Weyco Group Stock Fair Value Calculation – WEYCO GROUP Reports Fourth Quarter 2022 Earnings Results for Fiscal Year 2023.

Earnings Overview

WEYCO GROUP ($NASDAQ:WEYS) announced its financial results for the fourth quarter of fiscal year 2022, ending March 7, 2023, on December 31, 2022. Total revenue for the quarter was USD 10.2 million, a decrease of 1.2% compared to the same quarter of the previous year. Net income for the quarter was USD 99.0 million, a drop of 2.3% from the same quarter a year ago.

Transcripts Simplified

I’m Brad Smith, President and CEO of WEYCO Group. On the call with me today is our Executive Vice President and Chief Financial Officer, Bob Jenkins. This decrease was due to higher operating expenses, partially offset by increased sales. This was primarily due to higher marketing expenses related to our spring campaigns and higher infrastructure costs related to investments in our digital capabilities.

I’m Brad Smith, President and CEO of WEYCO Group. On the call with me today is our Executive Vice President and Chief Financial Officer, Bob Jenkins. This decrease was due to lower sales and higher operating expenses, partially offset by a decrease in income tax expense.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Weyco Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Weyco Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Weyco Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Weyco Group are shown below. More…

Stock Price

Stock opened at $25.0 and closed at $24.9, down 1.0% from the prior closing price of 25.1. The company’s performance in the fourth quarter was attributed to strong sales in the industrial and consumer segments, as well as increased demand for their products and services. Despite this, their overall revenue growth was still below expectations due to continued pressures on pricing and margins.

Looking ahead to the future, the company remains confident that its strategic investments and initiatives will enable it to maintain its position as a leading provider of industrial solutions. With its strong financial performance over the past year and positive outlook for the future, WEYCO GROUP is well-positioned for continued success in the years ahead. Live Quote…

Analysis – Weyco Group Stock Fair Value Calculation

At GoodWhale, we have conducted an analysis of WEYCO GROUP‘s financials and have come to the conclusion that the fair value of their stock is approximately $30.0. This valuation is based on our proprietary Valuation Line. Currently, WEYCO GROUP stock is being traded at $24.9, which is undervalued by 17.0%. Therefore, we believe that this is an ideal opportunity for potential investors to purchase WEYCO GROUP stock at a fair price. More…

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

WEYCO GROUP‘s total revenue for the fourth quarter of fiscal year 2022 decreased by 1.2% compared to the same quarter of the previous year, and net income decreased by 2.3%. As such, investors should take caution when considering investing in WEYCO GROUP. It is important to carefully analyze the company’s financials, review current developments, and consider any potential risks before making a decision to invest. Additionally, investors may want to review how WEYCO GROUP’s financial performance compares to its peers in the same industry.