SKECHERS USA INC-CL A (SKX) Stock Fundamental Analysis
NYSE:SKX - New York Stock Exchange, Inc. - US8305661055 - Common Stock - Currency: USD
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 on profitability, but there are some minor concerns on its financial health. SKX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SKX was profitable.
SKX had a positive operating cash flow in the past year.
SKX had positive earnings in each of the past 5 years.
Each year in the past 5 years SKX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 7.56%, SKX is doing good in the industry, outperforming 72.00% of the companies in the same industry.
The Return On Equity of SKX (14.95%) is better than 72.00% of its industry peers.
SKX has a Return On Invested Capital of 11.92%. This is in the better half of the industry: SKX outperforms 70.00% of its industry peers.
SKX had an Average Return On Invested Capital over the past 3 years of 10.44%. This is below the industry average of 13.61%.
The last Return On Invested Capital (11.92%) for SKX is above the 3 year average (10.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 14.95% | ||
| ROIC | 11.92% |
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's Profit Margin of 7.13% is fine compared to the rest of the industry. SKX outperforms 74.00% of its industry peers.
SKX's Profit Margin has been stable in the last couple of years.
SKX has a Operating Margin of 10.08%. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
SKX's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 53.15%, SKX is doing good in the industry, outperforming 64.00% of the companies in the same industry.
SKX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.08% | ||
| PM (TTM) | 7.13% | ||
| GM | 53.15% |
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.
Compared to 1 year ago, SKX has less shares outstanding
The number of shares outstanding for SKX has been reduced compared to 5 years ago.
The debt/assets ratio for SKX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.48 indicates that SKX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.48, SKX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of SKX is 1.68, which is an excellent value as it means it would take SKX, only 1.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SKX (1.68) is better than 78.00% of its industry peers.
SKX has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
SKX has a Debt to Equity ratio of 0.02. This is in the better half of the industry: SKX outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.2
WACC9.93%
2.3 Liquidity
SKX has a Current Ratio of 1.97. 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 (1.97) which is in line with its industry peers.
A Quick Ratio of 1.12 indicates that SKX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, SKX is in line with its industry, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.91%, 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 12.92% yearly.
SKX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.11%.
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)18.91%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%16.07%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%12.82%
3.2 Future
The Earnings Per Share is expected to grow by 13.21% on average over the next years. This is quite good.
Based on estimates for the next years, SKX will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
EPS Next Y8.82%
EPS Next 2Y12.85%
EPS Next 3Y14.61%
EPS Next 5Y13.21%
Revenue Next Year8.56%
Revenue Next 2Y8.55%
Revenue Next 3Y8.62%
Revenue Next 5Y8.66%
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 stable.
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 11.48 indicates a reasonable valuation of SKX.
SKX's Price/Earnings ratio is a bit cheaper when compared to the industry. SKX is cheaper than 64.00% of the companies in the same industry.
SKX is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
SKX is valuated reasonably with a Price/Forward Earnings ratio of 10.55.
Based on the Price/Forward Earnings ratio, SKX is valued a bit cheaper than 66.00% of the companies in the same industry.
SKX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.55 |
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 80.00% 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 62.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.32 | ||
| EV/EBITDA | 5.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SKX may justify a higher PE ratio.
A more expensive valuation may be justified as SKX's earnings are expected to grow with 14.61% in the coming years.
PEG (NY)1.3
PEG (5Y)0.89
EPS Next 2Y12.85%
EPS Next 3Y14.61%
5. Dividend
5.1 Amount
SKX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
47.63
+0.92 (+1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners95.38%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change-50.24%
Market Cap7.12B
Analysts80
Price Target81.45 (71.01%)
Short Float %5.55%
Short Ratio2.85
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)-2.76%
Min EPS beat(2)-13.85%
Max EPS beat(2)8.32%
EPS beat(4)2
Avg EPS beat(4)2.21%
Min EPS beat(4)-13.85%
Max EPS beat(4)19.55%
EPS beat(8)6
Avg EPS beat(8)21.39%
EPS beat(12)9
Avg EPS beat(12)15.94%
EPS beat(16)12
Avg EPS beat(16)20.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)1.15%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)8
Avg Revenue beat(12)1.63%
Revenue beat(16)11
Avg Revenue beat(16)2.26%
PT rev (1m)-0.5%
PT rev (3m)-2.52%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-25.72%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-9.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.79 | ||
| P/FCF | 26.32 | ||
| P/OCF | 10.36 | ||
| P/B | 1.66 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)4.15
EY8.71%
EPS(NY)4.52
Fwd EY9.48%
FCF(TTM)1.81
FCFY3.8%
OCF(TTM)4.6
OCFY9.65%
SpS59.99
BVpS28.61
TBVpS27.98
PEG (NY)1.3
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 14.95% | ||
| ROCE | 14.59% | ||
| ROIC | 11.92% | ||
| ROICexc | 14.86% | ||
| ROICexgc | 15.15% | ||
| OM | 10.08% | ||
| PM (TTM) | 7.13% | ||
| GM | 53.15% | ||
| FCFM | 3.02% |
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-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 197.07% | ||
| Cap/Sales | 4.65% | ||
| Interest Coverage | 42.47 | ||
| Cash Conversion | 61.61% | ||
| Profit Quality | 42.32% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.48 |
F-Score8
WACC9.93%
ROIC/WACC1.2
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)18.91%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%16.07%
EPS Next Y8.82%
EPS Next 2Y12.85%
EPS Next 3Y14.61%
EPS Next 5Y13.21%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%12.82%
Revenue Next Year8.56%
Revenue Next 2Y8.55%
Revenue Next 3Y8.62%
Revenue Next 5Y8.66%
EBIT growth 1Y15.22%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year29.44%
EBIT Next 3Y19.99%
EBIT Next 5Y15.37%
FCF growth 1Y-70.18%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y-44.17%
OCF growth 3Y47.97%
OCF growth 5Y10.01%