STEVEN MADDEN LTD (SHOO) Stock Fundamental Analysis
NASDAQ:SHOO - Nasdaq - US5562691080 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to SHOO. SHOO was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. SHOO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SHOO is not valued too expensively and it also shows a decent growth rate. Finally SHOO also has an excellent dividend rating. These ratings could make SHOO a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
SHOO had positive earnings in the past year.
In the past year SHOO had a positive cash flow from operations.
SHOO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SHOO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.00%, SHOO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Return On Equity of SHOO (19.98%) is better than 77.08% of its industry peers.
With an excellent Return On Invested Capital value of 19.06%, SHOO belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHOO is significantly above the industry average of 13.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 19.98% | ||
| ROIC | 19.06% |
ROA(3y)13.97%
ROA(5y)10.87%
ROE(3y)22.22%
ROE(5y)17.55%
ROIC(3y)20.07%
ROIC(5y)17.19%
1.3 Margins
The Profit Margin of SHOO (7.42%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of SHOO has remained more or less at the same level.
With a decent Operating Margin value of 10.74%, SHOO is doing good in the industry, outperforming 72.92% of the companies in the same industry.
SHOO's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 41.04%, SHOO is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
SHOO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.74% | ||
| PM (TTM) | 7.42% | ||
| GM | 41.04% |
OM growth 3Y-6.39%
OM growth 5Y1.47%
PM growth 3Y-10.12%
PM growth 5Y-1.26%
GM growth 3Y-0.07%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
SHOO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SHOO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SHOO has been reduced compared to 5 years ago.
There is no outstanding debt for SHOO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
SHOO has an Altman-Z score of 6.36. This indicates that SHOO is financially healthy and has little risk of bankruptcy at the moment.
SHOO has a better Altman-Z score (6.36) than 89.58% of its industry peers.
There is no outstanding debt for SHOO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.36 |
ROIC/WACC1.85
WACC10.28%
2.3 Liquidity
SHOO has a Current Ratio of 2.16. This indicates that SHOO is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.16, SHOO perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
SHOO has a Quick Ratio of 1.54. This is a normal value and indicates that SHOO is financially healthy and should not expect problems in meeting its short term obligations.
SHOO has a Quick ratio of 1.54. This is in the better half of the industry: SHOO outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.77% over the past year.
The Earnings Per Share has been growing slightly by 6.57% on average over the past years.
SHOO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.21%.
Measured over the past years, SHOO shows a small growth in Revenue. The Revenue has been growing by 5.02% on average per year.
EPS 1Y (TTM)0.77%
EPS 3Y3.18%
EPS 5Y6.57%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)15.21%
Revenue growth 3Y6.95%
Revenue growth 5Y5.02%
Sales Q2Q%0.15%
3.2 Future
Based on estimates for the next years, SHOO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.76% on average per year.
SHOO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.55% yearly.
EPS Next Y-50.12%
EPS Next 2Y-15.65%
EPS Next 3Y-9.43%
EPS Next 5Y10.76%
Revenue Next Year13.96%
Revenue Next 2Y11.04%
Revenue Next 3Y8.47%
Revenue Next 5Y10.56%
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.07, which indicates a very decent valuation of SHOO.
Compared to the rest of the industry, the Price/Earnings ratio of SHOO indicates a somewhat cheap valuation: SHOO is cheaper than 79.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. SHOO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 13.89, the valuation of SHOO can be described as correct.
SHOO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SHOO is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. SHOO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHOO is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHOO indicates a somewhat cheap valuation: SHOO is cheaper than 70.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.17 | ||
| EV/EBITDA | 6.24 |
4.3 Compensation for Growth
SHOO has a very decent profitability rating, which may justify a higher PE ratio.
SHOO's earnings are expected to decrease with -9.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y-15.65%
EPS Next 3Y-9.43%
5. Dividend
5.1 Amount
SHOO has a Yearly Dividend Yield of 3.17%.
In the last 3 months the price of SHOO has falen by -30.71%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.56, SHOO pays a better dividend. On top of this SHOO pays more dividend than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SHOO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
5.2 History
The dividend of SHOO is nicely growing with an annual growth rate of 7.91%!
SHOO has been paying a dividend for over 5 years, so it has already some track record.
SHOO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.91%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
36.03% of the earnings are spent on dividend by SHOO. This is a low number and sustainable payout ratio.
