Fourth quarter and full year earnings snapshot
Weis Markets (WMK) reported fourth quarter and full year 2025 results, with sales and revenue above the prior year while net income and earnings per share moved in the opposite direction, giving investors mixed signals to weigh.
See our latest analysis for Weis Markets.
The earnings update comes after a weaker 30 day share price return of 8.93% and a 1 year total shareholder return decline of 11.50%, suggesting momentum has softened as investors reassess the balance between revenue growth and earnings pressure.
If this earnings reaction has you reviewing your watchlist, it could be a good moment to broaden your view and check out 20 top founder-led companies
So with revenue growing while net income and the share price have lost ground, are you looking at a supermarket stock that the market is undervaluing, or is Weis Markets already pricing in all the future growth on offer?
Price-to-Earnings of 17.5x: Is it justified?
Based on a P/E of 17.5x, Weis Markets trades at a higher earnings multiple than its direct peers and has lagged both the market and its industry over the past year.
The P/E ratio compares the current share price of $66.21 to earnings per share and is a quick way to see how much investors are paying for each dollar of profit. For a mature supermarket operator with a long operating history, this often reflects what the market thinks about the resilience of earnings and the outlook for profit growth rather than short term revenue moves.
Here, the picture is mixed. Weis Markets is described as good value relative to the broader US Consumer Retailing industry average P/E of 19.2x, yet it screens as expensive against a closer peer group average of 13.1x. At the same time, earnings have declined by 3.5% per year over the past 5 years, net profit margins have slipped from 2.2% to 1.9%, and return on equity sits at 6.9%, which is classified as low.
That combination suggests investors are paying a premium to similar peers for a business that currently has falling earnings and lower profitability, even though it still trades on a slight discount to the wider retailing industry multiple. For anyone comparing supermarket names side by side, the question is whether that peer premium reflects confidence in the business model or simply leaves less room for error if earnings pressure persists.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 17.5x (OVERVALUED)
However, weaker recent returns and an intrinsic value premium of about 40% could invite selling pressure if earnings or margins come under further strain.
Find out about the key risks to this Weis Markets narrative.
Another view on value: SWS DCF model
The P/E ratio presents Weis Markets as slightly expensive versus close peers, but our DCF model points even further in that direction. With the share price at $66.21 compared with an estimated future cash flow value of $47.43, the stock appears overvalued on this second yardstick as well. This raises a simple question: what kind of earnings or cash flow shift would you want to see before that gap feels more reasonable?
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 52 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
The mix of premium pricing, softer returns and flagged risks and rewards raises a simple question: what do you make of the trade off on offer? To pressure test your own view against the key issues and potential upsides, take a closer look at the 1 key reward and 2 important warning signs.
Looking for more investment ideas?
If Weis Markets has you rethinking your next move, do not stop at just one stock. Use screeners to quickly spot other opportunities that fit your approach.
- Target potential mispricing by reviewing companies that show up in the screener containing 26 high quality undiscovered gems before they hit everyone else's radar.
- Focus on resilience first by scanning the 68 resilient stocks with low risk scores and see which businesses currently score well on risk factors.
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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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