Breaking Down Weis Markets, Inc. (WMK) Financial Health: Key Insights for Investors

You're looking at Weis Markets, Inc. (WMK) and seeing a classic grocery retail dilemma: solid top-line growth but real pressure on the bottom line, so the immediate takeaway is that operational efficiency is the new moat. The company delivered Q3 2025 net sales of $1.24 billion, a healthy 4.4% jump year-over-year, with comparable store sales excluding fuel up 2.5%, which shows customers are defintely still walking through the doors. But here's the quick math: net income for the quarter dropped sharply by 29.4% to just $18.23 million, pushing earnings per share (EPS) down to $0.74 from $0.96 in the prior year, largely because of higher operating costs and the fact they didn't have a one-time asset sale gain like they did last year. This margin compression is the near-term risk-cautious consumer spending means they must keep investing in price and technology to stay competitive, but that costs money, and it's why year-to-date net income for the 39 weeks is down 13.3% to $65.24 million. The question is whether their strategic investments in technologies and facilities will generate enough long-term shareholder value to offset these current profitability headwinds, especially with the stock trading around $67.04 and a market cap of $1.659 billion as of November 2025.

Revenue Analysis

You need to know where the growth is coming from, and for Weis Markets, Inc. (WMK), the story in 2025 is modest, steady growth in a tough retail environment. The core takeaway is that Weis Markets, Inc. is successfully driving volume through existing stores, even while absorbing higher costs and making strategic price investments.

For the 39-week year-to-date period ended September 27, 2025, Weis Markets, Inc. reported total net sales and other revenue of $3.66 billion. This represents a solid year-over-year increase of 2.9% compared to the same period in 2024. That's a decent performance when you consider the cautious customer spending we're seeing across the Mid-Atlantic. Exploring Weis Markets, Inc. (WMK) Investor Profile: Who's Buying and Why?

The primary revenue stream for Weis Markets, Inc. is straightforward: retail sales of food products and general merchandise through its 201 supermarket locations across seven states. However, the company's financial reporting provides a key distinction you must note, which points to a secondary, but still important, revenue component:

• Grocery/Retail Sales: The bulk of revenue, covering groceries, fresh departments (meat, produce), and pharmacy services.
• Fuel Sales: A smaller, more volatile contributor, which is often stripped out to give a clearer picture of core grocery performance.

The comparable store sales (comps) metric tells the real story of the core business health. Comps, excluding fuel, rose by 1.9% for the year-to-date period in 2025, showing that more customers are either visiting or spending more per visit at existing stores. That's a clean one-liner on efficiency.

Here's the quick math on recent performance, which shows an accelerating trend in the third quarter:

What this estimate hides is the pressure on margins. Weis Markets, Inc. is increasing sales, but they explicitly mention making significant price investments to compete in a market with cautious consumer spending. This strategy-sacrificing some margin for volume-is a deliberate move to defend market share and keep the top-line revenue growth defintely positive, which it has been. The Q3 net sales jump of 4.4% is a strong sign that their strategy of investing in prices, associates, and new facilities, like the recently opened store in Maryland, is paying off in the near-term.

Profitability Metrics

You need to know if Weis Markets, Inc. (WMK) can turn its sales growth into real profit, especially in a grocery sector notorious for thin margins. The short answer is yes, but the trend shows clear margin pressure from rising operating costs. For the last twelve months (LTM) ending in mid-2025, Weis Markets, Inc. generated $4.89 billion in revenue, translating to a solid, though slightly compressed, bottom line.

Here's the quick math on the LTM performance, which gives us the best full-year proxy for 2025 fiscal data:

• Gross Profit Margin: The LTM Gross Profit of $1.26 billion results in a margin of approximately 25.77%.
• Operating Profit Margin: The LTM Operating Income of $119.65 million yields a margin of about 2.45%.
• Net Profit Margin: The LTM Net Income of $99.92 million gives a Net Profit Margin of roughly 2.04%.

