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

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

US | Consumer Defensive | Grocery Stores | NYSE

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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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