📈 Stock Analysis: DECK
Deckers Outdoor Corp
Sector: Consumer Discretionary | Industry: Textiles Apparel & Luxury Goods
Market Cap: $ 14 Bn
Price: $ 100
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A Composite Grade
Composite Score: 87.00 (Percentile: 100.00%)
12 Month Price
Stock Grades
C MOAT
A weak moat suggests the company has limited competitive advantages, making it more susceptible to competition. It may struggle to maintain pricing power and market share in the long run.
A+ FUNDAMENTALS
| Metric | Value | Check |
|---|---|---|
| Net Profit Margin | 19% | ✅ |
| EPS Growth (3Y | 5Y) | 33% | 32% | ✅ |
| Revenue Growth (3Y | 5Y) | 17% | 19% | ✅ |
| Forecasted EPS Growth (5Y) | 6% | ✅ |
| Forecasted Revenue Growth (1Y) | 4% |
A+ FINANCIAL
| Metric | Value | Check |
|---|---|---|
| ROE | 44% | ✅ |
| ROIC | 38% | ✅ |
| Debt/Equity | 0 | ✅ |
| Capital Allocation | Strong | ✅ |
A+ VALUATION
| Metric | Value | Check |
|---|---|---|
| Fair Value | 122 | ✅ |
| P/Earnings (TTM) | 15 | ✅ |
| P/Earnings Forecasted | 15 | ✅ |
| P/CashFlow | 14 | ✅ |
| PEG TTM | 2.53 | ❌ |
| Stock Buyback (5Y, 10Y) | 9%, 25% | ✅ |
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INVESTMENT COMMENTARY
Deckers Outdoor Corp (DECK) presents an interesting investment case with strong financial and operational performance, despite its relatively weak competitive moat. The company lacks substantial long-term competitive advantages, which could expose it to pricing pressure and market share erosion over time. This makes it more sensitive to consumer trends and competitor moves compared to wide-moat businesses.
That said, DECK scores exceptionally well across key financial and fundamental metrics. Its Return on Equity (40%) and ROIC (35%) indicate excellent capital efficiency. The company has delivered robust earnings and revenue growth—29% and 19% over the past 3 years, respectively—and is projected to grow EPS at 15% over the next 5 years. Its zero debt and strong capital allocation further boost confidence in its operational management.
Valuation appears reasonable with a fair value estimate of $120 versus a current price of $115. While its P/CF multiple (22) raises some caution, the PEG ratio of 1.28 suggests the stock is fairly priced relative to its growth.
Overall, DECK may lack the moat of a classic Buffett-style compounder, but its strong execution, growth profile, and capital efficiency make it a candidate worth considering for investors who are comfortable with a moderate level of business risk in exchange for strong returns.