McRae Industries (MCRAA) AI Stock Analysis

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McRae Industries

(Other OTC:MCRAA)

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Rating:69Neutral

Price Target:$53.00▲(6.28% Upside)

Action:downgraded

Date:06/18/26

McRae Industries earns a moderate overall score, anchored primarily by an exceptionally strong, debt-free balance sheet and a steady technical uptrend. Valuation remains reasonable with a P/E of 14.02 and a modest dividend. However, the score is significantly constrained by ongoing operational headwinds, including declining revenue, compressing margins, and shrinking cash flows, which pose notable fundamental challenges.

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: $112.51M
Dividend Yield: 1.74%
Average Volume (3M): 309
Price to Earnings (P/E): 23.7
Beta (1Y): 0.13
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

McRae Industries benefits from a pristine, virtually debt-free balance sheet, providing immense financial stability. However, this is significantly offset by top-line contraction, margin compression, and declining free cash flow over the trailing twelve months.

Income Statement

40Negative

Balance Sheet

92Very Positive

Cash Flow

58Neutral

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 SentimentNeutral

Last Price49.87

Price Trends

50DMA51.01Negative

100DMA50.51Negative

200DMA48.78Positive

Market Momentum

MACD-0.25Negative

RSI45.02Neutral

STOCH86.51Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCRAA, the sentiment is Neutral. The current price of 49.87 is above the 20-day moving average (MA) of 49.71, below the 50-day MA of 51.01, and above the 200-day MA of 48.78, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 45.02 is Neutral, neither overbought nor oversold. The STOCH value of 86.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	83Outperform	$577.47M	14.03	15.83%	5.26%	1.50%	63.78%
RCKY	79Outperform	$389.42M	11.33	13.20%	1.25%	10.84%	66.78%
WWW	79Outperform	$1.88B	13.83	33.36%	1.61%	7.31%	69.31%
MCRAA	69Neutral	$111.94M	23.70	4.66%	1.74%	-5.88%	-59.92%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VRA	61Neutral	$216.89M	-21.44	-7.73%	―	-9.42%	87.85%
CAL	52Neutral	$455.47M	8.20	8.38%	2.12%	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	49.87	5.92	13.48%
RCKY	Rocky Brands	51.99	22.81	78.19%
VRA	Vera Bradley	7.61	5.16	210.61%
WEYS	Weyco Group	58.92	30.59	107.98%
WWW	Wolverine World Wide	24.89	10.50	72.91%
CAL	Caleres Inc	13.20	3.49	36.00%

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