Weyco Group Inc (WEYS) stock analysis

P/E above its 5-year median

Weyco's P/E of 14.7 is above its own 5-year median of 10.7.

P/E below the industry

Weyco's P/E of 14.7 is below the Wholesale Trade-non-durable Goods median of 22.6.

EV/EBITDA above its 5-year median

Weyco's EV/EBITDA of 9.6 is above its 5-year median of 6.0.

P/S above the industry

Weyco's price-to-sales of 2.05 is above the Wholesale Trade-non-durable Goods median of 0.33 (book value is negative, so we use sales).

Trading below fair value

The share price of $60.90 is below our fair value estimate of $63.49.

Margin of safety under 20%

The price is 4.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -7.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -7.8% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.5% over the last twelve months; the Wholesale Trade-non-durable Goods median is 3.8%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 51.4% over the last twelve months, against 44.3% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 14.0% over the last twelve months, against a 5-year average of 8.9%.

Net margin above the industry

Weyco's net margin of 14.0% is above the Wholesale Trade-non-durable Goods median of -0.1%.

No debt

Weyco has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 12114.5 times.

Short-term assets cover short-term debts

Current assets are 8.97 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 9.40; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Weyco paid dividends worth 5.1% of the share price over the last twelve months.

Yield above Treasuries

The 5.1% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Weyco yields 5.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 74.1% of net income.

Covered by free cash flow

Dividends take 61.4% of free cash flow.