Weis Markets (WMK) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: 1.87%
• Average Volume (3M): 182.72K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.11
• Revenue Growth: 2.49%
• EPS Growth: 15.99%
• Country: US
• Employees: 22,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 1.01
• Shares Outstanding: 24,744,596
• 10 Day Avg. Volume: 297,890
• 30 Day Avg. Volume: 182,722
• PEG Ratio: 2.80
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 70.15
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 1.54
• Enterprise Value/Ebitda: 8.35
• 1Y Price Target: $80.00
• Price Target Upside: 9.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: $80.00 ▲(9.83% Upside)

Weis Markets' stable financial performance and strong balance sheet are significant strengths, though profitability and cash flow management need improvement. Technical indicators suggest neutral momentum with potential overbought conditions. The valuation is fair, providing a balanced risk-reward profile.

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 generates revenue primarily through the sale of grocery products in its supermarkets. The company operates on a traditional retail model, where it purchases products from manufacturers and wholesalers at a wholesale price and sells them to consumers at a markup. Key revenue streams include sales of perishable goods such as fresh produce, meats, dairy, and bakery items, as well as non-perishable items like canned goods, snacks, and beverages. Additionally, Weis Markets benefits from its private label products, which typically offer higher profit margins compared to national brands. The company also engages in promotional partnerships and loyalty programs, which drive customer retention and repeat purchases, contributing positively to its overall earnings.

Weis Markets Financial Statement Overview

Summary

Weis Markets demonstrates stable financial performance with consistent revenue growth and a strong balance sheet. However, profitability margins have slightly decreased, and cash flow management needs improvement, particularly in free cash flow generation.

Income Statement

Weis Markets shows stable revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 0.78%. The gross profit margin is consistent at around 24.7%, indicating efficient cost management. However, the net profit margin has slightly decreased to 2.22%, suggesting some pressure on net earnings. EBIT and EBITDA margins have also seen a slight decline, reflecting potential operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.13, indicating conservative leverage. Return on equity remains stable at 7.60%, showing consistent profitability. The equity ratio is healthy, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow remains robust, but free cash flow has turned negative in the TTM period, indicating potential cash management issues. The operating cash flow to net income ratio is 0.53, showing adequate cash generation relative to net income. However, the negative free cash flow to net income ratio highlights a need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.85B	4.79B	4.70B	4.70B	4.22B	4.11B
Gross Profit	1.20B	1.20B	1.19B	1.18B	1.12B	1.10B
EBITDA	221.55M	245.59M	245.62M	261.08M	249.51M	262.55M
Net Income	107.52M	109.94M	103.83M	125.20M	108.85M	118.92M
Balance Sheet
Total Assets	1.96B	2.11B	2.04B	1.96B	1.91B	1.82B
Cash, Cash Equivalents and Short-Term Investments	219.54M	413.42M	436.86M	367.11M	318.85M	271.23M
Total Debt	169.40M	173.46M	183.00M	185.95M	201.61M	208.23M
Total Liabilities	628.71M	661.41M	665.29M	657.32M	690.73M	674.31M
Stockholders Equity	1.33B	1.45B	1.37B	1.30B	1.22B	1.15B
Cash Flow
Free Cash Flow	-14.87M	26.12M	96.52M	95.04M	75.70M	146.87M
Operating Cash Flow	174.39M	187.47M	201.60M	218.02M	227.71M	277.99M
Investing Cash Flow	-99.40M	-144.78M	-138.80M	-111.11M	-244.65M	-174.90M
Financing Cash Flow	-176.58M	-36.58M	-36.58M	-34.97M	-33.62M	-33.35M

Weis Markets Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.84
• 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 WMK, the sentiment is Positive. The current price of 72.84 is above the 20-day moving average (MA) of 71.44, above the 50-day MA of 72.40, and below the 200-day MA of 73.58, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.56 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
VLGEA	72 Outperform	$504.69M	9.78	―	2.64%	3.94%	12.50%
NGVC	71 Outperform	$863.30M	20.02	21.56%	1.28%	8.51%	40.83%
WMK	69 Neutral	$1.80B	18.13	7.86%	1.87%	2.49%	15.99%
ACI	60 Neutral	$9.83B	10.71	29.60%	3.25%	1.96%	-14.99%
GO	58 Neutral	$1.55B	199.75	0.69%	―	8.47%	-85.17%
IMKTA	52 Neutral	$1.28B	23.14	3.54%	0.96%	-7.96%	-64.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%