Wolverine World Wide Inc (WWW, Financial), a prominent player in the apparel and accessories manufacturing industry, has recently witnessed a notable increase in its stock price. Over the past week, the stock has seen a marginal decrease of 0.07%, settling at $13.45. However, looking at a broader timeline, the stock has surged by an impressive 37.35% over the past three months. This significant uptick in stock price reflects a dynamic shift in investor sentiment and market dynamics surrounding the company.
Currently, the GF Value of Wolverine World Wide is pegged at $12.4, suggesting that the stock is Fairly Valued. This is a shift from three months ago when the GF Value stood at $20.09, and the stock was considered a Possible Value Trap, advising investors to think twice before investing. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.
Company Overview
Wolverine World Wide Inc is a key entity in the design, manufacture, sourcing, marketing, licensing, and distribution of branded footwear, apparel, and accessories. The company operates through various segments, with the Active Group being the most significant revenue generator. This segment includes renowned brands like Merrell footwear and apparel, Saucony footwear and apparel, Sweaty Betty activewear, and Chaco footwear. 
Assessing Profitability
Wolverine World Wide holds a Profitability Rank of 6/10, indicating moderate profitability within the industry. The company's Operating Margin stands at 0.22%, which is better than 31.54% of its peers. However, its Return on Equity (ROE) is at -23.63%, and Return on Assets (ROA) is at -3.35%, both metrics showcasing challenges in generating profits relative to equity and assets, respectively. The Return on Invested Capital (ROIC) is slightly better at 0.12%, surpassing 35.56% of competitors. Over the past decade, Wolverine has maintained profitability for seven years, demonstrating its resilience in a competitive market. 
Growth Trajectory
The company's Growth Rank is currently at 3/10, reflecting lower growth potential compared to industry peers. Despite this, Wolverine has achieved a 3-Year Revenue Growth Rate per Share of 8.50%, which is commendable and better than 58.75% of its competitors. The 5-Year Revenue Growth Rate per Share also stands strong at 5.70%. However, the future revenue growth rate is projected at -5.55%, indicating potential challenges ahead. The EPS growth rates for the past three and five years are 1.30% and -21.50%, respectively, highlighting mixed performance in earnings sustainability. 
Investor Holdings
Notable investors in Wolverine World Wide include Diamond Hill Capital (Trades, Portfolio), holding 1,209,815 shares, and prominent figures like Jim Simons and Paul Tudor Jones (Trades, Portfolio), each holding around 0.2% of the company's shares. These investments reflect a continued interest from institutional investors and market influencers.
Competitive Landscape
Wolverine World Wide competes with several firms within the apparel and accessories sector. Designer Brands Inc (DBI, Financial) with a market cap of $558.569 million, Weyco Group Inc (WEYS, Financial) valued at $284.522 million, and Rocky Brands Inc (RCKY, Financial) with a market cap of $266.344 million are among its closest competitors. These companies, while smaller in market capitalization compared to Wolverine, represent significant competition in the industry.
Conclusion
Wolverine World Wide Inc's recent stock performance, coupled with its moderate profitability and mixed growth indicators, presents a complex but intriguing investment landscape. While the company shows resilience and a strong market presence, the projected downturn in future revenue growth and challenges in profitability metrics suggest a cautious approach. Investors should keep an eye on how Wolverine navigates these challenges in comparison to its competitors in the dynamic apparel and accessories market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
