Skechers U.S.A., Inc.
Skechers U.S.A., Inc. Fundamental Analysis
Skechers U.S.A., Inc. (SKX) shows moderate financial fundamentals with a PE ratio of 20.05, profit margin of 6.69%, and ROE of 10.44%. The company generates $7.1B in annual revenue with strong year-over-year growth of 12.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SKX's fundamental strength across five key dimensions:
Efficiency Score
WeakSKX struggles to generate sufficient returns from assets.
Valuation Score
ModerateSKX shows balanced valuation metrics.
Growth Score
ExcellentSKX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSKX maintains a strong and stable balance sheet.
Profitability Score
WeakSKX struggles to sustain strong margins.
Key Financial Metrics
Is SKX Expensive or Cheap?
P/E Ratio
SKX trades at 20.05 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SKX's PEG of 3.83 indicates potential overvaluation.
Price to Book
The market values Skechers U.S.A., Inc. at 1.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.06 times EBITDA. This signals the market has high growth expectations.
How Well Does SKX Make Money?
Net Profit Margin
For every $100 in sales, Skechers U.S.A., Inc. keeps $6.69 as profit after all expenses.
Operating Margin
Core operations generate 8.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.44 in profit for every $100 of shareholder equity.
ROA
Skechers U.S.A., Inc. generates $5.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Skechers U.S.A., Inc. generates limited operating cash flow of $682.11M, signaling weaker underlying cash strength.
Free Cash Flow
Skechers U.S.A., Inc. produces free cash flow of $217.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.45 in free cash annually.
FCF Yield
SKX converts 2.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SKX Stacks Against Its Sector Peers
| Metric | SKX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.05 | 23.93 | Better (Cheaper) |
| ROE | 10.44% | 1142.00% | Weak |
| Net Margin | 6.69% | -588.00% (disorted) | Weak |
| Debt/Equity | 0.47 | 0.85 | Strong (Low Leverage) |
| Current Ratio | 2.09 | 2.64 | Strong Liquidity |
| ROA | 5.09% | -8097.00% (disorted) | Weak |
SKX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Skechers U.S.A., Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.58%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
86.41%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
62.80%
Industry Style: Cyclical, Growth, Discretionary
High Growth