NasdaqGS:RCKY

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Rocky Brands, Inc. designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh, and licensed Michelin brand names in the United States, Canada, and internationally. More Details

Rewards

Trading at 41% below our estimate of its fair value

Earnings grew by 20.2% over the past year

Risk Analysis

RCKY passed our risk checks.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Rocky Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RCKY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RCKY's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

RCKY

-0.7%

US Luxury

-0.4%

US Market


1 Year Return

82.2%

RCKY

45.8%

US Luxury

36.2%

US Market

Return vs Industry: RCKY exceeded the US Luxury industry which returned 45.8% over the past year.

Return vs Market: RCKY exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

RCKYIndustryMarket
7 Day2.5%-0.7%-0.4%
30 Day22.7%-2.6%-2.3%
90 Day44.9%-0.9%5.0%
1 Year86.0%82.2%47.2%45.8%39.1%36.2%
3 Year125.0%112.2%68.0%61.0%48.4%39.0%
5 Year287.5%241.5%81.5%69.7%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is Rocky Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rocky Brands undervalued compared to its fair value and its price relative to the market?

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCKY ($44.67) is trading below our estimate of fair value ($75.68)

Significantly Below Fair Value: RCKY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RCKY is good value based on its PE Ratio (15.6x) compared to the US Luxury industry average (24.5x).

PE vs Market: RCKY is good value based on its PE Ratio (15.6x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCKY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCKY's PB Ratio (1.8x) is in line with the US Luxury industry average.


Next Steps

Future Growth

How is Rocky Brands forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RCKY's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if RCKY's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RCKY's revenue (5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: RCKY's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RCKY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rocky Brands performed over the past 5 years?

37.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCKY has high quality earnings.

Growing Profit Margin: RCKY's current net profit margins (7.6%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: RCKY's earnings have grown significantly by 37.9% per year over the past 5 years.

Accelerating Growth: RCKY's earnings growth over the past year (20.2%) is below its 5-year average (37.9% per year).

Earnings vs Industry: RCKY earnings growth over the past year (20.2%) exceeded the Luxury industry -19.8%.


Return on Equity

High ROE: RCKY's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is Rocky Brands's financial position?


Financial Position Analysis

Short Term Liabilities: RCKY's short term assets ($163.2M) exceed its short term liabilities ($40.0M).

Long Term Liabilities: RCKY's short term assets ($163.2M) exceed its long term liabilities ($9.6M).


Debt to Equity History and Analysis

Debt Level: RCKY is debt free.

Reducing Debt: RCKY has no debt compared to 5 years ago when its debt to equity ratio was 16.6%.

Debt Coverage: RCKY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RCKY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Rocky Brands's current dividend yield, its reliability and sustainability?

1.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RCKY's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: RCKY's dividend (1.25%) is low compared to the top 25% of dividend payers in the US market (3.64%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RCKY has been paying a dividend for less than 10 years.

Growing Dividend: RCKY's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.5%), RCKY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Jason Brooks (48 yo)

3.83yrs

Tenure

US$542,754

Compensation

Mr. Jason S. Brooks has been Chief Executive Officer and President of Rocky Brands, Inc. since May 19, 2017. Mr. Brooks served as President of Core Brands - Rocky Brands US, LLC at Rocky Brands, Inc. from ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD542.75K) is below average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jason Brooks
President3.83yrsUS$542.75k0.14%
$ 455.1k
Thomas Robertson
Executive VP4yrsUS$423.28k0.025%
$ 80.4k
Richard Simms
President of Operations3.83yrsUS$406.79k0.059%
$ 189.6k
David Dixon
President of Manufacturing & Sourcing Operations4.5yrsUS$372.15k0.059%
$ 192.1k
Byron Wortham
President of Core Brand Sales3.75yrsUS$356.52k0.058%
$ 187.6k
Curtis Loveland
Secretary & Independent Director28.17yrsUS$104.53k1.35%
$ 4.4m
Jeff Stern
Senior VP of Sales & Operations Lehighno datano datano data
Scott Jenkins
Vice President of Women Occupational Business Development17.75yrsno datano data
Mary Lorenz
Vice President of Strategy Execution & Process Improvement10yrsno datano data
Mark Dean
Vice President of Commercial Military Division6.67yrsno datano data
Mike Roundhouse
Director of Product Development6.67yrsno datano data

5.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: RCKY's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Brooks
President3.83yrsUS$542.75k0.14%
$ 455.1k
Curtis Loveland
Secretary & Independent Director28.17yrsUS$104.53k1.35%
$ 4.4m
Mike Brooks
Chairman of the Board16.17yrsUS$100.00k4.23%
$ 13.7m
Glenn Corlett
Independent Director21.17yrsUS$116.53k0.35%
$ 1.1m
James Stewart
Independent Director25.17yrsUS$104.53k0.16%
$ 528.2k
Robert Moore
Independent Director3.92yrsUS$104.53k0.39%
$ 1.3m
G. Haning
Independent Director17.17yrsUS$110.53k0.23%
$ 738.6k
Michael Finn
Independent Director17.17yrsUS$113.53k0.29%
$ 948.5k
William Jordan
Independent Director3.92yrsUS$104.53k0.11%
$ 357.6k
Tracie Winbigler
Independent Director1.42yrsUS$18.75k0.025%
$ 81.2k

16.7yrs

Average Tenure

72yo

Average Age

Experienced Board: RCKY's board of directors are seasoned and experienced ( 16.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RCKY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rocky Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rocky Brands, Inc.
  • Ticker: RCKY
  • Exchange: NasdaqGS
  • Founded: 1932
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: US$323.752m
  • Shares outstanding: 7.25m
  • Website: https://www.rockybrands.com

Number of Employees


Location

  • Rocky Brands, Inc.
  • 39 East Canal Street
  • Nelsonville
  • Ohio
  • 45764
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCKYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1993
RCKDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1993

Biography

Rocky Brands, Inc. designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh, and licensed Michelin brand names in the United States, Canada, and internationall...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 00:04
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.