Should you consider DECKERS OUTDOOR CORP (NYSE:DECK) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if DECKERS OUTDOOR CORP (NYSE:DECK) is suited for quality investing. Investors should of course do their own research, but we spotted DECKERS OUTDOOR CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:DECK.

• DECKERS OUTDOOR CORP has shown strong performance in revenue growth over the past 5 years, with a 16.24% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 84.63%, DECKERS OUTDOOR CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• DECKERS OUTDOOR CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• DECKERS OUTDOOR CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 95.75%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• DECKERS OUTDOOR CORP has experienced impressive EBIT growth over the past 5 years, with 23.42% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• DECKERS OUTDOOR CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

DECK gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making DECK a very profitable company, without any liquidiy or solvency issues. DECK is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make DECK suitable for value and growth and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of DECK

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.