DECK gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively. With these ratings, DECK could be worth investigating further for quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years DECK has always been profitable.
Each year in the past 5 years DECK had a positive operating cash flow.

1.2 Ratios

DECK has a Return On Assets of 26.84%. This is amongst the best in the industry. DECK outperforms 100.00% of its industry peers.
The Return On Equity of DECK (41.19%) is better than 95.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 34.00%, DECK belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DECK is significantly above the industry average of 11.59%.
The last Return On Invested Capital (34.00%) for DECK is above the 3 year average (29.23%), which is a sign of increasing profitability.

		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

With an excellent Profit Margin value of 19.37%, DECK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 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.
In the last couple of years the Gross Margin of DECK has grown nicely.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
DECK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DECK has been reduced compared to 5 years ago.
DECK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

DECK has an Altman-Z score of 10.67. 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 10.67, DECK belongs to the top of the industry, outperforming 97.78% 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	10.67

ROIC/WACC2.95

WACC11.52%

2.3 Liquidity

A Current Ratio of 3.07 indicates that DECK has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.07, DECK belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
A Quick Ratio of 2.20 indicates that DECK has no problem at all paying 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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.70% over the past year.
The Earnings Per Share has been growing by 31.31% on average over the past years. This is a very strong growth
DECK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.62%.
Measured over the past years, DECK shows a quite strong growth in Revenue. The Revenue has been growing by 18.51% on average per year.

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

DECK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.37% yearly.
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 Y3%

EPS Next 2Y5.03%

EPS Next 3Y7.45%

EPS Next 5Y9.37%

Revenue Next Year8.07%

Revenue Next 2Y7.78%

Revenue Next 3Y8.01%

Revenue Next 5Y8.69%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.81, DECK is valued correctly.
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 27.21, DECK is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.29 indicates a correct valuation of DECK.
71.11% of the companies in the same industry are more expensive than DECK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.26. DECK is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	14.81
Fwd PE	14.29

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DECK indicates a somewhat cheap valuation: DECK is cheaper than 62.22% of the companies listed in the same industry.
DECK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DECK is cheaper than 75.56% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.87
EV/EBITDA	10.25

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.