Skechers USA (SKX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SKX - US8305661055 - Common Stock
63.13 USD
-0.07 (-0.11%)
63.1701 USD
+0.04 (+0.06%)
SKX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX has an excellent profitability rating, 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.
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
Looking at the Return On Assets, with a value of 7.17%, SKX belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
The Return On Equity of SKX (13.94%) is better than 67.35% of its industry peers.
SKX has a Return On Invested Capital of 9.63%. This is in the better half of the industry: SKX outperforms 65.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SKX is in line with the industry average of 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.94% | ||
| ROIC | 9.63% |
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
The Profit Margin of SKX (7.07%) is better than 83.67% of its industry peers.
SKX's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 8.89%, SKX is doing good in the industry, outperforming 73.47% 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 Gross Margin (52.67%) which is comparable to the rest of the industry.
SKX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 7.07% | ||
| GM | 52.67% |
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
SKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SKX has less shares outstanding
SKX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SKX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.63 indicates that SKX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, SKX is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
SKX has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as SKX would need 9.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.25, SKX is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that SKX is not too dependend on debt financing.
SKX's Debt to Equity ratio of 0.06 is amongst the best of the industry. SKX outperforms 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.93
WACC10.4%
2.3 Liquidity
A Current Ratio of 2.09 indicates that SKX has no problem at all paying its short term obligations.
With a Current ratio value of 2.09, SKX perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that SKX should not have too much problems paying its short term obligations.
SKX has a Quick ratio of 1.29. This is in the better half of the industry: SKX outperforms 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.43% over the past year.
Measured over the past years, SKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.92% on average per year.
The Revenue has grown by 12.11% in the past year. This is quite good.
SKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.43% yearly.
EPS 1Y (TTM)17.43%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%24.18%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%13.09%
3.2 Future
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.61% on average over the next years.
EPS Next Y-9.59%
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
EPS Next 5Y9.23%
Revenue Next Year7.85%
Revenue Next 2Y7.87%
Revenue Next 3Y6.66%
Revenue Next 5Y7.61%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 14.41, SKX is valued correctly.
73.47% of the companies in the same industry are more expensive than SKX, based on the Price/Earnings ratio.
SKX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
SKX is valuated correctly with a Price/Forward Earnings ratio of 16.73.
The rest of the industry has a similar Price/Forward Earnings ratio as SKX.
SKX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
SKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKX is cheaper than 65.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKX is valued a bit more expensive than 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 150.22 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
The decent profitability rating of SKX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.13
-0.07 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.53%
Inst Owner Change-97.38%
Ins Owners0.67%
Ins Owner Change-170.13%
Market Cap9.49B
Revenue(TTM)9.41B
Net Income(TTM)665.48M
Analysts67.37
Price Target63.34 (0.33%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)23.57%
Min EPS beat(2)13.02%
Max EPS beat(2)34.11%
EPS beat(4)3
Avg EPS beat(4)10.4%
Min EPS beat(4)-13.85%
Max EPS beat(4)34.11%
EPS beat(8)6
Avg EPS beat(8)9.07%
EPS beat(12)9
Avg EPS beat(12)18.82%
EPS beat(16)12
Avg EPS beat(16)15.96%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)2.82%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)7
Avg Revenue beat(12)0.85%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)-0.12%
PT rev (3m)-0.22%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)0%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.01 | ||
| P/FCF | 150.22 | ||
| P/OCF | 14.8 | ||
| P/B | 1.99 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)4.38
EY6.94%
EPS(NY)3.77
Fwd EY5.98%
FCF(TTM)0.42
FCFY0.67%
OCF(TTM)4.27
OCFY6.76%
SpS62.63
BVpS31.78
TBVpS31.09
PEG (NY)N/A
PEG (5Y)1.12
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.94% | ||
| ROCE | 12.02% | ||
| ROIC | 9.63% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 12.38% | ||
| OM | 8.89% | ||
| PM (TTM) | 7.07% | ||
| GM | 52.67% | ||
| FCFM | 0.67% |
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%
ROICexgc growth 3Y7.76%
ROICexgc 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-Score4
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 252.38% | ||
| Cap/Sales | 6.14% | ||
| Interest Coverage | 30.18 | ||
| Cash Conversion | 60.14% | ||
| Profit Quality | 9.49% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.63 |
F-Score4
WACC10.4%
ROIC/WACC0.93
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)17.43%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%24.18%
EPS Next Y-9.59%
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
EPS Next 5Y9.23%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%13.09%
Revenue Next Year7.85%
Revenue Next 2Y7.87%
Revenue Next 3Y6.66%
Revenue Next 5Y7.61%
EBIT growth 1Y-1.38%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year8.09%
EBIT Next 3Y8.95%
EBIT Next 5Y15.37%
FCF growth 1Y-80.01%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y-2.7%
OCF growth 3Y47.97%
OCF growth 5Y10.01%
Skechers USA / SKX FAQ
What is the ChartMill fundamental rating of Skechers USA (SKX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SKX.
What is the valuation status for SKX stock?
ChartMill assigns a valuation rating of 4 / 10 to Skechers USA (SKX). This can be considered as Fairly Valued.
Can you provide the profitability details for Skechers USA?
Skechers USA (SKX) has a profitability rating of 7 / 10.
What are the PE and PB ratios of Skechers USA (SKX) stock?
The Price/Earnings (PE) ratio for Skechers USA (SKX) is 14.41 and the Price/Book (PB) ratio is 1.99.