NYSE:DECK—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Sep 24, 2024

In this article, we'll take a closer look at DECKERS OUTDOOR CORP (NYSE:DECK) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DECKERS OUTDOOR CORP has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:DECK, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an impressive 55.83% over the past year.
The Earnings Per Share has been growing by 27.07% on average over the past years. This is a very strong growth
DECK shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.30%.
The Revenue has been growing by 16.24% on average over the past years. This is quite good.
DECK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.54% yearly.
DECK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.42% yearly.

Assessing Health for NYSE:DECK

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:DECK was assigned a score of 10 for health:

An Altman-Z score of 15.20 indicates that DECK is not in any danger for bankruptcy at the moment.
DECK has a better Altman-Z score (15.20) than 100.00% of its industry peers.
DECK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 2.86 indicates that DECK has no problem at all paying its short term obligations.
DECK's Current ratio of 2.86 is fine compared to the rest of the industry. DECK outperforms 70.00% of its industry peers.
DECK has a Quick Ratio of 2.04. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
DECK has a Quick ratio of 2.04. This is amongst the best in the industry. DECK outperforms 86.00% of its industry peers.

Exploring NYSE:DECK's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:DECK scores a 9 out of 10:

Looking at the Return On Assets, with a value of 24.55%, DECK belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
DECK has a Return On Equity of 39.12%. This is amongst the best in the industry. DECK outperforms 92.00% of its industry peers.
DECK has a Return On Invested Capital of 32.34%. This is amongst the best in the industry. DECK outperforms 98.00% of its industry peers.
DECK had an Average Return On Invested Capital over the past 3 years of 26.49%. This is significantly above the industry average of 11.96%.
The 3 year average ROIC (26.49%) for DECK is below the current ROIC(32.34%), indicating increased profibility in the last year.
DECK has a Profit Margin of 18.29%. This is amongst the best in the industry. DECK outperforms 98.00% of its industry peers.
DECK's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.49%, DECK belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
In the last couple of years the Operating Margin of DECK has grown nicely.
With a decent Gross Margin value of 56.54%, DECK is doing good in the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Gross Margin of DECK has grown nicely.

How do we evaluate the setup for NYSE:DECK?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DECK has a 7 as its setup rating, indicating its current consolidation status.

DECK has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 154.14, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of DECK contains the most current fundamental analsysis.

Our latest full technical report of DECK contains the most current technical analsysis.

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.