This is defintely a business of pennies, but those pennies add up.

Profitability Trends and Industry Comparison

The real story for Weis Markets, Inc. in 2025 is the squeeze below the gross profit line. While the company's LTM Net Profit Margin of 2.04% sits comfortably within the typical supermarket industry range of 1.7% to 2.3%, the recent quarterly trend is a warning sign. The industry median for Gross Margin is around 27.8%, putting WMK's 25.77% slightly behind, which is common for a regional player making price investments.

The pressure is most visible in the operating profit (earnings before interest and taxes, or EBIT) margin. For the third quarter of 2025, the Operating Income was only $22.38 million, and the operating margin compressed to approximately 1.80%, down from an estimated 2.62% in the second quarter of 2025. This is significantly below the industry median Operating Margin of 3.1%.

This margin compression is why the year-to-date (YTD) Net Income for the 39-week period ending September 27, 2025, fell to $65.24 million, a 13.3% decline from the prior year, despite net sales increasing to $3.66 billion. The company is seeing top-line growth but is struggling to hold onto that revenue as profit.

Operational Efficiency and Cost Management

The drop in operating margin points directly to a challenge in operational efficiency (how well the company manages its costs relative to sales). Weis Markets, Inc.'s gross profit has been resilient, with management citing an increase in gross profits in Q3 2025, which suggests their merchandising and pricing strategies are working to maintain the initial markup.

However, the significant drag comes from rising Operating, General, and Administrative (OG&A) expenses. Management has noted ongoing 'significant investments in our associates, technologies, and facilities' to improve efficiencies and customer experience, plus a focus on 'prudent cost management'. These investments, while necessary for long-term growth, are hitting the near-term bottom line now. The YTD Net Profit Margin of 1.78% reflects this reality.

Here is a summary of the key profitability ratios for context:

To fully understand the long-term strategy behind these numbers, you should review the company's core principles and goals: Mission Statement, Vision, & Core Values of Weis Markets, Inc. (WMK).

Next Step: Finance: Map the Q3 2025 OG&A expense growth rate against the comparable store sales growth rate to isolate the true cost of new store openings versus core operating inflation by next Tuesday.

Debt vs. Equity Structure

Weis Markets, Inc. (WMK) maintains an exceptionally conservative capital structure, a clear sign of financial strength in the highly competitive grocery sector. You should view this as a low-risk profile, but it also signals a preference for funding growth internally rather than through aggressive debt-fueled expansion.

As of a recent 2025 quarter, the company's total debt stands at approximately $175.22 million USD. What's striking is that their reported long-term debt as of September 2025 is $0 USD, meaning the total debt is entirely composed of short-term obligations or capital lease liabilities. This is a very clean balance sheet.

Here's the quick math on their leverage:

• Total Debt: $175.22 Million
• Total Equity (Shareholders' Equity): Approximately $1.34 Billion (calculated from the Book Value Per Share of $54.29 and 24.74 million shares outstanding).
• Debt-to-Equity (D/E) Ratio: Approximately 0.13.

The Debt-to-Equity (D/E) ratio, which measures a company's financial leverage by comparing total liabilities to shareholder equity, is the key takeaway here. A D/E ratio of 0.13 is incredibly low. To be fair, the median D/E ratio for the U.S. grocery store industry in 2024 was around 1.44. Weis Markets, Inc. is using a fraction of the debt leverage compared to its peers. That's a massive safety cushion.

This low leverage is a deliberate strategy. The company primarily uses retained earnings (equity funding) and cash flow from operations to finance its growth and capital expenditures (CapEx). For example, in 2025, they are building four new stores and making significant investments in their long-term CapEx program. They are not issuing new bonds or taking on major long-term loans to fund this. This approach keeps interest expense low, which is a big advantage in a higher interest rate environment, but it can also limit the pace of expansion compared to highly leveraged competitors.