SHOO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.03%
EPS Next 2Y-15.65%
EPS Next 3Y-9.43%
26.49
+0.72 (+2.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners103.38%
Inst Owner Change5.13%
Ins Owners2.08%
Ins Owner Change1.44%
Market Cap1.92B
Analysts72.5
Price Target32.3 (21.93%)
Short Float %5.75%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend0.84
Dividend Growth(5Y)7.91%
DP36.03%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.09%
Min EPS beat(2)0.19%
Max EPS beat(2)1.99%
EPS beat(4)4
Avg EPS beat(4)5.35%
Min EPS beat(4)0.19%
Max EPS beat(4)13.53%
EPS beat(8)8
Avg EPS beat(8)3.54%
EPS beat(12)10
Avg EPS beat(12)8.33%
EPS beat(16)14
Avg EPS beat(16)16.04%
Revenue beat(2)2
Avg Revenue beat(2)2.42%
Min Revenue beat(2)0.75%
Max Revenue beat(2)4.08%
Revenue beat(4)3
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-0.76%
Max Revenue beat(4)4.08%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)8
Avg Revenue beat(12)2.45%
Revenue beat(16)11
Avg Revenue beat(16)2.88%
PT rev (1m)-15.43%
PT rev (3m)-31.82%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-29.57%
EPS NY rev (1m)-41.4%
EPS NY rev (3m)-50.37%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)-4.5%
Revenue NY rev (3m)8.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 13.89 | ||
| P/S | 0.84 | ||
| P/FCF | 11.17 | ||
| P/OCF | 9.71 | ||
| P/B | 2.27 | ||
| P/tB | 3.49 | ||
| EV/EBITDA | 6.24 |
EPS(TTM)2.63
EY9.93%
EPS(NY)1.91
Fwd EY7.2%
FCF(TTM)2.37
FCFY8.96%
OCF(TTM)2.73
OCFY10.3%
SpS31.45
BVpS11.68
TBVpS7.59
PEG (NY)N/A
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12% | ||
| ROE | 19.98% | ||
| ROCE | 24.57% | ||
| ROIC | 19.06% | ||
| ROICexc | 23.94% | ||
| ROICexgc | 38.24% | ||
| OM | 10.74% | ||
| PM (TTM) | 7.42% | ||
| GM | 41.04% | ||
| FCFM | 7.54% |
ROA(3y)13.97%
ROA(5y)10.87%
ROE(3y)22.22%
ROE(5y)17.55%
ROIC(3y)20.07%
ROIC(5y)17.19%
ROICexc(3y)26.91%
ROICexc(5y)23.43%
ROICexgc(3y)44.98%
ROICexgc(5y)39.85%
ROCE(3y)25.87%
ROCE(5y)22.16%
ROICexcg growth 3Y-8.75%
ROICexcg growth 5Y-0.19%
ROICexc growth 3Y-6.05%
ROICexc growth 5Y3.67%
OM growth 3Y-6.39%
OM growth 5Y1.47%
PM growth 3Y-10.12%
PM growth 5Y-1.26%
GM growth 3Y-0.07%
GM growth 5Y1.35%
F-Score6
Asset Turnover1.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 129.49% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.7% | ||
| Profit Quality | 101.65% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 6.36 |
F-Score6
WACC10.28%
ROIC/WACC1.85
Cap/Depr(3y)114.81%
Cap/Depr(5y)85.15%
Cap/Sales(3y)0.99%
Cap/Sales(5y)0.78%
Profit Quality(3y)113.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.77%
EPS 3Y3.18%
EPS 5Y6.57%
EPS Q2Q%-7.69%
EPS Next Y-50.12%
EPS Next 2Y-15.65%
EPS Next 3Y-9.43%
EPS Next 5Y10.76%
Revenue 1Y (TTM)15.21%
Revenue growth 3Y6.95%
Revenue growth 5Y5.02%
Sales Q2Q%0.15%
Revenue Next Year13.96%
Revenue Next 2Y11.04%
Revenue Next 3Y8.47%
Revenue Next 5Y10.56%
EBIT growth 1Y11.62%
EBIT growth 3Y0.11%
EBIT growth 5Y6.56%
EBIT Next Year1.34%
EBIT Next 3Y11.47%
EBIT Next 5Y13.53%
FCF growth 1Y-17.92%
FCF growth 3Y4.04%
FCF growth 5Y-4.39%
OCF growth 1Y-13.58%
OCF growth 3Y7.49%
OCF growth 5Y-3.26%