Deckers Brands (DECK)
Consumer Discretionary · $12.1B market cap · SEC CIK 0000910521
ahead of 97% of the S&P 500 · #3 of 48 in Consumer Discretionary
Next reports on Jan 27, 2027, with analysts expecting $3.66 in earnings per share.
52-week range $77.20 to $122.29. 27% below its 52-week high and 16% above its low.
The case for DECK
- Cheap for its growth: 11.4× earnings, where 16% a year of growth would justify about 32×.
- Earns 44% back on shareholder equity.
- Generated $1.1B of free cash flow in FY2026, 20% of revenue.
- Free cash flow of 9.1% of its market value a year: a lot of cash for the price.
- Has compounded revenue at 16.5% a year over five years.
- Carries essentially no debt.
The case against
- Growth is slowing: revenue up 6.3% this year against 16.5% a year over five.
- The price trend is weak (41/100): +10.6% over a year, −7.2% over three months, 27% below its 52-week high.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 92 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 68 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 83 |
| Momentumhow the price has behaved lately | 41 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +6.3% |
|---|---|
| Over 5 years | +16.5% a year |
| FY2026 revenue | $5.5B (+10%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $1.1B |
|---|---|
| Of revenue | 20% |
| Of profit | 107% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 58% |
|---|---|
| Operating margin | 24% |
| Net margin, FY25 → FY26 → now | 19.4% → 18.7% → 19.0% |
Debt vs. cash
Is the balance sheet healthy? Yes, little debt
| Cash | $1.9B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 0.00× |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 11.4× |
|---|---|
| Fair P/E for its growth | 32× |
| P/FCF | 11.0× |
| Forward P/E | 11.5× |
| EV / EBITDA | 7.8× |
At 11.4× earnings it trades well below the 32× that 16% a year of growth would justify. At 11.0× free cash flow it trades well below that same mark.
The financials, five years deep
Pulled from Deckers Brands's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $5.5B | $5.0B | $4.3B | $3.6B | $3.2B |
| Change on the year | +10% | +16% | +18% | +15% | — |
| Free cash flow | |||||
| Free cash flow | $1.1B | $958M | $944M | $456M | $121M |
| Of revenue | 20% | 19% | 22% | 13% | 4% |
| Profit margins | |||||
| Gross margin | 57.7% | 57.9% | 55.6% | 50.3% | 51.0% |
| Operating margin | 23.1% | 23.6% | 21.6% | 18.0% | 17.9% |
| Net margin | 18.7% | 19.4% | 17.7% | 14.2% | 14.3% |
| Debt vs. cash | |||||
| Cash | $1.9B | $1.9B | $1.5B | $982M | $844M |
What Deckers Brands says it does
We are a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. We market our products primarily under three proprietary brands : HOKA , UGG , and Teva . Our brands compete across the fashion and casual lifestyle, performance , running, and outdoor markets. We believe our products are distinctive and appeal to a broad demographic. Our brands sell our products through quality domestic and international retailers and international distributors in our wholesale channel, and directly to global consumers through our Direct-to-Consumer ( DTC ) channel, which is comprised of an e‑commerce and retail store presence. We seek to differentiate our brands and products by offering diverse lines that emphasize fashion, performance, authenticity, functionality, quality, and comfort, and products tailored to a variety of…