Is SKX a high-quality business?

AlphaMadera's AlphaQuality grade scores Skechers U.S.A., Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SKX compares to a Buffett-style quality bar.

What is Skechers U.S.A., Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SKX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SKX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SKX - Skechers U.S.A., Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $70.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 67.7 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B- 62.4

5yr Avg ROIC 7.9% 50/100
Operating Margin Trend +1.47 pp/yr 92/100

Capital Efficiency

Weight: 15%

B- 66.6

5yr Avg ROE 11.2% 66/100
5yr Share-Count CAGR -0.2% 68/100

Growth Quality

Weight: 15%

A+ 94.4

5yr Revenue CAGR 18.1% 96/100
5yr EPS CAGR 59.7% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

D 36.3

5yr FCF Margin 2.3% 37/100
5yr FCF/NI Conversion 0.37x 36/100

Balance Sheet

Weight: 20%

A+ 93.0

Net Debt / EBITDA 0.62x 89/100
Interest Coverage (EBIT/Int) 41.29x 100/100
Altman Z-Score 3.82 92/100

Stability

Weight: 15%

C- 46.6

EPS Volatility (σ/μ) 0.60 22/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

3 of 4 gurus held; 3 new buys.

Holders: 3 -1
Avg Δ position: —
New buys: 3
Full exits: 0

Cooperman new
Soros new
Greenblatt new

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.