Looking for growth without the hefty price tag? Consider DECKERS OUTDOOR CORP (NYSE:DECK).

Our stock screener has singled out DECKERS OUTDOOR CORP (NYSE:DECK) as an attractive growth opportunity. DECK is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Evaluating Growth: 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. DECK was assigned a score of 7 for growth:

• The Earnings Per Share has grown by an impressive 33.13% over the past year.
• DECK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.07% yearly.
• The Revenue has grown by 19.52% in the past year. This is quite good.
• DECK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.24% yearly.
• Based on estimates for the next years, DECK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.73% on average per year.
• Based on estimates for the next years, DECK will show a quite strong growth in Revenue. The Revenue will grow by 11.48% on average per year.

Unpacking DECK's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. DECK has received a 5 out of 10:

• DECK is valuated rather cheaply when we compare the Price/Earnings ratio to 28.37, which is the current average of the S&P500 Index.
• DECK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.59.
• 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 16.81% in the coming years.

Deciphering DECK's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. DECK has received a 10 out of 10:

• DECK has an Altman-Z score of 11.73. This indicates that DECK is financially healthy and has little risk of bankruptcy at the moment.
• DECK's Altman-Z score of 11.73 is amongst the best of the industry. DECK outperforms 100.00% of its industry peers.
• 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 3.17. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 3.17, DECK belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
• DECK has a Quick Ratio of 2.61. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
• DECK has a better Quick ratio (2.61) than 95.92% of its industry peers.

Assessing Profitability for DECK

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. DECK was assigned a score of 9 for profitability:

• DECK has a better Return On Assets (23.77%) than 97.96% of its industry peers.
• DECK has a better Return On Equity (35.81%) than 91.84% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 30.64%, DECK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• DECK had an Average Return On Invested Capital over the past 3 years of 26.50%. This is significantly above the industry average of 11.78%.
• The last Return On Invested Capital (30.64%) for DECK is above the 3 year average (26.50%), which is a sign of increasing profitability.
• DECK has a better Profit Margin (19.14%) than 97.96% of its industry peers.
• In the last couple of years the Profit Margin of DECK has grown nicely.
• DECK's Operating Margin of 23.51% is amongst the best of the industry. DECK outperforms 95.92% of its industry peers.
• DECK's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 57.79%, DECK is doing good in the industry, outperforming 71.43% of the companies in the same industry.
• DECK's Gross Margin has improved in the last couple of years.

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

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

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.