SKECHERS USA INC-CL A (SKX)
US8305661055 - Common Stock
Taking everything into account, SKX scores 7 out of 10 in our fundamental rating. SKX was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. SKX gets an excellent profitability rating and is at the same time showing great financial health properties. SKX is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, SKX could be worth investigating further for growth and quality investing!.
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.
Each year in the past 5 years SKX has been profitable.
In the past 5 years SKX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.27%, SKX is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.73%, SKX is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.72%, SKX is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SKX is below the industry average of 11.92%.
The last Return On Invested Capital (11.72%) for SKX is above the 3 year average (9.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.27% | ||
| ROE | 13.73% | ||
| ROIC | 11.72% |
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 better Profit Margin (6.90%) than 74.00% of its industry peers.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
With a decent Operating Margin value of 10.11%, SKX is doing good in the industry, outperforming 74.00% 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 53.36%, SKX is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
SKX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.11% | ||
| PM (TTM) | 6.9% | ||
| GM | 53.36% |
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
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.
Compared to 5 years ago, SKX has less shares outstanding
Compared to 1 year ago, SKX has an improved debt to assets ratio.
2.2 Solvency
SKX has an Altman-Z score of 4.07. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
SKX has a Altman-Z score of 4.07. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
SKX has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
SKX's Debt to FCF ratio of 0.42 is amongst the best of the industry. SKX outperforms 82.00% of its industry peers.
SKX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SKX (0.01) is better than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 4.07 |
ROIC/WACC1.37
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.06 indicates that SKX has no problem at all paying its short term obligations.
SKX has a Current ratio (2.06) which is comparable to the rest of the industry.
SKX has a Quick Ratio of 1.33. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
SKX has a Quick ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.10%, which is quite impressive.
The Earnings Per Share has been growing by 11.78% on average over the past years. This is quite good.
The Revenue has grown by 8.02% in the past year. This is quite good.
The Revenue has been growing by 11.50% on average over the past years. This is quite good.
EPS 1Y (TTM)23.1%
EPS 3Y69.24%
EPS 5Y11.78%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y20.28%
Revenue growth 5Y11.5%
Sales Q2Q%7.21%
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 16.14% yearly.
Based on estimates for the next years, SKX will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.
EPS Next Y21%
EPS Next 2Y20.43%
EPS Next 3Y21.36%
EPS Next 5Y16.14%
Revenue Next Year10.66%
Revenue Next 2Y10.53%
Revenue Next 3Y9.97%
Revenue Next 5Y8.7%
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 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 rather expensively with a Price/Earnings ratio of 17.66.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SKX to the average of the S&P500 Index (31.24), we can say SKX is valued slightly cheaper.
SKX is valuated correctly with a Price/Forward Earnings ratio of 13.02.
SKX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SKX is cheaper than 68.00% of the companies in the same industry.
SKX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 13.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKX is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as SKX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 8.46 |
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.
A more expensive valuation may be justified as SKX's earnings are expected to grow with 21.36% in the coming years.
PEG (NY)0.84
PEG (5Y)1.5
EPS Next 2Y20.43%
EPS Next 3Y21.36%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SKECHERS USA INC-CL A
NYSE:SKX (10/10/2024, 10:56:06 AM)
65.885
-0.05 (-0.08%)
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 Cap10.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 13.02 | ||
| 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)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.27% | ||
| ROE | 13.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.11% | ||
| PM (TTM) | 6.9% | ||
| GM | 53.36% | ||
| 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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.33 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)23.1%
EPS 3Y69.24%
EPS 5Y
EPS Q2Q%
EPS Next Y21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.02%
Revenue growth 3Y20.28%
Revenue growth 5Y
Sales 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