McRae Industries (MCRAA) AI Stock Analysis

• Market Cap: $105.14M
• Dividend Yield: 2.8%
• Average Volume (3M): 51.00
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.14
• Revenue Growth: 4.05%
• EPS Growth: 43.87%
• 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: 106
• 30 Day Avg. Volume: 51
• 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: 0.62
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 4.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $53.00 ▲(17.83% 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.

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
Income Statement
Total Revenue	121.45M	122.40M	124.70M	124.83M	82.19M
Gross Profit	37.16M	36.82M	33.89M	36.46M	22.00M
EBITDA	13.68M	16.39M	11.77M	14.55M	4.89M
Net Income	11.94M	12.79M	8.06M	10.20M	3.35M
Balance Sheet
Total Assets	108.27M	106.54M	95.47M	91.04M	77.89M
Cash, Cash Equivalents and Short-Term Investments	43.20M	38.07M	39.84M	25.86M	32.11M
Total Debt	1.73M	2.14M	2.36M	0.00	0.00
Total Liabilities	7.89M	9.48M	8.55M	9.79M	5.64M
Stockholders Equity	100.38M	97.06M	86.92M	81.25M	72.25M
Cash Flow
Free Cash Flow	786.00K	6.69M	15.93M	-4.97M	411.00K
Operating Cash Flow	1.38M	7.55M	16.68M	-4.17M	766.00K
Investing Cash Flow	11.17M	-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: Negative
• Last Price: 44.98
• 50DMA: Negative
• 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 Negative. The current price of 44.98 is below the 20-day moving average (MA) of 45.27, below the 50-day MA of 45.81, and below the 200-day MA of 48.09, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 40.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.80 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	―	$223.53M	12.04	8.05%	2.11%	-0.09%	24.18%
MCRAA	―	$105.14M	8.53	12.44%	2.80%	4.05%	43.87%
WEYS	―	$279.98M	10.94	10.36%	10.25%	-6.39%	-14.72%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	―	$2.02B	24.00	27.52%	1.61%	-2.83%	―
CAL	―	$423.04M	7.18	9.50%	2.24%	-5.31%	-62.20%
VRA	―	$71.80M	―	-43.20%	―	-31.07%	-8386.91%