SKECHERS USA INC-CL A (SKX)
US8305661055 - Common Stock
Taking everything into account, SKX scores 6 out of 10 in our fundamental rating. SKX was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SKX has a decent growth rate and is not valued too expensively. These ratings could make SKX a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
SKX had positive earnings in the past year.
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 Return On Assets of 7.23%. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
Looking at the Return On Equity, with a value of 13.58%, SKX is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
SKX's Return On Invested Capital of 10.87% is fine compared to the rest of the industry. SKX outperforms 78.00% of its industry peers.
SKX had an Average Return On Invested Capital over the past 3 years of 9.66%. This is in line with the industry average of 10.04%.
The last Return On Invested Capital (10.87%) for SKX is above the 3 year average (9.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 13.58% | ||
| ROIC | 10.87% |
ROA(3y)8.02%
ROA(5y)6.57%
ROE(3y)15.59%
ROE(5y)13.15%
ROIC(3y)9.66%
ROIC(5y)8.65%
1.3 Margins
Looking at the Profit Margin, with a value of 6.82%, SKX is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
Looking at the Operating Margin, with a value of 9.81%, SKX is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
SKX's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 51.90%, SKX is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 6.82% | ||
| GM | 51.9% |
OM growth 3Y43.73%
OM growth 5Y0.79%
PM growth 3Y47.07%
PM growth 5Y1.02%
GM growth 3Y2.9%
GM growth 5Y1.62%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SKX is still creating some value.
SKX has less shares outstanding than it did 1 year ago.
SKX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SKX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.04 indicates that SKX is not in any danger for bankruptcy at the moment.
SKX has a Altman-Z score of 4.04. This is in the better half of the industry: SKX outperforms 76.00% of its industry peers.
SKX has a debt to FCF ratio of 0.33. This is a very positive value and a sign of high solvency as it would only need 0.33 years to pay back of all of its debts.
SKX's Debt to FCF ratio of 0.33 is fine compared to the rest of the industry. SKX outperforms 80.00% 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.
SKX has a better Debt to Equity ratio (0.06) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.33 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.13
WACC9.6%
2.3 Liquidity
SKX has a Current Ratio of 2.38. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.
SKX's Current ratio of 2.38 is in line compared to the rest of the industry. SKX outperforms 58.00% of its industry peers.
A Quick Ratio of 1.46 indicates that SKX should not have too much problems paying its short term obligations.
SKX's Quick ratio of 1.46 is in line compared to the rest of the industry. SKX outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.64%, which is quite impressive.
Measured over the past years, SKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.78% on average per year.
The Revenue has been growing slightly by 7.47% in the past year.
The Revenue has been growing by 11.50% on average over the past years. This is quite good.
EPS 1Y (TTM)46.64%
EPS 3Y69.24%
EPS 5Y11.78%
EPS growth Q2Q16.67%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y20.28%
Revenue growth 5Y11.5%
Revenue growth Q2Q4.37%
3.2 Future
SKX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.50% yearly.
Based on estimates for the next years, SKX will show a quite strong growth in Revenue. The Revenue will grow by 8.13% on average per year.
EPS Next Y13.03%
EPS Next 2Y15.59%
EPS Next 3Y19.12%
EPS Next 5Y14.5%
Revenue Next Year8.84%
Revenue Next 2Y9.51%
Revenue Next 3Y9.69%
Revenue Next 5Y8.13%
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 accelerating.
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
SKX is valuated correctly with a Price/Earnings ratio of 16.85.
SKX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SKX to the average of the S&P500 Index (25.20), we can say SKX is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.91 indicates a correct valuation of SKX.
SKX's Price/Forward Earnings is on the same level as the industry average.
SKX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
SKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKX is cheaper than 68.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SKX is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.12 | ||
| EV/EBITDA | 8.47 |
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 19.12% in the coming years.
PEG (NY)1.29
PEG (5Y)1.43
EPS Next 2Y15.59%
EPS Next 3Y19.12%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SKECHERS USA INC-CL A
NYSE:SKX (4/25/2024, 7:17:29 PM)
After market: 64.9 +6.08 (+10.34%)58.82
-0.33 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 14.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)1.29
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.23% | ||
| ROE | 13.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.81% | ||
| PM (TTM) | 6.82% | ||
| GM | 51.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)46.64%
EPS 3Y69.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.47%
Revenue growth 3Y20.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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