SKECHERS USA INC-CL A (SKX)
US8305661055 - Common Stock
We assign a fundamental rating of 6 out of 10 to SKX. SKX was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SKX is growing strongly while it is still valued neutral. This is a good combination! These ratings could make SKX a good candidate for growth and quality investing.
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.
SKX had positive earnings in each of the past 5 years.
SKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SKX (7.26%) is better than 76.00% of its industry peers.
SKX's Return On Equity of 14.39% is fine compared to the rest of the industry. SKX outperforms 76.00% of its industry peers.
SKX has a better Return On Invested Capital (10.99%) than 76.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKX is below the industry average of 11.70%.
The 3 year average ROIC (9.66%) for SKX is below the current ROIC(10.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 14.39% | ||
| ROIC | 10.99% |
ROA(3y)8.02%
ROA(5y)6.57%
ROE(3y)15.59%
ROE(5y)13.15%
ROIC(3y)9.66%
ROIC(5y)8.65%
1.3 Margins
The Profit Margin of SKX (7.20%) is better than 74.00% of its industry peers.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
Looking at the Operating Margin, with a value of 9.97%, SKX is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
SKX's Operating Margin has been stable in the last couple of years.
SKX's Gross Margin of 53.12% is fine compared to the rest of the industry. SKX outperforms 62.00% of its industry peers.
SKX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.97% | ||
| PM (TTM) | 7.2% | ||
| GM | 53.12% |
OM growth 3Y43.73%
OM growth 5Y0.79%
PM growth 3Y47.07%
PM growth 5Y1.02%
GM growth 3Y2.9%
GM growth 5Y1.62%
2. Health
2.1 Basic Checks
SKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SKX has been reduced compared to 1 year ago.
Compared to 5 years ago, SKX has less shares outstanding
The debt/assets ratio for SKX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.79 indicates that SKX is not in any danger for bankruptcy at the moment.
SKX has a Altman-Z score of 3.79. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
SKX has a debt to FCF ratio of 1.58. This is a very positive value and a sign of high solvency as it would only need 1.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.58, SKX is doing good in the industry, outperforming 74.00% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that SKX is not too dependend on debt financing.
The Debt to Equity ratio of SKX (0.06) is better than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | 3.79 |
ROIC/WACC1.21
WACC9.1%
2.3 Liquidity
SKX has a Current Ratio of 1.96. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
SKX has a Current ratio (1.96) which is in line with its industry peers.
SKX has a Quick Ratio of 1.25. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
SKX has a Quick ratio of 1.25. This is comparable to the rest of the industry: SKX outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.06%, which is quite good.
The Earnings Per Share has been growing by 11.78% on average over the past years. This is quite good.
SKX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.10%.
SKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.50% yearly.
EPS 1Y (TTM)19.06%
EPS 3Y69.24%
EPS 5Y11.78%
EPS Q2Q%35.48%
Revenue 1Y (TTM)10.1%
Revenue growth 3Y20.28%
Revenue growth 5Y11.5%
Sales Q2Q%15.94%
3.2 Future
The Earnings Per Share is expected to grow by 16.26% on average over the next years. This is quite good.
SKX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.44% yearly.
EPS Next Y22.87%
EPS Next 2Y19.31%
EPS Next 3Y18.65%
EPS Next 5Y16.26%
Revenue Next Year11.17%
Revenue Next 2Y10.7%
Revenue Next 3Y10.26%
Revenue Next 5Y9.44%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.66, 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 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 27.73.
Based on the Price/Forward Earnings ratio of 13.62, the valuation of SKX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SKX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKX is valued a bit cheaper than the industry average as 78.00% of the companies are valued more expensively.
SKX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.61 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
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.
