STEVEN MADDEN LTD (SHOO) Stock Fundamental Analysis
NASDAQ:SHOO - Nasdaq - US5562691080 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to SHOO. SHOO was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making SHOO a very profitable company, without any liquidiy or solvency issues. SHOO may be a bit undervalued, certainly considering the very reasonable score on growth SHOO also has an excellent dividend rating. These ratings would make SHOO suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
In the past year SHOO was profitable.
SHOO had a positive operating cash flow in the past year.
Of the past 5 years SHOO 4 years were profitable.
SHOO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.00%, SHOO belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
SHOO's Return On Equity of 19.98% is fine compared to the rest of the industry. SHOO outperforms 78.00% of its industry peers.
SHOO has a Return On Invested Capital of 19.06%. This is amongst the best in the industry. SHOO outperforms 86.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHOO is significantly above the industry average of 13.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 19.98% | ||
| ROIC | 19.06% |
ROA(3y)13.97%
ROA(5y)10.87%
ROE(3y)22.22%
ROE(5y)17.55%
ROIC(3y)20.07%
ROIC(5y)17.19%
1.3 Margins
Looking at the Profit Margin, with a value of 7.42%, SHOO is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SHOO has remained more or less at the same level.
With a decent Operating Margin value of 10.74%, SHOO is doing good in the industry, outperforming 76.00% of the companies in the same industry.
SHOO's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 41.04%, SHOO is doing worse than 68.00% of the companies in the same industry.
SHOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.74% | ||
| PM (TTM) | 7.42% | ||
| GM | 41.04% |
OM growth 3Y-6.39%
OM growth 5Y1.47%
PM growth 3Y-10.12%
PM growth 5Y-1.26%
GM growth 3Y-0.07%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
SHOO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SHOO has less shares outstanding
Compared to 5 years ago, SHOO has less shares outstanding
SHOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.91 indicates that SHOO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.91, SHOO belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
SHOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.91 |
ROIC/WACC1.91
WACC9.96%
2.3 Liquidity
SHOO has a Current Ratio of 2.16. This indicates that SHOO is financially healthy and has no problem in meeting its short term obligations.
SHOO's Current ratio of 2.16 is in line compared to the rest of the industry. SHOO outperforms 58.00% of its industry peers.
SHOO has a Quick Ratio of 1.54. This is a normal value and indicates that SHOO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.54, SHOO is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.94% over the past year.
Measured over the past 5 years, SHOO shows a small growth in Earnings Per Share. The EPS has been growing by 6.57% on average per year.
The Revenue has grown by 15.21% in the past year. This is quite good.
The Revenue has been growing slightly by 5.02% on average over the past years.
EPS 1Y (TTM)8.94%
EPS 3Y3.18%
EPS 5Y6.57%
EPS Q2Q%-9.84%
Revenue 1Y (TTM)15.21%
Revenue growth 3Y6.95%
Revenue growth 5Y5.02%
Sales Q2Q%12.05%
3.2 Future
SHOO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.76% yearly.
The Revenue is expected to grow by 10.55% on average over the next years. This is quite good.
EPS Next Y-14.87%
EPS Next 2Y-0.85%
EPS Next 3Y4.79%
EPS Next 5Y10.76%
Revenue Next Year19.32%
Revenue Next 2Y13.77%
Revenue Next 3Y10.14%
Revenue Next 5Y10.56%
3.3 Evolution
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.43, the valuation of SHOO can be described as very cheap.
SHOO's Price/Earnings ratio is rather cheap when compared to the industry. SHOO is cheaper than 84.00% of the companies in the same industry.
SHOO is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.72, the valuation of SHOO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SHOO is valued cheaper than 84.00% of the companies in the same industry.
SHOO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHOO indicates a rather cheap valuation: SHOO is cheaper than 88.00% of the companies listed in the same industry.
74.00% of the companies in the same industry are more expensive than SHOO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.39 | ||
| EV/EBITDA | 4.63 |
4.3 Compensation for Growth
SHOO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-0.85%
EPS Next 3Y4.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, SHOO is a good candidate for dividend investing.
In the last 3 months the price of SHOO has falen by -51.61%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SHOO's Dividend Yield is rather good when compared to the industry average which is at 4.26. SHOO pays more dividend than 86.00% of the companies in the same industry.
SHOO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of SHOO is nicely growing with an annual growth rate of 7.91%!
