SKECHERS USA INC-CL A (SKX)
US8305661055 - Common Stock
Taking everything into account, SKX scores 6 out of 10 in our fundamental rating. SKX was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SKX is not valued too expensively and it also shows a decent growth rate. These ratings would make SKX suitable for quality investing!
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.
Each year in the past 5 years SKX has 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 7.27%, SKX is doing good in the industry, outperforming 76.00% of the companies in the same industry.
SKX has a better Return On Equity (13.73%) than 74.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.72%, SKX is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SKX is in line with the industry average of 11.54%.
The 3 year average ROIC (9.66%) for SKX is below the current ROIC(11.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.27% | ||
| ROE | 13.73% | ||
| ROIC | 11.72% |
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
SKX has a Profit Margin of 6.90%. This is in the better half of the industry: SKX outperforms 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.
With a decent Operating Margin value of 10.11%, SKX is doing good in the industry, outperforming 72.00% 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.
SKX has a better Gross Margin (53.36%) than 64.00% of its industry peers.
In the last couple of years the Gross Margin of SKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.11% | ||
| PM (TTM) | 6.9% | ||
| GM | 53.36% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SKX is still creating some value.
SKX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SKX has been reduced compared to 5 years ago.
SKX has a better debt/assets ratio than last year.
2.2 Solvency
SKX has an Altman-Z score of 3.90. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.90, SKX is doing good in the industry, outperforming 76.00% of the companies in the same industry.
The Debt to FCF ratio of SKX is 0.42, which is an excellent value as it means it would take SKX, only 0.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.42, SKX belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that SKX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.01, SKX is in the better half of the industry, outperforming 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 3.9 |
ROIC/WACC1.31
WACC8.93%
2.3 Liquidity
SKX has a Current Ratio of 2.06. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.
SKX has a Current ratio of 2.06. This is comparable to the rest of the industry: SKX outperforms 46.00% of its industry peers.
A Quick Ratio of 1.33 indicates that SKX should not have too much problems paying its short term obligations.
SKX has a Quick ratio (1.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.33 |
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.
Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 10.10% in the last year.
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 16.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.70% on average over the next years. This is quite good.
EPS Next Y22.94%
EPS Next 2Y19.68%
EPS Next 3Y19.32%
EPS Next 5Y16.14%
Revenue Next Year11.18%
Revenue Next 2Y10.78%
Revenue Next 3Y10.38%
Revenue Next 5Y8.7%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SKX is valuated correctly with a Price/Earnings ratio of 15.03.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.96, SKX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.20, the valuation of SKX can be described as correct.
72.00% of the companies in the same industry are more expensive than SKX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, SKX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
76.00% of the companies in the same industry are more expensive than SKX, based on the Enterprise Value to EBITDA ratio.
SKX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.45 | ||
| EV/EBITDA | 7.48 |
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.
SKX's earnings are expected to grow with 19.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)1.28
EPS Next 2Y19.68%
EPS Next 3Y19.32%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SKECHERS USA INC-CL A
NYSE:SKX (11/21/2024, 8:04:00 PM)
After market: 61.01 0 (0%)61.01
+1.24 (+2.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.03 | ||
| Fwd PE | 12.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.66
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.27% | ||
| ROE | 13.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.11% | ||
| PM (TTM) | 6.9% | ||
| GM | 53.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.06%
EPS 3Y69.24%
EPS 5Y
EPS Q2Q%
EPS Next Y22.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.1%
Revenue growth 3Y20.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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