Deckers Outdoor Corp (NYSE: DECK)

Sector: Consumer Cyclical Industry: Footwear & Accessories CIK: 0000910521
Market Cap 17.19 Bn
P/B 6.59
P/E 16.53
P/S 3.20
ROIC (Qtr) 34.06
Div Yield % 0.00
Rev 1y % (Qtr) 7.14
Total Debt (Qtr) 342.88 Mn
Debt/Equity (Qtr) 0.13
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About

Decker's Outdoor Corp, also known as DECK, is a prominent player in the design, marketing, and distribution of innovative footwear, apparel, and accessories for both casual lifestyle use and high-performance activities. The company's operations span across six reportable segments, including the global wholesale operations of its UGG, HOKA, Teva, Sanuk, and Other brands, as well as its Direct-to-Consumer (DTC) business. Decker's Outdoor Corp's main business activities revolve around the creation and distribution of footwear, apparel, and accessories....

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Investment thesis

Bull case

  • Strong operating cash flow of 1.01B provides robust 2.95x coverage of total debt 342.88M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 2.09B provide 27.18x coverage of short-term debt 76.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 4.07B provides 11.88x coverage of total debt 342.88M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.01B provides exceptional 311.73x coverage of interest expenses 3.25M, showing strong debt service capability.
  • Operating cash flow of 1.01B provides strong 24.79x coverage of stock compensation 40.87M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 1.01B barely covers its investment activities of (83.97M), with a coverage ratio of -12.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Retained earnings of 2.37B provide limited buffer against comprehensive income items of (46.07M), which is -51.55x, indicating elevated exposure to market risks.
  • Operating cash flow of 1.01B is outpaced by equity issuance of (1.08B) (-0.94 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 4.07B provide limited backing for working capital of 2.13B, which is 1.91x, suggesting increased operational risk in market downturns.
  • R&D investment of 0 represents just 0x of SG&A expenses of 1.81B, indicating potential underinvestment in innovation relative to administrative overhead.

Segments Breakdown of Revenue (2025)

Contract with Customer, Sales Channel Breakdown of Revenue (2025)

Peer comparison

Companies in the Footwear & Accessories
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NKE NIKE, Inc. 102.70 Bn 16.79 2.19 11.28 Bn
2 DECK Deckers Outdoor Corp 17.19 Bn 16.53 3.20 0.34 Bn
3 ONON On Holding AG 15.16 Bn 54.10 4.22 0.70 Bn
4 BIRK Birkenstock Holding plc 7.69 Bn 17.26 3.06 1.60 Bn
5 CROX Crocs, Inc. 5.41 Bn -66.61 1.34 1.61 Bn
6 SHOO Steven Madden, Ltd. 3.09 Bn 20.97 1.88 0.54 Bn
7 WWW Wolverine World Wide Inc /De/ 1.51 Bn 5,036.30 0.64 0.82 Bn
8 DBI Designer Brands Inc. 0.54 Bn 5.74 0.16 1.27 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.93 1.58
EV to Cash from Ops. EV/CFO 15.92 -0.37
EV to Debt EV to Debt 47.02 9.63
EV to EBIT EV/EBIT 11.97 21.59
EV to EBITDA EV/EBITDA 11.87 14.01
EV to Free Cash Flow [EV/FCF] EV/FCF 17.35 8.68
EV to Market Cap EV to Market Cap 0.94 9,104.09
EV to Revenue EV/Rev 3.00 1.67
Price to Book Value [P/B] P/B 6.59 4.14
Price to Earnings [P/E] P/E 16.53 370.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.67
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 23.91
Dividend per Basic Share Div per Share (Qtr) 0.00 0.48
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.35
Interest Coverage Int. cover (Qtr) 414.42 1,232.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.71 -9,479.73
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.88 169.26
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 12.97
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 10.41 201.84
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.36 -2.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 10.52 -16.24
EBT Growth (1y) % EBT 1y % (Qtr) 10.48 -18.47
EPS Growth (1y) % EPS 1y % (Qtr) 14.70 -108.04
FCF Growth (1y) % FCF 1y % (Qtr) -8.46 -23.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.70 2.50
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.31 1.11
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.12
Cash Ratio Cash Ratio (Qtr) 1.82 0.65
Current Ratio Curr Ratio (Qtr) 2.86 2.40
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 2.49
Interest Cover Ratio Int Coverage (Qtr) 414.42 1,232.68
Times Interest Earned Times Interest Earned (Qtr) 414.42 1,232.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.50 -17.47
EBIT Margin % EBIT Margin % (Qtr) 25.06 -21.05
EBT Margin % EBT Margin % (Qtr) 25.00 -24.45
Gross Margin % Gross Margin % (Qtr) 57.50 44.08
Net Profit Margin % Net Margin % (Qtr) 19.30 -26.77