SHOO has been paying a dividend for over 5 years, so it has already some track record.
SHOO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.91%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
36.03% of the earnings are spent on dividend by SHOO. This is a low number and sustainable payout ratio.
SHOO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.03%
EPS Next 2Y-0.85%
EPS Next 3Y4.79%
19.9
+0.36 (+1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners103.38%
Inst Owner Change0%
Ins Owners2.08%
Ins Owner Change1.4%
Market Cap1.44B
Analysts72.5
Price Target38.19 (91.91%)
Short Float %5.8%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend0.84
Dividend Growth(5Y)7.91%
DP36.03%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.09%
Min EPS beat(2)0.19%
Max EPS beat(2)1.99%
EPS beat(4)4
Avg EPS beat(4)5.35%
Min EPS beat(4)0.19%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)3.54%
EPS beat(12)10
Avg EPS beat(12)8.33%
EPS beat(16)14
Avg EPS beat(16)16.04%
Revenue beat(2)2
Avg Revenue beat(2)2.42%
Min Revenue beat(2)0.75%
Max Revenue beat(2)4.08%
Revenue beat(4)3
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-0.76%
Max Revenue beat(4)4.08%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)8
Avg Revenue beat(12)2.45%
Revenue beat(16)11
Avg Revenue beat(16)2.88%
PT rev (1m)-6.39%
PT rev (3m)-19.76%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-38.04%
EPS NY rev (1m)-15.31%
EPS NY rev (3m)-24.25%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-4.01%
Revenue NY rev (1m)3.83%
Revenue NY rev (3m)13.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.43 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.63 | ||
| P/FCF | 8.39 | ||
| P/OCF | 7.29 | ||
| P/B | 1.7 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 4.63 |
EPS(TTM)2.68
EY13.47%
EPS(NY)2.28
Fwd EY11.46%
FCF(TTM)2.37
FCFY11.92%
OCF(TTM)2.73
OCFY13.72%
SpS31.45
BVpS11.68
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 19.98% | ||
| ROCE | 24.57% | ||
| ROIC | 19.06% | ||
| ROICexc | 23.94% | ||
| ROICexgc | 38.24% | ||
| OM | 10.74% | ||
| PM (TTM) | 7.42% | ||
| GM | 41.04% | ||
| FCFM | 7.54% |
ROA(3y)13.97%
ROA(5y)10.87%
ROE(3y)22.22%
ROE(5y)17.55%
ROIC(3y)20.07%
ROIC(5y)17.19%
ROICexc(3y)26.91%
ROICexc(5y)23.43%
ROICexgc(3y)44.98%
ROICexgc(5y)39.85%
ROCE(3y)25.87%
ROCE(5y)22.16%
ROICexcg growth 3Y-8.75%
ROICexcg growth 5Y-0.19%
ROICexc growth 3Y-6.05%
ROICexc growth 5Y3.67%
OM growth 3Y-6.39%
OM growth 5Y1.47%
PM growth 3Y-10.12%
PM growth 5Y-1.26%
GM growth 3Y-0.07%
GM growth 5Y1.35%
F-Score6
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 129.49% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.7% | ||
| Profit Quality | 101.65% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 5.91 |
F-Score6
WACC9.96%
ROIC/WACC1.91
Cap/Depr(3y)114.81%
Cap/Depr(5y)85.15%
Cap/Sales(3y)0.99%
Cap/Sales(5y)0.78%
Profit Quality(3y)113.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.94%
EPS 3Y3.18%
EPS 5Y6.57%
EPS Q2Q%-9.84%
EPS Next Y-14.87%
EPS Next 2Y-0.85%
EPS Next 3Y4.79%
EPS Next 5Y10.76%
Revenue 1Y (TTM)15.21%
Revenue growth 3Y6.95%
Revenue growth 5Y5.02%
Sales Q2Q%12.05%
Revenue Next Year19.32%
Revenue Next 2Y13.77%
Revenue Next 3Y10.14%
Revenue Next 5Y10.56%
EBIT growth 1Y11.62%
EBIT growth 3Y0.11%
EBIT growth 5Y6.56%
EBIT Next Year1.34%
EBIT Next 3Y11.47%
EBIT Next 5Y13.53%
FCF growth 1Y-17.92%
FCF growth 3Y4.04%
FCF growth 5Y-4.39%
OCF growth 1Y-13.58%
OCF growth 3Y7.49%
OCF growth 5Y-3.26%