SKECHERS USA, Inc. (NYSE:SKX)

CAPS Rating: 4 out of 5

The Company designs and markets Skechers-branded contemporary footwear for men, women and children under several unique lines.

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Member Avatar investorpoet2 (92.14) Submitted: 4/18/2016 1:17:24 PM : Outperform Start Price: $29.30 SKX Score: +16.12

If you just use their historical growth rate (about 12%), the company is worth about $28/share using a 15% discount rate.

However, they have invested a lot of capital in recent years to build their international distribution. It looks like this is starting to pay off. Analysts now expect 20% growth over the next five years. If you assume 20% growth for the next 10 years, the company is worth about $90/share.

To summarize, the company is priced as if things will continue as they have been, but there is reason to believe there could be significant upside.

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Member Avatar RetiredJim (< 20) Submitted: 3/7/2016 3:27:07 PM : Outperform Start Price: $32.69 SKX Score: -0.04

I like they way they are expanding product now. Hope they buy into a new area such as gopro

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Member Avatar buynholdisdead (< 20) Submitted: 2/6/2016 3:35:59 PM : Outperform Start Price: $27.22 SKX Score: +12.59

Taking market share with their comfortable shoes. In five years just how much more can they grow.

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Member Avatar brennanadler (58.86) Submitted: 12/31/2015 5:53:03 PM : Outperform Start Price: $29.40 SKX Score: +11.58

Incredible Growth Potential.

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Member Avatar yooperking (43.79) Submitted: 11/18/2015 1:16:18 PM : Outperform Start Price: $27.59 SKX Score: +22.46

The 50% drop in stock price is a gift for long term investors.

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Member Avatar NHWeston102 (< 20) Submitted: 10/26/2015 11:05:41 AM : Outperform Start Price: $32.87 SKX Score: +2.72

Savagely over-sold...Real recovery value opportunity.

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Member Avatar lukkyseven (65.98) Submitted: 10/23/2015 1:18:31 PM : Outperform Start Price: $30.02 SKX Score: +12.49

buying in around $30 for the long haul

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Member Avatar saunafool (97.71) Submitted: 10/16/2015 5:10:26 AM : Outperform Start Price: $44.60 SKX Score: -26.53

Reasonable valuation with high growth in an industry with almost unlimited growth options. Think of Nike: they started as "just a shoe company" but now they make athletic equipment for nearly every sport under the sun. Skechers can extend their model and brand for decades.

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Member Avatar foolishlymeek (59.35) Submitted: 10/14/2015 11:47:14 PM : Outperform Start Price: $43.17 SKX Score: -25.41

Right AFTER the 3 for 1 split! Expect price to continue to go up!

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Member Avatar LifeForceDancr (21.39) Submitted: 8/24/2015 1:44:49 PM : Outperform Start Price: $45.28 SKX Score: -32.62

Nike quality without the high price

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Member Avatar TMFPencils (99.83) Submitted: 7/20/2015 2:43:31 PM : Outperform Start Price: $41.05 SKX Score: -15.12

Still doing some research into Skechers, but this looks like a really appealing business (and stock) right now. A few notes:

** Founder-led by Robert Greenberg (chairman and CEO today) and his son Michael (president). Insiders own 18.68% of the company, and Robert owns 9.3%. Through his immediate family and trusts, Robert actually controls 72% of the company's voting power -- so he is heavily invested in Skechers and its future. Not a bad thing given his track record and the performance of the company/stock.

** CFO and COO Michael Greenberg has been with Skechers since 1993 (the company was founded in 1992) and has worked with Greenberg since the 1980s. He also has some skin in the game, owning 1.1% of shares outstanding.

** Skechers is tackling the footwear market through two segments: performance and lifestyle. The company integrates the latest fashion trends into "stylish, quality footwear at a reasonable price." In other words, management integrates fashion and comfort into shoes and sells them for a reasonable price -- and then markets the heck out of the brand/shoes through celebrities and public figures like Demi Lovato, Mark Cuban, Joe Montana, Pete Rose, Ringo Starr, and many others. (Management actually describes Skechers as a marketing business first and a shoe company second. Senior management is heavily involved in shoe design and developing/overseeing marketing campaigns.)

