Skechers USA (SKX) Stock Fundamental Analysis
USA - NYSE:SKX - US8305661055 - Common Stock
63.13 USD
-0.07 (-0.11%)
63.1701 USD
+0.04 (+0.06%)
Overall SKX gets a fundamental rating of 5 out of 10. We evaluated SKX against 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.
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's Return On Assets of 7.17% is amongst the best of the industry. SKX outperforms 81.63% of its industry peers.
Looking at the Return On Equity, with a value of 13.94%, SKX is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.63%, SKX is doing good in the industry, outperforming 65.31% 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 in line with the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.94% | ||
| ROIC | 9.63% |
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 7.07% is amongst the best of the industry. SKX outperforms 83.67% 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 has a Operating Margin of 8.89%. This is in the better half of the industry: SKX outperforms 73.47% of its industry peers.
SKX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 52.67%, SKX perfoms like the industry average, outperforming 59.18% 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 | 8.89% | ||
| PM (TTM) | 7.07% | ||
| GM | 52.67% |
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.
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 a worse debt to assets ratio.
2.2 Solvency
SKX has an Altman-Z score of 3.63. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, SKX is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
SKX has a debt to FCF ratio of 9.25. This is a negative value and a sign of low solvency as SKX would need 9.25 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.25, SKX perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
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 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.93
WACC10.4%
2.3 Liquidity
SKX has a Current Ratio of 2.09. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.09, SKX is in line with its industry, outperforming 59.18% of the companies in the same industry.
SKX has a Quick Ratio of 1.29. 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 better Quick ratio (1.29) than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
SKX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.43%, which is quite good.
SKX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.92% yearly.
The Revenue has grown by 12.11% in the past year. This is quite good.
SKX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.43% yearly.
EPS 1Y (TTM)17.43%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%24.18%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%13.09%
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-9.59%
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
EPS Next 5Y9.23%
Revenue Next Year7.85%
Revenue Next 2Y7.87%
Revenue Next 3Y6.66%
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 14.41, which indicates a correct valuation of SKX.
Based on the Price/Earnings ratio, SKX is valued a bit cheaper than 73.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. SKX is valued slightly cheaper when compared to this.
SKX is valuated correctly with a Price/Forward Earnings ratio of 16.73.
SKX's Price/Forward Earnings ratio is in line with the industry average.
SKX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
65.31% of the companies in the same industry are more expensive than SKX, based on the Enterprise Value to EBITDA ratio.
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 63.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 150.22 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
The decent profitability rating of SKX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.12
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
5. Dividend
5.1 Amount
No dividends for SKX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
63.13
-0.07 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.53%
Inst Owner Change-0.12%
Ins Owners0.67%
Ins Owner Change-170.13%
Market Cap9.49B
Analysts67.37
Price Target63.34 (0.33%)
Short Float %N/A
Short RatioN/A
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)2
Avg EPS beat(2)23.57%
Min EPS beat(2)13.02%
Max EPS beat(2)34.11%
EPS beat(4)3
Avg EPS beat(4)10.4%
Min EPS beat(4)-13.85%
Max EPS beat(4)34.11%
EPS beat(8)6
Avg EPS beat(8)9.07%
EPS beat(12)9
Avg EPS beat(12)18.82%
EPS beat(16)12
Avg EPS beat(16)15.96%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-1.69%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-1.69%
Max Revenue beat(4)2.82%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)7
Avg Revenue beat(12)0.85%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)-0.12%
PT rev (3m)-0.22%
EPS NQ rev (1m)-7.61%
EPS NQ rev (3m)-4.01%
EPS NY rev (1m)0%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 16.73 | ||
| P/S | 1.01 | ||
| P/FCF | 150.22 | ||
| P/OCF | 14.8 | ||
| P/B | 1.99 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)4.38
EY6.94%
EPS(NY)3.77
Fwd EY5.98%
FCF(TTM)0.42
FCFY0.67%
OCF(TTM)4.27
OCFY6.76%
SpS62.63
BVpS31.78
TBVpS31.09
PEG (NY)N/A
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 13.94% | ||
| ROCE | 12.02% | ||
| ROIC | 9.63% | ||
| ROICexc | 12.15% | ||
| ROICexgc | 12.38% | ||
| OM | 8.89% | ||
| PM (TTM) | 7.07% | ||
| GM | 52.67% | ||
| FCFM | 0.67% |
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-Score4
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 252.38% | ||
| Cap/Sales | 6.14% | ||
| Interest Coverage | 30.18 | ||
| Cash Conversion | 60.14% | ||
| Profit Quality | 9.49% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.63 |
F-Score4
WACC10.4%
ROIC/WACC0.93
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)17.43%
EPS 3Y16.13%
EPS 5Y12.92%
EPS Q2Q%24.18%
EPS Next Y-9.59%
EPS Next 2Y-4.64%
EPS Next 3Y1.79%
EPS Next 5Y9.23%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y12.44%
Revenue growth 5Y11.43%
Sales Q2Q%13.09%
Revenue Next Year7.85%
Revenue Next 2Y7.87%
Revenue Next 3Y6.66%
Revenue Next 5Y7.61%
EBIT growth 1Y-1.38%
EBIT growth 3Y14.77%
EBIT growth 5Y11.77%
EBIT Next Year8.09%
EBIT Next 3Y8.95%
EBIT Next 5Y15.37%
FCF growth 1Y-80.01%
FCF growth 3YN/A
FCF growth 5Y7.27%
OCF growth 1Y-2.7%
OCF growth 3Y47.97%
OCF growth 5Y10.01%