Skechers Can Survive The Lockdowns And Might Be Significantly Undervalued
With $1.37 billion of cash, Skechers can survive for around 8 months to more than a year with zero revenues. Even on a conservative, no-growth basis, Skechers is probably undervalued by more than 25%. Inclusive of growth, the expected total return yield from Skechers could be in the range of 15%-20%. Post-coronavirus world being substantially different from our model could be a potential risk to the thesis.