Deckers Outdoor Corp (DECK, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With its shares currently priced at $162.53, Deckers Outdoor Corp has enjoyed a daily gain of 2.33%, alongside a three-month change of 2.38%. A detailed analysis, supported by the GF Score, positions Deckers Outdoor Corp for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, evaluating stocks based on five key aspects of valuation. These aspects have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Deckers Outdoor Corp boasts a GF Score of 92, signaling strong future performance potential.
- Financial strength rank: 9/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding Deckers Outdoor Corp's Business
Deckers Outdoor Corp, with a market cap of $24.78 billion and annual sales of $4.44 billion, operates with a robust operating margin of 22.3%. The company designs and sells casual and performance footwear, apparel, and accessories under well-known brands like UGG, Teva, and Sanuk. While the majority of its sales are in the United States, Deckers Outdoor Corp also has a significant presence in Europe, Asia, Canada, and Latin America through its retail stores and distributors. The company's business is structured around six segments, focusing on both wholesale and direct-to-consumer operations.
Financial Strength Breakdown
Deckers Outdoor Corp's financial strength is evident in its impressive Interest Coverage ratio of 382.08, significantly surpassing the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 15.6 indicates a strong defense against financial distress, and a Debt-to-Revenue ratio of 0.06 further solidifies its financial health.
Profitability and Growth Metrics
Deckers Outdoor Corp's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years. The company's Gross Margin also reflects a consistent upward trend, demonstrating its efficiency in converting revenue into profit. The Piotroski F-Score further confirms its solid financial standing.
Conclusion
Considering Deckers Outdoor Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying other companies with strong financial indicators and growth prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
