SKECHERS USA INC-CL A (SKX)
US8305661055 - Common Stock
We assign a fundamental rating of 6 out of 10 to SKX. SKX was compared to 52 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 has a correct valuation and a medium growth rate. These ratings could make SKX a good candidate for quality investing.
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.
SKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.82%, SKX is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
With a decent Return On Equity value of 14.28%, SKX is doing good in the industry, outperforming 74.00% of the companies in the same industry.
The Return On Invested Capital of SKX (11.85%) is better than 78.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SKX is in line with the industry average of 10.62%.
The 3 year average ROIC (9.66%) for SKX is below the current ROIC(11.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 14.28% | ||
| ROIC | 11.85% |
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
Looking at the Profit Margin, with a value of 7.18%, SKX is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
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 10.42% is fine compared to the rest of the industry. SKX outperforms 74.00% 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 of 52.79%. This is in the better half of the industry: SKX outperforms 64.00% of its industry peers.
SKX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | 7.18% | ||
| GM | 52.79% |
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
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.
SKX has less shares outstanding than it did 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 4.27. This indicates that SKX is financially healthy and has little risk of bankruptcy at the moment.
SKX has a Altman-Z score of 4.27. This is in the better half of the industry: SKX outperforms 74.00% of its industry peers.
The Debt to FCF ratio of SKX is 0.53, which is an excellent value as it means it would take SKX, only 0.53 years of fcf income to pay off all of its debts.
SKX's Debt to FCF ratio of 0.53 is amongst the best of the industry. SKX outperforms 82.00% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that SKX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, SKX is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 4.27 |
ROIC/WACC1.35
WACC8.81%
2.3 Liquidity
SKX has a Current Ratio of 2.39. This indicates that SKX is financially healthy and has no problem in meeting its short term obligations.
SKX has a Current ratio (2.39) which is comparable to the rest of the industry.
SKX has a Quick Ratio of 1.56. This is a normal value and indicates that SKX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.56, SKX is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.56 |
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.
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 a small growth in Revenue. In the last year, the Revenue has grown by 7.47%.
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)23.1%
EPS 3Y69.24%
EPS 5Y11.78%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)7.47%
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.
SKX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.
EPS Next Y18.71%
EPS Next 2Y18.36%
EPS Next 3Y19.59%
EPS Next 5Y16.14%
Revenue Next Year10.06%
Revenue Next 2Y10.13%
Revenue Next 3Y9.8%
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.
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
A Price/Earnings ratio of 17.35 indicates a rather expensive valuation of SKX.
SKX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.41. SKX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.24, the valuation of SKX can be described as correct.
Based on the Price/Forward Earnings ratio, SKX is valued a bit cheaper than 66.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SKX to the average of the S&P500 Index (20.59), we can say SKX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
SKX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SKX is cheaper than 66.00% of the companies in the same industry.
SKX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.21 | ||
| EV/EBITDA | 8.44 |
4.3 Compensation for Growth
SKX's 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 19.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.93
PEG (5Y)1.47
EPS Next 2Y18.36%
EPS Next 3Y19.59%
5. Dividend
5.1 Amount
SKX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SKECHERS USA INC-CL A
NYSE:SKX (7/26/2024, 7:04:00 PM)
After market: 64.65 -0.07 (-0.11%)64.72
+1.01 (+1.59%)
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 Cap9.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 13.24 | ||
| 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)0.93
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 14.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.42% | ||
| PM (TTM) | 7.18% | ||
| GM | 52.79% | ||
| 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.56 | ||
| 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 Y18.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.47%
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