What is Weis Markets Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Weis Markets's Probability of Financial Distress (%) is 0.02%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Weis Markets's Probability of Financial Distress (%)
For the Grocery Stores subindustry, Weis Markets's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Weis Markets's Probability of Financial Distress (%) Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Weis Markets's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Weis Markets's Probability of Financial Distress (%) falls into.
Weis Markets Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -8.62 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.02% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Weis Markets (Weis Markets) Business Description
Traded in Other Exchanges
N/A
Address
1000 S. Second Street, P.O. Box 471, Sunbury, PA, USA, 17801-0471
Weis Markets Inc is a U.S.-based company that is principally engaged in retailing food products in Pennsylvania and surrounding states. The company's products consist of center-store goods, fresh goods, pharmacy services, fuel, and other. The center-store goods include groceries, dairy products, frozen foods, alcoholic beverage, and general merchandise items. The fresh goods include meats, seafood, floral, prepared foods, and bakery products. The center-store goods and fresh goods jointly account for the majority of the company's total revenue.
Executives
| Robert G. Gleeson |
officer: SVP, Merchandising & Marketing |
1000 SOUTH 2ND STREET, PO BOX 471, SUNBURY PA 17801 |
| Kurt A Schertle |
officer: Sr. VP Merch. and Marketing |
1000 SOUTH SECOND STREET, P.O. BOX 471, SUNBURY PA 17801-0471 |
| Michael T Lockard |
officer: SVP, CFO and Treasurer |
1000 SOUTH 2ND STREET, PO BOX 471, SUNBURY PA 17801 |
| Jennifer Weis |
other: Member of a 10% owner group |
C/O WEIS MARKETS, INC., 1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801 |
| Zeh Richard Gregory Jr |
officer: SVP, Chief Information Officer |
1000 SOUTH 2ND STREET, PO BOX 471, SUNBURY PA 17801 |
| Scott F Frost |
officer: SVP, Chief Financial Officer |
1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801 |
| Wayne S Bailey |
officer: Vice President Grocery Merch. |
|
| Jonathan H Weis |
director, officer: Vice President and Secretary |
|
| Dennis G Hatchell |
director |
305 GREGSON DRIVE, CARY NC 27511 |
| Gerrald B Silverman |
director |
207 CROSS STREET, BELMONT MA 02478 |
| Lauth Edward John Iii |
director |
485 SCENERY DRIVE, STATE COLLEGE PA 16801 |
| Harold G Graber |
officer: Vice President Real Estate |
|
| Patricia R. Weis Marital Trust |
10 percent owner |
C/O WEIS MARKETS, INC., 1000 SOUTH, SECOND STREET, P.O. BOX 471, SUNBURY PA 17801 |
| Weis Collen Ross |
other: Member of a 10% owner group |
C/O WEIS MARKETS, INC., 1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801 |
| Kathryn Jane Zox |
other: Member of a 10% owner group |
1000 SOUTH SECOND STREET, PO BOX 471, SUNBURY PA 17801 |
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