McRae Industries (MCRAA) AI Stock Analysis

McRae Industries

(Other OTC:MCRAA)

Select Model

Rating:71Outperform

Price Target:$54.00▲(9.30% Upside)

Action:reiterated

Date:06/18/26

The score is driven primarily by solid financial quality—especially the very strong, low-debt balance sheet—offset by softer recent profitability and volatile/free cash flow compression. Technicals are supportive with the stock trading above key moving averages and neutral-to-positive momentum. Valuation appears fair with a modest dividend yield, adding stability but not a major upside catalyst.

Positive Factors

Very low leverage / strong balance sheetExtremely low leverage and a large equity base materially reduce financial risk and increase resilience. This structural strength lowers refinancing needs and interest exposure, enabling the firm to fund contract working capital, modest capex or dividends over months without relying on external debt markets.

Negative Factors

Revenue decline and margin compressionA multi-quarter revenue decline and material net margin pullback reduce internal cash flow and reinvestment capacity. Persisting weaker sales or compressed margins will hamper scale economics, limit product development, and make it harder to restore profitability without strategic actions.

McRae Industries (MCRAA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $112.60M
Dividend Yield: 1.75%
Average Volume (3M): 328
Price to Earnings (P/E): 23.7
Beta (1Y): 0.14
Revenue Growth: -5.88%
EPS Growth: -59.92%
Country: US
Employees: 373
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Apparel - Footwear & Accessories

McRae Industries Business Overview & Revenue Model

Company Description

McRae Industries, Inc. manufactures, sells, and distributes boot products for the western/lifestyle and work boot markets. It manufactures military combat boots for the United States government. The company offers its products for men, women, and chi...

How the Company Makes Money

McRae Industries makes money primarily by manufacturing and selling boots. Its revenue model is centered on (1) sales of footwear to the U.S. government and related channels (e.g., military/defense procurement), and (2) sales to commercial customers...

McRae Industries Financial Statement Overview

Summary

Strong balance sheet (very low leverage) supports stability, while operating results have cooled with slightly lower TTM revenue and softer margins versus 2024. Cash generation remains positive, but free cash flow has been volatile and recently compressed, which tempers the overall financial score.

Income Statement

64Positive

Balance Sheet

86Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	114.31M	114.86M	122.40M	124.70M	124.83M	82.19M
Gross Profit	29.93M	33.04M	36.82M	33.89M	36.46M	22.00M
EBITDA	5.53M	11.02M	16.39M	11.77M	14.55M	4.89M
Net Income	4.78M	7.57M	12.79M	8.06M	10.20M	3.35M
Balance Sheet
Total Assets	110.65M	110.24M	106.54M	95.47M	91.04M	77.89M
Cash, Cash Equivalents and Short-Term Investments	34.98M	47.11M	38.07M	39.84M	25.86M	32.11M
Total Debt	1.17M	1.59M	2.14M	2.36M	0	0
Total Liabilities	7.63M	8.66M	9.48M	8.55M	9.79M	5.64M
Stockholders Equity	103.02M	101.58M	97.06M	86.92M	81.25M	72.25M
Cash Flow
Free Cash Flow	1.95M	3.19M	6.69M	15.93M	-4.97M	411.00K
Operating Cash Flow	6.25M	4.03M	7.55M	16.68M	-4.17M	766.00K
Investing Cash Flow	-12.60M	9.91M	-2.51M	-11.27M	-2.81M	4.69M
Financing Cash Flow	-2.14M	-3.06M	-2.64M	-2.39M	-1.20M	-2.92M

McRae Industries Technical Analysis

Technical Analysis SentimentNegative

Last Price49.41

Price Trends

50DMA51.39Negative

100DMA50.36Negative

200DMA48.48Positive

Market Momentum

MACD-0.55Positive

RSI36.94Neutral

STOCH48.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRAA, the sentiment is Negative. The current price of 49.41 is below the 20-day moving average (MA) of 50.24, below the 50-day MA of 51.39, and above the 200-day MA of 48.48, indicating a neutral trend. The MACD of -0.55 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCRAA.

McRae Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MCRAA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEYS	78Outperform	$501.04M	14.26	14.04%	5.91%	-0.32%	35.29%
RCKY	75Outperform	$369.13M	10.73	13.20%	1.32%	10.84%	66.78%
MCRAA	71Outperform	$111.06M	23.70	4.66%	1.75%	-5.88%	-59.92%
WWW	66Neutral	$1.71B	16.00	26.26%	1.92%	7.16%	24.85%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VRA	61Neutral	$189.35M	-18.59	-7.73%	―	-9.42%	87.85%
CAL	60Neutral	$465.47M	8.38	8.38%	2.08%	7.32%	-13.12%

* Consumer Cyclical Sector Average

Performance Comparison

MCRAA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MCRAA	McRae Industries Class A	49.41	5.38	12.21%
RCKY	Rocky Brands	49.27	21.23	75.73%
VRA	Vera Bradley	6.60	4.20	175.00%
WEYS	Weyco Group	52.46	26.35	100.89%
WWW	Wolverine World Wide	20.80	-1.03	-4.73%
CAL	Caleres Inc	13.49	2.73	25.35%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Jun 18, 2026

McRae Industries AI Stock Analysis