Skechers U.S.A (NYSE:SKX) - Share price, News & Analysis

Q: What is the Fair Price of SKX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SKX ($38.54) is trading below our estimate of [[fair value]] ($90.76)

SKX fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

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 57.5% below our estimate of its fair value

Earnings are forecast to grow 13.91% 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

Deckers Outdoor

NYSE:DECK

US$7.2b

Steven Madden

NasdaqGS:SHOO

US$2.8b

Crocs

NasdaqGS:CROX

US$3.3b

Wolverine World Wide

NYSE:WWW

US$1.7b

Price History & Performance

Summary of all time highs, changes and price drops for Skechers U.S.A
Historical stock prices
Current Share Price	US$38.54
52 Week High	US$55.87
52 Week Low	US$33.50
Beta	1.33
1 Month Change	-1.78%
3 Month Change	-9.32%
1 Year Change	-22.16%
3 Year Change	19.73%
5 Year Change	29.63%
Change since IPO	988.19%

Recent News & Updates

Jun 18

Skechers: A Long-Term Compounder With Defensive Characteristics

Skechers U.S.A., Inc. is the third largest sports shoe brand in the world that is in value territory now. Skechers has a 73% upside and has the potential to be a long-term growth compounder with its strong DTC and China expansion execution. With a strong value for money proposition, Skechers should also thrive in a recessionary environment and even gain market share from its competitors.

Jun 01

At US$39.40, Is Skechers U.S.A., Inc. (NYSE:SKX) Worth Looking At Closely?

Skechers U.S.A., Inc. ( NYSE:SKX ), might not be a large cap stock, but it saw a double-digit share price rise of over...

May 20

Skechers: Disciplined Growth Makes This A Quality Holding

Skechers’ stock has strong upside based on the company’s large physical store footprint and consistent market share gains. The current valuation of the stock implies profits will permanently fall 20% below current levels. The stock still presents excellent risk/reward and could be worth $70+/share today.

May 17

Here's Why I Think Skechers U.S.A (NYSE:SKX) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	SKX	US Luxury	US Market
7D	5.7%	3.4%	6.3%
1Y	-22.2%	-29.0%	-18.8%

Return vs Industry: SKX exceeded the US Luxury industry which returned -28.6% over the past year.

Return vs Market: SKX underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is SKX's price volatile compared to industry and market?
SKX volatility
SKX Average Weekly Movement	6.9%
Luxury Industry Average Movement	7.5%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: SKX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SKX's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	8,950	Robert Greenberg	https://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 Cap	US$5.84b
Earnings (TTM)	US$764.15m
Revenue (TTM)	US$6.70b

7.6x

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)
Revenue	US$6.70b
Cost of Revenue	US$3.43b
Gross Profit	US$3.26b
Other Expenses	US$2.50b
Earnings	US$764.15m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.04
Gross Margin	48.73%
Net Profit Margin	11.41%
Debt/Equity Ratio	10.2%

How did SKX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SKX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SKX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SKX. This is calculated by dividing SKX's market cap by their current preferred multiple.
What is SKX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.84b

SKX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	9.4x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does SKX's PE Ratio compare to its peers?

SKX PE Ratio vs Peers

The above table shows the PE ratio for SKX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.9x
DECK Deckers Outdoor	15.9x	13.8%	US$7.2b
SHOO Steven Madden	11.3x	9.2%	US$2.8b
CROX Crocs	4.7x	7.5%	US$3.3b
WWW Wolverine World Wide	43.8x	39.3%	US$1.7b
SKX Skechers U.S.A	7.6x	13.9%	US$5.8b

Forward PE

Price-To-Earnings vs Peers: SKX is good value based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

How does SKX's PE Ratio compare vs other companies in the US Luxury Industry?

Price-To-Earnings vs Industry: SKX is good value based on its Price-To-Earnings Ratio (7.6x) compared to the US Luxury industry average (10.6x)

Price to Earnings Ratio vs Fair Ratio

What is SKX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SKX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.6x
Fair PE Ratio	15x

Price-To-Earnings vs Fair Ratio: SKX is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

Share Price vs Fair Value

What is the Fair Price of SKX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKX ($38.54) is trading below our estimate of fair value ($90.76)

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

Price to Earnings Growth Ratio

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

Discover undervalued companies

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

13.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (13.9% per year) is above the savings rate (1.9%).

Earnings vs Market: SKX's earnings (13.9% per year) are forecast to grow faster than the US market (13.9% per year).

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

Revenue vs Market: SKX's revenue (9.1% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: SKX's revenue (9.1% 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%).

Discover growth companies

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.

Discover strong past performing companies

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

Discover healthy companies

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

0.53%

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.

Discover strong dividend paying companies

Management

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

22.2yrs

Average management tenure

CEO

Robert Greenberg (81 yo)

30.42yrs

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 (22.2 years average tenure).

Board Members

Experienced Board: SKX's board of directors are seasoned and experienced ( 19.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: SKX insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31