Deckers Outdoor Corporation
$107.36
-3.1%Deckers Outdoor Corporation, together with its subsidiaries, designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. The company offers premium footwear, apparel, and accessories under the UGG brand name; sandals, shoes, and boots under the Teva brand name; and relaxed casual shoes and sandals under the Sanuk brand name. It also provides footwear and apparel for ultra-runners and athletes under the Hoka brand name; and fashion casual footwear using other plush materials under the Koolaburra brand. The company sells its products through department stores, domestic independent action sports and outdoor specialty footwear retailers, and larger national retail chains, as well as online retailers. It also sells its products directly to consumers through its retail stores and e-commerce websites, as well as distributes its products through distributors and retailers in the United States, Europe, the Asia-Pacific, Canada, Latin America, and internationally. As of March 31, 2022, it had 149 retail stores, including 75 concept stores and 74 outlet stores worldwide. The company was founded in 1973 and is headquartered in Goleta, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 15.3).
Valuation inputs: P/E 15.3, earnings yield +6.6%, momentum -3.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +41.0%, ROIC +32.9%).
Profitability stack: net margin +18.7%, ROE +41.0%, ROIC +32.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +10.4%, momentum -3.1%, net margin +18.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Deckers Outdoor Corporation Market vs Earnings Trajectory
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Deckers Outdoor Corporation Fair Value Envelope
Deckers Outdoor Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Deckers Outdoor Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expandingโmonitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Deckers Outdoor Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Deckers Outdoor Corporation Street Expectations Map
Wall Street analysts project that DECK stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 118.73, with estimates ranging from a low of 90.00 to a high of 145.00.
The consensus 1-year price target stands at 118.73, with estimates ranging from a low of 90.00 to a high of 145.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Asymmetric upside: Strong return potential with favorable risk-reward profile. The limited downside relative to upside makes this an attractive risk-adjusted opportunity for growth-oriented portfolios.
Deckers Outdoor Corporation Insider Positioning
During the last 12 months, insiders have purchased $200K and sold $1.14M worth of DECK shares, resulting in $936K of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
0
0.00
9.1K
1.05M
-1.0M
-$1.05M
6-9 Months
0
0.00
1.0K
84.75K
-85K
-$85K
9-12 Months
1.8K
200.32K
24
2.63K
+198K
+$198K
Top Buyers
Davis Cindy L
Director
$200K
Top Sellers
Shanahan Lauri M
Director
$538K
Spangenberg Anne
Officer: President, Fashion Lifestyle
$471K
Ogbechie Angela
Officer: Chief Supply Chain Officer
$78K
Spring-Green Robin
Officer: President, Hoka
$39K
Ibrahim Maha Saleh
Director
$9K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $936K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buyingโmonitor for potential fundamental concerns.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
DECK has not reported any dividend yield values in the available annual periods.
deck Dividend History
Learning Layer
Related Guides
Build conviction on DECK by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.