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SKX

Skechers U.S.A NYSE:SKX Stock Report

Last Price

US$36.84

Market Cap

US$5.9b

7D

2.9%

1Y

-25.1%

Updated

16 May, 2022

Data

Company Financials +
SKX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends0/6

SKX Stock Overview

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women worldwide.

Rewards

Trading at 62.6% below our estimate of its fair value

Earnings are forecast to grow 13.73% per year

Earnings grew by 416.2% over the past year

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months


Skechers U.S.A Competitors

NIKE

NYSE:NKE

US$177.9b

Deckers Outdoor

NYSE:DECK

US$6.7b

Crocs

NasdaqGS:CROX

US$3.6b

Steven Madden

NasdaqGS:SHOO

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Skechers U.S.A
Historical stock prices
Current Share PriceUS$36.84
52 Week HighUS$55.87
52 Week LowUS$33.50
Beta1.33
1 Month Change-7.37%
3 Month Change-23.11%
1 Year Change-25.09%
3 Year Change31.24%
5 Year Change59.07%
Change since IPO940.19%

Recent News & Updates

Apr 21
Some Investors May Be Worried About Skechers U.S.A's (NYSE:SKX) Returns On Capital

Some Investors May Be Worried About Skechers U.S.A's (NYSE:SKX) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Apr 16

Fiduciary Management - Skechers U.S.A., Inc.: Impressive Global Business

Skechers is the third largest footwear brand in the world. Skechers trades for 12.3 times our next 12-month earnings per share estimate. We believe the company can continue to grow nicely and with rising margins over the next number of years.

Shareholder Returns

SKXUS LuxuryUS Market
7D2.9%-1.1%-2.5%
1Y-25.1%-22.1%-10.4%

Return vs Industry: SKX underperformed the US Luxury industry which returned -22.1% over the past year.

Return vs Market: SKX underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is SKX's price volatile compared to industry and market?
SKX volatility
SKX Average Weekly Movement8.0%
Luxury Industry Average Movement7.5%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: SKX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SKX's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19928,950Robert Greenberghttps://www.skechers.com

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women worldwide. The company operates through three segments: Domestic Wholesale, International Wholesale, and Direct-to-Consumer. It offers casual, casual athletic, sport athletic, trail, sandals, boots, and retro fashion footwear for men and women under the Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Mark Nason, and BOBS brands; sneakers, casuals, boots, and sandals for boys and girls under the Skechers Mega-Craft, S-Lights, SKECH-AIR, Foamies, Twinkle Toes, Z-Strap, Skechers Stretch Fit, and Skechers Street brands; and technical footwear under the Skechers GOrun, Skechers GOwalk, Skechers GOtrain, Skechers GOtrail, and Skechers GO Golf brands.

Skechers U.S.A Fundamentals Summary

How do Skechers U.S.A's earnings and revenue compare to its market cap?
SKX fundamental statistics
Market CapUS$5.90b
Earnings (TTM)US$764.15m
Revenue (TTM)US$6.70b

7.5x

P/E Ratio

0.9x

P/S Ratio

Is SKX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKX income statement (TTM)
RevenueUS$6.70b
Cost of RevenueUS$3.43b
Gross ProfitUS$3.26b
Other ExpensesUS$2.50b
EarningsUS$764.15m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.91
Gross Margin48.73%
Net Profit Margin11.41%
Debt/Equity Ratio10.2%

How did SKX perform over the long term?

See historical performance and comparison

Valuation

Is Skechers U.S.A undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SKX ($36.84) is trading below our estimate of fair value ($98.46)

Significantly Below Fair Value: SKX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SKX is good value based on its PE Ratio (7.5x) compared to the US Luxury industry average (10.9x).

PE vs Market: SKX is good value based on its PE Ratio (7.5x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: SKX is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: SKX's PB Ratio (1.7x) is in line with the US Luxury industry average.

Future Growth

How is Skechers U.S.A forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

13.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (13.7% per year) is above the savings rate (1.9%).

Earnings vs Market: SKX's earnings (13.7% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: SKX's earnings are forecast to grow, but not significantly.

Revenue vs Market: SKX's revenue (9% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: SKX's revenue (9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SKX's Return on Equity is forecast to be low in 3 years time (14.2%).

Past Performance

How has Skechers U.S.A performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

19.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SKX has a high level of non-cash earnings.

Growing Profit Margin: SKX's current net profit margins (11.4%) are higher than last year (3.1%).

Past Earnings Growth Analysis

Earnings Trend: SKX's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: SKX's earnings growth over the past year (416.2%) exceeds its 5-year average (19% per year).

Earnings vs Industry: SKX earnings growth over the past year (416.2%) exceeded the Luxury industry 88.3%.

Return on Equity

High ROE: SKX's Return on Equity (22.8%) is considered high.

Financial Health

How is Skechers U.S.A's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SKX's short term assets ($3.4B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: SKX's short term assets ($3.4B) exceed its long term liabilities ($1.5B).

Debt to Equity History and Analysis

Debt Level: SKX has more cash than its total debt.

Reducing Debt: SKX's debt to equity ratio has increased from 4.3% to 10.2% over the past 5 years.

Debt Coverage: SKX's debt is well covered by operating cash flow (24.4%).

Interest Coverage: SKX's interest payments on its debt are well covered by EBIT (47.1x coverage).

Balance Sheet

Dividend

What is Skechers U.S.A current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

0.56%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SKX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SKX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SKX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SKX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SKX has not reported any payouts.

Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

22.1yrs

Average management tenure

CEO

Robert Greenberg (81 yo)

30.33yrs

Tenure

US$23,977,314

Compensation

Mr. Robert Y. Greenberg has been the Chairman and Chief Executive Officer of Skechers USA Inc. since October 1993. Mr. Greenberg founded Skechers USA Inc. in 1992. From 1979 to 1992, Mr. Greenberg served a...

CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD23.98M) is above average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SKX's management team is seasoned and experienced (22.1 years average tenure).

Board Members

Experienced Board: SKX's board of directors are seasoned and experienced ( 19.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SKX insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Skechers U.S.A., Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Skechers U.S.A., Inc.
  • Ticker: SKX
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Footwear
  • Sector: Consumer Durables
  • Implied Market Cap: US$5.902b
  • Shares outstanding: 155.77m
  • Website: https://www.skechers.com

Number of Employees

Location

  • Skechers U.S.A., Inc.
  • 228 Manhattan Beach Boulevard
  • Manhattan Beach
  • California
  • 90266
  • United States

Listings

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.