Is Wall Street Undervaluing DECK Stock?

August 21st, 2025 by Trefis Team
DECK: Deckers Outdoor logo
DECK
Deckers Outdoor

Here is why we think Deckers Outdoor (DECK) deserves consideration as a value stock.

  • Reasonable Revenue Growth: 16.3% LTM and 16.5% last 3 year average.
  • Cash Generative: Nearly 19.2% free cash flow margin and 23.6% operating margin LTM.
  • No Major Shocks: DECK has avoided any revenue collapses in the last 3 years.
  • Modest Valuation: Despite encouraging fundamentals, DECK trades at a PE multiple of 16.3
  • Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better margins

As a quick background, Deckers Outdoor provides footwear, apparel, and accessories for casual and high-performance use, distributing through department stores, specialty retailers, and operating 140 global retail stores as of March 2021.

  DECK S&P Median
Sector Consumer Discretionary –
Industry Footwear –
PE Ratio 16.3 23.8
   
LTM* Revenue Growth 16.3% 5.1%
3Y Average Annual Revenue Growth 16.5% 5.2%
Min Annual Revenue Growth Last 3Y 15.1% -0.3%
   
LTM* Operating Margin 23.6% 18.7%
3Y Average Operating Margin 21.1% 17.8%
LTM* Free Cash Flow Margin 19.2% 13.0%

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell DECK Stock to see if Deckers Outdoor still has an edge that holds up under the hood.

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That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

For 65 similar value stocks chosen as of mid 2024, consider the following stats for the subsequent 1 year period.

  • Average peak return of 39.3% vs 14.4% for S&P, with maximum peak return of 133%
  • Win rate of 60%; win rate represents % of stocks with positive return
  • Average 1-year return of 14.6%, similar to S&P’s despite tariff instability

But Consider The Risk

That said, DECK isn’t immune to big drops. It fell 44% in the Dot-Com crash and took a huge 77% hit during the Global Financial Crisis. Even the 2018 correction dragged it down over 26%. The Covid sell-off shaved about 55%, and the inflation shock cut nearly 49%. Solid fundamentals matter, but when chaos hits, DECK’s no exception.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read DECK Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.