The lack of recent credit rating news from major agencies like S&P or Moody's, and the absence of new debt issuances in late 2025, further confirms this quiet, low-leverage profile. The market is currently focused on their Q3 2025 earnings and capital allocation decisions, such as a related-party share purchase agreement. This is a stable, conservative company. You won't see a huge debt-driven spike in returns, but you also won't see a debt-driven collapse. For a deeper dive into the company's full financial picture, check out our complete analysis: Breaking Down Weis Markets, Inc. (WMK) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You're looking at Weis Markets, Inc. (WMK) to understand if they can comfortably cover their short-term bills, and the answer is a clear yes. As of the most recent trailing twelve months (TTM) data ending November 2025, the company maintains a strong liquidity position, which is defintely a good sign for a grocery retailer in a tough margin environment. The quick takeaway is that Weis Markets, Inc. (WMK) has nearly twice the current assets needed to cover its current liabilities.

The liquidity position is best seen through two core ratios. The Current Ratio, which measures a company's ability to pay short-term obligations (current assets divided by current liabilities), stands at a healthy 1.94. For a grocery chain, where inventory moves fast, a ratio near 1.0 is often acceptable, so 1.94 is excellent. The Quick Ratio (or acid-test ratio), which excludes inventory-the least liquid current asset-is 0.79. This means that even without selling a single item of food, the company has enough cash and receivables to cover about 79% of its immediate liabilities. That's a solid buffer.

Working Capital and Inventory Dynamics

The company's Working Capital (Current Assets minus Current Liabilities) is a robust $329.00 million based on the last twelve months. This positive trend is critical because it shows a consistent ability to fund daily operations without needing to borrow short-term money. Here's the quick math using the Q3 2025 balance sheet data, which closely aligns with the TTM figures:

• Current Assets (Q3 2025): $679.71 million
• Current Liabilities (Q3 2025): $350.71 million
• Working Capital: $329.00 million

What this estimate hides is the heavy reliance on inventory, which is typical for a retailer. Inventory makes up the bulk of current assets, and its rapid turnover is key to the business model. For Weis Markets, Inc. (WMK), the speed at which they convert inventory into cash is far more important than the absolute dollar amount of their Quick Ratio. You can learn more about the strategic direction that drives this operational efficiency here: Mission Statement, Vision, & Core Values of Weis Markets, Inc. (WMK).

Cash Flow Statement Overview

The cash flow statement for the trailing twelve months ending November 2025 shows a healthy engine driving the business, but with a clear strategic focus on expansion. Cash Flow from Operating Activities (CFO) was a strong positive at $207.76 million. This is the lifeblood of the company, representing cash generated directly from selling groceries and running stores, and it's more than enough to cover their capital spending.

Cash Flow from Investing Activities (CFI) was a net outflow of approximately $-205.63 million, primarily due to capital expenditures (CapEx). This confirms the company is actively investing in new stores, store remodels, and technology-a necessary move to stay competitive in the grocery space. This high investment level means Free Cash Flow (CFO - CapEx) is only about $2.12 million, which is tight, but it's a strategic choice to prioritize growth over hoarding cash.

Finally, Cash Flow from Financing Activities (CFF) showed a net outflow of $-36.58 million (FY 2024 data, which is the most recent complete figure). This outflow is largely due to dividend payments, demonstrating a commitment to shareholder returns, even while aggressively funding internal growth. The overall picture is one of a financially stable company that is intentionally spending its operational cash flow on growth and shareholder payouts, not because it has to, but because it's executing a long-term strategy.

Valuation Analysis

You're trying to figure out if Weis Markets, Inc. (WMK) is a bargain or a trap right now, and the numbers suggest a 'wait-and-see' approach. Based on the latest fiscal year data through November 2025, the stock appears reasonably valued against its historical averages and peers, but recent margin pressure has pushed its price down, creating a potential entry point for long-term investors.

