Despite its growth, NYSE:SKX remains within the realm of affordability.

Take a closer look at SKECHERS USA INC-CL A (NYSE:SKX), an affordable growth stock uncovered by our stock screener. NYSE:SKX boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Examination for NYSE:SKX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:SKX boasts a 7 out of 10:

• The Earnings Per Share has grown by an impressive 46.35% over the past year.
• SKX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.65%.
• The Revenue has been growing by 12.32% on average over the past years. This is quite good.
• 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 9.01% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Looking at the Valuation

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 is a bit cheaper when compared to the industry. SKX is cheaper than 61.22% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 26.01, SKX is valued a bit cheaper.
• SKX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.61.
• 69.39% of the companies in the same industry are more expensive than SKX, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 67.35% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of SKX may justify a higher PE ratio.
• SKX's earnings are expected to grow with 28.04% in the coming years. This may justify a more expensive valuation.

Evaluating Health: 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 4.19 indicates that SKX is not in any danger for bankruptcy at the moment.
• SKX has a Altman-Z score of 4.19. 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's Debt to FCF ratio of 0.41 is amongst the best of the industry. SKX outperforms 81.63% of its industry peers.
• SKX has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of SKX (0.07) is better than 69.39% of its industry peers.
• 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.
• SKX has a Quick ratio of 1.60. This is in the better half of the industry: SKX outperforms 63.27% of its industry peers.

Assessing Profitability for NYSE:SKX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:SKX has earned a 6 out of 10:

• SKX has a Return On Assets of 7.38%. This is in the better half of the industry: SKX outperforms 69.39% of its industry peers.
• The Return On Equity of SKX (13.51%) is better than 67.35% of its industry peers.
• SKX's Return On Invested Capital of 10.53% is fine compared to the rest of the industry. SKX outperforms 77.55% 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.
• Looking at the Profit Margin, with a value of 6.75%, SKX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
• In the last couple of years the Profit Margin of SKX has grown nicely.
• The Operating Margin of SKX (9.36%) is better than 65.31% of its industry peers.
• SKX has a Gross Margin of 50.78%. This is in the better half of the industry: SKX outperforms 61.22% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of SKX 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.