Deckers Outdoor Stock To $134?
Deckers Outdoor (DECK) stock has jumped 21% during the past month, and is currently trading at $103.09. Our 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 $134 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. Considering stock’s Moderate valuation, we think it is Attractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Moderate |
| What you get: | |
| Growth | Strong |
| Profitability | Moderate |
| Financial Stability | Very Strong |
| Downturn Resilience | Moderate |
| Operating Performance | Strong |
| Stock Opinion | Attractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $15 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 Moderate
| DECK | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 3.0 | 3.3 |
| Price-to-Earnings Ratio | 15.5 | 23.5 |
| Price-to-Free Cash Flow Ratio | 17.5 | 20.7 |
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 16.3% over the last 3 years
- Its revenues have grown 15% from $4.4 Bil to $5.1 Bil in the last 12 months
- Also, its quarterly revenues grew 16.9% to $965 Mil in the most recent quarter from $825 Mil a year ago.
| DECK | S&P 500 | |
|---|---|---|
| 3-Year Average | 16.3% | 5.5% |
| Latest Twelve Months* | 15.5% | 6.1% |
| Most Recent Quarter (YoY)* | 16.9% | 7.3% |
This table highlights how DECK is growing vs broader market. For more details see: DECK Revenue Comparison
[3] Profitability Appears Moderate
- DECK last 12 month operating income was $1.2 Bil representing operating margin of 23.6%
- With cash flow margin of 18.9%, it generated nearly $968 Mil in operating cash flow over this period
- For the same period, DECK generated nearly $990 Mil in net income, suggesting net margin of about 19.3%
| DECK | S&P 500 | |
|---|---|---|
| Current Operating Margin | 23.6% | 18.8% |
| Current OCF Margin | 18.9% | 20.4% |
| Current Net Income Margin | 19.3% | 13.1% |
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 $312 Mil at the end of the most recent quarter, while its current Market Cap is $15 Bil. This implies Debt-to-Equity Ratio of 2.0%
- DECK Cash (including cash equivalents) makes up $1.7 Bil of $3.8 Bil in total Assets. This yields a Cash-to-Assets Ratio of 44.8%
| DECK | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 2.0% | 20.8% |
| Current Cash-to-Assets Ratio | 44.8% | 7.1% |
[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 $103.09
| DECK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -48.4% | -25.4% |
| Time to Full Recovery | 308 days | 464 days |
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
| DECK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -54.7% | -33.9% |
| Time to Full Recovery | 76 days | 148 days |
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
| DECK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -77.1% | -56.8% |
| Time to Full Recovery | 473 days | 1,480 days |
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.
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