NYSE:WMK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Weis Markets, Inc. engages in the retail sale of food in Pennsylvania and surrounding states. More Details

Rewards

Trading at 68.8% below our estimate of its fair value

Earnings grew by 62.9% over the past year

Pays a reliable dividend of 2.64%

Risk Analysis

No risks detected for WMK from our risk checks.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Weis Markets's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.4%

WMK

-3.0%

US Consumer Retailing

-4.6%

US Market


1 Year Return

20.6%

WMK

13.6%

US Consumer Retailing

11.5%

US Market

Return vs Industry: WMK exceeded the US Consumer Retailing industry which returned 16.2% over the past year.

Return vs Market: WMK exceeded the US Market which returned 15.6% over the past year.


Shareholder returns

WMKIndustryMarket
7 Day-4.4%-3.0%-4.6%
30 Day-5.1%1.9%-0.9%
90 Day-8.6%6.6%2.2%
1 Year24.0%20.6%15.4%13.6%14.0%11.5%
3 Year25.5%15.4%58.2%49.4%34.5%25.6%
5 Year25.3%9.7%91.0%71.7%73.0%53.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Weis Markets undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMK ($47.01) is trading below our estimate of fair value ($150.56)

Significantly Below Fair Value: WMK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WMK is good value based on its PE Ratio (12.5x) compared to the US Consumer Retailing industry average (14.6x).

PE vs Market: WMK is good value based on its PE Ratio (12.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WMK is good value based on its PB Ratio (1.1x) compared to the US Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

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

2.8%

Forecasted Consumer Retailing 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 Weis Markets 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 Weis Markets performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMK has high quality earnings.

Growing Profit Margin: WMK's current net profit margins (2.6%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: WMK's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: WMK's earnings growth over the past year (62.9%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: WMK earnings growth over the past year (62.9%) exceeded the Consumer Retailing industry 52.6%.


Return on Equity

High ROE: WMK's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Weis Markets's financial position?


Financial Position Analysis

Short Term Liabilities: WMK's short term assets ($578.4M) exceed its short term liabilities ($311.3M).

Long Term Liabilities: WMK's short term assets ($578.4M) exceed its long term liabilities ($316.5M).


Debt to Equity History and Analysis

Debt Level: WMK is debt free.

Reducing Debt: WMK had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

What is Weis Markets's current dividend yield, its reliability and sustainability?

2.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WMK's dividend (2.64%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: WMK's dividend (2.64%) is low compared to the top 25% of dividend payers in the US market (4.63%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), WMK's dividend payments are well 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?

7.1yrs

Average management tenure


CEO

Jonathan Weis (52 yo)

7.08yrs

Tenure

US$6,597,452

Compensation

Mr. Jonathan H. Weis has been the Chief Executive Officer and President at Weis Markets, Inc. since February 11, 2014 and served as its Secretary April 2002. Mr. Weis served as an Interim Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD6.60M) is above average for companies of similar size in the US market ($USD4.48M).

Compensation vs Earnings: Jonathan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Weis
Chairman7.08yrsUS$6.60m39.32%
$ 484.8m
Scott Frost
Senior VP11yrsUS$1.12m0.013%
$ 166.5k
Kurt Schertle
Chief Operating Officer6.58yrsUS$2.13m0.011%
$ 137.5k
David Gose
Senior Vice President of Operations6.42yrsUS$796.35kno data
Harold Graber
Senior VP of Real Estate & Development9.5yrsUS$855.53k0.0079%
$ 97.9k
Mark Shearer
Director of Technical Services10yrsno datano data
R. Zeh
Chief Information Officer and Vice President4yrsno datano data
Jack O'hara
Vice President of Legal Affairs and Real Estate8.58yrsno datano data
Robert Cline
Vice President of Talent Development and Vice President of Associate Relationsno datano datano data
Brian Bosworth
Sales Director7.5yrsno datano data
Richard Gunn
Senior Vice President of Merchandising & Marketing5.42yrsno datano data
James Marcil
Senior Vice President of Human Resources10.67yrsno datano data

7.1yrs

Average Tenure

55yo

Average Age

Experienced Management: WMK's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Weis
Chairman7.08yrsUS$6.60m39.32%
$ 484.8m
Harold Graber
Senior VP of Real Estate & Development9.5yrsUS$855.53k0.0079%
$ 97.9k
Gerrald Silverman
Independent Director10.25yrsUS$90.00k0.019%
$ 229.2k
Edward Lauth
Independent Director8.75yrsUS$90.00k0.0074%
$ 91.7k
Dennis Hatchell
Independent Director5.25yrsUS$96.00k0.019%
$ 229.2k

8.8yrs

Average Tenure

64yo

Average Age

Experienced Board: WMK's board of directors are considered experienced (8.8 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

Weis Markets, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weis Markets, Inc.
  • Ticker: WMK
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: US$1.233b
  • Shares outstanding: 26.90m
  • Website: https://www.weismarkets.com

Number of Employees


Location

  • Weis Markets, Inc.
  • 1000 South Second Street
  • PO Box 471
  • Sunbury
  • Pennsylvania
  • 17801-0471
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
76KBST (Boerse-Stuttgart)YesCommon StockDEEURJan 1968

Biography

Weis Markets, Inc. engages in the retail sale of food in Pennsylvania and surrounding states. The company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:43
End of Day Share Price2020/10/28 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.