SKECHERS USA INC-CL A (SKX) Stock Fundamental Analysis
NYSE:SKX - New York Stock Exchange, Inc. - US8305661055 - Common Stock - Currency: USD
SKX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. While SKX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SKX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SKX had positive earnings in the past year.
SKX had a positive operating cash flow in the past year.
In the past 5 years SKX has always been profitable.
SKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.34%, SKX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
SKX's Return On Equity of 14.08% is fine compared to the rest of the industry. SKX outperforms 67.35% of its industry peers.
The Return On Invested Capital of SKX (10.64%) is better than 67.35% of its industry peers.
SKX had an Average Return On Invested Capital over the past 3 years of 10.44%. This is in line with the industry average of 11.45%.
The 3 year average ROIC (10.44%) for SKX is below the current ROIC(10.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 14.08% | ||
| ROIC | 10.64% |
ROA(3y)6.74%
ROA(5y)6.66%
ROE(3y)12.99%
ROE(5y)13.14%
ROIC(3y)10.44%
ROIC(5y)8.75%
1.3 Margins
SKX has a better Profit Margin (6.96%) than 73.47% of its industry peers.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
With a decent Operating Margin value of 9.54%, SKX is doing good in the industry, outperforming 69.39% of the companies in the same industry.
In the last couple of years the Operating Margin of SKX has remained more or less at the same level.
With a Gross Margin value of 53.02%, SKX perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of SKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.54% | ||
| PM (TTM) | 6.96% | ||
| GM | 53.02% |
OM growth 3Y2.07%
OM growth 5Y0.3%
PM growth 3Y-15.34%
PM growth 5Y1.43%
GM growth 3Y2.39%
GM growth 5Y2.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SKX is still creating some value.
Compared to 1 year ago, SKX has less shares outstanding
The number of shares outstanding for SKX has been reduced compared to 5 years ago.
SKX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.83 indicates that SKX is not in any danger for bankruptcy at the moment.
The Altman-Z score of SKX (3.83) is better than 71.43% of its industry peers.
The Debt to FCF ratio of SKX is 5.19, which is a neutral value as it means it would take SKX, 5.19 years of fcf income to pay off all of its debts.
SKX's Debt to FCF ratio of 5.19 is in line compared to the rest of the industry. SKX outperforms 55.10% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that SKX is not too dependend on debt financing.
SKX's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. SKX outperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.19
WACC8.96%
2.3 Liquidity
SKX has a Current Ratio of 2.13. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SKX (2.13) is comparable to the rest of the industry.
SKX has a Quick Ratio of 1.28. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.28, SKX perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.47%, which is quite good.
SKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.92% yearly.
Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 10.66% in the last year.
SKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.43% yearly.
EPS 1Y (TTM)9.47%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%0.75%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%7.11%
3.2 Future
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.61% on average over the next years.
EPS Next Y-13.34%
EPS Next 2Y-4.62%
EPS Next 3Y1.03%
EPS Next 5Y9.23%
Revenue Next Year6.67%
Revenue Next 2Y6.8%
Revenue Next 3Y6.25%
Revenue Next 5Y7.61%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.18, the valuation of SKX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 77.55% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SKX to the average of the S&P500 Index (27.30), we can say SKX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.73, SKX is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SKX.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SKX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
69.39% of the companies in the same industry are more expensive than SKX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SKX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.95 | ||
| EV/EBITDA | 7.94 |
4.3 Compensation for Growth
SKX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-4.62%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
SKX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.16
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners99.8%
Inst Owner Change-0.01%
Ins Owners0.62%
Ins Owner Change-37.64%
Market Cap9.45B
Analysts69
Price Target63.48 (0.51%)
Short Float %3.28%
Short Ratio0.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-13.85%
Max EPS beat(2)13.02%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-13.85%
Max EPS beat(4)13.02%
EPS beat(8)6
Avg EPS beat(8)14.85%
EPS beat(12)9
Avg EPS beat(12)16.58%
EPS beat(16)12
Avg EPS beat(16)18.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)0.76%
Revenue beat(8)3
Avg Revenue beat(8)-1.01%
Revenue beat(12)7
Avg Revenue beat(12)0.97%
Revenue beat(16)10
Avg Revenue beat(16)1.77%
PT rev (1m)-2.11%
PT rev (3m)-22.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.03 | ||
| P/FCF | 83.95 | ||
| P/OCF | 15.26 | ||
| P/B | 2.09 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)4.16
EY6.59%
EPS(NY)3.78
Fwd EY5.98%
FCF(TTM)0.75
FCFY1.19%
OCF(TTM)4.14
OCFY6.55%
SpS61.02
BVpS30.16
TBVpS29.52
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 14.08% | ||
| ROCE | 13.29% | ||
| ROIC | 10.64% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 12.95% | ||
| OM | 9.54% | ||
| PM (TTM) | 6.96% | ||
| GM | 53.02% | ||
| FCFM | 1.23% |
ROA(3y)6.74%
ROA(5y)6.66%
ROE(3y)12.99%
ROE(5y)13.14%
ROIC(3y)10.44%
ROIC(5y)8.75%
ROICexc(3y)12.86%
ROICexc(5y)10.88%
ROICexgc(3y)13.12%
ROICexgc(5y)11.12%
ROCE(3y)12.76%
ROCE(5y)10.69%
ROICexcg growth 3Y7.76%
ROICexcg growth 5Y-0.63%
ROICexc growth 3Y7.89%
ROICexc growth 5Y-1.01%
OM growth 3Y2.07%
OM growth 5Y0.3%
PM growth 3Y-15.34%
PM growth 5Y1.43%
GM growth 3Y2.39%
GM growth 5Y2.18%
F-Score5
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 231.17% | ||
| Cap/Sales | 5.55% | ||
| Interest Coverage | 37.63 | ||
| Cash Conversion | 56.83% | ||
| Profit Quality | 17.72% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.83 |
F-Score5
WACC8.96%
ROIC/WACC1.19
Cap/Depr(3y)202.85%
Cap/Depr(5y)209.49%
Cap/Sales(3y)4.51%
Cap/Sales(5y)5.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.47%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%0.75%
EPS Next Y-13.34%
EPS Next 2Y-4.62%
EPS Next 3Y1.03%
EPS Next 5Y9.23%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%7.11%
Revenue Next Year6.67%
Revenue Next 2Y6.8%
Revenue Next 3Y6.25%
Revenue Next 5Y7.61%
EBIT growth 1Y1.23%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year7.96%
EBIT Next 3Y8.95%
EBIT Next 5Y15.37%
FCF growth 1Y-57.91%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y1.83%
OCF growth 3Y47.97%
OCF growth 5Y10.01%