Weyco Group Stock Fair Value Calculation – WEYCO GROUP Reports 13.2% Decrease in Total Revenue for Q3 2023
November 23, 2023
🌥️Earnings Overview
For the quarter ending September 30 2023, WEYCO GROUP ($NASDAQ:WEYS) reported total revenue of USD 84.2 million, a 13.2% reduction from the same period in the previous year. Net income also declined 13.3% year over year to USD 9.3 million. The announcement of these results was made on November 7 2023.
Analysis – Weyco Group Stock Fair Value Calculation
GoodWhale has conducted a comprehensive analysis of the financials of WEYCO GROUP. According to our proprietary Valuation Line, the intrinsic value of WEYCO GROUP share is around $28.4. This means that the current market price of $25.7 is undervalued by a healthy margin of 9.5%. This presents an opportunity for investors as they can purchase the stock at a price lower than its actual value. We believe that the undervaluation of WEYCO GROUP stock is an opportunity for investors to benefit from the long-term growth potential of the company. Our thorough analysis reveals that this is the right time to invest in WEYCO GROUP as its stock is trading at a discounted rate compared to its intrinsic value. Therefore, investors should take advantage of this opportunity and invest in WEYCO GROUP stock to gain from its long-term growth potential. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Weyco Group. More…
| Total Revenues | Net Income | Net Margin |
| 336.5 | 31.87 | 9.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Weyco Group. More…
| Operations | Investing | Financing |
| 75.1 | -2.15 | -49.02 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Weyco Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 288.86 | 53.48 | 24.78 |
Key Ratios Snapshot
Some of the financial key ratios for Weyco Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.2% | 14.3% | 13.1% |
| FCF Margin | ROE | ROA |
| 21.3% | 11.9% | 9.6% |
Peers
The company operates in four segments: Branded Lifestyle, Branded Work, Private Label and Licensing. Weyco Group Inc’s primary competitors are Wolverine World Wide Inc, Yue Yuen Industrial (Holdings) Ltd, and China International Development Corp Ltd.
– Wolverine World Wide Inc ($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 the latest financial results from WEYCO GROUP for the third quarter ending September 30 2023. Total revenue decreased by 13.2% compared to the year prior, while net income decreased 13.3% year over year. These figures are indicative of a challenging environment, and should be taken into account when considering an investment in the company. Looking forward, investors should monitor the company’s performance for signs of improvement or further decline.
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