Weis Markets (WMK) AI Stock Analysis

• Market Cap: $1.98B
• Dividend Yield: 1.87%
• Average Volume (3M): 98.77K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.15
• Revenue Growth: 2.00%
• EPS Growth: 5.89%
• Country: US
• Employees: 23,000
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Retailers - Staples
• EPS (TTM): 4.09
• Shares Outstanding: 26,898,443
• 10 Day Avg. Volume: 134,762
• 30 Day Avg. Volume: 98,768
• PEG Ratio: 3.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.41
• Price to Cash Flow (P/CF): 5.60
• P/FCF Ratio: 14.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Weis Markets exhibits a strong financial foundation with stable profitability and growth. The technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. The valuation suggests the stock is fairly valued, with a decent dividend yield, making it a stable investment in the retail staples sector.

Weis Markets Business Overview & Revenue Model

Company Description

Weis Markets, Inc. (WMK) is a regional grocery retailer headquartered in Sunbury, Pennsylvania. The company operates a chain of supermarkets primarily in the Mid-Atlantic region, including Pennsylvania, Maryland, New York, New Jersey, Delaware, Virginia, and West Virginia. Weis Markets offers a wide range of products, including fresh produce, meats, dairy, bakery items, frozen foods, and non-food items such as health and beauty products and household essentials. Additionally, the company operates its own distribution centers, ensuring efficient supply chain management and product availability.

How the Company Makes Money

Weis Markets generates revenue primarily through the sale of groceries and related products in its supermarkets. Its revenue streams include the sale of fresh produce, meats, dairy, bakery, frozen foods, and non-food items like health and beauty products and household essentials. The company also benefits from its private label brands, which typically offer higher profit margins compared to national brands. Weis Markets' earnings are further supported by its loyalty programs and promotional activities that drive customer engagement and repeat purchases. Furthermore, owning and operating its distribution centers helps in reducing supply chain costs and improving margins by ensuring efficient product distribution and inventory management.

Weis Markets Financial Statement Overview

Summary

Weis Markets demonstrates a solid financial performance with stable profitability and growth trends in revenue. The balance sheet is strong with low leverage, providing financial stability. While there are minor concerns in converting profits into free cash flow, the company's cash generation ability remains robust.

Income Statement

Weis Markets demonstrates a solid financial performance with a stable gross profit margin of approximately 25% and a consistent net profit margin around 2% over the years. Revenue growth has been steady, with a noticeable increase in the latest year, indicating positive momentum. However, the EBIT margin has slightly declined, suggesting potential cost pressures or operational challenges. Overall, the company shows reliable profitability and growth in the retail staples sector.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.12, indicating minimal leverage and reduced financial risk. The equity ratio stands robustly at around 68%, showcasing significant equity backing. Return on equity is moderate at approximately 7.6%, which suggests an efficient use of equity in generating profits. The overall stability and low leverage present a sound financial foundation for Weis Markets.

Cash Flow

Cash flow analysis shows a mixed picture with a decrease in free cash flow growth in the latest year. The operating cash flow to net income ratio is strong, reflecting good cash generation from operations. However, the free cash flow to net income ratio has declined, indicating potential challenges in converting profits into free cash flow. Despite these concerns, the overall cash flow position remains healthy, supported by consistent operating cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.79B	4.70B	4.70B	4.22B	4.11B
	Gross Profit
1.20B	1.19B	1.18B	1.12B	1.10B
	EBIT
131.72M	137.19M	157.05M	146.71M	163.18M
	EBITDA
131.72M	245.62M	261.08M	249.51M	262.55M
	Net Income Common Stockholders
109.94M	103.83M	125.20M	108.85M	118.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
382.29M	436.86M	367.11M	318.85M	271.23M
	Total Assets
2.11B	2.04B	1.96B	1.91B	1.82B
	Total Debt
173.46M	183.00M	185.95M	201.61M	208.23M
	Net Debt
-16.86M	-1.21M	27.95M	115.56M	71.62M
	Total Liabilities
661.41M	665.29M	657.32M	690.73M	674.31M
	Stockholders Equity
1.45B	1.37B	1.30B	1.22B	1.15B
Cash Flow		Free Cash Flow
26.12M	96.52M	95.04M	75.70M	146.87M
	Operating Cash Flow
187.47M	201.60M	218.02M	227.71M	277.99M
	Investing Cash Flow
-144.78M	-138.80M	-111.11M	-244.65M	-174.90M
	Financing Cash Flow
-36.58M	-36.58M	-34.97M	-33.62M	-33.35M

Weis Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMK, the sentiment is Positive. The current price of 73.6 is above the 20-day moving average (MA) of 71.65, above the 50-day MA of 68.78, and above the 200-day MA of 67.40, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WMK.

Weis Markets Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	78 Outperform	$460.27B	60.89	30.98%	0.44%	5.35%	16.22%
WMK	77 Outperform	$1.98B	18.01	7.60%	1.87%	2.00%	5.89%
ACI	76 Outperform	$11.45B	11.11	30.82%	2.46%	0.97%	-24.43%
SFM	72 Outperform	$14.33B	38.71	28.79%	―	12.90%	50.20%
KR	68 Neutral	$45.51B	16.64	21.45%	1.99%	1.41%	46.58%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%
IMKTA	61 Neutral	$1.12B	14.54	<0.01%	1.09%	-7.38%	-57.42%

Weis Markets Corporate Events

Weis Markets Appoints Bob Gleeson as COO

On January 13, 2025, Weis Markets, Inc. announced the promotion of Bob Gleeson to Chief Operating Officer. Mr. Gleeson, who has been with the company since 2018, will oversee various departments including merchandising, marketing, and supply chain operations, enhancing the company’s operational efficiency.