SKECHERS USA INC-CL A (SKX)

US8305661055 - Common Stock

60.9  +0.4 (+0.66%)

After market: 60.9 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to SKX. SKX was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SKX is not overvalued while it is showing excellent growth. This is an interesting combination. This makes SKX very considerable for growth and quality investing!



7

1. Profitability

1.1 Basic Checks

In the past year SKX was profitable.
In the past year SKX had a positive cash flow from operations.
SKX had positive earnings in each of the past 5 years.
SKX had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

SKX has a Return On Assets of 7.38%. This is in the better half of the industry: SKX outperforms 70.00% of its industry peers.
With a decent Return On Equity value of 13.51%, SKX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
SKX has a Return On Invested Capital of 10.47%. This is in the better half 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 10.03%.
The 3 year average ROIC (9.66%) for SKX is below the current ROIC(10.47%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.38%
ROE 13.51%
ROIC 10.47%
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

SKX has a Profit Margin of 6.75%. This is in the better half of the industry: SKX outperforms 72.00% of its industry peers.
SKX's Profit Margin has been stable in the last couple of years.
SKX has a Operating Margin of 9.36%. This is in the better half of the industry: SKX outperforms 68.00% of its industry peers.
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 (50.78%) which is in line with its industry peers.
SKX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.36%
PM (TTM) 6.75%
GM 50.78%
OM growth 3Y43.73%
OM growth 5Y0.79%
PM growth 3Y47.07%
PM growth 5Y1.02%
GM growth 3Y2.9%
GM growth 5Y1.62%

7

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.
SKX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SKX has been increased compared to 5 years ago.
The debt/assets ratio for SKX has been reduced compared to a year ago.

2.2 Solvency

SKX has an Altman-Z score of 4.23. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SKX (4.23) is better than 74.00% of its industry peers.
SKX has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
SKX's Debt to FCF ratio of 0.41 is amongst the best of the industry. SKX outperforms 82.00% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that SKX is not too dependend on debt financing.
SKX has a Debt to Equity ratio of 0.07. This is in the better half of the industry: SKX outperforms 70.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.41
Altman-Z 4.23
ROIC/WACC1.14
WACC9.21%

2.3 Liquidity

A Current Ratio of 2.52 indicates that SKX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.52, SKX is in line with its industry, outperforming 56.00% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that SKX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.60, SKX is doing good in the industry, outperforming 64.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.52
Quick Ratio 1.6

7

3. Growth

3.1 Past

SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.35%, which is quite impressive.
SKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.78% yearly.
SKX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.65%.
SKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.50% yearly.
EPS 1Y (TTM)46.35%
EPS 3Y69.24%
EPS 5Y11.78%
EPS growth Q2Q69.09%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y20.28%
Revenue growth 5Y11.5%
Revenue growth Q2Q7.8%

3.2 Future

Based on estimates for the next years, SKX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.50% on average per year.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y21.14%
EPS Next 2Y19.65%
EPS Next 3Y16.05%
EPS Next 5Y14.5%
Revenue Next Year10.81%
Revenue Next 2Y10.82%
Revenue Next 3Y9.31%
Revenue Next 5Y8.14%

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.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.86, which indicates a rather expensive current valuation of SKX.
Compared to the rest of the industry, the Price/Earnings ratio of SKX indicates a somewhat cheap valuation: SKX is cheaper than 62.00% of the companies listed in the same industry.
SKX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.81, which is the current average of the S&P500 Index.
SKX is valuated correctly with a Price/Forward Earnings ratio of 14.40.
SKX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. SKX is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.86
Fwd PE 14.4

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.
SKX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SKX is cheaper than 68.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.83
EV/EBITDA 9.18

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SKX has a very decent profitability rating, which may justify a higher PE ratio.
SKX's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.52
EPS Next 2Y19.65%
EPS Next 3Y16.05%

0

5. Dividend

5.1 Amount

No dividends for SKX!.
Industry RankSector Rank
Dividend Yield N/A

SKECHERS USA INC-CL A

NYSE:SKX (2/27/2024, 3:15:00 PM)

After market: 60.9 0 (0%)

60.9

+0.4 (+0.66%)

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 Cap9.38B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.86
Fwd PE 14.4
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.84
PEG (5Y)1.52
Profitability
Industry RankSector Rank
ROA 7.38%
ROE 13.51%
ROCE
ROIC
ROICexc
ROICexgc
OM 9.36%
PM (TTM) 6.75%
GM 50.78%
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 Turnover1.09
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.52
Quick Ratio 1.6
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)46.35%
EPS 3Y69.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.65%
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
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y