Wolverine World Wide (NYSE:WWW) operates in a sector that would make Al Bundy cringe -- footwear. The market treated the company's shares badly after yesterday's third-quarter earnings release. But was there anything to the sell-off, or is this company on solid footing?

Consider, first, that Wolverine has some major brands under its umbrella, such as Hush Puppies, and some licensed products using outside trademarks -- one example being Harley-Davidson. And since walking isn't going to go out of style anytime soon, this is a good business to be in, as companies such as Timberland (NYSE:TBL), K-Swiss (NASDAQ:KSWS), Nike (NYSE:NKE), and Deckers Outdoor Group (NASDAQ:DECK) know well.

As for the numbers, net sales revenue for the quarter increased 7.1% to $298.9 million. Operating income increased 8% to $39.5 million, and net income jumped 6% to $26.1 million, or $0.46 per diluted share. For the nine-month period, net sales revenue increased 8% to $800.2 million, operating income increased 12% to $90.8 million, and net income appreciated by 11%, coming in at $60 million, or $1.05 per diluted share.

The quarterly growth in the metrics wasn't necessarily indicative of a business on a tear, but growth on the nine-month front did show strength. In addition, earnings came in ahead of the Street's expectations.

Now, let's proceed to Wolverine's latest 10-K, where we can see that performance in terms of free cash flow is holding up well. In 2003, the company booked approximately $102.2 million in net cash from operations and $71.4 million in FCF, including acquisitions. In 2005, net cash from operations was $119.7 million, and FCF was nearly $96 million. Dividends paid in 2005 had a dollar value of less than $15 million, so the free cash more than covers that.

Speaking of dividends, the company's history is pretty cool on that front. In 2001, the dividend-per-share rate on an annual basis was $0.11; in 2006, that statistic was $0.30. Long-term debt, meanwhile, has been on the decline, equaling $75.8 million and $21.4 million at year's end in 2001 and 2005, respectively. As of the third quarter, current long-term debt stands at $21.5 million.

Wolverine has upped its guidance for the rest of the year, citing an increase in its backlog. The company now expects to earn between $1.41 and $1.44 per share, as opposed to the previous range of between $1.38 and $1.42. For fiscal 2007, Wolverine thinks it can achieve numbers between $1.56 and $1.62.

If you take the current price and divide it by a forward earnings number of $1.56, you come out with a P/E of approximately 18. Take into account the five-year growth rate estimate of about 14%, and you get a PEG ratio of about 1.3. Considering that the dividend yield on the stock is only a little more than 1%, I couldn't call Wolverine a strict value right now. I like the business, though, and I think the brand portfolio has great long-term value at a good price.

The five-year chart on Wolverine World Wide is impressive, as is the aforementioned dividend growth. I am positive on this company going forward, but I'd be more inclined to grab shares at a higher yield.

So even though it might seem a bit odd that Wall Street sold off the stock yesterday after the report -- especially on a record-breaking day -- any pullback would be welcome.

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Fool contributor Steven Mallas owns none of the companies mentioned. The Fool has a disclosure policy.