Weyco Group Intrinsic Value – WEYCO GROUP Reports 9.9% Decrease in Revenue for Q2 FY2023
August 6, 2023
🌥️Earnings Overview
WEYCO GROUP ($NASDAQ:WEYS) reported their second quarter of FY2023 earnings results on June 30 2023, announcing a total revenue of USD 67.0 million; a 9.9% decrease from the same period in the previous year. Net income, however, showed an 8.0% year-over-year increase, totaling USD 4.9 million.
Analysis – Weyco Group Intrinsic Value
GoodWhale has conducted an analysis of WEYCO GROUP‘s financials and determined that the fair value of WEYCO GROUP share is around $30.2, as calculated by our proprietary Valuation Line. Currently, WEYCO GROUP stock is trading at $27.4, implying that the stock is undervalued by 9.2%. Investors may find this to be a great opportunity to buy this stock at a discounted price. We suggest investors should research further before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Weyco Group. More…
| Total Revenues | Net Income | Net Margin |
| 349.33 | 33.3 | 9.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Weyco Group. More…
| Operations | Investing | Financing |
| 32.39 | -1.26 | -16.54 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Weyco Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 287.03 | 56.95 | 24.2 |
Key Ratios Snapshot
Some of the financial key ratios for Weyco Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.9% | 77.0% | 13.2% |
| FCF Margin | ROE | ROA |
| 8.4% | 12.6% | 10.0% |
Peers
The company operates in four segments: Branded Lifestyle, Branded Work, Private Label and Licensing. Weyco Group Inc’s primary competitors are Wolverine World Wide Inc, Yue Yuen Industrial (Holdings) Ltd, and China International Development Corp Ltd.
– Wolverine World Wide Inc ($NYSE:WWW)
Wolverine World Wide, Inc. is a footwear and apparel company. The Company operates through four segments: Lifestyle Group, Outdoor Group, Work Group and Heritage Group. Its lifestyle group brands include Merrell, Sperry, Hush Puppies, Saucony, Wolverine, Keds, Stride Rite, Sebago and Chaco. Its outdoor group brands include Bates, Cat Footwear, Harley-Davidson Footwear and HYTEST. Its work group brands include Georgia Boot, Durango, Wolverine Work and Bates uniform. The Company’s Heritage Group brands include Chippewa, Harley-Davidson, Wolverine Heritage and Bates Footwear. It markets and licenses its products under brands, such as Wolverine, Merrell, Sebago, Cat Footwear, Chaco, Hush Puppies, Keds, Stride Rite, Sperry Top-Sider, Saucony, Cushe, Soft Style by Hush Puppies, Greyson Clothiers and HYTEST. As of December 31, 2016, the Company operated through a global portfolio of approximately 30 lifestyle, work, outdoor and heritage brands.
– Yue Yuen Industrial (Holdings) Ltd ($SEHK:00551)
Yue Yuen Industrial (Holdings) Ltd is a Hong Kong-based company engaged in the design, development, manufacture and sale of footwear products. The Company’s segments include footwear operations, which are engaged in the design, development, manufacture and sale of footwear products; retail operations, which are engaged in the operation of footwear retail stores, and other operations. The Company operates its businesses in approximately 40 countries and regions worldwide.
– China International Development Corp Ltd ($SEHK:00264)
China International Development Corporation Ltd. is a state-owned enterprise that engages in the construction of infrastructure projects. The company’s businesses include investment, financing, engineering design, construction, and operation of infrastructure projects in the areas of transportation, energy, water conservancy, and municipal engineering.
As of 2022, China International Development Corporation Ltd. had a market cap of 256.41 million and a return on equity of 36.44%. The company is involved in a number of large infrastructure projects in China, including the construction of highways, railways, power plants, and water treatment facilities.
Summary
Investors should take note of WEYCO Group‘s Q2 FY2023 financial results, which reported total revenue of USD 67.0 million, a decrease of 9.9% compared to the same time last year. Despite this, net income increased 8.0% year-over-year to USD 4.9 million. The company appears to be doing well, despite the revenue decline, and has been able to maintain its profitability. For investors, this is a strong signal that the company is managing its finances well and is in a good position for long-term growth.
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