McRae Industries (MCRAA) AI Stock Analysis

• Market Cap: $102.65M
• Dividend Yield: 2.86%
• Average Volume (3M): 11.00
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.11
• Revenue Growth: -0.78%
• EPS Growth: -37.05%
• Country: US
• Employees: 443
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.64
• Shares Outstanding: 1,896,334
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 11
• PEG Ratio: -0.36
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 34.67
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 2.29
• Enterprise Value/Ebitda: 8.42
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $48.00 ▲(7.29% Upside)

McRae Industries scores a 68, driven primarily by its solid financial performance and reasonable valuation. The technical analysis indicates a bearish trend, which is a concern. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates minimal leverage and financial risk, providing McRae Industries with stability and flexibility for future investments or downturns.

Cash Flow Improvement

Improved cash flow enhances McRae Industries' ability to reinvest in growth opportunities, pay down debt, or return capital to shareholders, strengthening its financial position.

Revenue Growth

Stable revenue growth indicates consistent demand for McRae's products, supporting long-term business sustainability and market presence.

Negative Factors

Declining Profit Margins

Declining profit margins may signal rising costs or pricing pressures, potentially impacting profitability if the trend continues.

Earnings Growth Decline

A significant decline in earnings growth can indicate challenges in maintaining profitability, which could affect investor confidence and future growth potential.

Revenue Growth Challenges

Negative revenue growth suggests potential difficulties in market expansion or product demand, which may hinder long-term business performance.

McRae Industries Business Overview & Revenue Model

Company Description

McRae Industries (MCRAA) is a diversified manufacturing company primarily engaged in the production of high-quality footwear and apparel, with a focus on the military, law enforcement, and industrial sectors. The company operates through two main segments: the wholesale distribution of its branded products and the production of private label goods. McRae Industries is known for its durable and functional designs, catering to the needs of professionals who require reliable and comfortable gear in demanding environments.

How the Company Makes Money

McRae Industries generates revenue through multiple streams, primarily from the sale of its footwear and apparel products. The company sells its goods through various channels, including direct sales to government entities, retail partnerships, and online platforms. Key revenue streams include wholesale orders from distributors and retailers, as well as contracts with military and law enforcement agencies for specialized footwear. Additionally, McRae Industries benefits from partnerships with other manufacturers and suppliers, which enhance its product offerings and market reach. The company's commitment to quality and its established brand reputation in niche markets contribute significantly to its earnings.

McRae Industries Financial Statement Overview

Summary

McRae Industries shows operational efficiency and a strong balance sheet with low leverage, but faces challenges with declining revenue and profit margins. Cash flow management appears effective, though historical volatility suggests potential risks.

Income Statement

McRae Industries shows a mixed performance in its income statement. The company experienced a decline in revenue growth, with a negative growth rate of -5.43% in the latest year. Profitability metrics such as gross profit margin (28.76%) and net profit margin (6.59%) have decreased compared to previous years, indicating pressure on margins. However, the company maintains a positive EBIT margin (8.52%) and EBITDA margin (9.60%), suggesting operational efficiency. Overall, while profitability remains, the declining revenue and margins present potential risks.

Balance Sheet

The balance sheet of McRae Industries reflects a strong financial position with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. The return on equity (ROE) stands at 7.46%, which, although lower than previous years, still demonstrates the company's ability to generate returns on shareholders' equity. The equity ratio is robust, highlighting a solid capital structure. Overall, the balance sheet suggests stability and low financial risk, though the declining ROE warrants attention.

Cash Flow

McRae Industries' cash flow statement reveals a significant improvement in free cash flow growth, with a remarkable increase of 306.11% in the latest year. The operating cash flow to net income ratio is 0.69, indicating a reasonable conversion of income into cash. The free cash flow to net income ratio is strong at 0.79, suggesting effective cash management. Despite these strengths, the volatility in cash flow growth over the years highlights potential fluctuations in cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	114.86M	122.40M	124.70M	124.83M	82.19M
Gross Profit	33.04M	36.82M	33.89M	36.46M	22.00M
EBITDA	11.02M	16.39M	11.77M	14.55M	4.89M
Net Income	7.57M	12.79M	8.06M	10.20M	3.35M
Balance Sheet
Total Assets	110.24M	106.54M	95.47M	91.04M	77.89M
Cash, Cash Equivalents and Short-Term Investments	47.11M	38.07M	39.84M	25.86M	32.11M
Total Debt	1.59M	2.14M	2.36M	0.00	0.00
Total Liabilities	8.66M	9.48M	8.55M	9.79M	5.64M
Stockholders Equity	101.58M	97.06M	86.92M	81.25M	72.25M
Cash Flow
Free Cash Flow	3.19M	6.69M	15.93M	-4.97M	411.00K
Operating Cash Flow	4.03M	7.55M	16.68M	-4.17M	766.00K
Investing Cash Flow	9.91M	-2.51M	-11.27M	-2.81M	4.69M
Financing Cash Flow	-3.06M	-2.64M	-2.39M	-1.20M	-2.92M

McRae Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRAA, the sentiment is Neutral. The current price of 44.74 is above the 20-day moving average (MA) of 43.98, above the 50-day MA of 43.97, and below the 200-day MA of 45.59, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 56.38 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MCRAA.

McRae Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCKY	76 Outperform	$241.22M	11.76	8.67%	2.08%	4.13%	53.56%
WEYS	70 Outperform	$301.92M	12.48	9.57%	9.66%	-3.64%	-16.12%
MCRAA	68 Neutral	$102.65M	13.95	7.13%	2.86%	-0.78%	-37.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.45B	16.90	25.57%	2.28%	3.61%	―
CAL	57 Neutral	$414.20M	19.74	3.33%	2.11%	-2.83%	-86.19%
VRA	46 Neutral	$67.09M	-0.81	-46.60%	―	-29.74%	-405.24%