SKECHERS USA INC-CL A (SKX) Stock Fundamental Analysis
NYSE:SKX - New York Stock Exchange, Inc. - US8305661055 - Common Stock
Overall SKX gets a fundamental rating of 6 out of 10. We evaluated SKX against 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! This makes SKX very considerable 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.
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
SKX has a Return On Assets of 7.26%. This is in the better half of the industry: SKX outperforms 77.55% of its industry peers.
SKX has a Return On Equity of 14.39%. This is in the better half of the industry: SKX outperforms 75.51% of its industry peers.
SKX has a better Return On Invested Capital (10.99%) than 77.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKX is in line with the industry average of 11.39%.
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
With a decent Profit Margin value of 7.20%, SKX is doing good in the industry, outperforming 75.51% of the companies in the same industry.
SKX's Profit Margin has been stable in the last couple of years.
SKX has a better Operating Margin (9.97%) 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.
SKX has a Gross Margin of 53.12%. This is in the better half of the industry: SKX outperforms 63.27% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SKX is creating some value.
The number of shares outstanding for SKX has been reduced compared to 1 year ago.
SKX has less shares outstanding than it did 5 years ago.
SKX has a better debt/assets ratio than last year.
2.2 Solvency
SKX has an Altman-Z score of 3.92. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.92, SKX is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
The Debt to FCF ratio of SKX is 1.58, which is an excellent value as it means it would take SKX, only 1.58 years of fcf income to pay off all of its debts.
SKX's Debt to FCF ratio of 1.58 is fine compared to the rest of the industry. SKX outperforms 75.51% of its industry peers.
SKX has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
SKX has a Debt to Equity ratio of 0.06. This is in the better half of the industry: SKX outperforms 73.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 1.58 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.2
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.96 indicates that SKX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.96, SKX perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
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.
The Quick ratio of SKX (1.25) is comparable to the rest of the industry.
| 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.
SKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.78% yearly.
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
Based on estimates for the next years, SKX will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.26% on average per year.
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.
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
A Price/Earnings ratio of 18.17 indicates a rather expensive valuation of SKX.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SKX to the average of the S&P500 Index (28.29), we can say SKX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.85, the valuation of SKX can be described as correct.
Based on the Price/Forward Earnings ratio, SKX is valued a bit cheaper than 65.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, SKX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
SKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKX is cheaper than 75.51% of the companies in the same industry.
SKX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.94 | ||
| EV/EBITDA | 9.3 |
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.
SKX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SKX's earnings are expected to grow with 18.65% in the coming years.
PEG (NY)0.79
PEG (5Y)1.54
EPS Next 2Y19.31%
EPS Next 3Y18.65%
5. Dividend
5.1 Amount
SKX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SKECHERS USA INC-CL A
NYSE:SKX (1/21/2025, 8:26:53 PM)
Premarket: 73.78 -0.01 (-0.01%)73.79
+3.83 (+5.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners94.23%
Inst Owner Change0.03%
Ins Owners0.82%
Ins Owner Change-5.67%
Market Cap11.14B
Analysts80
Price Target83.55 (13.23%)
Short Float %3.25%
Short Ratio2.33
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)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)-0.17%
PT rev (3m)1.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 14.85 | ||
| P/S | 1.28 | ||
| P/FCF | 27.94 | ||
| P/OCF | 14.52 | ||
| P/B | 2.56 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 9.3 |
EPS(TTM)4.06
EY5.5%
EPS(NY)4.97
Fwd EY6.73%
FCF(TTM)2.64
FCFY3.58%
OCF(TTM)5.08
OCFY6.89%
SpS57.75
BVpS28.87
TBVpS28.21
PEG (NY)0.79
PEG (5Y)1.54
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 | 3.92 |
F-Score6
WACC9.15%
ROIC/WACC1.2
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 Year40.17%
EBIT Next 3Y21.11%
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%