NYSE:SKX

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

SKX

1.1%

US Luxury

-0.4%

US Market


1 Year Return

-9.7%

SKX

22.9%

US Luxury

18.3%

US Market

Return vs Industry: SKX underperformed the US Luxury industry which returned 22.9% over the past year.

Return vs Market: SKX underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

SKXIndustryMarket
7 Day3.4%1.1%-0.4%
30 Day11.4%6.8%8.0%
90 Day13.2%25.9%9.4%
1 Year-9.7%-9.7%24.2%22.9%21.0%18.3%
3 Year3.9%3.9%79.9%71.6%42.1%32.7%
5 Year9.7%9.7%63.6%52.8%85.6%64.7%

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?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKX ($34.22) is trading below our estimate of fair value ($51.56)

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


Price To Earnings Ratio

PE vs Industry: SKX is poor value based on its PE Ratio (36.6x) compared to the US Luxury industry average (33.6x).

PE vs Market: SKX is poor value based on its PE Ratio (36.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: SKX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SKX is overvalued based on its PB Ratio (2.4x) compared to the US Luxury industry average (1.7x).


Next Steps

Future Growth

How is Skechers U.S.A forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

49.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (49.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SKX's earnings (49.9% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SKX's revenue (11.5% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SKX's revenue (11.5% 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 (14.4%).


Next Steps

Past Performance

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

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKX has high quality earnings.

Growing Profit Margin: SKX's current net profit margins (3.1%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: SKX's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: SKX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SKX had negative earnings growth (-55.4%) over the past year, making it difficult to compare to the Luxury industry average (-47.1%).


Return on Equity

High ROE: SKX's Return on Equity (7.8%) 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 ($3.1B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: SKX's short term assets ($3.1B) exceed its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: SKX's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: SKX's debt to equity ratio has increased from 8.7% to 31.3% over the past 5 years.

Debt Coverage: SKX's debt is well covered by operating cash flow (46.9%).

Interest Coverage: SKX's interest payments on its debt are well covered by EBIT (134.3x coverage).


Balance Sheet


Next Steps

Dividend

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

0.51%

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.


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?

22.4yrs

Average management tenure


CEO

Robert Greenberg (80 yo)

27yrs

Tenure

US$13,697,047

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 ($USD13.70M) is above average for companies of similar size in the US market ($USD7.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Greenberg
Co-Founder27yrsUS$13.70m3.2%
$ 172.7m
Michael Greenberg
Co-Founder28.75yrsUS$10.50m0.85%
$ 46.0m
John Vandemore
Chief Financial Officer2.92yrsUS$2.28m0.063%
$ 3.4m
David Weinberg
Executive VP22.25yrsUS$7.32m0.24%
$ 13.2m
Jeffrey Greenberg
Senior VP of Active Electronic Media & Director20.08yrsno data0.55%
$ 29.7m
Mark Nason
Executive Vice President of Product Development18.58yrsUS$4.09m0.047%
$ 2.5m
Philip Paccione
Executive VP of Business Affairs22.42yrsUS$2.01m0.038%
$ 2.1m

22.4yrs

Average Tenure

58yo

Average Age

Experienced Management: SKX's management team is seasoned and experienced (22.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Greenberg
Co-Founder27yrsUS$13.70m3.2%
$ 172.7m
Michael Greenberg
Co-Founder28.75yrsUS$10.50m0.85%
$ 46.0m
David Weinberg
Executive VP22.25yrsUS$7.32m0.24%
$ 13.2m
Jeffrey Greenberg
Senior VP of Active Electronic Media & Director20.08yrsno data0.55%
$ 29.7m
Richard Siskind
Lead Independent Director3.5yrsUS$246.04k0.11%
$ 6.0m
J. Kosinski
Independent Director18.92yrsUS$191.04k0.021%
$ 1.1m
Richard Rappaport
Independent Director10.08yrsUS$178.54k0.021%
$ 1.1m
Morton Erlich
Independent Director14.75yrsUS$318.54k0.028%
$ 1.5m
Katherine Blair
Independent Director1.42yrsUS$168.78k0.0044%
$ 239.3k
Thomas Walsh
Independent Director10.08yrsUS$233.54k0.011%
$ 598.6k

16.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SKX's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$5.402b
  • Shares outstanding: 157.87m
  • 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

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 t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:54
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
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.