** You can't argue with accelerating sales growth. Sales grew 18.3% in 2013, 28.7% in 2014, and 40.5% in the 1Q 2015. The icing on the cake is that the profit margin has more than doubled from 3% in 2013 to 6.3% over the past four quarters.

** International sales were up 59% in the most recent quarter and now make up 37% of total sales. Management has a goal of international sales reaching 50%+ of the company's overall sales. Apparently people all around the world love casual/comfortable but trendy shoes.

** Skechers was named the 2014 company of the year by Footwear News. The publication's editor had this to say: "A strong management team and powerful numbers reflect a tightly run organization that knows how to mine every opportunity in a rapidly changing retail environment."

** The company was named the 2014 vendor of the year by trade publication SGI Weekly Intelligence, largely because of the 32% growth Skechers saw in its wholesale business (the fastest growth of all major footwear companies).

** Net cash position of $283.2 million and producing more than $80 million in free cash flow -- the company is in a strong cash position, in other words.

** The stock has a P/E of roughly 39 -- not an unreasonable valuation given earnings have more than doubled over the past year and continue to grow above 50% each quarter. It's not an apples-to-apples comparison, but Skechers is trading at roughly a third the valuation of Under Armour despite growing faster than Under Armour.

** In total there are more than 1,050 Skechers retail stores worldwide, with 155-175 stores (50-60 of those are company-owned) slated to open in 2015 (39 were opened in the first quarter).

All in all, a lot of appealing things with Skechers -- both the business and the stock -- right now. I like the management team, the company's opportunity for international expansion, the accelerating sales growth over the past couple years, and the company's solid cash position. All these factors combined give me confidence the stock can continue to outperform the market over the next 3-5 years and beyond.

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Member Avatar vanliew (57.58) Submitted: 7/9/2015 9:19:28 PM : Outperform Start Price: $38.99 SKX Score: -13.38

growing so well that even after 100% run-up in stock price, over the past year+-, the shares are still reasonably priced.

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Member Avatar wandern16 (< 20) Submitted: 5/28/2015 12:18:57 PM : Outperform Start Price: $35.55 SKX Score: -2.67

Earnings are rising. Small company with plenty of room to keep growing. Cash flow good. P/E reasonable.

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Member Avatar missyjcase (40.36) Submitted: 5/8/2015 5:31:26 PM : Outperform Start Price: $32.99 SKX Score: +4.45

great five year plan by the company, they're doing everything right on track so far.

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Member Avatar hlygrail (46.59) Submitted: 4/21/2015 2:03:07 PM : Outperform Start Price: $24.81 SKX Score: +37.34

I also own UA, but SKX has more growth runway, and should exceed UA or NKE in raw/organic growth as long as they don't screw it up.

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Member Avatar jille101 (60.15) Submitted: 4/21/2015 9:22:18 AM : Outperform Start Price: $24.76 SKX Score: +38.18

Small market cap. Lots of room to grow.

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Member Avatar dstwhit (45.37) Submitted: 4/17/2015 2:55:12 PM : Outperform Start Price: $24.48 SKX Score: +38.23

Growing (nice recovery so far from step-ups); P/E around 25; 72% glassdoor CEO approval (3.2 for company); tom e., saul screened; focused on their own niche
Risk: growth seems cyclical for skechers and recent jump price and growth in rev and earnings will be hard to sustain.

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Member Avatar CMFChadf926 (72.95) Submitted: 2/12/2015 12:22:42 PM : Outperform Start Price: $21.91 SKX Score: +54.93

Great growth at a discount. A P/E ratio in the low 29s with YoY growth north of 50%. Currently under followed but with continued out performance they'll garner more attention.

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Member Avatar RugbyViking13 (85.30) Submitted: 10/22/2014 7:31:47 PM : Outperform Start Price: $18.07 SKX Score: +80.78

They sell a ton of shoes.

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Member Avatar smith972 (77.53) Submitted: 9/24/2014 7:18:15 PM : Outperform Start Price: $18.29 SKX Score: +80.86

I will submit SKX on this pull back. Sales are strong, so not sure why the pull back. I do not have a real position but will be watching this. Sept. 2014.

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