In this article we will dive into DECKERS OUTDOOR CORP (NYSE:DECK) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DECKERS OUTDOOR CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Exploring Why NYSE:DECK Holds Appeal for Quality Investors.
Over the past 5 years, DECKERS OUTDOOR CORP has experienced impressive revenue growth, with 13.77% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
With a robust ROIC excluding cash and goodwill at 97.48%, DECKERS OUTDOOR CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
DECKERS OUTDOOR CORP maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
DECKERS OUTDOOR CORP exhibits impressive Profit Quality (5-year) with a 95.9% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
DECKERS OUTDOOR CORP has experienced impressive EBIT growth over the past 5 years, with 24.43% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
With EBIT 5-year growth outpacing its Revenue 5-year growth, DECKERS OUTDOOR CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
Zooming in on the fundamentals.
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, DECK scores 7 out of 10 in our fundamental rating. DECK was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. DECK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DECK is valued quite expensive, but it does show an excellent growth. This makes DECK very considerable for growth and quality investing!
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Disclaimer
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.