SKX's earnings are expected to grow with 18.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)1.41
EPS Next 2Y19.31%
EPS Next 3Y18.65%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SKECHERS USA INC-CL A
NYSE:SKX (12/20/2024, 8:04:00 PM)
After market: 67.7 +0.05 (+0.07%)67.65
+1.36 (+2.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners94.23%
Inst Owner Change2.42%
Ins Owners0.82%
Ins Owner Change0%
Market Cap10.21B
Analysts80.95
Price Target83.69 (23.71%)
Short Float %4.79%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)1.58%
Min EPS beat(2)-5.17%
Max EPS beat(2)8.32%
EPS beat(4)3
Avg EPS beat(4)6%
Min EPS beat(4)-5.17%
Max EPS beat(4)19.55%
EPS beat(8)7
Avg EPS beat(8)26.88%
EPS beat(12)10
Avg EPS beat(12)19.43%
EPS beat(16)12
Avg EPS beat(16)19.74%
Revenue beat(2)1
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-4.36%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)1.15%
Revenue beat(8)5
Avg Revenue beat(8)0.81%
Revenue beat(12)9
Avg Revenue beat(12)2.2%
Revenue beat(16)11
Avg Revenue beat(16)2.34%
PT rev (1m)2.04%
PT rev (3m)0.79%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)4.28%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 13.62 | ||
| P/S | 1.17 | ||
| P/FCF | 25.61 | ||
| P/OCF | 13.31 | ||
| P/B | 2.34 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 8.44 |
EPS(TTM)4.06
EY6%
EPS(NY)4.97
Fwd EY7.34%
FCF(TTM)2.64
FCFY3.9%
OCF(TTM)5.08
OCFY7.51%
SpS57.75
BVpS28.87
TBVpS28.21
PEG (NY)0.73
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.26% | ||
| ROE | 14.39% | ||
| ROCE | 13.91% | ||
| ROIC | 10.99% | ||
| ROICexc | 14.22% | ||
| ROICexgc | 14.51% | ||
| OM | 9.97% | ||
| PM (TTM) | 7.2% | ||
| GM | 53.12% | ||
| FCFM | 4.57% |
ROA(3y)8.02%
ROA(5y)6.57%
ROE(3y)15.59%
ROE(5y)13.15%
ROIC(3y)9.66%
ROIC(5y)8.65%
ROICexc(3y)11.78%
ROICexc(5y)10.97%
ROICexgc(3y)12.04%
ROICexgc(5y)11.15%
ROCE(3y)11.85%
ROCE(5y)10.61%
ROICexcg growth 3Y51.27%
ROICexcg growth 5Y-10.99%
ROICexc growth 3Y51.68%
ROICexc growth 5Y-11.39%
OM growth 3Y43.73%
OM growth 5Y0.79%
PM growth 3Y47.07%
PM growth 5Y1.02%
GM growth 3Y2.9%
GM growth 5Y1.62%
F-Score6
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.58 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 180.84% | ||
| Cap/Sales | 4.23% | ||
| Interest Coverage | 42.55 | ||
| Cash Conversion | 71.51% | ||
| Profit Quality | 63.56% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.79 |
F-Score6
WACC9.1%
ROIC/WACC1.21
Cap/Depr(3y)211.12%
Cap/Depr(5y)212.42%
Cap/Sales(3y)4.59%
Cap/Sales(5y)5.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.06%
EPS 3Y69.24%
EPS 5Y11.78%
EPS Q2Q%35.48%
EPS Next Y22.87%
EPS Next 2Y19.31%
EPS Next 3Y18.65%
EPS Next 5Y16.26%
Revenue 1Y (TTM)10.1%
Revenue growth 3Y20.28%
Revenue growth 5Y11.5%
Sales Q2Q%15.94%
Revenue Next Year11.17%
Revenue Next 2Y10.7%
Revenue Next 3Y10.26%
Revenue Next 5Y9.44%
EBIT growth 1Y17.26%
EBIT growth 3Y72.87%
EBIT growth 5Y12.38%
EBIT Next Year39.79%
EBIT Next 3Y21.62%
EBIT Next 5Y16.39%
FCF growth 1Y194.6%
FCF growth 3Y247.63%
FCF growth 5Y16.35%
OCF growth 1Y1015.49%
OCF growth 3Y54.86%
OCF growth 5Y16.71%