Weis Markets, Inc. (WMK) Bundle
Understanding Weis Markets, Inc. (WMK) Revenue Streams
Revenue Analysis
The financial performance of the company reveals critical insights into its revenue generation and market positioning.
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2022 | $5.04 billion | 4.2% |
| 2023 | $5.21 billion | 3.4% |
Revenue streams are distributed across multiple segments:
- Grocery Retail: 89.6% of total revenue
- Private Label Products: 6.3% of total revenue
- Other Services: 4.1% of total revenue
Geographic revenue distribution demonstrates concentrated market presence:
| Region | Revenue Contribution |
|---|---|
| Mid-Atlantic States | 73.5% |
| Northeastern United States | 22.4% |
| Other Regions | 4.1% |
A Deep Dive into Weis Markets, Inc. (WMK) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights based on recent financial statements.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 24.3% | 23.7% |
| Operating Profit Margin | 3.1% | 2.8% |
| Net Profit Margin | 2.2% | 1.9% |
Key profitability observations include:
- Gross profit increased from $423.5 million to $438.2 million
- Operating income rose to $55.6 million
- Net income reached $39.7 million
Operational efficiency metrics demonstrate:
- Cost of goods sold: $1.44 billion
- Operating expenses: $383.6 million
- Return on equity: 8.7%
| Efficiency Ratio | Company Performance | Industry Average |
|---|---|---|
| Operating Efficiency | 96.9% | 94.5% |
| Asset Turnover | 1.8x | 1.6x |
Debt vs. Equity: How Weis Markets, Inc. (WMK) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, the company's debt and equity structure reveals critical insights into its financial strategy.
| Financial Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $94.2 million |
| Total Short-Term Debt | $22.5 million |
| Total Shareholders' Equity | $612.3 million |
| Debt-to-Equity Ratio | 0.19 |
Key debt financing characteristics include:
- Current credit rating: BBB stable
- Average interest rate on long-term debt: 4.3%
- Debt maturity profile spread across 3-7 year terms
Financing breakdown reveals a conservative capital structure with minimal leverage:
| Funding Source | Percentage |
|---|---|
| Equity Financing | 85.6% |
| Debt Financing | 14.4% |
Assessing Weis Markets, Inc. (WMK) Liquidity
Liquidity and Solvency Analysis
Liquidity Assessment for the Grocery Retail Company:
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.42 | 1.37 |
| Quick Ratio | 0.38 | 0.35 |
| Working Capital | $98.6 million | $92.4 million |
Cash Flow Statement Overview:
- Operating Cash Flow: $156.3 million
- Investing Cash Flow: -$45.2 million
- Financing Cash Flow: -$67.8 million
Key Liquidity Indicators:
- Cash and Cash Equivalents: $82.5 million
- Short-Term Investments: $24.3 million
- Total Liquid Assets: $106.8 million
Debt and Solvency Metrics:
| Metric | 2023 Value |
|---|---|
| Total Debt | $223.7 million |
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 4.2x |
Is Weis Markets, Inc. (WMK) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 16.3 |
| Price-to-Book (P/B) Ratio | 1.7 |
| Enterprise Value/EBITDA | 8.9 |
| Dividend Yield | 2.6% |
| Payout Ratio | 45.2% |
Stock Price Trends
- 52-week Low: $61.45
- 52-week High: $77.88
- Current Price: $69.12
- Price Change (12 months): +6.7%
Analyst Recommendations
| Rating | Number of Analysts |
|---|---|
| Buy | 3 |
| Hold | 2 |
| Sell | 0 |
The current valuation suggests a balanced market positioning with moderate growth potential.
Key Risks Facing Weis Markets, Inc. (WMK)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic positioning.
Competitive Market Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Grocery Retail Competition | Market Share Erosion | High |
| Price Pressure | Margin Compression | Medium |
| Online Grocery Expansion | Traditional Retail Disruption | High |
Operational Risks
- Supply Chain Disruptions
- Labor Cost Increases
- Technology Infrastructure Challenges
- Inventory Management Complexities
Financial Risk Indicators
Key financial risk metrics include:
- Debt-to-Equity Ratio: 0.45
- Current Ratio: 1.2
- Operating Margin: 2.3%
- Net Profit Margin: 1.7%
External Market Risks
| External Factor | Potential Financial Impact |
|---|---|
| Inflation Rate | 3.4% Consumer Price Increase |
| Consumer Spending | 2.1% Projected Growth |
| Grocery Sector Volatility | ±5.6% Annual Fluctuation |
Strategic Risk Mitigation
- Diversification of Revenue Streams
- Digital Transformation Investments
- Cost Optimization Strategies
- Enhanced Customer Experience Initiatives
Future Growth Prospects for Weis Markets, Inc. (WMK)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and strategic initiatives.
Market Expansion Strategy
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Store Count | 141 locations | 5-7% annual expansion |
| Geographic Reach | Pennsylvania, Maryland, New Jersey | Potential regional expansion |
| Annual Revenue | $4.86 billion (2022) | 3-4% projected growth |
Strategic Growth Initiatives
- Digital e-commerce platform investment
- Private label product development
- Technology infrastructure modernization
- Supply chain optimization
Competitive Advantages
Key competitive strengths include:
- Strong regional market presence
- Established supply chain networks
- Loyal customer base in core markets
Financial Investment Metrics
| Investment Area | Annual Allocation | Expected ROI |
|---|---|---|
| Technology Upgrades | $12-15 million | 6-8% efficiency improvement |
| Store Modernization | $8-10 million | 4-5% customer retention increase |
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