Skechers designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. The company was founded in 1992 and is based in Manhattan Beach, California.
SKX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SKX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Skechers Usa Inc ranked in the 15th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for SKX, they are:
Interest coverage, a measure of earnings relative to interest payments, is 43.69; that's higher than 90.66% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Skechers Usa Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 15.16% of tickers in our DCF set.
SKX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 15.16% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SKX, try GOOS, SFIX, TRWH, UAA, and GT.
Introduction Sketchers (SKX) is a brand widely known in the United States for a basic but reliable shoe. Many people have a worn a pair of Sketchers either to prevent slips at work or for comfort during a jog. This brand has also become very popular abroad which has powered...
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Shares of Skechers (NYSE: SKX), Foot Locker (NYSE: FL), and The TJX Companies (NYSE: TJX) jumped 8% or more Monday as a wave of optimism pushed markets higher thanks to comments from Federal Reserve Chairman Jerome Powell and a positive vaccine development. One source of investor optimism was provided by biotech Moderna, which announced that its vaccine mRNA-1273 was found to be safe and well tolerated in an early-stage study and that it produced antibodies in patients that could "neutralize" the coronavirus. A second source of optimism was provided by Powell, who said the Fed had plenty of ammunition left if needed, adding, "There's a lot more we can do."
Mid-cap companies, as the title implies, are businesses that have grown enough to no longer be considered small but remain significantly smaller than the biggest corporations. While the definition is subjective and arbitrary, mid-caps are generally considered to be businesses with a market cap between $2 billion and $10 billion. Three that fit that description and look like buys right now are Skechers (NYSE: SKX), Universal Display (NASDAQ: OLED), and Wix.com (NASDAQ: WIX).