Deckers Outdoor Stock To $113?

Deckers Outdoor (DECK) stock has fallen 15% during the past day, and is currently trading at $86.94. Our machine-driven multi-factor assessment suggests that it may be time to buy more shares of DECK stock. We have, overall, a positive view of the stock, and a price of $113 may not be out of reach. We believe there is not much to fear in DECK stock given its overall Strong operating performance and financial condition. Taken together with its Low valuation, this makes the stock look Attractive.

Below is our assessment:

DECK stock has fallen meaningfully recently and we currently find it attractive. While this may feel like an opportunity, there is significant risk in relying on a single stock. On the other hand, there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. We go beyond just equities. Is a portfolio of 10% commodities, 10% gold, and 2% crypto in addition to equities and bonds – likely to return more during the next 1-3 years, and protect you better if markets crash 20%? We have crunched the numbers.

Let’s get into details of each of the assessed factors but before that, for quick background: With $13 Bil in market cap, Deckers Outdoor provides footwear, apparel, and accessories for casual and high-performance use, distributing through department stores and specialty retailers with a global network of retail and outlet stores.

[1] Valuation Looks Low

This table highlights how DECK is valued vs broader market. For more details see: DECK Valuation Ratios

[2] Growth Is Strong

• Deckers Outdoor has seen its top line grow at an average rate of 16.5% over the last 3 years
• Its revenues have grown 16% from $4.3 Bil to $5.0 Bil in the last 12 months
• Also, its quarterly revenues grew 6.5% to $1.0 Bil in the most recent quarter from $960 Mil a year ago.

This table highlights how DECK is growing vs broader market. For more details see: DECK Revenue Comparison

[3] Profitability Appears Strong

• DECK last 12 month operating income was $1.2 Bil representing operating margin of 23.6%
• With cash flow margin of 21.0%, it generated nearly $1.0 Bil in operating cash flow over this period
• For the same period, DECK generated nearly $966 Mil in net income, suggesting net margin of about 19.4%

This table highlights how DECK profitability vs broader market. For more details see: DECK Operating Income Comparison

[4] Financial Stability Looks Very Strong

• DECK Debt was $277 Mil at the end of the most recent quarter, while its current Market Cap is $13 Bil. This implies Debt-to-Equity Ratio of 2.1%
• DECK Cash (including cash equivalents) makes up $1.9 Bil of $3.6 Bil in total Assets. This yields a Cash-to-Assets Ratio of 52.9%

[5] Downturn Resilience Is Moderate

DECK saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• DECK stock fell 48.4% from a high of $73.32 on 16 September 2021 to $37.80 on 19 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 23 March 2023
• Since then, the stock increased to a high of $223.11 on 30 January 2025 , and currently trades at $86.94

 
2020 Covid Pandemic

• DECK stock fell 54.7% from a high of $33.53 on 18 February 2020 to $15.19 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 2 June 2020

 
2008 Global Financial Crisis

• DECK stock fell 77.1% from a high of $9.16 on 26 December 2007 to $2.10 on 2 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 June 2010

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 – S&P 500, Russell, and S&P midcap. 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.