Skechers USA (SKX) Stock Fundamental Analysis
USA - NYSE:SKX - US8305661055 - Common Stock
63.13 USD
-0.07 (-0.11%)
63.1701 USD
+0.04 (+0.06%)
We assign a fundamental rating of 5 out of 10 to SKX. SKX was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX has an excellent profitability rating, but 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
In the past year SKX was profitable.
SKX had a positive operating cash flow in the past year.
Each year in the past 5 years SKX has been profitable.
Each year in the past 5 years SKX had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.17%, SKX belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
With a decent Return On Equity value of 13.94%, SKX is doing good in the industry, outperforming 67.35% of the companies in the same industry.
SKX has a Return On Invested Capital of 9.63%. This is in the better half of the industry: SKX outperforms 65.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKX is in line with the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.94% | ||
| ROIC | 9.63% |
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 (7.07%) than 83.67% of its industry peers.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
The Operating Margin of SKX (8.89%) is better than 73.47% of its industry peers.
In the last couple of years the Operating Margin of SKX has remained more or less at the same level.
The Gross Margin of SKX (52.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 7.07% | ||
| GM | 52.67% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SKX is creating some value.
SKX has less shares outstanding than it did 1 year ago.
SKX has less shares outstanding than it did 5 years ago.
SKX has a worse debt/assets ratio than last year.
2.2 Solvency
SKX has an Altman-Z score of 3.63. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.63, SKX is doing good in the industry, outperforming 67.35% of the companies in the same industry.
The Debt to FCF ratio of SKX is 9.25, which is on the high side as it means it would take SKX, 9.25 years of fcf income to pay off all of its debts.
SKX has a Debt to FCF ratio (9.25) which is comparable to the rest of the industry.
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 amongst the best of the industry. SKX outperforms 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.93
WACC10.4%
2.3 Liquidity
A Current Ratio of 2.09 indicates that SKX has no problem at all paying its short term obligations.
SKX has a Current ratio (2.09) which is comparable to the rest of the industry.
A Quick Ratio of 1.29 indicates that SKX should not have too much problems paying its short term obligations.
The Quick ratio of SKX (1.29) is better than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.43% over the past year.
SKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.92% yearly.
The Revenue has grown by 12.11% in the past year. This is quite good.
Measured over the past years, SKX shows a quite strong growth in Revenue. The Revenue has been growing by 11.43% on average per year.
EPS 1Y (TTM)17.43%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%24.18%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%13.09%
3.2 Future
Based on estimates for the next years, SKX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.23% on average per year.
Based on estimates for the next years, SKX will show a small growth in Revenue. The Revenue will grow by 7.61% on average per year.
EPS Next Y-9.59%
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
EPS Next 5Y9.23%
Revenue Next Year7.85%
Revenue Next 2Y7.87%
Revenue Next 3Y6.66%
Revenue Next 5Y7.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.41, which indicates a correct valuation of SKX.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than 73.47% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, SKX is valued a bit cheaper.
SKX is valuated correctly with a Price/Forward Earnings ratio of 16.73.
SKX's Price/Forward Earnings ratio is in line with the industry average.
SKX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKX is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SKX is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 150.22 | ||
| EV/EBITDA | 7.79 |
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)1.12
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
SKX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.13
-0.07 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.53%
Inst Owner Change-0.12%
Ins Owners0.67%
Ins Owner Change-170.13%
Market Cap9.49B
Analysts67.37
Price Target63.34 (0.33%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)23.57%
Min EPS beat(2)13.02%
Max EPS beat(2)34.11%
EPS beat(4)3
Avg EPS beat(4)10.4%
Min EPS beat(4)-13.85%
Max EPS beat(4)34.11%
EPS beat(8)6
Avg EPS beat(8)9.07%
EPS beat(12)9
Avg EPS beat(12)18.82%
EPS beat(16)12
Avg EPS beat(16)15.96%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)2.82%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)7
Avg Revenue beat(12)0.85%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)-0.12%
PT rev (3m)-0.22%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)0%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.01 | ||
| P/FCF | 150.22 | ||
| P/OCF | 14.8 | ||
| P/B | 1.99 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)4.38
EY6.94%
EPS(NY)3.77
Fwd EY5.98%
FCF(TTM)0.42
FCFY0.67%
OCF(TTM)4.27
OCFY6.76%
SpS62.63
BVpS31.78
TBVpS31.09
PEG (NY)N/A
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.94% | ||
| ROCE | 12.02% | ||
| ROIC | 9.63% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 12.38% | ||
| OM | 8.89% | ||
| PM (TTM) | 7.07% | ||
| GM | 52.67% | ||
| FCFM | 0.67% |
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-Score4
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 252.38% | ||
| Cap/Sales | 6.14% | ||
| Interest Coverage | 30.18 | ||
| Cash Conversion | 60.14% | ||
| Profit Quality | 9.49% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.63 |
F-Score4
WACC10.4%
ROIC/WACC0.93
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)17.43%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%24.18%
EPS Next Y-9.59%
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
EPS Next 5Y9.23%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%13.09%
Revenue Next Year7.85%
Revenue Next 2Y7.87%
Revenue Next 3Y6.66%
Revenue Next 5Y7.61%
EBIT growth 1Y-1.38%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year8.09%
EBIT Next 3Y8.95%
EBIT Next 5Y15.37%
FCF growth 1Y-80.01%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y-2.7%
OCF growth 3Y47.97%
OCF growth 5Y10.01%