NYSE:DECK: a strong growth stock preparing for the next leg up?.

Last update: Nov 5, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether DECKERS OUTDOOR CORP (NYSE:DECK) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but DECKERS OUTDOOR CORP has surfaced on our radar for growth with base formation, warranting further examination.

Evaluating Growth: NYSE:DECK

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:DECK was assigned a score of 8 for growth:

DECK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.26%, which is quite impressive.
Measured over the past years, DECK shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.07% on average per year.
The Revenue has grown by 19.25% in the past year. This is quite good.
The Revenue has been growing by 16.24% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 63.90% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.42% on average over the next years. This is quite good.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

What does the Health looks like for NYSE:DECK

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:DECK, the assigned 10 for health provides valuable insights:

An Altman-Z score of 15.80 indicates that DECK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.80, DECK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
There is no outstanding debt for DECK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
DECK has a Current Ratio of 2.86. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
DECK has a better Current ratio (2.86) than 70.00% of its industry peers.
A Quick Ratio of 2.04 indicates that DECK has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.04, DECK belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.

Evaluating Profitability: NYSE:DECK

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.
The Return On Equity of DECK (39.12%) is better than 94.00% of its industry peers.
DECK has a better Return On Invested Capital (32.34%) than 98.00% of its industry peers.
DECK had an Average Return On Invested Capital over the past 3 years of 26.50%. This is significantly above the industry average of 11.90%.
The last Return On Invested Capital (32.34%) for DECK is above the 3 year average (26.50%), which is a sign of increasing profitability.
DECK's Profit Margin of 18.29% is amongst the best of the industry. DECK outperforms 98.00% of its industry peers.
In the last couple of years the Profit Margin of DECK has grown nicely.
Looking at the Operating Margin, with a value of 22.49%, DECK belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
DECK's Operating Margin has improved in the last couple of years.
The Gross Margin of DECK (56.54%) is better than 72.00% of its industry peers.
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 extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DECK has a 8 as its setup rating:

DECK has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 161.48, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of DECK for a complete fundamental analysis.

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

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.