STEVEN MADDEN LTD (NASDAQ:SHOO) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Our stock screener has spotted STEVEN MADDEN LTD (NASDAQ:SHOO) as an undervalued stock with solid fundamentals. NASDAQ:SHOO shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

How do we evaluate the Valuation for NASDAQ:SHOO?

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:SHOO scores a 7 out of 10:

• SHOO is valuated reasonably with a Price/Earnings ratio of 10.45.
• 81.63% of the companies in the same industry are more expensive than SHOO, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of SHOO to the average of the S&P500 Index (28.93), we can say SHOO is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.39, which indicates a very decent valuation of SHOO.
• 81.63% of the companies in the same industry are more expensive than SHOO, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 21.69. SHOO is valued rather cheaply when compared to this.
• SHOO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHOO is cheaper than 73.47% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHOO indicates a somewhat cheap valuation: SHOO is cheaper than 65.31% of the companies listed in the same industry.
• The decent profitability rating of SHOO may justify a higher PE ratio.
• SHOO's earnings are expected to grow with 19.91% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NASDAQ:SHOO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:SHOO scores a 7 out of 10:

• SHOO has a better Return On Assets (12.00%) than 87.76% of its industry peers.
• The Return On Equity of SHOO (19.98%) is better than 79.59% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 18.78%, SHOO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
• SHOO had an Average Return On Invested Capital over the past 3 years of 19.73%. This is significantly above the industry average of 11.80%.
• With a decent Profit Margin value of 7.42%, SHOO is doing good in the industry, outperforming 75.51% of the companies in the same industry.
• SHOO has a Operating Margin of 10.58%. This is in the better half of the industry: SHOO outperforms 79.59% of its industry peers.

A Closer Look at Health for NASDAQ:SHOO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:SHOO has achieved a 7 out of 10:

• SHOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 2.16 indicates that SHOO has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 1.54, SHOO is in the better half of the industry, outperforming 73.47% of the companies in the same industry.

Understanding NASDAQ:SHOO's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:SHOO has received a 6 out of 10:

• The Earnings Per Share has grown by an nice 8.94% over the past year.
• SHOO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.21%.
• The Earnings Per Share is expected to grow by 18.84% on average over the next years. This is quite good.
• SHOO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.10% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of SHOO

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.