DECKERS OUTDOOR CORP (DECK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DECK - US2435371073 - Common Stock
100.73 USD
-0.57 (-0.56%)
Taking everything into account, DECK scores 7 out of 10 in our fundamental rating. DECK was compared to 45 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 not valued too expensively and it also shows a decent growth rate. With these ratings, DECK could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year DECK was profitable.
- In the past year DECK had a positive cash flow from operations.
- DECK had positive earnings in each of the past 5 years.
- In the past 5 years DECK always reported a positive cash flow from operatings.
1.2 Ratios
- DECK's Return On Assets of 26.84% is amongst the best of the industry. DECK outperforms 100.00% of its industry peers.
- DECK has a better Return On Equity (41.19%) than 95.56% of its industry peers.
- The Return On Invested Capital of DECK (34.00%) is better than 97.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DECK is significantly above the industry average of 11.59%.
- The 3 year average ROIC (29.23%) for DECK is below the current ROIC(34.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.84% | ||
| ROE | 41.19% | ||
| ROIC | 34% |
ROA(3y)23.83%
ROA(5y)21.71%
ROE(3y)34.58%
ROE(5y)31.92%
ROIC(3y)29.23%
ROIC(5y)27.24%
1.3 Margins
- DECK's Profit Margin of 19.37% is amongst the best of the industry. DECK outperforms 100.00% of its industry peers.
- DECK's Profit Margin has improved in the last couple of years.
- DECK has a better Operating Margin (23.51%) than 97.78% of its industry peers.
- DECK's Operating Margin has improved in the last couple of years.
- DECK's Gross Margin of 57.66% is fine compared to the rest of the industry. DECK outperforms 68.89% of its industry peers.
- DECK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.51% | ||
| PM (TTM) | 19.37% | ||
| GM | 57.66% |
OM growth 3Y9.57%
OM growth 5Y8.3%
PM growth 3Y10.54%
PM growth 5Y8.4%
GM growth 3Y4.29%
GM growth 5Y2.26%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DECK is creating value.
- Compared to 1 year ago, DECK has less shares outstanding
- Compared to 5 years ago, DECK has less shares outstanding
- 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.
2.2 Solvency
- DECK has an Altman-Z score of 10.65. 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 10.65, DECK belongs to the top 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.65 |
ROIC/WACC2.97
WACC11.46%
2.3 Liquidity
- DECK has a Current Ratio of 3.07. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
- DECK has a Current ratio of 3.07. This is amongst the best in the industry. DECK outperforms 86.67% of its industry peers.
- DECK has a Quick Ratio of 2.20. This indicates that DECK is financially healthy and has no problem in meeting its short term obligations.
- DECK has a Quick ratio of 2.20. This is amongst the best in the industry. DECK outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
- DECK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.70%, which is quite good.
- DECK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.31% yearly.
- DECK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.62%.
- The Revenue has been growing by 18.51% on average over the past years. This is quite good.
EPS 1Y (TTM)18.7%
EPS 3Y32.67%
EPS 5Y31.31%
EPS Q2Q%14.47%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y16.53%
Revenue growth 5Y18.51%
Sales Q2Q%9.11%
3.2 Future
- Based on estimates for the next years, DECK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.37% on average per year.
- DECK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.69% yearly.
EPS Next Y2.94%
EPS Next 2Y5.12%
EPS Next 3Y7.51%
EPS Next 5Y9.37%
Revenue Next Year8.09%
Revenue Next 2Y7.75%
Revenue Next 3Y7.9%
Revenue Next 5Y8.69%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.92, which indicates a correct valuation of DECK.
- Based on the Price/Earnings ratio, DECK is valued a bit cheaper than 71.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, DECK is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 14.37, DECK is valued correctly.
- Based on the Price/Forward Earnings ratio, DECK is valued a bit cheaper than 68.89% of the companies in the same industry.
- DECK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 14.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DECK is valued a bit cheaper than the industry average as 62.22% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, DECK is valued a bit cheaper than the industry average as 75.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.99 | ||
| EV/EBITDA | 10.21 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DECK does not grow enough to justify the current Price/Earnings ratio.
- DECK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.08
PEG (5Y)0.48
EPS Next 2Y5.12%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
- DECK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DECKERS OUTDOOR CORP / DECK FAQ
What is the fundamental rating for DECK stock?
ChartMill assigns a fundamental rating of 7 / 10 to DECK.
What is the valuation status of DECKERS OUTDOOR CORP (DECK) stock?
ChartMill assigns a valuation rating of 5 / 10 to DECKERS OUTDOOR CORP (DECK). This can be considered as Fairly Valued.
Can you provide the profitability details for DECKERS OUTDOOR CORP?
DECKERS OUTDOOR CORP (DECK) has a profitability rating of 9 / 10.
What are the PE and PB ratios of DECKERS OUTDOOR CORP (DECK) stock?
The Price/Earnings (PE) ratio for DECKERS OUTDOOR CORP (DECK) is 14.92 and the Price/Book (PB) ratio is 5.95.
What is the expected EPS growth for DECKERS OUTDOOR CORP (DECK) stock?
The Earnings per Share (EPS) of DECKERS OUTDOOR CORP (DECK) is expected to grow by 2.94% in the next year.