The stock closed at $67.04 on November 21, 2025, sitting much closer to its 52-week low of $61.53 than its high of $90.23. Over the last 12 months, Weis Markets, Inc. (WMK) shares have dropped by about -6.30%, reflecting market anxiety over its recent earnings where sales grew but net income declined due to rising costs. That's a clear signal of margin compression, which is a key risk to watch.

• Stock is down -6.30% over the last year.
• Current price is near the $61.53 52-week low.
• Analyst consensus is a cautious Hold.

Is Weis Markets, Inc. (WMK) Overvalued or Undervalued?

To be fair, the company's valuation multiples suggest it's priced fairly, maybe even slightly cheap, when you consider the stability of the grocery sector. We look at three core ratios to map this out:

The Price-to-Earnings (P/E) ratio, which compares the stock price to its earnings per share, is sitting around 16.33x (TTM). For a stable consumer staples business like this, that's not excessively high, especially compared to the broader market. Plus, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is a low 6.7x. Here's the quick math: EV/EBITDA is a capital structure-neutral way to value the entire business, and anything below 10x is often considered healthy for a mature company. This low multiple suggests the market is valuing the company's operating cash flow quite conservatively.

The Price-to-Book (P/B) ratio, which measures the market price against the company's book value (its tangible assets), is 1.21x. A P/B just over 1.0x indicates the market is only assigning a small premium to the company's net assets, which is common for a capital-intensive, low-margin industry like grocery retail. This is defintely not an overvalued asset based on book value.

Dividend Health and Analyst View

The dividend story is strong, which is a big deal for a defensive stock like this. Weis Markets, Inc. (WMK) has an annual dividend of $1.36 per share, giving a forward yield of about 2.07%. Crucially, the dividend payout ratio is a very sustainable 35.7%. This means the company is only using about a third of its earnings to pay shareholders, leaving plenty of cash for capital expenditures (CapEx) or unexpected costs. That's a sign of management's commitment to shareholder returns, even with the recent margin squeeze.

Analyst consensus, however, remains a cautious Hold rating. This reflects the uncertainty around inflation and operating costs which are pressuring profitability. While the stock is trading below its 52-week average, the market is waiting for a clear sign that the company can pass on costs to consumers or improve operating efficiency. You can review the strategic direction to see how they plan to tackle these challenges in their Mission Statement, Vision, & Core Values of Weis Markets, Inc. (WMK).

Risk Factors

You're seeing Weis Markets, Inc. (WMK) grow its top line, with year-to-date net sales reaching $3.66 billion through the third quarter of 2025, up 2.9 percent from last year. But here's the quick math: that sales growth isn't translating to the bottom line, which is the core financial risk right now. The company's year-to-date net income actually fell by 13.3 percent to $65.24 million. This profit decline is the clearest signal of margin pressure in the business.

The biggest near-term challenge is the operational squeeze. While comparable store sales, excluding fuel, increased a respectable 1.9 percent, the cost to generate those sales is rising faster. In the third quarter of 2025 alone, operating, general, and administrative expenses climbed to $286.31 million, up from $265.46 million in the same quarter last year. That's a significant jump, and it's why Q3 net income dropped a sharp 29.4 percent to $18.23 million. This is a classic retail problem: sales are up, but profitability is defintely under pressure.

Beyond the internal operational costs, Weis Markets, Inc. faces the standard but fierce external risks inherent to the Mid-Atlantic grocery retail market. Competition is brutal, and the company must constantly fight on price against national giants and deep discounters. Plus, you have to consider the broader macroeconomic environment, which includes:

• Cautious Consumer Spending: Shoppers are trading down or cutting back due to persistent inflation, which impacts basket size.
• Price Pressures: The need for Weis Markets, Inc. to invest in lower product prices to maintain competitiveness, which directly compresses gross margin.
• Technology Risks: The ever-present threat of cybersecurity and data privacy breaches, which is a major capital and reputational drain.

