Deckers Outdoor Corp (DECK) stock analysis
Close on Nov 13, 2026Market cap $11.59BP/E 11.5Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Solid20 of 30 checks passed
Deckers Outdoor passes 20 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 3/6
- Past performance
- 6/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 40.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $86.82 is below our fair value estimate of $145.83.
Return on equity over 15%
Return on equity was 44.3% over the last twelve months and averaged 36.7% over five years.
Return on capital over 10%
Return on invested capital was 96.1%, above the 10% that usually covers the cost of capital.
What to watch
Earnings growth not accelerating
Net income grew 4.4% over the last twelve months, against a 5-year average of 21.8% a year.
Guidance lowered
Deckers Outdoor lowered its Full Fiscal Year 2027 Effective tax rate outlook on Oct 22, 2026.
P/B above the industry
Deckers Outdoor's price-to-book of 4.99 is above the Rubber and Miscellaneous Plastics Products median of 3.68.
Growing slower than the industry
Revenue grew 6.3% over the last twelve months; the Rubber and Miscellaneous Plastics Products median is 9.0%.
Valuation5/6
P/E below its 5-year median
Deckers Outdoor's P/E of 11.5 is below its own 5-year median of 21.5.
P/E below the industry
Deckers Outdoor's P/E of 11.5 is below the Rubber and Miscellaneous Plastics Products median of 23.9.
EV/EBITDA below its 5-year median
Deckers Outdoor's EV/EBITDA of 7.5 is below its 5-year median of 14.1.
P/B above the industry
Deckers Outdoor's price-to-book of 4.99 is above the Rubber and Miscellaneous Plastics Products median of 3.68.
Trading below fair value
The share price of $86.82 is below our fair value estimate of $145.83.
Margin of safety over 20%
The price is 40.5% below fair value, more than the 20% cushion we look for.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 14.7% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 29.5% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 4.4% over the last twelve months, against a 5-year average of 21.8% a year.
Growing slower than the industry
Revenue grew 6.3% over the last twelve months; the Rubber and Miscellaneous Plastics Products median is 9.0%.
Guidance lowered
Deckers Outdoor lowered its Full Fiscal Year 2027 Effective tax rate outlook on Oct 22, 2026.
Gross margin improving
Gross margin was 58.9% over the last twelve months, against 57.7% a year earlier.
Past performance6/6
Return on equity over 15%
Return on equity was 44.3% over the last twelve months and averaged 36.7% over five years.
Return on capital over 10%
Return on invested capital was 96.1%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Deckers Outdoor's return on equity of 44.3% is above the Rubber and Miscellaneous Plastics Products median of 9.7%.
Earnings grew over 5 years
Net income grew 21.8% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 19.0% over the last twelve months, against a 5-year average of 16.9%.
Net margin above the industry
Deckers Outdoor's net margin of 19.0% is above the Rubber and Miscellaneous Plastics Products median of 6.7%.
Financial health6/6
No debt
Deckers Outdoor has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 279.7 times.
Short-term assets cover short-term debts
Current assets are 2.72 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 8.07; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Deckers Outdoor has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$145.83
The share price is 40% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 22.7× | 21.5× | 23.9× | $170.87 | 44% |
| EV/EBITDA | 13.3× | 14.1× | 12.5× | $147.20 | 39% |
| Earnings power | 10.1% cost of equity | – | – | $75.87 | 17% |
| Fair value | $145.83 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 21.5
- Rubber and Miscellaneous Plastics Products median 23.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $284.83M
- Value traded per 1% price move
- $155.63M
Downside
Medium risk
- Typical loss in a bad month
- 16.7%
- Volatility (annualized)
- 42%
- Sharpe ratio, 1 year
- -0.04
- Beta to the S&P 500 (5Y)
- 0.99
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2010 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +9.8% | +14.7% | +16.5% | +11.3% | |
| Gross profit | +9.4% | +20.0% | +18.1% | +14.1% | |
| Operating income | +7.1% | +24.6% | +20.2% | +22.8% | |
| Net income | +6.0% | +25.6% | +21.8% | +23.7% | |
| EPS, diluted | +10.9% | +29.5% | +25.6% | +27.5% | |
| Free cash flow | +14.5% | +34.0% | +14.2% | +33.8% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 0.6% | 29.6% | 40.9% | |
| Return on assets | 0.5% | 19.5% | 28.2% | |
| Current ratio | 5.16 | 3.52 | 3.54 | |
| Interest coverage | – | – | 499.2× | |
| Inventory turnover | 3.2× | 4.0× | 4.7× | |
| Capex to revenue | 2.5% | 1.3% | 1.5% | |
| Diluted shares | 194M | 170M | 146M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Deckers Outdoor generated $3.97B from operations and spent $3.10B on capital expenditure, dividends and share buybacks. 13% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 18.7% | 1.51× | 1.45× | 40.9% |
| FY2025 | 19.4% | 1.49× | 1.45× | 41.8% |
| FY2024 | 17.7% | 1.51× | 1.47× | 39.2% |
| FY2023 | 14.2% | 1.48× | 1.48× | 31.3% |
| FY2022 | 14.3% | 1.40× | 1.51× | 30.3% |
| FY2021 | 15.0% | 1.29× | 1.52× | 29.6% |
| FY2020 | 12.9% | 1.34× | 1.46× | 25.3% |
| FY2019 | 13.1% | 1.50× | 1.36× | 26.6% |
| FY2018 | 6.0% | 1.55× | 1.30× | 12.1% |
| FY2017 | 0.3% | 1.45× | 1.29× | 0.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$1.02B
- Cash generatingOperating cash flow above zero$1.18B
- Return on assets improvedROA up on the prior year30.8% → 28.7%
- Earnings backed by cashOperating cash flow above net income$1.18B vs $1.02B
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose3.72 → 3.54
- No dilutionShare count did not rise153M → 146M
- Gross margin improvedGross margin up on the prior year57.88% → 57.70%
- More efficientAsset turnover rose1.59 → 1.53
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