Skechers U.S.A., Inc. [NYSE:SKX]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Skechers U.S.A., Inc. [SKX], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give SKX an Outperform rating. Its stock price has been found in the range of 21.45 to 43.08. This is compared to its latest closing price of $34.84.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Skechers U.S.A., Inc. [SKX] is sitting at 2.23. This is compared to 1 month ago, when its average rating was 2.31.
For the quarter ending in Dec-18 Skechers U.S.A., Inc. [SKX] generated $1.08 billion in sales. That’s 1.72% lower than the average estimate of $1.1 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 18 Apr (In 2 Days).
Fundamental Analysis of Skechers U.S.A., Inc. [SKX]
Now let’s turn to look at profitability: with a current Operating Margin for Skechers U.S.A., Inc. [SKX] sitting at +8.99 and its Gross Margin at +45.54, this company’s Net Margin is now 6.50%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 17.85, and its Return on Invested Capital has reached 17.20%. Its Return on Equity is 15.58, and its Return on Assets is 10.10. These metrics all suggest that Skechers U.S.A., Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Skechers U.S.A., Inc. [SKX] has generated a Total Debt to Total Equity ratio of 13.64. Similarly, its Total Debt to Total Capital is 12.00, while its Total Debt to Total Assets stands at 8.60. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 4.33, and its Long-Term Debt to Total Capital is 3.81. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 9.03 and its Total Debt to EBITDA Value is 0.53. The Enterprise Value to Sales for this firm is now 1.02, and its Total Debt to Enterprise Value stands at 0.09. Skechers U.S.A., Inc. [SKX] has a Price to Book Ratio of 1.73, a Price to Cash Flow Ratio of 6.30 and P/E Ratio of 18.10. These metrics all suggest that Skechers U.S.A., Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Skechers U.S.A., Inc. [SKX] earns $368,418 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.37 and its Total Asset Turnover is 1.56. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.89 and its Current Ratio is 2.91. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Skechers U.S.A., Inc. [SKX] has 158.90M shares outstanding, amounting to a total market cap of $5.54B. Its stock price has been found in the range of 21.45 to 43.08. At its current price, it has moved by -19.17% from its 52-week high, and it has moved 62.36% from its 52-week low.
This stock’s Beta value is currently 0.62, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.58. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Skechers U.S.A., Inc. [SKX] a Reliable Buy?
Shares of Skechers U.S.A., Inc. [SKX], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.