SKECHERS USA INC-CL A (SKX) Stock Fundamental Analysis
NYSE:SKX - New York Stock Exchange, Inc. - US8305661055 - Common Stock - Currency: USD
Overall SKX gets a fundamental rating of 6 out of 10. We evaluated SKX against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making SKX a very profitable company, without any liquidiy or solvency issues. 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
In the past year SKX was profitable.
In the past year SKX had a positive cash flow from operations.
In the past 5 years SKX has always been profitable.
In the past 5 years SKX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SKX (7.56%) is better than 70.83% of its industry peers.
The Return On Equity of SKX (14.95%) is better than 70.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.92%, SKX is in the better half of the industry, outperforming 68.75% 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 below the industry average of 13.58%.
The last Return On Invested Capital (11.92%) for SKX is above the 3 year average (10.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 14.95% | ||
| ROIC | 11.92% |
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 better Profit Margin (7.13%) than 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.
Looking at the Operating Margin, with a value of 10.08%, SKX is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
SKX's Operating Margin has been stable in the last couple of years.
SKX's Gross Margin of 53.15% is fine compared to the rest of the industry. SKX outperforms 62.50% of its industry peers.
In the last couple of years the Gross Margin of SKX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.08% | ||
| PM (TTM) | 7.13% | ||
| GM | 53.15% |
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
SKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 3.78 indicates that SKX is not in any danger for bankruptcy at the moment.
The Altman-Z score of SKX (3.78) is better than 72.92% of its industry peers.
SKX has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of all of its debts.
SKX has a better Debt to FCF ratio (1.68) than 79.17% of its industry peers.
A Debt/Equity ratio of 0.02 indicates that SKX is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.02, SKX belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.22
WACC9.8%
2.3 Liquidity
SKX has a Current Ratio of 1.97. 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 Current ratio (1.97) which is in line with its industry peers.
A Quick Ratio of 1.12 indicates that SKX should not have too much problems paying its short term obligations.
SKX has a Quick ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.12 |
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.
Measured over the past years, SKX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.92% on average per year.
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
Based on estimates for the next years, SKX will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.21% on average per year.
Based on estimates for the next years, SKX will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
EPS Next Y6.38%
EPS Next 2Y10.85%
EPS Next 3Y12.89%
EPS Next 5Y13.21%
Revenue Next Year8.51%
Revenue Next 2Y8.34%
Revenue Next 3Y8.35%
Revenue Next 5Y8.66%
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 stable.
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
With a Price/Earnings ratio of 14.78, SKX is valued correctly.
SKX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 23.99, SKX is valued a bit cheaper.
SKX is valuated correctly with a Price/Forward Earnings ratio of 12.06.
Based on the Price/Forward Earnings ratio, SKX is valued a bit cheaper than 70.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, SKX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 12.06 |
4.2 Price Multiples
64.58% of the companies in the same industry are more expensive than SKX, based on the Enterprise Value to EBITDA ratio.
SKX's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SKX is more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.97 | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 12.89% in the coming years.
PEG (NY)2.31
PEG (5Y)1.14
EPS Next 2Y10.85%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.48
+0.12 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners95.38%
Inst Owner Change1.11%
Ins Owners0.62%
Ins Owner Change-45.32%
Market Cap9.19B
Analysts80
Price Target69.5 (13.04%)
Short Float %4.37%
Short Ratio1.74
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)-2.76%
Min EPS beat(2)-13.85%
Max EPS beat(2)8.32%
EPS beat(4)2
Avg EPS beat(4)2.21%
Min EPS beat(4)-13.85%
Max EPS beat(4)19.55%
EPS beat(8)6
Avg EPS beat(8)21.39%
EPS beat(12)9
Avg EPS beat(12)15.94%
EPS beat(16)12
Avg EPS beat(16)20.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.3%
Min Revenue beat(2)-1.36%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)1.15%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)8
Avg Revenue beat(12)1.63%
Revenue beat(16)11
Avg Revenue beat(16)2.26%
PT rev (1m)-15.09%
PT rev (3m)-17.16%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-24.69%
EPS NY rev (1m)-2.24%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.78 | ||
| Fwd PE | 12.06 | ||
| P/S | 1.02 | ||
| P/FCF | 33.97 | ||
| P/OCF | 13.37 | ||
| P/B | 2.15 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)4.16
EY6.77%
EPS(NY)5.1
Fwd EY8.29%
FCF(TTM)1.81
FCFY2.94%
OCF(TTM)4.6
OCFY7.48%
SpS59.99
BVpS28.61
TBVpS27.98
PEG (NY)2.31
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 14.95% | ||
| ROCE | 14.59% | ||
| ROIC | 11.92% | ||
| ROICexc | 14.86% | ||
| ROICexgc | 15.15% | ||
| OM | 10.08% | ||
| PM (TTM) | 7.13% | ||
| GM | 53.15% | ||
| FCFM | 3.02% |
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-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 1.68 | ||
| Debt/EBITDA | 0.09 | ||
| Cap/Depr | 197.07% | ||
| Cap/Sales | 4.65% | ||
| Interest Coverage | 42.47 | ||
| Cash Conversion | 61.61% | ||
| Profit Quality | 42.32% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.78 |
F-Score8
WACC9.8%
ROIC/WACC1.22
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 Y6.38%
EPS Next 2Y10.85%
EPS Next 3Y12.89%
EPS Next 5Y13.21%
Revenue 1Y (TTM)10.66%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%7.11%
Revenue Next Year8.51%
Revenue Next 2Y8.34%
Revenue Next 3Y8.35%
Revenue Next 5Y8.66%
EBIT growth 1Y15.22%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year29.44%
EBIT Next 3Y19.99%
EBIT Next 5Y15.37%
FCF growth 1Y-70.18%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y-44.17%
OCF growth 3Y47.97%
OCF growth 5Y10.01%