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 GO brand worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

1.7%

SKX

1.9%

US Luxury

0.4%

US Market


1 Year Return

25.1%

SKX

15.6%

US Luxury

6.9%

US Market

Return vs Industry: SKX exceeded the US Luxury industry which returned 15.6% over the past year.

Return vs Market: SKX exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

SKXIndustryMarket
7 Day1.7%1.9%0.4%
30 Day5.0%6.7%-1.1%
90 Day-4.7%4.4%-0.5%
1 Year25.1%25.1%18.0%15.6%9.3%6.9%
3 Year95.9%95.9%56.4%49.5%45.8%36.4%
5 Year121.4%121.4%53.5%43.4%62.9%45.1%

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?

24.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SKX ($37.19) is trading below our estimate of fair value ($49.21)

Significantly Undervalued: SKX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SKX is poor value based on its PE Ratio (17.8x) compared to the Luxury industry average (16.7x).

PE vs Market: SKX is poor value based on its PE Ratio (17.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SKX is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: SKX is overvalued based on its PB Ratio (2.7x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

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

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (10.2% per year) is above the savings rate (2.7%).

Earnings vs Market: SKX's earnings (10.2% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: SKX's revenue (7.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SKX's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SKX's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SKX's earnings have grown by 10.4% per year over the past 5 years.

Accelerating Growth: SKX's earnings growth over the past year (70.8%) exceeds its 5-year average (10.4% per year).

Earnings vs Industry: SKX earnings growth over the past year (70.8%) exceeded the Luxury industry 23.9%.


Return on Equity

High ROE: SKX's Return on Equity (17%) is considered low.


Return on Assets

ROA vs Industry: SKX has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: SKX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SKX's short term assets ($2.5B) exceeds its short term liabilities ($994.6M)

Long Term Liabilities: SKX's short term assets (2.5B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: SKX's debt to equity ratio (4.9%) is considered satisfactory

Reducing Debt: SKX's debt to equity ratio has reduced from 7.7% to 4.9% over the past 5 years.

Debt Coverage: SKX's debt is well covered by operating cash flow (489.1%).

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


Balance Sheet

Inventory Level: SKX has a high level of physical assets or inventory.

Debt Coverage by Assets: SKX's debt is covered by short term assets (assets are 21.862870x debt).


Next Steps

Dividend

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

0.29%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Skechers U.S.A's salary, the management and board of directors tenure and is there insider trading?

21.4yrs

Average management tenure


CEO

Robert Greenberg (79yo)

26yrs

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 ($USD27.36M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

21.4yrs

Average Tenure

57yo

Average Age

Experienced Management: SKX's management team is seasoned and experienced (21.4 years average tenure).


Board Age and Tenure

15.8yrs

Average Tenure

68yo

Average Age

Experienced Board: SKX's board of directors are seasoned and experienced ( 15.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$543,75027 Sep 19
Richard Siskind
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares15,000
Max PriceUS$36.25
SellUS$3,453,00020 Sep 19
Jeffrey Greenberg
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Active Electronic Media & Director
Shares100,000
Max PriceUS$34.53
SellUS$59,66025 Jul 19
Thomas Walsh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$39.77
SellUS$93,87021 Jun 19
Richard Rappaport
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$31.29
SellUS$707,21606 May 19
Michael Greenberg
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares22,689
Max PriceUS$31.17
SellUS$785,79606 May 19
Robert Greenberg
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares25,210
Max PriceUS$31.17
SellUS$589,33106 May 19
David Weinberg
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares18,907
Max PriceUS$31.17
SellUS$422,11206 May 19
Mark Nason
EntityIndividual
Role
Senior Key Executive
Executive VP of Product Development
Shares13,191
Max PriceUS$32.00
SellUS$302,13102 May 19
Philip Paccione
EntityIndividual
Role
Chief Legal Officer
Executive VP of Business Affairs
Shares9,693
Max PriceUS$31.17
SellUS$1,041,91517 Apr 19
Jeffrey Greenberg
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Active Electronic Media & Director
Shares29,769
Max PriceUS$35.00
SellUS$2,327,15108 Mar 19
Michael Greenberg
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares71,178
Max PriceUS$33.01
SellUS$1,718,81805 Mar 19
Robert Greenberg
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares50,420
Max PriceUS$34.09
SellUS$1,123,02704 Mar 19
David Weinberg
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares32,943
Max PriceUS$34.09
SellUS$1,375,05404 Mar 19
Michael Greenberg
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares40,336
Max PriceUS$34.09
SellUS$2,214,18907 Nov 18
Michael Greenberg
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares75,630
Max PriceUS$29.28

Ownership Breakdown


Management Team

  • Robert Greenberg (79yo)

    Co-Founder

    • Tenure: 26yrs
    • Compensation: US$27.36m
  • Michael Greenberg (56yo)

    Co-Founder

    • Tenure: 27.8yrs
    • Compensation: US$21.68m
  • David Weinberg (68yo)

    Executive VP

    • Tenure: 21.3yrs
    • Compensation: US$16.55m
  • Philip Paccione (57yo)

    Executive VP of Business Affairs

    • Tenure: 21.4yrs
    • Compensation: US$2.01m
  • Jeff Greenberg (51yo)

    Senior VP of Active Electronic Media & Director

    • Tenure: 19.1yrs
  • Mark Nason (57yo)

    Executive VP of Product Development

    • Tenure: 17.6yrs
    • Compensation: US$2.38m
  • John Vandemore (45yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
    • Compensation: US$1.30m

Board Members

  • Richard Siskind (73yo)

    Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$294.93k
  • Robert Greenberg (79yo)

    Co-Founder

    • Tenure: 26yrs
    • Compensation: US$27.36m
  • Michael Greenberg (56yo)

    Co-Founder

    • Tenure: 27.8yrs
    • Compensation: US$21.68m
  • David Weinberg (68yo)

    Executive VP

    • Tenure: 21.3yrs
    • Compensation: US$16.55m
  • Jeff Greenberg (51yo)

    Senior VP of Active Electronic Media & Director

    • Tenure: 19.1yrs
  • J. Kosinski (53yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$239.93k
  • Rick Rappaport (59yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$222.43k
  • Morton Erlich (74yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$377.43k
  • Katherine Blair

    Independent Director

    • Tenure: 0.4yrs
  • Thomas Walsh (77yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$287.43k

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$5.830b
  • Shares outstanding: 156.77m
  • 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

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 GO brand worldwide. It operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:45
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.