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Wolverine Growing Under a Pile of Debt

So far this year, Wolverine has generated free cash flow of $96 million but investors should note that Wolverine is currently focused on using its cash flow to deleverage. Therefore, I believe that the company's management is not going to indulge in any meaningful buyback activity.

Wolverine's shares have risen by 43% in 2013, which sounds great, but the company has underperformed some of its other rivals, such as Deckers Outdoor (DECK) and Nike (NKE - Get Report).

Wolverine is currently trading 41 times its trailing earnings, considerably above the industry's average of 15 times. Even the athletic footwear and apparel giant Nike, whose stock is up 50% this year, is cheaper trading 26 times its trailing earnings.

Therefore, despite delivering strong results in its previous quarter, Wolverine World Wide is certainly not a buy at the moment.

At the time of publication, the author held no position in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Sarfaraz A. Khan is a capital market analyst and finance writer. Khan earned an MBA from the University of Aberdeen, located in the heart of the UK's oil and gas industry. Not surprisingly, his specialty lies in energy stocks. He also covers consumer goods, services sector, technology stocks, emerging markets and ETFs. His work appears on Seeking Alpha, Motley Fool and TheStreet.
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