Steven Madden, Ltd.
Steven Madden, Ltd. Fundamental Analysis
Steven Madden, Ltd. (SHOO) shows weak financial fundamentals with a PE ratio of 50.11, profit margin of 2.38%, and ROE of 6.61%. The company generates $2.4B in annual revenue with strong year-over-year growth of 15.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHOO's fundamental strength across five key dimensions:
Efficiency Score
WeakSHOO struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHOO shows balanced valuation metrics.
Growth Score
ModerateSHOO shows steady but slowing expansion.
Financial Health Score
ExcellentSHOO maintains a strong and stable balance sheet.
Profitability Score
WeakSHOO struggles to sustain strong margins.
Key Financial Metrics
Is SHOO Expensive or Cheap?
P/E Ratio
SHOO trades at 50.11 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SHOO's PEG of -1.31 indicates potential undervaluation.
Price to Book
The market values Steven Madden, Ltd. at 3.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.99 times EBITDA. This signals the market has high growth expectations.
How Well Does SHOO Make Money?
Net Profit Margin
For every $100 in sales, Steven Madden, Ltd. keeps $2.38 as profit after all expenses.
Operating Margin
Core operations generate 3.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.61 in profit for every $100 of shareholder equity.
ROA
Steven Madden, Ltd. generates $2.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Steven Madden, Ltd. generates limited operating cash flow of $175.72M, signaling weaker underlying cash strength.
Free Cash Flow
Steven Madden, Ltd. produces free cash flow of $136.42M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.88 in free cash annually.
FCF Yield
SHOO converts 4.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How SHOO Stacks Against Its Sector Peers
| Metric | SHOO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.11 | 25.25 | Worse (Expensive) |
| ROE | 6.61% | 1170.00% | Weak |
| Net Margin | 2.38% | 742.00% | Weak |
| Debt/Equity | 0.63 | 0.77 | Neutral |
| Current Ratio | 1.91 | 9.19 | Neutral |
| ROA | 2.81% | -6467.00% (disorted) | Weak |
SHOO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Steven Madden, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.62%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
33.83%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-5.39%
Industry Style: Cyclical, Growth, Discretionary
Declining