Q4 and full year results in focus
Weis Markets (WMK) has drawn investor attention after reporting fourth quarter and full year 2025 results, with higher sales, softer net income and continued investment in pricing, stores, technology and e-commerce capabilities.
See our latest analysis for Weis Markets.
Weis Markets’ latest results come after a softer patch in the share price, with a 30 day share price return of 12% decline and a 1 year total shareholder return of 17.3% decline. This suggests sentiment has cooled despite ongoing investment in stores, e commerce and pharmacy growth.
If this earnings update has you thinking about other opportunities in the market, you might want to see how many AI infrastructure names are on our 35 AI infrastructure stocks as a starting point for further ideas.
With sales up but full year net income and EPS softer, plus a 1 year total shareholder return decline of 17.3%, it raises the question: is Weis Markets undervalued today, or is the market already pricing in its future growth?
Preferred P/E of 15.6x: Is it justified?
Weis Markets last closed at $62.94, trading on a P/E of 15.6x, which screens as more expensive than its direct peers yet cheaper than the broader US consumer retailing group.
The P/E ratio compares the current share price to earnings per share, so it effectively tells you how many dollars investors are paying today for each dollar of company earnings. For a mature supermarket operator like Weis Markets, this measure is often a primary yardstick because earnings and cash generation tend to matter more than aggressive top line growth assumptions.
According to the data, Weis Markets trades on a P/E of 15.6x, above the peer average of 13.5x. This suggests the market is paying a premium relative to similar companies. At the same time, that 15.6x multiple sits below the 21.2x average for the wider US Consumer Retailing industry, indicating investors are not assigning the same pricing as higher multiple retailers. With earnings having declined by 2.9% per year over the past 5 years but growing 4.3% over the last year, the mixed earnings record may partly explain why the valuation sits between peers and the broader industry.
Overall, the picture is of a stock that is priced richer than its closest peer set on earnings, but not at the higher levels seen across the broader retail space. This leaves investors to decide whether the recent improvement in profit growth and high quality earnings profile justify paying above peer multiples.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 15.6x (ABOUT RIGHT)
However, recent 1 year and 3 year total shareholder returns of 17.3% and 19.6% declines, respectively, show sentiment risk if earnings momentum or pricing investments disappoint.
Find out about the key risks to this Weis Markets narrative.
Another way to look at value
While the P/E makes Weis Markets look roughly in line with expectations, our DCF model points in a different direction. At a last close of $62.94, the shares sit above an estimated future cash flow value of $11.77, which signals potential downside rather than upside if that estimate proves right.
This gap reflects a simple question for you as an investor: are current cash flow assumptions too harsh, or is the share price leaning on optimism that may not be backed by cash generation?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Weis Markets for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Given the mixed picture so far, do you feel the market is too cautious or too optimistic here, and are you ready to test that against the underlying numbers yourself? Take a closer look at the balance of risks and rewards before you make up your mind with 1 key reward and 2 important warning signs.
Looking for more investment ideas?
If you stop with just one company, you could miss opportunities that better fit your goals, risk comfort and income needs, so keep widening your investment net.
- Target reliable income by reviewing potential 15 dividend fortresses that focus on higher yielding companies for investors who care about regular cash returns.
- Hunt for value by checking our screener containing 25 high quality undiscovered gems, where solid fundamentals may not yet be fully reflected in current share prices.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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