Shoe Station Group Inc (SHOE) stock analysis

P/E above its 5-year median

Shoe Station's P/E of 16.5 is above its own 5-year median of 8.3.

P/E below the industry

Shoe Station's P/E of 16.5 is below the Apparel and Accessory Stores median of 19.2.

EV/EBITDA above its 5-year median

Shoe Station's EV/EBITDA of 4.0 is above its 5-year median of 3.9.

P/B below the industry

Shoe Station's price-to-book of 0.58 is below the Apparel and Accessory Stores median of 1.98.

Trading below fair value

The share price of $14.51 is below our fair value estimate of $18.98.

Margin of safety over 20%

The price is 23.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -21.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -61.1% over the last twelve months, against a 5-year average of 26.7% a year.

Growing slower than the industry

Revenue grew -4.1% over the last twelve months; the Apparel and Accessory Stores median is 4.7%.

Guidance lowered

Shoe Station lowered its Fiscal 2026 Net sales outlook on Sep 10, 2026.

Gross margin slipping

Gross margin was 34.5% over the last twelve months, against 36.1% a year earlier.

Return on equity under 15%

Return on equity was 3.6% over the last twelve months and averaged 19.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Shoe Station's return on equity of 3.6% is below the Apparel and Accessory Stores median of 16.8%.

Earnings grew over 5 years

Net income grew 26.7% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.2% over the last twelve months, against a 5-year average of 7.5%.

Net margin below the industry

Shoe Station's net margin of 2.2% is below the Apparel and Accessory Stores median of 2.3%.

No debt

Shoe Station has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 79.2 times.

Short-term assets cover short-term debts

Current assets are 4.04 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Shoe Station paid dividends worth 4.5% of the share price over the last twelve months.

Yield above Treasuries

The 4.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Shoe Station yields 4.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 6 fiscal years.

Covered by earnings

Dividends take 73.4% of net income.

Covered by free cash flow

Dividends take 26.8% of free cash flow.