Weis Markets (WMK) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: 2.06%
• Average Volume (3M): 153.34K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.17
• Revenue Growth: 3.11%
• EPS Growth: 6.54%
• Country: US
• Employees: 22,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.11
• Shares Outstanding: 24,744,596
• 10 Day Avg. Volume: 191,305
• 30 Day Avg. Volume: 153,337
• PEG Ratio: -1.66
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 346.34
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 7.43
• 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: 58 Neutral
• Price Target: $65.00 ▼(-0.60% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

WMK’s score is supported primarily by a very strong, de-levered balance sheet, but it is held back by weak cash-flow conversion and compressed free cash flow, bearish technical momentum (below key moving averages with negative MACD), and added uncertainty from the delayed 10-K and inventory restatement review. Valuation and the dividend provide moderate support but are not enough to outweigh the near-term risks.

Positive Factors

De-levered balance sheet

Zero reported debt in 2025 and sizable equity materially improve financial flexibility, reduce interest burden, and increase capacity to fund store investment, remodels, dividends or opportunistic M&A. A de-levered balance sheet enhances resilience in low-margin grocery retail over cycles.

Capital investment and store expansion

Sustained, sizable capital spending to open stores, remodel and upgrade supply-chain tech supports structural revenue capacity, customer experience and operational efficiency. These investments underpin medium-term same-store sales growth and support scaling of e-commerce and omnichannel capabilities.

Leadership continuity and incentive alignment

Extending the CEO term and tying pay to net sales and modified ROIC creates management continuity and clearer long-term performance incentives. Clawback provisions and retention elements align leadership decisions with shareholder returns and long-term strategy execution through 2028.

Negative Factors

Inventory restatement & filing delay

An inventory overstatement review and delayed 10-K introduce sustained reporting and control uncertainty; final adjustments could alter historical margins, working capital and profitability metrics. This raises audit and governance scrutiny and may affect stakeholder confidence over multiple periods.

Weak free cash flow conversion

Sharp decline and volatile FCF relative to net income constrains the company’s ability to self-fund growth, sustain dividends or build cash buffers. Persistent weak conversion suggests working-capital pressure or heavy reinvestment needs that reduce long-term financial optionality.

Thin margins in competitive grocery

Consistently low and eroding margins leave limited room to absorb cost shocks or fund margin-enhancing initiatives. In a sector where scale and operating efficiency matter, narrow net margins materially constrain earnings power and make long-term returns sensitive to pricing and cost fluctuations.

Weis Markets Business Overview & Revenue Model

Company Description

Weis Markets, Inc. engages in the retail sale of food through a chain of supermarkets in Pennsylvania and surrounding states. The company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, and fuel; and general merchandise items, such as health and beauty care, and household products. It operates stores primarily under the Weis Markets name, as well as Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts. As of March 7, 2022, the company owned and operated 197 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia, and Virginia. Weis Markets, Inc. was founded in 1912 and is based in Sunbury, Pennsylvania.

How the Company Makes Money

Weis Markets primarily makes money by selling products through its supermarket stores. The company’s core revenue stream is retail sales of food and grocery items, including center-store packaged goods and fresh categories such as produce, meat/seafood, deli, and bakery. It also generates revenue from non-food and general merchandise sold in its stores, and from ancillary in-store operations where available (for example, pharmacy sales). Overall earnings are driven by (1) customer traffic and average basket size, (2) product mix between higher- and lower-margin categories, (3) pricing strategy and promotional activity, and (4) operating efficiency across procurement, distribution, and store labor. Specific details on significant partnerships or other distinct revenue lines are null.

Weis Markets Financial Statement Overview

Summary

Financials are stable with a major balance-sheet strength (debt reduced to zero in 2025 and sizable equity), but operating performance is constrained by thin grocery margins and softer 2025 earnings. Cash-flow quality is the key drag: free cash flow became volatile and fell sharply in 2025, with weak cash conversion relative to net income.

Income Statement

Revenue has been steady to modestly rising (2023–2025 low-single-digit growth after stronger gains in 2020–2022). Profitability is positive but thin, with net margins around ~1.9%–2.7% and gross margin gradually edging down since 2020. Earnings also softened in the most recent year (2025 net income down vs. 2024), pointing to some margin pressure in a typically low-margin grocery model.

Balance Sheet

The balance sheet is a clear strength: leverage has come down meaningfully, with total debt reaching zero in 2025 and debt-to-equity declining from ~0.18 (2020) to 0.00 (2025). Equity remains sizable (~$1.35B in 2025), and returns on equity are consistently solid for the sector (generally mid-to-high single digits), though down from the 2020–2022 peak levels.

