Where Weyco Group, Inc. (NASDAQ:WEYS) Stands In Terms Of Earnings Growth Against Its Industry

Assessing Weyco Group, Inc.'s (NasdaqGS:WEYS) performance as a company requires looking at more than just a years' earnings data. Below, I will run you through a simple sense check to build perspective on how Weyco Group is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its retail distributors industry peers.

See our latest analysis for Weyco Group

Could WEYS beat the long-term trend and outperform its industry?

WEYS's trailing twelve-month earnings (from 30 June 2019) of US$21m has jumped 21% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.5%, indicating the rate at which WEYS is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is only because of an industry uplift, or if Weyco Group has seen some company-specific growth.

In terms of returns from investment, Weyco Group has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. Furthermore, its return on assets (ROA) of 7.2% is below the US Retail Distributors industry of 9.0%, indicating Weyco Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Weyco Group’s debt level, has declined over the past 3 years from 11% to 11%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 5.5% to 5.8% over the past 5 years.

What does this mean?

Weyco Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Weyco Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Weyco Group to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for WEYS’s future growth? Take a look at our free research report of analyst consensus for WEYS’s outlook.
2. Financial Health: Are WEYS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.