NYSE:DECK

Stock Analysis Report

Executive Summary

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Deckers Outdoor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DECK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

28.1%

DECK

18.8%

US Luxury

10.5%

US Market


1 Year Return

-9.5%

DECK

-20.1%

US Luxury

-11.5%

US Market

Return vs Industry: DECK exceeded the US Luxury industry which returned -20.1% over the past year.

Return vs Market: DECK exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

DECKIndustryMarket
7 Day28.1%18.8%10.5%
30 Day-23.5%-15.7%-15.4%
90 Day-20.5%-29.1%-21.4%
1 Year-9.5%-9.5%-18.4%-20.1%-9.6%-11.5%
3 Year122.8%122.8%23.1%17.3%12.6%5.4%
5 Year79.6%79.6%8.1%0.5%32.8%18.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Deckers Outdoor undervalued compared to its fair value and its price relative to the market?

45.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DECK ($133.09) is trading below our estimate of fair value ($242.6)

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


Price To Earnings Ratio

PE vs Industry: DECK is poor value based on its PE Ratio (13.4x) compared to the Luxury industry average (10.7x).

PE vs Market: DECK is poor value based on its PE Ratio (13.4x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: DECK is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: DECK is overvalued based on its PB Ratio (3.3x) compared to the US Luxury industry average (0.8x).


Next Steps

Future Growth

How is Deckers Outdoor forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DECK's forecast earnings growth (6.4% per year) is above the savings rate (1.7%).

Earnings vs Market: DECK's earnings (6.4% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: DECK's earnings are forecast to grow, but not significantly.

Revenue vs Market: DECK's revenue (6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DECK's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DECK's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has Deckers Outdoor performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DECK has high quality earnings.

Growing Profit Margin: DECK's current net profit margins (13.2%) are higher than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: DECK's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: DECK's earnings growth over the past year (8.8%) is below its 5-year average (18.9% per year).

Earnings vs Industry: DECK earnings growth over the past year (8.8%) exceeded the Luxury industry 3.2%.


Return on Equity

High ROE: DECK's Return on Equity (25.3%) is considered high.


Next Steps

Financial Health

How is Deckers Outdoor's financial position?


Financial Position Analysis

Short Term Liabilities: DECK's short term assets ($1.3B) exceed its short term liabilities ($463.2M).

Long Term Liabilities: DECK's short term assets ($1.3B) exceed its long term liabilities ($301.4M).


Debt to Equity History and Analysis

Debt Level: DECK's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: DECK's debt to equity ratio has reduced from 3.7% to 3.3% over the past 5 years.

Debt Coverage: DECK's debt is well covered by operating cash flow (859%).

Interest Coverage: DECK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DECK has a high level of physical assets or inventory.

Debt Coverage by Assets: DECK's debt is covered by short term assets (assets are 36.1x debt).


Next Steps

Dividend

What is Deckers Outdoor's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DECK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DECK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DECK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DECK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DECK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Dave Powers (52yo)

3.75s

Tenure

US$6,466,472

Compensation

Mr. David Powers, also known as Dave, has been the Chief Executive Officer of Deckers Outdoor Corp. since June 2016 and has been its President since March 2015. Mr. Powers served as the President of Omni-C ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD6.47M) is about average for companies of similar size in the US market ($USD5.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Powers
CEO, President & Director3.75yrsUS$6.47m0.33% $12.2m
Steven Fasching
Chief Financial Officer1.67yrsUS$1.64m0.023% $861.2k
David Lafitte
Chief Operating Officer5.08yrsUS$2.52m0.024% $911.1k
Stefano Caroti
President of Omni-Channel4.33yrsUS$2.15m0.033% $1.2m
Andrea O'Donnell
President of Fashion Lifestyle3.92yrsUS$1.74m0.0064% $239.1k
Erinn Kohler
Vice President of Investor Relations & Corporate Planningno datano datano data
Thomas Garcia
Senior VPno datano datano data
Graciela Montgomery
Chief Human Resources Officerno datano datano data
John Kalinich
Senior Vice President of Global DTC3yrsUS$359.00kno data
Brad Willis
Senior Vice President of Information Technology5.92yrsno datano data

3.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: DECK's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Powers
CEO, President & Director3.75yrsUS$6.47m0.33% $12.2m
James Quinn
Independent Director8.5yrsUS$221.46k0.049% $1.8m
Michael Devine
Independent Chairman0.42yrUS$256.46k0.055% $2.1m
Nelson Chan
Independent Director5.25yrsUS$201.46k0.030% $1.1m
John Gibbons
Independent Director19.75yrsUS$346.46k0.078% $2.9m
Brian Spaly
Independent Director1.75yrsUS$167.46k0.0093% $347.5k
Lauri Shanahan
Independent Director8.5yrsUS$236.46k0.046% $1.7m
Juan Figuereo
Independent Directorno datano data0.00024% $8.9k
Cynthia Davis
Independent Director1.75yrsUS$167.46k0.0058% $214.6k
Bonita Stewart
Director5.5yrsUS$213.96k0.050% $1.8m

5.3yrs

Average Tenure

61yo

Average Age

Experienced Board: DECK's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: DECK 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

Deckers Outdoor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deckers Outdoor Corporation
  • Ticker: DECK
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: US$3.725b
  • Shares outstanding: 27.99m
  • Website: https://www.deckers.com

Number of Employees


Location

  • Deckers Outdoor Corporation
  • 250 Coromar Drive
  • Goleta
  • California
  • 93117
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DECKNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1993
DO2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1993

Biography

Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. It offers premium footwear, apparel, and accessories under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and footwear under the Sanuk brand name. The company also provides running footwear and apparel under the Hoka brand name; and fashion casual footwear using sheepskin and other plush materials under the Koolaburra brand. It sells its products through department stores, domestic independent action sports and outdoor specialty footwear retailers, and larger national retail chains, as well as online retailers, such as Amazon and Zappos.com. The company also sells its products directly to consumers through its retail stores and e-commerce Websites, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia-Pacific, Canada, Australia, Latin America, and internationally. As of March 31, 2019, it had 156 retail stores, including 88 concept stores and 68 outlet stores worldwide. The company was founded in 1973 and is headquartered in Goleta, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 00:52
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.