| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 116.55 | 269 |
| Intrinsic value (DCF) | 12.47 | -61 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Weyco Group, Inc. (NASDAQ: WEYS) is a leading designer and distributor of high-quality footwear for men, women, and children, operating under well-established brands such as Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters. Founded in 1906 and headquartered in Milwaukee, Wisconsin, Weyco Group serves a diverse customer base through its two primary segments: North American Wholesale Operations and North American Retail Operations. The company distributes its mid-priced leather dress shoes, casual footwear, and outdoor boots to approximately 10,000 footwear, department, and specialty stores, as well as e-commerce retailers. Additionally, Weyco Group maintains a small but strategic retail footprint with four brick-and-mortar stores in the U.S. and leverages licensing agreements to expand its brand presence in apparel and accessories. With a strong international presence across North America, Europe, Australia, Asia, and South Africa, Weyco Group is a resilient player in the consumer cyclical sector, particularly in the competitive footwear and accessories industry.
Weyco Group presents a stable investment opportunity with a market capitalization of approximately $299 million and a beta of 0.862, indicating lower volatility compared to the broader market. The company reported $290.3 million in revenue and $30.3 million in net income for the latest fiscal year, with diluted EPS of $3.16. Strong operating cash flow of $37.7 million and a healthy cash position of $71 million provide financial flexibility, while modest debt levels ($11.1 million) suggest a conservative balance sheet. The company also offers an attractive dividend yield, with a dividend per share of $3.05. However, risks include exposure to cyclical consumer demand, reliance on wholesale distribution channels, and competition from larger footwear brands. Investors should weigh Weyco’s steady performance against potential macroeconomic pressures affecting discretionary spending.
Weyco Group competes in the mid-priced footwear segment, differentiating itself through a portfolio of legacy brands like Florsheim and Stacy Adams, which have strong recognition in dress and casual footwear. The company’s competitive advantage lies in its diversified distribution network, spanning wholesale, retail, and e-commerce, as well as its licensing strategy, which extends brand reach without significant capital expenditure. However, Weyco faces intense competition from both mass-market players and premium brands. Its niche focus on traditional footwear categories (e.g., leather dress shoes) may limit growth compared to competitors investing heavily in athleisure and performance footwear. The company’s smaller scale relative to industry giants also restricts its marketing and R&D budgets. That said, Weyco’s asset-light model and disciplined cost management allow it to maintain profitability even in challenging retail environments. Its BOGS brand provides exposure to the outdoor footwear segment, but this niche is crowded with specialized competitors. Overall, Weyco’s strength is its brand heritage and wholesale relationships, but it must innovate and adapt to shifting consumer preferences to sustain long-term competitiveness.