For those who appreciate growth without the sticker shock, DECKERS OUTDOOR CORP (NYSE:DECK) is worth considering.

DECKERS OUTDOOR CORP (NYSE:DECK) has caught the eye of our stock screener as an affordable growth stock. DECK is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. DECK has earned a 7 for growth:

• The Earnings Per Share has grown by an impressive 33.13% 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 27.07% on average per year.
• The Revenue has grown by 19.52% 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 13.73% on average over the next years. This is quite good.
• DECK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.48% yearly.

Analyzing Valuation Metrics

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. DECK boasts a 5 out of 10:

• Compared to an average S&P500 Price/Earnings ratio of 28.29, DECK is valued a bit cheaper.
• The average S&P500 Price/Forward Earnings ratio is at 21.08. DECK is valued slightly cheaper when compared to this.
• DECK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• DECK has an outstanding profitability rating, which 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.

Assessing Health for DECK

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

• DECK has an Altman-Z score of 10.96. This indicates that DECK is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.96, 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 3.17. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
• DECK has a better Current ratio (3.17) than 90.00% of its industry peers.
• 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 Quick ratio of 2.61. This is amongst the best in the industry. DECK outperforms 96.00% of its industry peers.

A Closer Look at Profitability for DECK

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of DECK, the assigned 9 is noteworthy for profitability:

• With an excellent Return On Assets value of 23.77%, DECK belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
• With an excellent Return On Equity value of 35.81%, DECK belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 30.64%, DECK belongs to the best of the industry, outperforming 96.00% 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 13.61%.
• The 3 year average ROIC (26.50%) for DECK is below the current ROIC(30.64%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 19.14%, DECK belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
• DECK's Profit Margin has improved in the last couple of years.
• DECK has a better Operating Margin (23.51%) than 92.00% of its industry peers.
• In the last couple of years the Operating Margin of DECK has grown nicely.
• DECK has a better Gross Margin (57.79%) than 70.00% of its industry peers.
• In the last couple of years the Gross Margin of DECK has grown nicely.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.