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 49 industry peers in the Textiles, Apparel & Luxury Goods industry. SHOO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SHOO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SHOO had positive earnings in the past year.
In the past year SHOO had a positive cash flow from operations.
SHOO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SHOO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SHOO (11.62%) is better than 85.71% of its industry peers.
SHOO's Return On Equity of 18.95% is fine compared to the rest of the industry. SHOO outperforms 77.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.56%, SHOO belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHOO is significantly above the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 18.95% | ||
| ROIC | 18.56% |
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
With a decent Profit Margin value of 7.26%, SHOO is doing good in the industry, outperforming 77.55% of the companies in the same industry.
SHOO's Profit Margin has been stable in the last couple of years.
SHOO's Operating Margin of 10.82% is fine compared to the rest of the industry. SHOO outperforms 73.47% of its industry peers.
In the last couple of years the Operating Margin of SHOO has remained more or less at the same level.
SHOO has a Gross Margin of 41.08%. This is in the lower half of the industry: SHOO underperforms 69.39% of its industry peers.
SHOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.82% | ||
| PM (TTM) | 7.26% | ||
| GM | 41.08% |
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
The number of shares outstanding for SHOO has been reduced compared to 5 years ago.
There is no outstanding debt for SHOO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SHOO has an Altman-Z score of 6.34. This indicates that SHOO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.34, SHOO belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
There is no outstanding debt for SHOO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.34 |
ROIC/WACC2.06
WACC8.99%
2.3 Liquidity
A Current Ratio of 2.25 indicates that SHOO has no problem at all paying its short term obligations.
SHOO has a Current ratio (2.25) which is in line with its industry peers.
A Quick Ratio of 1.64 indicates that SHOO should not have too much problems paying its short term obligations.
SHOO's Quick ratio of 1.64 is fine compared to the rest of the industry. SHOO outperforms 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.77% 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.
Looking at the last year, SHOO shows a quite strong growth in Revenue. The Revenue has grown by 10.34% in the last year.
The Revenue has been growing slightly by 5.02% on average over the past years.
EPS 1Y (TTM)0.77%
EPS 3Y3.18%
EPS 5Y6.57%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y6.95%
Revenue growth 5Y5.02%
Sales Q2Q%0.15%
3.2 Future
SHOO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.56% yearly.
The Revenue is expected to grow by 4.96% on average over the next years.
EPS Next Y-47.34%
EPS Next 2Y-13.99%
EPS Next 3Y-5.49%
EPS Next 5Y3.56%
Revenue Next Year11.95%
Revenue Next 2Y10.07%
Revenue Next 3Y6.17%
Revenue Next 5Y4.96%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.51, the valuation of SHOO can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SHOO indicates a rather cheap valuation: SHOO is cheaper than 83.67% of the companies listed in the same industry.
SHOO is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.61 indicates a correct valuation of SHOO.
Based on the Price/Forward Earnings ratio, SHOO is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.74. SHOO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
83.67% of the companies in the same industry are more expensive than SHOO, based on the Enterprise Value to EBITDA ratio.
79.59% 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 | 11.13 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
SHOO has a very decent profitability rating, which may justify a higher PE ratio.
SHOO's earnings are expected to decrease with -5.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y-13.99%
EPS Next 3Y-5.49%
5. Dividend
5.1 Amount
SHOO has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.62, SHOO pays a better dividend. On top of this SHOO pays more dividend than 87.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SHOO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
On average, the dividend of SHOO grows each year by 7.91%, which is quite nice.
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
SHOO pays out 36.66% of its income as dividend. This is a sustainable payout ratio.
SHOO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.66%
EPS Next 2Y-13.99%
EPS Next 3Y-5.49%
25
-0.98 (-3.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners105.44%
Inst Owner Change-0.01%
Ins Owners2.28%
Ins Owner Change2.39%
Market Cap1.82B
Analysts74.67
Price Target28.18 (12.72%)
Short Float %6.51%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend0.84
Dividend Growth(5Y)7.91%
DP36.66%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.95%
Min EPS beat(2)1.99%
Max EPS beat(2)29.91%
EPS beat(4)4
Avg EPS beat(4)9.44%
Min EPS beat(4)0.19%
Max EPS beat(4)29.91%
EPS beat(8)8
Avg EPS beat(8)7.12%
EPS beat(12)10
Avg EPS beat(12)4.4%
EPS beat(16)14
Avg EPS beat(16)12.26%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-3.06%
Max Revenue beat(2)4.08%
Revenue beat(4)2
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-3.06%
Max Revenue beat(4)4.08%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)7
Avg Revenue beat(12)0.72%
Revenue beat(16)10
Avg Revenue beat(16)2.32%
PT rev (1m)-12.76%
PT rev (3m)-26.22%
EPS NQ rev (1m)-10.49%
EPS NQ rev (3m)-61.26%
EPS NY rev (1m)5.57%
EPS NY rev (3m)-40.96%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-5.07%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-6.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 12.61 | ||
| P/S | 0.79 | ||
| P/FCF | 11.13 | ||
| P/OCF | 9.31 | ||
| P/B | 2.07 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)2.63
EY10.52%
EPS(NY)1.98
Fwd EY7.93%
FCF(TTM)2.25
FCFY8.99%
OCF(TTM)2.68
OCFY10.74%
SpS31.45
BVpS12.05
TBVpS7.92
PEG (NY)N/A
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.62% | ||
| ROE | 18.95% | ||
| ROCE | 23.92% | ||
| ROIC | 18.56% | ||
| ROICexc | 21.65% | ||
| ROICexgc | 32.74% | ||
| OM | 10.82% | ||
| PM (TTM) | 7.26% | ||
| GM | 41.08% | ||
| FCFM | 7.14% |
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 Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.03% | ||
| Cap/Sales | 1.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.84% | ||
| Profit Quality | 98.38% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 6.34 |
F-Score6
WACC8.99%
ROIC/WACC2.06
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)0.77%
EPS 3Y3.18%
EPS 5Y6.57%
EPS Q2Q%-7.69%
EPS Next Y-47.34%
EPS Next 2Y-13.99%
EPS Next 3Y-5.49%
EPS Next 5Y3.56%
Revenue 1Y (TTM)10.34%
Revenue growth 3Y6.95%
Revenue growth 5Y5.02%
Sales Q2Q%0.15%
Revenue Next Year11.95%
Revenue Next 2Y10.07%
Revenue Next 3Y6.17%
Revenue Next 5Y4.96%
EBIT growth 1Y6.66%
EBIT growth 3Y0.11%
EBIT growth 5Y6.56%
EBIT Next Year-29.13%
EBIT Next 3Y-0.98%
EBIT Next 5Y7.23%
FCF growth 1Y-36.6%
FCF growth 3Y4.04%
FCF growth 5Y-4.39%
OCF growth 1Y-28.84%
OCF growth 3Y7.49%
OCF growth 5Y-3.26%