McRae Industries (MCRAA) AI Stock Analysis

• Market Cap: $103.14M
• Dividend Yield: 2.85%
• Average Volume (3M): 6.00
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.11
• Revenue Growth: -6.16%
• EPS Growth: -40.74%
• Country: US
• Employees: 443
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.40
• Shares Outstanding: 1,896,334
• 10 Day Avg. Volume: 20
• 30 Day Avg. Volume: 6
• PEG Ratio: 0.14
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 16.22
• Enterprise Value/Market Cap: 0.64
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 4.79
• 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: 71 Outperform
• Price Target: $53.00 ▲(18.46% Upside)

McRae Industries' overall stock score is driven by its strong financial performance and attractive valuation. The company's robust balance sheet and profitability metrics provide a solid foundation, while its low P/E ratio and reasonable dividend yield enhance its appeal. However, technical analysis indicates potential short-term weakness, and cash flow challenges need to be addressed for sustained growth.

Positive Factors

Strong Balance Sheet

McRae Industries' strong balance sheet with minimal leverage provides a solid foundation for future growth and financial stability, enabling the company to invest in opportunities without the burden of high debt.

Profitability Metrics

The company's consistent profitability and healthy margins indicate effective cost management and operational efficiency, supporting long-term financial health and competitive positioning.

Revenue Stability

McRae Industries' ability to maintain high-quality standards and fulfill specific customer requirements has led to stable revenue streams, particularly from government contracts, ensuring ongoing business sustainability.

Negative Factors

Cash Flow Challenges

The company's recent operating cash flow deficit and negative free cash flow growth rate suggest challenges in cash flow management, which could impact its ability to fund operations and growth initiatives.

Revenue Contraction

A decline in revenue growth indicates potential challenges in expanding the company's market presence and product adoption, which could affect long-term growth prospects if not addressed.

Cash Flow Management

The negative operating cash flow to net income ratio points to inefficiencies in cash flow management, which may hinder the company's ability to sustain operations and invest in future growth opportunities.

McRae Industries Business Overview & Revenue Model

Company Description

McRae Industries (MCRAA) is a diversified company primarily engaged in the manufacturing and distribution of high-quality footwear and other related products. The company operates through two main segments: the Military and Law Enforcement segment, which produces tactical and safety footwear, and the Retail segment, which focuses on outdoor and lifestyle footwear. McRae Industries is known for its commitment to quality and durability, serving both government contracts and consumer markets.

How the Company Makes Money

McRae Industries generates revenue through multiple streams, primarily from the sale of its footwear products. The company earns significant income from government contracts, particularly with military and law enforcement agencies, which require specialized footwear designed for rigorous use. Additionally, the retail segment contributes to revenue through the sale of outdoor and lifestyle footwear to consumers, both directly and through partnerships with various retail outlets. The company's ability to maintain high-quality standards and fulfill specific customer requirements has allowed it to establish long-term relationships with key clients, further enhancing its revenue stability.

McRae Industries Financial Statement Overview

Summary

McRae Industries demonstrates strong profitability and a robust balance sheet with minimal leverage. However, challenges in cash flow management and revenue contraction indicate areas for improvement. Overall, the company's financial health is solid, with potential for sustained performance if growth strategies are effectively implemented.

Income Statement

McRae Industries has shown strong profitability metrics with a solid gross profit margin of 29.47% and a net profit margin of 9.02% in the TTM period. Despite a slight decline in revenue, the company maintains healthy EBIT and EBITDA margins of 8.37% and 10.68%, respectively. The consistent profitability indicates stability and effective cost management, although the negative revenue growth rate of -3.76% from the previous annual period signals potential challenges in expanding top-line growth.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.019, reflecting minimal leverage and strong financial health. McRae Industries boasts a high equity ratio of 92.21%, indicating a solid foundation with significant equity backing its assets. Return on equity is a healthy 11.08%, underscoring effective utilization of shareholders' funds. Overall, the company is in a strong position to leverage its assets for future growth.

Cash Flow

The cash flow statement presents mixed results. Although the operating cash flow to net income ratio is negative due to the recent operating cash flow deficit, the company has a substantial cash reserve and previous periods of positive free cash flow. The negative free cash flow growth rate and free cash flow to net income ratio highlight potential cash flow management issues. However, the company's ability to generate free cash flow in prior years suggests resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.45M	122.40M	124.70M	124.83M	82.19M	69.31M
Gross Profit	37.16M	36.82M	33.89M	36.46M	22.00M	15.55M
EBITDA	13.71M	16.39M	11.77M	14.55M	4.89M	653.00K
Net Income	11.94M	12.79M	8.06M	10.20M	3.35M	-77.00K
Balance Sheet
Total Assets	108.27M	106.54M	95.47M	91.04M	77.89M	77.93M
Cash, Cash Equivalents and Short-Term Investments	43.20M	38.07M	39.84M	25.86M	32.11M	34.84M
Total Debt	1.73M	2.14M	2.36M	0.00	0.00	0.00
Total Liabilities	7.89M	9.48M	8.55M	9.79M	5.64M	6.11M
Stockholders Equity	100.38M	97.06M	86.92M	81.25M	72.25M	71.82M
Cash Flow
Free Cash Flow	786.00K	6.69M	15.93M	-4.97M	411.00K	6.17M
Operating Cash Flow	1.38M	7.55M	16.68M	-4.17M	766.00K	6.70M
Investing Cash Flow	11.17M	-2.51M	-11.27M	-2.81M	4.69M	2.89M
Financing Cash Flow	-3.06M	-2.64M	-2.39M	-1.20M	-2.92M	-1.43M

McRae Industries Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRAA, the sentiment is Negative. The current price of 44.74 is above the 20-day moving average (MA) of 44.63, below the 50-day MA of 44.97, and below the 200-day MA of 47.20, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 35.25 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$218.22M	10.64	8.67%	2.13%	4.13%	53.56%
WEYS	74 Outperform	$294.47M	12.17	9.57%	9.95%	-3.64%	-16.12%
MCRAA	71 Outperform	$103.14M	13.23	7.62%	2.85%	-6.16%	-40.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.43B	16.60	25.57%	2.30%	3.61%	―
CAL	55 Neutral	$451.13M	7.65	9.50%	2.10%	-5.31%	-62.20%
VRA	44 Neutral	$61.46M	―	-43.20%	―	-31.07%	-8386.91%