You also see specific financial risk factors in the 2025 filings, like the $1.24 million in pre-tax related party share purchase agreement transaction expenses recorded year-to-date. While non-recurring, these discrete items materially affect comparability and signal complex internal financial activity. You need to always strip out these one-off costs to see the true operating picture.

The good news is that management isn't sitting still. Their primary mitigation strategy is to invest their way out of the efficiency gap. They are focused on prudent cost management, plus they are making significant strategic investments in associates, technologies, and facilities to improve long-term efficiencies and enhance the customer experience. This includes expanding their digital footprint by rolling out the 'Weis 2 Go Online' service to 191 store locations and continuing their store modernization program.

They are also expanding their physical presence, which is a clear sign of confidence. For instance, they plan to open three new large-format stores in Maryland during 2025, with a fourth in Delaware scheduled for early 2026. This is a long-term play to grow market share, but it requires substantial capital expenditure (CapEx), which adds near-term financial strain. If you want to dive deeper into who is backing these strategic moves, you should be Exploring Weis Markets, Inc. (WMK) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at Weis Markets, Inc. (WMK) and seeing steady sales, but the recent pressure on net income makes you wonder where the profit growth will come from. The direct takeaway is this: Weis Markets, Inc.'s future growth hinges on a focused, capital-intensive expansion into new markets and the high-margin growth of its pharmacy segment, not broad-based organic growth.

Here's the quick math on the top line: Year-to-date (YTD) total revenue through the second quarter of fiscal 2025 hit $2.42 billion, a 2.1% increase over the prior year. Based on the third quarter's sales of US$1.24 billion, my analyst estimate for full-year 2025 revenue is approximately $4.90 billion, assuming a flat Q4. What this estimate hides is the margin squeeze; net income for Q3 2025 declined to US$18.23 million despite the revenue increase, signaling higher operating costs.

Key Growth Drivers: Expansion and Digital

The primary driver for Weis Markets, Inc. is a renewed focus on physical expansion, which is a big capital expenditure (CapEx) commitment. They are building four new, large-format stores, each exceeding 60,000 square feet, with three expected to open by the end of 2025. These are strategic entries into new areas within their Mid-Atlantic footprint, specifically in Maryland (Lake Linganore, Charlotte Hall, Waldorf) and Middletown, Delaware. This is a clear action: plant new flags where competition is manageable.

Also, the digital push is defintely a factor. The company has expanded its 'Weis 2 Go Online' service to 191 store locations, which is critical for capturing the omnichannel shopper. This move helps retain customer loyalty, especially when combined with their accelerated loyalty marketing rewards program. The grocery business is a volume game, so every edge matters.

• Open three new large-format stores by year-end 2025.
• Expand 'Weis 2 Go Online' for omnichannel sales.
• Invest in price-competitive strategies and loyalty rewards.

The High-Margin Pharmacy Advantage

The real profit opportunity, and a key competitive advantage, lies in the Weis Pharmacy segment. While the core grocery business operates on notoriously thin margins, the pharmacy offers a much-needed buffer. In the third quarter of 2025, pharmacy sales jumped a staggering 14.9% from the prior year, reaching $178.3 million. This segment now accounts for 14.5% of total revenue, and that percentage is slowly but surely growing. This store-in-store concept leverages existing real estate and customer traffic, which is a smart move.

This regional operator also boasts an above-average net income margin compared to much of the industry, and notably, it holds no long-term debt, which is a huge competitive advantage in a high-CapEx environment. Their conservative financial structure gives them the flexibility to fund these new store openings and remodels without undue stress. They are a regional powerhouse, holding the number two spot in Pennsylvania and growing market share in Maryland by 0.2% to 8.8%.

If you want a deeper dive into who is betting on this regional strength, you should check out Exploring Weis Markets, Inc. (WMK) Investor Profile: Who's Buying and Why?