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

Here's SKECHERS USA INC-CL A (NYSE:SKX) for you, a growth stock our stock screener believes is undervalued. NYSE:SKX is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Unpacking NYSE:SKX's Growth Rating

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 nice 19.06% over the past year.
• The Earnings Per Share has been growing by 11.78% on average over the past years. This is quite good.
• Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 10.10% in the last year.
• SKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.50% yearly.
• SKX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.26% yearly.
• SKX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.44% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Valuation: 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:

• Compared to the rest of the industry, the Price/Earnings ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 64.00% of the companies listed in the same industry.
• SKX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.00.
• SKX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SKX is cheaper than 68.00% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 23.60. SKX is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, SKX is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
• SKX's 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 18.78% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:SKX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:SKX has earned a 7 out of 10:

• An Altman-Z score of 3.85 indicates that SKX is not in any danger for bankruptcy at the moment.
• SKX has a Altman-Z score of 3.85. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
• The Debt to FCF ratio of SKX is 1.58, which is an excellent value as it means it would take SKX, only 1.58 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.58, SKX is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
• A Debt/Equity ratio of 0.06 indicates that SKX is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.06, SKX is doing good in the industry, outperforming 72.00% of the companies in the same industry.

Profitability Assessment of NYSE:SKX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:SKX, the assigned 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 7.26%, SKX is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 14.39%, SKX is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 10.99%, SKX is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
• The 3 year average ROIC (9.66%) for SKX is below the current ROIC(10.99%), indicating increased profibility in the last year.
• The Profit Margin of SKX (7.20%) is better than 74.00% of its industry peers.
• Looking at the Operating Margin, with a value of 9.97%, SKX is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 53.12%, SKX is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
• 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.

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

Keep in mind

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.