Steven Madden Ltd. Common Stock (SHOO)

FairStock Score: 36/100 — MIXED

Key Financials

Strengths

• Generates $23 million in annual free cash flow (0.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 29.4% demonstrates strong top-line momentum
• Attractive 2.2% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($13) with negative 194% margin of safety—limited downside protection

AI Analysis

Steven Madden Ltd. Common Stock is a small-cap consumer cyclical company valued at $2.8 billion. Revenue stands at $2.5 billion. From a quality standpoint, Steven shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 3.7. On valuation, the stock is commanding a steep 60.3x multiple, with trades far above its Graham Number ($13) with no margin of safety. Growth dynamics show revenue growing at 29.4% and profit growth of -33.4%. The 2.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Steven's 29% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $23 million in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 60x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer