Company Overview
Weyco Group, Inc. functions as a designer, marketer, and distributor of footwear tailored for men, women, and children across international markets including the United States, Canada, Australia, Asia, and South Africa. The company operates strictly within the Consumer Cyclical sector and specifically within the Footwear & Accessories industry, positioning it alongside other companies sensitive to economic cycles and consumer discretionary spending. As a publicly traded entity, the company carries a market capitalization of $302.53M and employs a workforce of 408 individuals to execute its business operations. With an annual revenue of $276.17M, these financial figures indicate that Weyco Group maintains a moderate scale within the footwear distribution landscape, operating with a streamlined organizational structure typical of mid-sized firms in the specialty retail and wholesale space.
Financial Health
The company reported a trailing twelve-month revenue of $276.17M and generated net income of $23.08M, while reporting an EBITDA of $31.96M, highlighting a significant gap between total revenue and bottom-line profit that reveals a cost structure comprising substantial operating expenses, taxes, and interest costs. Weyco Group demonstrated strong cash generation capabilities with free cash flow reaching $51.61M, a metric that provides the company with significant financial flexibility to fund operations, manage liquidity, or potentially return capital to shareholders without relying on external financing. The firm's profitability is characterized by a gross margin of 43.2%, indicating efficient production and supply chain management, while an operating margin of 13.2% reflects the efficiency of core business operations before interest and taxes, and a profit margin of 8.4% demonstrates the final percentage of revenue retained as net income. On the balance sheet, the company holds $97.43M in cash against $10.79M in debt, resulting in a conservative debt-to-equity ratio of 4.50, which suggests the firm is not heavily leveraged despite the ratio appearing elevated due to the low debt absolute value. Liquidity is robust as evidenced by a current ratio of 4.22, which indicates that the company possesses more than four times the current assets necessary to cover its short-term liabilities, ensuring it can meet obligations without distress. Return on equity stands at 9.5% and return on assets at 5.6%, metrics that reveal management's effectiveness in generating returns relative to the shareholders' invested capital and the total asset base, respectively.
Valuation Assessment
Valuation metrics for Weyco Group, Inc. show a trailing P/E ratio of 13.17 and a forward P/E of 21.89, where the difference between these figures implies that the market expects earnings growth to accelerate significantly in the future compared to historical performance. The price-to-book ratio is recorded at 1.25, indicating that the market values the company at a slight premium over its net book value, suggesting confidence in the quality of its assets and intangible value beyond the balance sheet book value. Alternative valuation perspectives are provided by a price-to-sales ratio of 1.10 and an EV/EBITDA of 6.64, which suggest the company is trading at a valuation slightly above its sales and earnings multiples relative to peers, reflecting its established market position. The stock has traded between a 52-week high of $34.93 and a 52-week low of $25.51, providing a range within which the current price must be interpreted to understand its relative positioning near the upper or lower bounds of its recent trading history. The beta value of 0.90 indicates that the stock's price volatility is slightly lower than the broader market, meaning it tends to move less aggressively than the overall market index during periods of fluctuation.
Growth & Income
Growth metrics for the past year show a revenue growth rate of -4.6% and an earnings growth rate of -12.0%, indicating that earnings are contracting at a faster pace than revenue, which implies rising costs or margin compression that is impacting profitability more severely than top-line sales. The company pays a dividend with a yield of 3.4% and maintains a payout ratio of 44.4%, a level that suggests the dividend is sustainable given that less than half of the net income is distributed, leaving the remainder for reinvestment or debt reduction. The negative growth rates combined with a conservative payout ratio suggest the company is currently prioritizing capital preservation over aggressive expansion or dividend increases during this contractionary period. Overall, the growth and income profile presents a mixed picture of a mature, cash-generating business currently facing headwinds in revenue and earnings while maintaining a consistent dividend policy.