Balancing Dividends and Fundamentals: The Case of STEVEN MADDEN LTD (NASDAQ:SHOO).

Our stock screening tool has identified STEVEN MADDEN LTD (NASDAQ:SHOO) as a strong dividend contender with robust fundamentals. SHOO exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Understanding SHOO's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. SHOO scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.95, SHOO pays a better dividend. On top of this SHOO pays more dividend than 82.00% of the companies listed in the same industry.
• SHOO's Dividend Yield is a higher than the S&P500 average which is at 2.44.
• On average, the dividend of SHOO grows each year by 7.91%, which is quite nice.
• SHOO has been paying a dividend for over 5 years, so it has already some track record.
• 36.03% of the earnings are spent on dividend by SHOO. This is a low number and sustainable payout ratio.
• SHOO's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Unpacking SHOO's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. SHOO was assigned a score of 9 for health:

• SHOO has an Altman-Z score of 6.23. This indicates that SHOO is financially healthy and has little risk of bankruptcy at the moment.
• SHOO has a better Altman-Z score (6.23) than 90.00% of its industry peers.
• SHOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• SHOO has a Current Ratio of 2.16. This indicates that SHOO is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 1.54, SHOO is in the better half of the industry, outperforming 74.00% of the companies in the same industry.

Profitability Insights: SHOO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. SHOO scores a 7 out of 10:

• SHOO's Return On Assets of 12.00% is amongst the best of the industry. SHOO outperforms 86.00% of its industry peers.
• SHOO has a Return On Equity of 19.98%. This is in the better half of the industry: SHOO outperforms 78.00% of its industry peers.
• SHOO has a Return On Invested Capital of 19.06%. This is amongst the best in the industry. SHOO outperforms 86.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for SHOO is significantly above the industry average of 13.61%.
• SHOO's Profit Margin of 7.42% is fine compared to the rest of the industry. SHOO outperforms 74.00% of its industry peers.
• SHOO has a better Operating Margin (10.74%) than 78.00% of its industry peers.

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Check the latest full fundamental report of SHOO for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.