2024-03-24 23:52:53 ET
Summary
- Weyco Group, a small footwear designer and distributor, is experiencing weakness in revenue but has strong profits and cash flows.
- The decline in revenue is attributable to market saturation and lower demand, particularly in the outdoor market.
- Despite the decline in revenue, WEYS's profitability metrics have improved, and its shares are trading at a discount compared to similar firms.
In a perfect world, any company that we invest in would be seeing revenue, profits, and cash flows, all growing year after year. However, I have found that some of the best investment opportunities come from businesses that are experiencing weakness in one or more of these areas. This is because shares of those enterprises tend to be pushed down considerably by the market. This gives investors the opportunity to scoop in and pick them up at a discount. One company that I feel fits this description is Weyco Group ( WEYS ), a small designer and distributor of footwear that is focused largely on men as its target market. I say the firm is small because, as of this writing, its market capitalization is only $276.3 million....
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Weyco Group Needs Some More Time To Play Out