NYSE:DECK is not too expensive for the growth it is showing.

Last update: Oct 15, 2024

Discover DECKERS OUTDOOR CORP (NYSE:DECK), an undervalued growth gem identified by our stock screener. NYSE:DECK is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Unpacking NYSE:DECK's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:DECK scores a 7 out of 10:

The Earnings Per Share has grown by an nice 16.67% over the past year.
Measured over the past years, DECK shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.27% on average per year.
Looking at the last year, DECK shows a very strong growth in Revenue. 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 18.07% yearly.
DECK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.42% yearly.

Deciphering NYSE:DECK's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:DECK boasts a 7 out of 10:

The Price/Earnings ratio is 6.84, which indicates a rather cheap valuation of DECK.
Based on the Price/Earnings ratio, DECK is valued cheaper than 98.00% of the companies in the same industry.
DECK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.73.
The Price/Forward Earnings ratio is 4.35, which indicates a rather cheap valuation of DECK.
DECK's Price/Forward Earnings ratio is rather cheap when compared to the industry. DECK is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DECK to the average of the S&P500 Index (22.71), we can say DECK is valued rather cheaply.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DECK may justify a higher PE ratio.
A more expensive valuation may be justified as DECK's earnings are expected to grow with 20.20% in the coming years.

Health Analysis for NYSE:DECK

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DECK has earned a 9 out of 10:

DECK has an Altman-Z score of 15.69. This indicates that DECK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.69, DECK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 has a Current ratio of 2.86. This is in the better half 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.
The Quick ratio of DECK (2.04) is better than 86.00% of its industry peers.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DECK has earned a 9 out of 10:

The Return On Assets of DECK (24.55%) is better than 98.00% of its industry peers.
The Return On Equity of DECK (39.12%) is better than 92.00% of its industry peers.
The Return On Invested Capital of DECK (32.34%) is better than 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 11.92%.
The last Return On Invested Capital (32.34%) for DECK is above the 3 year average (26.49%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 18.29%, DECK belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DECK has grown nicely.
DECK has a Operating Margin of 22.49%. This is amongst the best in the industry. DECK outperforms 96.00% of its industry peers.
DECK's Operating Margin has improved in the last couple of years.
DECK's Gross Margin of 56.54% is fine compared to the rest of the industry. DECK outperforms 72.00% of its industry peers.
DECK's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.