SHOEShoe Station Group Inc.
Is the business good?
The checks split: earnings fully cash-backed (4.7×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SHOE?
Shoe Station Group Inc. earns 4.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.5 points below what the capital costs: growth destroys value
- Operating margin
- 2.8%
Operating margin · Apparel Retail median 8.0% · 12 months to Q2 2026
- Cash conversion
- 4.69×
Cash conversion · 1.14× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.51%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 2.2% |
| FY2021 | 16% |
| FY2022 | 12% |
| FY2023 | 8.0% |
| FY2024 | 7.6% |
| FY2025 | 5.9% |
Details›
- Gross margin12 months to Q2 2026
- 34%
- Operating margin12 months to Q2 2026
- 2.8%
- Net margin12 months to Q2 2026
- 2.2%
- Free cash flow margin
- 6.0%
- Revenue, trailing twelve months
- $1.11B
- Free cash flow, trailing twelve months
- $67M
- Net income, trailing twelve months
- $24M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Apparel Retail
Ranks #12 of 16 by RyuScore