OTCPK:MCRA.A

Stock Analysis Report

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Executive Summary

McRae Industries, Inc. manufactures and sells military combat boots for the United States Army. More Details


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.

Share Price & News

How has McRae Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCRA.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

MCRA.A

2.2%

US Luxury

0.4%

US Market


1 Year Return

-12.4%

MCRA.A

23.1%

US Luxury

17.8%

US Market

Return vs Industry: MCRA.A underperformed the US Luxury industry which returned 22.9% over the past year.

Return vs Market: MCRA.A underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

MCRA.AIndustryMarket
7 Day-0.5%2.2%0.4%
30 Day-2.7%7.1%6.1%
90 Day13.5%27.0%8.9%
1 Year-10.2%-12.4%24.5%23.1%20.5%17.8%
3 Year-37.7%-42.5%81.3%72.9%42.3%32.9%
5 Year-22.0%-30.6%62.9%52.1%84.2%63.4%

Price Volatility Vs. Market

How volatile is McRae Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 years ago | Simply Wall St

Top Cheap Stocks This Week

Valuation

Is McRae Industries undervalued compared to its fair value and its price relative to the market?

25.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCRA.A ($20.14) is trading above our estimate of fair value ($7.58)

Significantly Below Fair Value: MCRA.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCRA.A is good value based on its PE Ratio (25.3x) compared to the US Luxury industry average (33.6x).

PE vs Market: MCRA.A is poor value based on its PE Ratio (25.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MCRA.A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MCRA.A is good value based on its PB Ratio (0.6x) compared to the US Luxury industry average (1.7x).


Next Steps

Future Growth

How is McRae Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.9%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as McRae Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has McRae Industries performed over the past 5 years?

-28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCRA.A has high quality earnings.

Growing Profit Margin: MCRA.A's current net profit margins (2.4%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: MCRA.A's earnings have declined by 28% per year over the past 5 years.

Accelerating Growth: MCRA.A's earnings growth over the past year (25.6%) exceeds its 5-year average (-28% per year).

Earnings vs Industry: MCRA.A earnings growth over the past year (25.6%) exceeded the Luxury industry -47.1%.


Return on Equity

High ROE: MCRA.A's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is McRae Industries's financial position?


Financial Position Analysis

Short Term Liabilities: MCRA.A's short term assets ($57.5M) exceed its short term liabilities ($2.7M).

Long Term Liabilities: MCRA.A's short term assets ($57.5M) exceed its long term liabilities ($704.0K).


Debt to Equity History and Analysis

Debt Level: MCRA.A is debt free.

Reducing Debt: MCRA.A has not had any debt for past 5 years.

Debt Coverage: MCRA.A has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MCRA.A has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is McRae Industries's current dividend yield, its reliability and sustainability?

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCRA.A's dividend (2.58%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: MCRA.A's dividend (2.58%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: MCRA.A's dividends per share have been stable in the past 10 years.

Growing Dividend: MCRA.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.4%), MCRA.A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

35.8yrs

Average board tenure


CEO

D. McRae (69 yo)

no data

Tenure

US$261,988

Compensation

Mr. D. Gary McRae serves as the Chief Executive Officer of McRae Industries Inc. and has been its President since 1997. Mr. McRae has been Treasurer of McRae Industries Inc. since 1991. Mr. McRae serves a ...


Board Members

NamePositionTenureCompensationOwnership
D. McRae
Chairmanno dataUS$261.99kno data
James McRae
VP, Secretary & Director35.75yrsUS$163.31kno data
Victor Karam
Director48.75yrsUS$227.73kno data
Marvin Kiser
Directorno dataUS$143.46kno data
Hilton Cochran
Director35.75yrsno datano data
Brady Dickson
Director23.75yrsno datano data
Branson McRae
Directorno datano datano data

35.8yrs

Average Tenure

74.5yo

Average Age

Experienced Board: MCRA.A's board of directors are seasoned and experienced ( 35.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McRae Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McRae Industries, Inc.
  • Ticker: MCRA.A
  • Exchange: OTCPK
  • Founded: 1959
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: US$46.449m
  • Shares outstanding: 2.31m
  • Website: https://www.mcraeindustries.com

Location

  • McRae Industries, Inc.
  • 400 North Main Street
  • PO Box 1239
  • Mount Gilead
  • North Carolina
  • 27306
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MCRA.BOTCPK (Pink Sheets LLC)Class B Common StockUSUSDJan 1975
MCRA.AOTCPK (Pink Sheets LLC)YesClass A Common StockUSUSDSep 1983

Biography

McRae Industries, Inc. manufactures and sells military combat boots for the United States Army. The company also imports and sells western and work boots. It offers its products for men, women, and childre ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 23:38
End of Day Share Price2020/10/21 00:00
Earnings2020/05/02
Annual Earnings2019/08/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.