Steve Madden (SHOO)
Profile
Steven Madden, Ltd. designs, sources and markets footwear, accessories and apparel for women, men and children. The Company distributes its products through department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers and independent stores across the United States, Canada, Mexico, Europe, South Africa and certain other international markets.
Key Metrics
P/E TTM = 10.8
ROA TTM = 19.9%
ROE TTM = 30.1%
ROIC TTM = 33.6%
Dividend Yield = 2%
EPS CAGR = 12%
Current Ratio = 2.51
Outlook
Estimate outlooks are strong for the company with analysts predicting further growth in 2022 and 2023 in revenue and net profit. EPS growth in 2022 is estimated at 25.9% and 10.3% in 2023. With the forward P/E at 11 and 9.9 we are paying a multiple much lower than the value we are receiving in the growth rates. The company plans to raise dividends 30.7% in 2022 and another 5.74% in 2023 which would take the yield up to 2.52% giving great additional value on top of the EPS growth already mentioned. The company has an average P/E of 25 over the last 10 years so not only is the company trading lower than the growth rates but also lower than what the market typically likes to pay. EV/EBIT is currently sitting at 9 which is the lowest it's been in the last 10 years.
We are currently trading 35% from the highs w
e achieved in November of 2021 so I believe this is a great buy
