Looking for growth without the hefty price tag? Consider NYSE:SKX.

Last update: Jul 1, 2024

Our stock screener has singled out SKECHERS USA INC-CL A (NYSE:SKX) as an attractive growth opportunity. NYSE:SKX is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

What does the Growth looks like for NYSE:SKX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:SKX scores a 7 out of 10:

SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.49%, which is quite impressive.
SKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.78% yearly.
Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 8.17% in the last year.
Measured over the past years, SKX shows a quite strong growth in Revenue. The Revenue has been growing by 11.50% on average per year.
Based on estimates for the next years, SKX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.14% on average per year.
Based on estimates for the next years, SKX will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.
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.

A Closer Look at Valuation for 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 5 out of 10:

SKX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.36, which is the current average of the S&P500 Index.
64.00% of the companies in the same industry are more expensive than SKX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.16. SKX is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 64.00% 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.
A more expensive valuation may be justified as SKX's earnings are expected to grow with 19.59% in the coming years.

Health Analysis for NYSE:SKX

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. NYSE:SKX was assigned a score of 8 for health:

SKX has an Altman-Z score of 4.42. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.42, SKX is doing good in the industry, outperforming 76.00% of the companies in the same industry.
The Debt to FCF ratio of SKX is 0.53, which is an excellent value as it means it would take SKX, only 0.53 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.53, SKX belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that SKX is not too dependend on debt financing.
SKX has a better Debt to Equity ratio (0.03) than 76.00% of its industry peers.
SKX has a Current Ratio of 2.39. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis 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:

With a decent Return On Assets value of 7.82%, SKX is doing good in the industry, outperforming 76.00% of the companies in the same industry.
SKX has a better Return On Equity (14.28%) than 74.00% of its industry peers.
SKX's Return On Invested Capital of 11.85% is fine compared to the rest of the industry. SKX outperforms 78.00% of its industry peers.
The last Return On Invested Capital (11.85%) for SKX is above the 3 year average (9.66%), which is a sign of increasing profitability.
SKX has a better Profit Margin (7.18%) than 72.00% of its industry peers.
With a decent Operating Margin value of 10.42%, SKX is doing good in the industry, outperforming 74.00% of the companies in the same industry.
SKX has a Gross Margin of 52.79%. This is in the better half of the industry: SKX outperforms 64.00% of its industry peers.
In the last couple of years the Gross Margin of SKX has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.