 2.223 | |
| Cash Flow Margin | 33.547 % | |
| Cash Flow To Earnings | 2.054 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.388 % | |
| Return On Assets QoQ | -25.141 % | |
| Return On Assets YoY | -105.956 % | |
| Return On Assets IPRWA | high: 2.882 % median: 2.882 % SLP: 2.388 % mean: 2.239 % low: -10.518 % |
|
| Return On Capital Employed (ROCE) | 3.227 % | |
| Return On Equity (ROE) | 0.026 | |
| Return On Equity QoQ | -24.159 % | |
| Return On Equity YoY | -104.727 % | |
| Return On Equity IPRWA | high: 0.064 median: 0.036 mean: 0.027 SLP: 0.026 low: -0.174 |
|
| DuPont ROE | 2.621 % | |
| Return On Invested Capital (ROIC) | 2.407 % | |
| Return On Invested Capital QoQ | -25.779 % | |
| Return On Invested Capital YoY | 9.409 % | |
| Return On Invested Capital IPRWA | high: 3.643 % median: 2.808 % SLP: 2.407 % mean: 2.053 % low: -10.271 % |
|