Cash Flow

Operating cash generation is consistently positive (about $187M–$278M across 2020–2025), but conversion into free cash flow has become volatile and recently weak. Free cash flow fell sharply to ~$4.8M in 2025 from ~$26.1M in 2024 and much higher levels in 2020–2023, and free cash flow relative to net income dropped to ~2% in 2025—suggesting heavier reinvestment and/or working-capital drag. Operating cash flow also covers only about ~0.55–0.66x of net income in recent years, indicating profits are not translating as strongly into cash as one would prefer.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.96B	4.79B	4.70B	4.70B	4.22B
Gross Profit	1.13B	1.20B	1.19B	1.18B	1.12B
EBITDA	227.13M	245.59M	245.62M	261.08M	249.51M
Net Income	93.69M	109.94M	103.83M	125.20M	108.85M
Balance Sheet
Total Assets	2.03B	2.11B	2.04B	1.96B	1.91B
Cash, Cash Equivalents and Short-Term Investments	214.18M	413.42M	436.86M	367.11M	318.85M
Total Debt	172.09M	173.46M	183.00M	185.95M	201.61M
Total Liabilities	675.45M	661.41M	665.29M	657.32M	690.73M
Stockholders Equity	1.35B	1.45B	1.37B	1.30B	1.22B
Cash Flow
Free Cash Flow	4.83M	26.12M	96.52M	95.04M	75.70M
Operating Cash Flow	207.21M	187.47M	201.60M	218.02M	227.71M
Investing Cash Flow	-105.32M	-144.78M	-138.80M	-111.11M	-244.65M
Financing Cash Flow	-175.12M	-36.58M	-36.58M	-34.97M	-33.62M

Weis Markets Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMK, the sentiment is Negative. The current price of 65.39 is below the 20-day moving average (MA) of 67.16, below the 50-day MA of 68.60, and below the 200-day MA of 69.42, indicating a bearish trend. The MACD of -1.24 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 84.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WMK.

Weis Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VLGEA	76 Outperform	$545.26M	7.26	11.37%	2.63%	3.88%	7.71%
NGVC	66 Neutral	$580.43M	12.71	23.11%	1.99%	7.19%	35.90%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ACI	61 Neutral	$8.88B	8.31	28.54%	3.49%	2.08%	-1.63%
IMKTA	60 Neutral	$1.57B	11.86	5.93%	0.93%	-5.42%	-20.80%
WMK	58 Neutral	$1.63B	17.84	6.83%	2.06%	3.11%	6.54%
GO	45 Neutral	$583.03M	-4.43	-19.78%	―	7.22%	-108.99%

Weis Markets Corporate Events

Weis Markets Delays 10-K Amid Inventory Restatement Review

On February 25, 2026, Weis Markets, Inc. said it would delay filing its Form 10-K for the 52-week fiscal year ended December 27, 2025, as it reviews and restates historical financial statements tied to incorrectly recorded, overstated inventory amounts estimated at up to $22 million as of the quarter ended September 27, 2025. The preliminary inventory error, representing about 6.7% of inventories and 1.1% of total assets at that date, has prompted a restatement process that could push the 10-K filing beyond the company’s current expectation of March 12, 2026, injecting uncertainty for investors even as preliminary unaudited figures show 2025 net sales rising 3.5% to $4.96 billion and comparable store sales excluding fuel up 2.1%.

The most recent analyst rating on (WMK) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Weis Markets stock, see the WMK Stock Forecast page.

Weis Markets Extends CEO Contract and Incentive Plan

On February 5, 2026, Weis Markets approved an employment agreement effective January 1, 2026, that extends Chairman, President and CEO Jonathan H. Weis’s term through December 31, 2028, setting a minimum annual base salary of $1,447,819 and granting eligibility for cash and equity incentive plans, broad benefits, and a $4 million term life policy. The agreement includes detailed severance, disability, and death benefits, clawback provisions tied to financial restatements, and stringent confidentiality and non-compete covenants lasting up to four years post-employment, underscoring the board’s commitment to leadership stability and governance controls.

The board’s compensation committee also adopted a Chief Executive Officer Incentive Award Plan effective January 1, 2026, making a significant portion of the CEO’s cash pay depend on annual net sales and modified return on invested capital performance through 2028. Awards, which include a sizable retention component and performance-based payouts with scaled targets, vest only if the CEO remains in role through year-end 2028 or is terminated without cause or dies, aligning executive incentives with long-term corporate performance while providing substantial protection in the event of a no-cause exit.

The most recent analyst rating on (WMK) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Weis Markets stock, see the WMK Stock Forecast page.