SKECHERS USA INC-CL A (SKX) Stock Fundamental Analysis
NYSE:SKX - New York Stock Exchange, Inc. - US8305661055 - Common Stock - Currency: USD
Taking everything into account, SKX scores 5 out of 10 in our fundamental rating. SKX was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SKX was profitable.
SKX had a positive operating cash flow in the past year.
Each year in the past 5 years SKX has been profitable.
Each year in the past 5 years SKX had a positive operating cash flow.
1.2 Ratios
SKX has a better Return On Assets (7.34%) than 72.00% of its industry peers.
SKX's Return On Equity of 14.08% is fine compared to the rest of the industry. SKX outperforms 68.00% of its industry peers.
With a decent Return On Invested Capital value of 10.64%, SKX is doing good in the industry, outperforming 68.00% of the companies in the same industry.
SKX had an Average Return On Invested Capital over the past 3 years of 10.44%. This is in line with the industry average of 11.17%.
The last Return On Invested Capital (10.64%) for SKX is above the 3 year average (10.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 14.08% | ||
| ROIC | 10.64% |
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 has a Profit Margin of 6.96%. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
SKX's Profit Margin has been stable in the last couple of years.
The Operating Margin of SKX (9.54%) is better than 70.00% of its industry peers.
SKX's Operating Margin has been stable in the last couple of years.
SKX's Gross Margin of 53.02% is in line compared to the rest of the industry. SKX outperforms 58.00% of its industry peers.
SKX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.54% | ||
| PM (TTM) | 6.96% | ||
| GM | 53.02% |
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.
The number of shares outstanding for SKX has been reduced compared to 1 year ago.
SKX has less shares outstanding than it did 5 years ago.
SKX has a worse debt/assets ratio than last year.
2.2 Solvency
SKX has an Altman-Z score of 3.83. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
SKX has a better Altman-Z score (3.83) than 74.00% of its industry peers.
SKX has a debt to FCF ratio of 5.19. This is a neutral value as SKX would need 5.19 years to pay back of all of its debts.
SKX's Debt to FCF ratio of 5.19 is in line compared to the rest of the industry. SKX outperforms 56.00% of its industry peers.
SKX has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SKX (0.06) is better than 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 3.83 |
ROIC/WACC1.18
WACC9.02%
2.3 Liquidity
A Current Ratio of 2.13 indicates that SKX has no problem at all paying its short term obligations.
SKX has a Current ratio of 2.13. This is comparable to the rest of the industry: SKX outperforms 56.00% of its industry peers.
A Quick Ratio of 1.28 indicates that SKX should not have too much problems paying its short term obligations.
SKX has a Quick ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.47%, 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 10.66%.
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)9.47%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%0.75%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%7.11%
3.2 Future
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
Based on estimates for the next years, SKX will show a small growth in Revenue. The Revenue will grow by 7.61% on average per year.
EPS Next Y-13.34%
EPS Next 2Y-4.62%
EPS Next 3Y1.03%
EPS Next 5Y9.23%
Revenue Next Year6.67%
Revenue Next 2Y6.8%
Revenue Next 3Y6.25%
Revenue Next 5Y7.61%
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 decreasing.
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
Based on the Price/Earnings ratio of 15.16, the valuation of SKX can be described as correct.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than 78.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. SKX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.71, which indicates a correct valuation of SKX.
The rest of the industry has a similar Price/Forward Earnings ratio as SKX.
When comparing the Price/Forward Earnings ratio of SKX to the average of the S&P500 Index (36.44), we can say SKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKX is valued a bit cheaper than 68.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.84 | ||
| EV/EBITDA | 7.93 |
4.3 Compensation for Growth
SKX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-4.62%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.08
+0.03 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners99.8%
Inst Owner Change-0.09%
Ins Owners0.62%
Ins Owner Change-37.64%
Market Cap9.44B
Analysts69
Price Target63.48 (0.63%)
Short Float %3.15%
Short Ratio0.51
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)-0.41%
Min EPS beat(2)-13.85%
Max EPS beat(2)13.02%
EPS beat(4)2
Avg EPS beat(4)0.58%
Min EPS beat(4)-13.85%
Max EPS beat(4)13.02%
EPS beat(8)6
Avg EPS beat(8)14.85%
EPS beat(12)9
Avg EPS beat(12)16.58%
EPS beat(16)12
Avg EPS beat(16)18.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)-1.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)0.76%
Revenue beat(8)3
Avg Revenue beat(8)-1.01%
Revenue beat(12)7
Avg Revenue beat(12)0.97%
Revenue beat(16)10
Avg Revenue beat(16)1.77%
PT rev (1m)0%
PT rev (3m)-22.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 16.71 | ||
| P/S | 1.03 | ||
| P/FCF | 83.84 | ||
| P/OCF | 15.24 | ||
| P/B | 2.09 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)4.16
EY6.59%
EPS(NY)3.78
Fwd EY5.99%
FCF(TTM)0.75
FCFY1.19%
OCF(TTM)4.14
OCFY6.56%
SpS61.02
BVpS30.16
TBVpS29.52
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 14.08% | ||
| ROCE | 13.29% | ||
| ROIC | 10.64% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 12.95% | ||
| OM | 9.54% | ||
| PM (TTM) | 6.96% | ||
| GM | 53.02% | ||
| FCFM | 1.23% |
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-Score5
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 231.17% | ||
| Cap/Sales | 5.55% | ||
| Interest Coverage | 37.63 | ||
| Cash Conversion | 56.83% | ||
| Profit Quality | 17.72% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.83 |
F-Score5
WACC9.02%
ROIC/WACC1.18
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)9.47%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%0.75%
EPS Next Y-13.34%
EPS Next 2Y-4.62%
EPS Next 3Y1.03%
EPS Next 5Y9.23%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%7.11%
Revenue Next Year6.67%
Revenue Next 2Y6.8%
Revenue Next 3Y6.25%
Revenue Next 5Y7.61%
EBIT growth 1Y1.23%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year7.96%
EBIT Next 3Y8.95%
EBIT Next 5Y15.37%
FCF growth 1Y-57.91%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y1.83%
OCF growth 3Y47.97%
OCF growth 5Y10.01%