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 48 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
SKX had positive earnings in the past year.
SKX had a positive operating cash flow in the past year.
SKX had positive earnings in each of the past 5 years.
In the past 5 years SKX always reported a positive cash flow from operatings.
1.2 Ratios
SKX's Return On Assets of 7.34% is fine compared to the rest of the industry. SKX outperforms 70.83% of its industry peers.
SKX's Return On Equity of 14.08% is fine compared to the rest of the industry. SKX outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.64%, SKX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SKX is in line with the industry average of 11.45%.
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's Profit Margin of 6.96% is fine compared to the rest of the industry. SKX outperforms 72.92% of its industry peers.
In the last couple of years the Profit Margin of SKX has remained more or less at the same level.
SKX's Operating Margin of 9.54% is fine compared to the rest of the industry. SKX outperforms 68.75% of its industry peers.
SKX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 53.02%, SKX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SKX is still creating some value.
Compared to 1 year ago, SKX has less shares outstanding
The number of shares outstanding for SKX has been reduced compared to 5 years ago.
The debt/assets ratio for SKX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.82 indicates that SKX is not in any danger for bankruptcy at the moment.
The Altman-Z score of SKX (3.82) is better than 68.75% 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 has a Debt to FCF ratio (5.19) which is comparable to the rest of the industry.
SKX has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
SKX's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. SKX outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.2
WACC8.85%
2.3 Liquidity
A Current Ratio of 2.13 indicates that SKX has no problem at all paying its short term obligations.
With a Current ratio value of 2.13, SKX perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
SKX has a Quick Ratio of 1.28. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
SKX's Quick ratio of 1.28 is in line compared to the rest of the industry. SKX outperforms 52.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.47% over the past year.
The Earnings Per Share has been growing by 12.92% on average over the past years. This is quite good.
Looking at the last year, SKX shows a quite strong growth in Revenue. The Revenue has grown by 10.66% in the last year.
The Revenue has been growing by 11.43% on average over the past years. This is quite good.
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
SKX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
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
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
The Price/Earnings ratio is 15.02, which indicates a correct valuation of SKX.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than 70.83% of the companies in the same industry.
When comparing the Price/Earnings ratio of SKX to the average of the S&P500 Index (26.35), we can say SKX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.55, the valuation of SKX can be described as correct.
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 (22.19), we can say SKX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SKX is valued a bit cheaper than 64.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SKX indicates a slightly more expensive valuation: SKX is more expensive than 60.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 83.07 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
The decent profitability rating of SKX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
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 |
62.5
+0.06 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners99.8%
Inst Owner Change3.5%
Ins Owners0.62%
Ins Owner Change-45.32%
Market Cap9.35B
Analysts68.57
Price Target63.48 (1.57%)
Short Float %2.69%
Short Ratio0.43
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)-2.11%
PT rev (3m)-22.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-20.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 16.55 | ||
| P/S | 1.02 | ||
| P/FCF | 83.07 | ||
| P/OCF | 15.1 | ||
| P/B | 2.07 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)4.16
EY6.66%
EPS(NY)3.78
Fwd EY6.04%
FCF(TTM)0.75
FCFY1.2%
OCF(TTM)4.14
OCFY6.62%
SpS61.02
BVpS30.16
TBVpS29.52
PEG (NY)N/A
PEG (5Y)1.16
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 | 3.82 |
F-Score5
WACC8.85%
ROIC/WACC1.2
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%