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 $169.60, Deckers Outdoor Corp has enjoyed a daily gain of 11.55%, and a notable three-month change of 21.31%. A detailed analysis, supported by the GF Score, indicates that Deckers Outdoor Corp is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which 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 representing the highest potential for outperformance. Deckers Outdoor Corp boasts a GF Score of 92, indicating a strong potential for market outperformance.
- 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 Business
Deckers Outdoor Corp, with a market cap of $25.86 billion and sales of $4.44 billion, operates in the footwear, apparel, and accessories sector. Its primary brands include UGG, Teva, and Sanuk. The company primarily distributes its products through wholesale channels but also maintains a significant direct-to-consumer business via retail stores and websites. While the majority of sales occur in the United States, Deckers Outdoor Corp also has a presence in Europe, Asia, Canada, and Latin America. The company's operations are segmented into wholesale activities of specific brands and a direct-to-consumer segment.
Financial Strength Breakdown
Deckers Outdoor Corp's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 382.08, significantly above the benchmark set by Benjamin Graham. Additionally, an Altman Z-Score of 15.09 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.06 further solidifies its financial health.
Profitability and Growth Metrics
The Profitability Rank of Deckers Outdoor Corp is impressive, with significant improvements in Operating Margin and Gross Margin over the past five years. The company's commitment to growth is also evident in its Growth Rank, with a 3-Year Revenue Growth Rate of 22.5%, outperforming 81.87% of its industry peers.
Conclusion
Considering Deckers Outdoor Corp's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
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.
