Morgan Stanley Downgrades Skechers U.S.A. Rating to Equal-weight
January 19, 2023
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Skechers U.s.a Stock Intrinsic Value – On Wednesday, Morgan Stanley downgraded its rating on Skechers ($NYSE:SKX) U.S.A to an Equal-weight. This shift in opinion comes as the investment bank has become more wary of the company. The downgrade by Morgan Stanley is a reminder of the volatile nature of the stock market and the importance of being cautious when investing in stocks. Skechers U.S.A has been performing well for some time now, however Morgan Stanley has become more wary of the company and its stock. The downgrade to an Equal-weight rating means that the investment bank believes that the current price of the stock is fair and that investors should be more cautious when investing in it.
It is important to remember that stock ratings are only one factor to consider when investing in a company and that investors should always do their own research before investing. Skechers U.S.A has been a successful company for many years and is continuing to expand its reach in the global market. Despite the downgrade, the company still remains a strong investment opportunity and could be a great way to diversify a portfolio.
Price History
On Wednesday, Morgan Stanley downgraded Skechers U.S.A.’s rating to equal-weight, as news about the company has mostly been negative till now. On the same day, SKECHERS U.S.A stock opened at $45.6 and closed at $46.1, down 0.3% from its previous closing price of $46.2. This downgrade comes as a disappointment to investors, who had been hoping for a more positive outlook on Skechers’ future. The downgrade has been blamed on the company’s recent financial results and lack of visibility into their future plans. While the company has reported strong sales in the past, analysts are concerned that Skechers’ growth may be slowing down due to increased competition from other sportswear companies and a shift in consumer preferences.
With the negative news surrounding the company and uncertainty about Skechers’ long-term prospects, investors are left wondering what the future holds for the company. While some analysts remain optimistic about the company’s potential, others are more cautious and believe that further downgrades could be on the horizon. In the meantime, investors should keep an eye on Skechers’ stock price and be aware of any developments that may impact the company’s future performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Skechers U.s.a. More…
| Total Revenues | Net Income | Net Margin |
| 7.21k | 699.93 | 9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Skechers U.s.a. More…
| Operations | Investing | Financing |
| 49.7 | -344.67 | -433.92 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Skechers U.s.a. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.68k | 2.93k | 21.94 |
Key Ratios Snapshot
Some of the financial key ratios for Skechers U.s.a are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.2% | 2.9% | 7.8% |
| FCF Margin | ROE | ROA |
| -3.8% | 10.2% | 5.3% |
VI Analysis – Skechers U.s.a Stock Intrinsic Value
With the help of the VI app, analyzing the company is made simpler. According to VI Line, the intrinsic value of SKECHERS U.S.A Inc’s shares is around $48.4, yet the current stock price is only $46.1, making it an undervalued price by 5%. This provides an opportunity for investors to purchase shares in the company at a fair price and benefit from future potential. SKECHERS U.S.A Inc has a solid foundation and its fundamentals are strong, making it an attractive option for investors to consider. The company’s value is expected to increase over time and investors can capitalize on that growth by investing in the company’s shares now. More…
VI Peers
In the world of sneakers and athletic footwear, there is stiff competition between brands. One such rivalry is between Skechers USA Inc and its competitors Shui-Mu International Co Ltd, adidas AG, and 361 Degrees International Ltd. While each company has its own unique selling points, they all vie for a share of the athletic footwear market.
– Shui-Mu International Co Ltd ($TWSE:8443)
Shui-Mu International Co Ltd is a company that operates in the real estate industry. The company has a market cap of 718.1M as of 2022 and a return on equity of -11.44%. The company’s main business activities include the development, investment, management and operation of real estate projects.
– adidas AG ($OTCPK:ADDDF)
adidas AG is a publicly traded company with a market capitalization of 18.54 billion as of 2022. The company has a return on equity of 16.07%. adidas AG is a multinational corporation that designs and manufactures sports clothing and accessories. The company is headquartered in Herzogenaurach, Germany.
– 361 Degrees International Ltd ($SEHK:01361)
Degrees International Ltd, a leading provider of online education services, has a market cap of 7.07B as of 2022. The company’s return on equity is 9.66%. Degrees International Ltd offers a wide range of online courses and programs that cater to the needs of a diverse range of learners. The company’s mission is to provide quality education that is accessible and affordable to all.
Summary
Investing analysis in SKECHERS U.S.A. has been largely negative recently, with Morgan Stanley downgrading the company’s rating to Equal-weight. This cautionary stance is due to the company’s declining sales and profits as well as concerns about competitive pressures in the footwear industry. The company’s stock price has dropped significantly over the past year, indicating investor skepticism about its future prospects.
Analysts recommend investors take a wait-and-see approach before investing in SKECHERS U.S.A., as the company faces a challenging environment. It remains to be seen whether the company can successfully navigate this difficult period and return to profitability.
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