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%)
Overall SKX gets a fundamental rating of 5 out of 10. We evaluated SKX against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. While SKX has a great profitability rating, there are some minor concerns on its financial health. SKX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SKX was profitable.
In the past year SKX had a positive cash flow from operations.
In the past 5 years SKX has always been profitable.
Each year in the past 5 years SKX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SKX (7.17%) is better than 81.63% of its industry peers.
The Return On Equity of SKX (13.94%) is better than 67.35% of its industry peers.
With a decent Return On Invested Capital value of 9.63%, SKX is doing good in the industry, outperforming 65.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SKX is in line with the industry average of 12.08%.
| 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
With an excellent Profit Margin value of 7.07%, SKX belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
SKX has a better Operating Margin (8.89%) 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
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
Compared to 5 years ago, SKX has less shares outstanding
Compared to 1 year ago, SKX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that SKX is not in any danger for 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.
SKX has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as SKX would need 9.25 years to pay back of all of its debts.
SKX has a Debt to FCF ratio (9.25) which is in line with 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 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/WACC0.94
WACC10.22%
2.3 Liquidity
A Current Ratio of 2.09 indicates that SKX has no problem at all paying its short term obligations.
The Current ratio of SKX (2.09) is comparable to the rest of the industry.
SKX has a Quick Ratio of 1.29. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.29, SKX is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 12.92% on average over the past years. This is quite good.
Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 12.11% 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)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
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
SKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.61% yearly.
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
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.
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
A Price/Earnings ratio of 14.41 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 27.20, SKX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.73, the valuation of SKX can be described as correct.
SKX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SKX to the average of the S&P500 Index (22.71), we can say SKX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 63.27% of the companies listed in the same industry.
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
The decent profitability rating of SKX 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-5.77%
Ins Owners0.67%
Ins Owner Change-163.09%
Market Cap9.49B
Analysts67.37
Price Target63.34 (0.33%)
Short Float %1.96%
Short Ratio0.71
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)4.33%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)1.03%
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
WACC10.22%
ROIC/WACC0.94
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%