NYSE:SKX

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Skechers U.S.A's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SKX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.7%

SKX

11.4%

US Luxury

9.4%

US Market


1 Year Return

-25.1%

SKX

-17.9%

US Luxury

-6.8%

US Market

Return vs Industry: SKX underperformed the US Luxury industry which returned -19.9% over the past year.

Return vs Market: SKX underperformed the US Market which returned -10% over the past year.


Shareholder returns

SKXIndustryMarket
7 Day14.7%11.4%9.4%
30 Day-13.9%-7.0%-3.9%
90 Day-39.6%-25.2%-16.5%
1 Year-25.1%-25.1%-16.2%-17.9%-4.8%-6.8%
3 Year3.0%3.0%30.5%24.3%23.4%15.2%
5 Year5.9%5.9%12.1%4.4%41.3%25.7%

Price Volatility Vs. Market

How volatile is Skechers U.S.A's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

11.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKX ($24.26) is trading above our estimate of fair value ($3.37)

Significantly Below Fair Value: SKX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SKX is good value based on its PE Ratio (10.7x) compared to the Luxury industry average (10.8x).

PE vs Market: SKX is good value based on its PE Ratio (10.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: SKX is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: SKX is overvalued based on its PB Ratio (1.6x) compared to the US Luxury industry average (0.7x).


Next Steps

Future Growth

How is Skechers U.S.A forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (3.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SKX's earnings (3.3% per year) are forecast to grow slower than the US market (13.3% per year).

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

Revenue vs Market: SKX's revenue (5.4% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: SKX's revenue (5.4% 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 (13.5%).


Next Steps

Past Performance

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

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKX has high quality earnings.

Growing Profit Margin: SKX's current net profit margins (6.6%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: SKX's earnings have grown by 9.3% per year over the past 5 years.

Accelerating Growth: SKX's earnings growth over the past year (15.1%) exceeds its 5-year average (9.3% per year).

Earnings vs Industry: SKX earnings growth over the past year (15.1%) exceeded the Luxury industry 3.2%.


Return on Equity

High ROE: SKX's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SKX's short term assets ($2.8B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: SKX's short term assets ($2.8B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: SKX's debt to equity ratio (4.8%) is considered satisfactory.

Reducing Debt: SKX's debt to equity ratio has reduced from 10.4% to 4.8% over the past 5 years.

Debt Coverage: SKX's debt is well covered by operating cash flow (351.9%).

Interest Coverage: SKX earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.68%

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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SKX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

21.9yrs

Average management tenure


CEO

Robert Greenberg (79yo)

26.5s

Tenure

US$27,361,406

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD27.36M) is above average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Greenberg
Co-Founder26.5yrsUS$27.36m3.46% $139.9m
Michael Greenberg
Co-Founder28.25yrsUS$21.68m1.04% $42.1m
John Vandemore
Chief Financial Officer2.42yrsUS$1.30m0.063% $2.6m
David Weinberg
Executive VP21.75yrsUS$16.55m0.40% $16.0m
Mark Nason
Executive Vice President of Product Development18.08yrsUS$2.38m0.063% $2.5m
Philip Paccione
Executive VP of Business Affairs21.92yrsUS$2.01m0.048% $1.9m
Jeffrey Greenberg
Senior VP of Active Electronic Media & Director19.58yrsno data0.94% $37.8m

21.9yrs

Average Tenure

57yo

Average Age

Experienced Management: SKX's management team is seasoned and experienced (21.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Greenberg
Co-Founder26.5yrsUS$27.36m3.46% $139.9m
Michael Greenberg
Co-Founder28.25yrsUS$21.68m1.04% $42.1m
David Weinberg
Executive VP21.75yrsUS$16.55m0.40% $16.0m
Jeffrey Greenberg
Senior VP of Active Electronic Media & Director19.58yrsno data0.94% $37.8m
Richard Siskind
Lead Independent Director3yrsUS$294.93k0.11% $4.4m
J. Kosinski
Independent Director18.42yrsUS$239.93k0.018% $746.1k
Richard Rappaport
Independent Director9.58yrsUS$222.43k0.018% $746.1k
Morton Erlich
Independent Director14.25yrsUS$377.43k0.025% $1.0m
Katherine Blair
Independent Director0.92yrno data0.0022% $90.0k
Thomas Walsh
Independent Director9.58yrsUS$287.43k0.0089% $360.1k

16.3yrs

Average Tenure

68yo

Average Age

Experienced Board: SKX's board of directors are seasoned and experienced ( 16.3 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.


Top Shareholders

Company Information

Skechers U.S.A., Inc.'s company bio, 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
  • Market Cap: US$4.037b
  • Shares outstanding: 156.91m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKXNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 1999
SKAADB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1999
0L73LSE (London Stock Exchange)YesClass A Common StockGBUSDJun 1999
SKAABRSE (Berne Stock Exchange)YesClass A Common StockCHCHFJun 1999

Biography

Skechers U.S.A., Inc. designs, develops, markets, and distributes footwear for men, women, and children; and performance footwear for men and women under the Skechers brand worldwide. It operates through three segments: Domestic Wholesale Sales, International Wholesale Sales, and Retail Sales. The company offers casual boots, shoes, and sandals for men; shoes, oxfords and slip-ons, lug outsole and fashion boots, and casual sandals for women; dress casuals, seasonal sandals and boots, classic and wide fit, and relaxed fit casuals for men and women; and casual athletic line for men and women under the Skechers USA brand. It also provides lightweight sport athletic lifestyle products, classic athletic-inspired styles, and sport sandals and boots under the Skechers Sport brand name; casual and sport styles sneakers, and sandals under the Skechers Active and Skechers Sport Active name; flip flops, sandals, and wedges for young women under the Skechers Cali brand; sneakers under Skecher Street brand for millennials and young women; classic espadrille, vulcanized, sport, sandal, and faux fur footwear under the BOBS from Skechers name; and dress, casual, and active styles, as well as boots and accessories for men under the Mark Nason name. The company offers technical footwear under the Skechers Performance brand for men and women; boots, shoes, high-tops, sneakers, and sandals for infants, toddlers, boys, and girls under the Skechers Kids name; and men’s and women’s casuals, such as field boots, hikers, and athletic shoes under the Skechers Work name, as well as apparels for men, women, and kids. It operates approximately 3,550 company-owned and third-party-owned retail stores. The company sells its products through department and specialty stores, athletic and independent retailers, boutiques, and Internet retailers; and through its e-commerce sites, direct-to-consumer, and retail stores. The company was founded in 1992 and is headquartered in Manhattan Beach, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 03:01
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.