Weis Markets (WMK) Valuation Check After Expanded Edible Garden Partnership and Sustainability Push

Weis Markets (WMK) is drawing fresh attention after expanding its partnership with Edible Garden AG, bringing more potted herbs, hydroponic basil, and cut varieties into stores to sharpen its sustainability and regional growth story.

See our latest analysis for Weis Markets.

Despite the buzz around its expanded Edible Garden partnership, Weis Markets’ share price has been relatively steady, with a modest 1 month share price return recently and a five year total shareholder return comfortably positive. This suggests slow burning but resilient momentum.

If this kind of steady, fundamentals first story appeals to you, it could be a good time to explore fast growing stocks with high insider ownership for other under the radar opportunities.

With the shares treading water over one year but delivering strong five year gains, the key question now is whether Weis Markets is quietly undervalued or if the stock already reflects its next leg of growth.

Price-to-Earnings of 16.9x: Is it justified?

Weis Markets last closed at 68.05, and its current valuation of 16.9 times earnings places it at a premium to close peers but at a discount to the broader Consumer Retailing space.

The price to earnings multiple compares what investors are paying today for each dollar of current earnings. This is a key lens for mature, cash generative grocers like Weis. At 16.9 times earnings, the market appears willing to pay more than for similar sized retailers, potentially reflecting confidence in the company’s resilient profitability and steady execution.

Relative to direct peers, Weis looks expensive on this metric, with the peer average sitting at 13.4 times earnings. This signals that investors are assigning a richer earnings tag than comparable operators. However, against the wider US Consumer Retailing industry average of 21.8 times earnings, Weis trades at a material discount. This underscores how the market views it as cheaper than the sector overall despite its recent earnings outperformance.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 16.9x (ABOUT RIGHT)

However, risks remain, including sluggish near term share performance and limited analyst coverage, which could signal slower growth or structural challenges in the future.

Find out about the key risks to this Weis Markets narrative.

Another View: Our DCF Model Flashes a Warning

While a 16.9 times earnings tag feels roughly fair against the broader market, our DCF model paints a harsher picture. On those cash flow assumptions, Weis Markets' 68.05 share price screens as significantly overvalued, implying far less safety margin than the earnings multiple suggests.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Weis Markets for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 916 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Weis Markets Narrative

If you are not convinced by this view, or you would rather dig into the numbers yourself, you can build a personalized thesis in just a few minutes, starting with Do it your way.

A great starting point for your Weis Markets research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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