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.

Rewards

Trading at 30.4% below its fair value

Earnings are forecast to grow 11.26% per year

Earnings grew by 78.8% over the past year

Risk Analysis

No risks detected for SKX from our risk checks.


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


Market Performance


7 Day Return

-1.2%

SKX

2.4%

US Luxury

0.03%

US Market


1 Year Return

61.6%

SKX

24.6%

US Luxury

18.6%

US Market

Return vs Industry: SKX exceeded the US Luxury industry which returned 24.6% over the past year.

Return vs Market: SKX exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

SKXIndustryMarket
7 Day-1.2%2.4%0.03%
30 Day1.0%5.1%1.7%
90 Day14.4%9.3%5.7%
1 Year61.6%61.6%27.1%24.6%21.1%18.6%
3 Year46.0%46.0%57.1%50.2%45.6%36.2%
5 Year102.3%102.3%48.5%38.8%71.1%52.3%

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?

30.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKX ($39.74) is trading below our estimate of fair value ($57.07)

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 (18.3x) compared to the Luxury industry average (17.9x).

PE vs Market: SKX is good value based on its PE Ratio (18.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SKX is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SKX is overvalued based on its PB Ratio (2.8x) compared to the US Luxury industry average (1.3x).


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?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKX's forecast earnings growth (11.3% per year) is above the savings rate (1.7%).

Earnings vs Market: SKX's earnings (11.3% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: SKX's revenue (7.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SKX's revenue (7.2% 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 (15.1%).


Next Steps

Past Performance

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

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKX has high quality earnings.

Growing Profit Margin: SKX's current net profit margins (6.7%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: SKX's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: SKX's earnings growth over the past year (78.8%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: SKX earnings growth over the past year (78.8%) exceeded the Luxury industry 2.6%.


Return on Equity

High ROE: SKX's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SKX's short term assets ($2.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: SKX's short term assets ($2.6B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: SKX's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: SKX's debt to equity ratio has reduced from 6.5% to 5.2% over the past 5 years.

Debt Coverage: SKX's debt is well covered by operating cash flow (411.6%).

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 21.4x debt).


Next Steps

Dividend

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

0.38%

Forecast Dividend Yield


Dividend Yield vs Market

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

Current dividend yield vs market & industry

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

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

21.6yrs

Average management tenure


CEO

Robert Greenberg (79yo)

26.2yrs

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

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


Management Age and Tenure

21.6yrs

Average Tenure

57yo

Average Age

Experienced Management: SKX's management team is seasoned and experienced (21.6 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

68yo

Average Age

Experienced Board: SKX's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$61,46019 Nov 19
Thomas Walsh
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$40.97
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

Ownership Breakdown

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


Management Team

  • Robert Greenberg (79yo)

    Co-Founder

    • Tenure: 26.2yrs
    • Compensation: US$27.36m
  • Michael Greenberg (56yo)

    Co-Founder

    • Tenure: 27.9yrs
    • Compensation: US$21.68m
  • David Weinberg (68yo)

    Executive VP

    • Tenure: 21.4yrs
    • Compensation: US$16.55m
  • Philip Paccione (57yo)

    Executive VP of Business Affairs

    • Tenure: 21.6yrs
    • Compensation: US$2.01m
  • Jeff Greenberg (51yo)

    Senior VP of Active Electronic Media & Director

    • Tenure: 19.3yrs
  • Mark Nason (57yo)

    Executive VP of Product Development

    • Tenure: 17.8yrs
    • Compensation: US$2.38m
  • John Vandemore (45yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
    • Compensation: US$1.30m

Board Members

  • Richard Siskind (73yo)

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$294.93k
  • Robert Greenberg (79yo)

    Co-Founder

    • Tenure: 26.2yrs
    • Compensation: US$27.36m
  • Michael Greenberg (56yo)

    Co-Founder

    • Tenure: 27.9yrs
    • Compensation: US$21.68m
  • David Weinberg (68yo)

    Executive VP

    • Tenure: 21.4yrs
    • Compensation: US$16.55m
  • Jeff Greenberg (51yo)

    Senior VP of Active Electronic Media & Director

    • Tenure: 19.3yrs
  • J. Kosinski (53yo)

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$239.93k
  • Rick Rappaport (59yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$222.43k
  • Morton Erlich (74yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$377.43k
  • Katherine Blair

    Independent Director

    • Tenure: 0.6yrs
  • Thomas Walsh (77yo)

    Independent Director

    • Tenure: 9.3yrs
    • 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$6.110b
  • Shares outstanding: 156.76m
  • 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 Analysis2019/12/07 23:43
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.