NYSE:SKX, a growth stock which is not overvalued.

Last update: Dec 11, 2023

SKECHERS USA INC-CL A (NYSE:SKX) has caught the eye of our stock screener as an affordable growth stock. NYSE:SKX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:SKX has received a 7 out of 10:

SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.35%, which is quite impressive.
Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
Measured over the past years, SKX shows a quite strong growth in Revenue. The Revenue has been growing by 12.32% on average per year.
Based on estimates for the next years, SKX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.31% on average per year.
SKX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.11% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Insights: NYSE:SKX

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:SKX boasts a 6 out of 10:

SKX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.54.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, SKX is valued a bit cheaper.
SKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKX is cheaper than 65.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 73.47% of the companies listed in the same industry.
SKX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SKX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SKX's earnings are expected to grow with 27.80% in the coming years.

Health Analysis for NYSE:SKX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SKX has achieved a 7 out of 10:

An Altman-Z score of 4.22 indicates that SKX is not in any danger for bankruptcy at the moment.
SKX has a Altman-Z score of 4.22. This is in the better half of the industry: SKX outperforms 73.47% of its industry peers.
The Debt to FCF ratio of SKX is 0.41, which is an excellent value as it means it would take SKX, only 0.41 years of fcf income to pay off all of its debts.
SKX has a better Debt to FCF ratio (0.41) than 79.59% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that SKX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.07, SKX is doing good in the industry, outperforming 69.39% of the companies in the same industry.
SKX has a Current Ratio of 2.52. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.60, SKX is in the better half of the industry, outperforming 65.31% of the companies in the same industry.

Profitability Examination for NYSE:SKX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:SKX has achieved a 7:

Looking at the Return On Assets, with a value of 7.38%, SKX is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
The Return On Equity of SKX (13.51%) is better than 63.27% of its industry peers.
SKX has a Return On Invested Capital of 10.53%. This is in the better half of the industry: SKX outperforms 75.51% of its industry peers.
The 3 year average ROIC (6.98%) for SKX is below the current ROIC(10.53%), indicating increased profibility in the last year.
SKX's Profit Margin of 6.75% is fine compared to the rest of the industry. SKX outperforms 69.39% of its industry peers.
SKX's Profit Margin has improved in the last couple of years.
The Operating Margin of SKX (9.36%) is better than 65.31% of its industry peers.
SKX has a better Gross Margin (50.78%) than 63.27% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of SKX contains the most current fundamental analsysis.

Keep in mind

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.