$Weyco (WEYS.US)$Over the past 5 years, revenue fell sharply...
$Weyco(WEYS.US$Over the past 5 years, revenue fell sharply by 36% in 2020, and increased in the remaining 3 years. Overall, operating profit was lost in 2020. There was little change in the remaining 4 years, and the average growth rate over the past 5 years was only 3.8%.
In the first 3 quarters of 2022, revenue increased 52%, operating profit increased 96% to 25.3 million, and net profit increased 89% to 19.32 million. Normally, Q4 is the quarter with the highest net profit. If it reaches 1.5 times Q3, net profit for the whole year will reach 835.5 million.
The balance ratio has remained below 30% for the past 5 years. There are no interest-bearing liabilities. The company has been buying back and canceling stocks, so the growth rate of earnings per share is greater than the growth rate of net profit.
The inventory growth rate in the first 3 quarters of 2022 was somewhat too fast, from 71 million to 112 million, exceeding the sales volume of a single quarter. The increase reached 0.4 billion yuan, more than double the net profit of 019 million yuan during the period.
Currently, the price-earnings ratio is 12, and the price-earnings ratio TTM has dropped to 8.4. If net profit for the whole year reaches 835.5 million, the price-earnings ratio will drop further below 7. However, one big question right now is whether the inventory problem will disappear in Q4. We can wait until the annual report comes out before making a judgment.
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