NYSE:SKX stands out as a growth opportunity that won't break the bank.

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.

Looking at the Growth

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:

• The Earnings Per Share has grown by an impressive 23.10% over the past year.
• Measured over the past years, SKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.78% on average per year.
• Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 8.02% 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.
• SKX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.14% yearly.
• 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.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Valuation for NYSE:SKX

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:SKX was assigned a score of 5 for valuation:

• Compared to an average S&P500 Price/Earnings ratio of 29.02, SKX is valued a bit cheaper.
• 64.71% of the companies in the same industry are more expensive than SKX, based on the Price/Forward Earnings ratio.
• SKX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.56, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 74.51% 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 21.48% in the coming years.

Health Analysis for NYSE:SKX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SKX scores a 8 out of 10:

• SKX has an Altman-Z score of 3.99. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of SKX (3.99) is better than 70.59% of its industry peers.
• The Debt to FCF ratio of SKX is 0.42, which is an excellent value as it means it would take SKX, only 0.42 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.42, SKX belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
• SKX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
• SKX has a Debt to Equity ratio of 0.01. This is in the better half of the industry: SKX outperforms 78.43% of its industry peers.
• A Current Ratio of 2.06 indicates that SKX has no problem at all paying its short term obligations.

Understanding NYSE:SKX's Profitability

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. NYSE:SKX scores a 7 out of 10:

• The Return On Assets of SKX (7.27%) is better than 76.47% of its industry peers.
• Looking at the Return On Equity, with a value of 13.73%, SKX is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
• SKX has a better Return On Invested Capital (11.72%) than 76.47% of its industry peers.
• The 3 year average ROIC (9.66%) for SKX is below the current ROIC(11.72%), indicating increased profibility in the last year.
• SKX's Profit Margin of 6.90% is fine compared to the rest of the industry. SKX outperforms 74.51% of its industry peers.
• With a decent Operating Margin value of 10.11%, SKX is doing good in the industry, outperforming 70.59% of the companies in the same industry.
• SKX has a better Gross Margin (53.36%) than 64.71% of its industry peers.
• SKX's Gross Margin has improved in the last couple of years.

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.

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.