📊 DECK Key Takeaways
Is Deckers Outdoor Corp. (DECK) a Good Investment?
Deckers demonstrates exceptional financial strength with outstanding profitability metrics (57.7% gross margin, 25.4% operating margin, 20.4% net margin) and impressive growth (16.3% revenue YoY, 30.2% EPS growth). The company generates substantial free cash flow ($1.0B, 23.4% FCF margin) with minimal leverage (0.0x debt/equity) and fortress-like balance sheet ($2.1B cash, 2.86x current ratio), positioning it as a premium operator in footwear with sustainable competitive advantages.
Deckers shows exceptional fundamental quality, with double-digit revenue growth translating into very high profitability, including 57.7% gross margin, 25.4% operating margin, and 20.4% net margin. The balance sheet is extremely strong with $2.09B of cash, no meaningful leverage indicated, and free cash flow generation of $1.02B, suggesting growth is both efficient and financially resilient.
Why Buy Deckers Outdoor Corp. Stock? DECK Key Strengths
- Exceptional profitability margins across all levels (gross, operating, net) significantly above sector averages
- Strong revenue growth (16.3% YoY) coupled with operating leverage driving 30.2% EPS growth
- Outstanding cash generation ($1.0B FCF) with minimal capital intensity (CapEx only 1.5% of revenue)
- No financial leverage (0.0x debt/equity) with substantial cash reserves ($2.1B) providing strategic flexibility
- Superior return metrics (34.0% ROE, 21.7% ROA) indicating efficient capital allocation
- Excellent liquidity position (2.86x current ratio, 2.30x quick ratio) with no solvency concerns
- High-quality growth with revenue up 16.3% YoY and diluted EPS up 30.2% YoY
- Outstanding profitability, including 57.7% gross margin, 25.4% operating margin, and 34.0% ROE
- Exceptional financial health with strong liquidity, substantial cash reserves, and essentially no debt
DECK Stock Risks: Deckers Outdoor Corp. Investment Risks
- High profitability metrics may face compression if competitive pressures intensify or brand positioning weakens
- Footwear industry exposure to consumer discretionary demand cyclicality and economic slowdown sensitivity
- Significant insider trading activity (14 Form 4 filings in 90 days) warrants monitoring for potential sentiment concerns
- Geographic and channel concentration risks not detailed in available data; reliance on key product lines
- Supply chain vulnerabilities typical to apparel/footwear sector with international manufacturing dependencies
- Growth may moderate if brand momentum or consumer demand in premium footwear weakens
- High margins can face pressure from promotions, input costs, freight, or channel mix changes
- Some balance sheet and liability details are unavailable, limiting full leverage and obligation analysis
Key Metrics to Watch
- Gross margin sustainability and trend (currently 57.7%)
- Revenue growth consistency and acceleration/deceleration patterns
- Free cash flow conversion and capital allocation efficiency
- Debt/equity ratio for any future leverage increases
- Return on equity maintenance above 30% threshold
- Insider transaction patterns for any notable accumulation or distribution trends
- Revenue growth versus operating margin to confirm sustained profitable expansion
- Free cash flow conversion and cash balance trends to ensure earnings quality remains high
Deckers Outdoor Corp. (DECK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.86x current ratio provides a solid financial cushion.
DECK Profit Margin, ROE & Profitability Analysis
DECK vs Materials Sector: How Deckers Outdoor Corp. Compares
How Deckers Outdoor Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Deckers Outdoor Corp. Stock Overvalued? DECK Valuation Analysis 2026
Based on fundamental analysis, Deckers Outdoor Corp. appears fundamentally strong relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Deckers Outdoor Corp. Balance Sheet: DECK Debt, Cash & Liquidity
DECK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Deckers Outdoor Corp.'s revenue has grown significantly by 96% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.23 reflects profitable operations.
DECK Revenue Growth, EPS Growth & YoY Performance
DECK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.8B | $115.6M | $3.00 |
| Q2 2026 | $1.3B | $115.6M | $1.59 |
| Q1 2026 | $825.3M | $115.6M | $0.75 |
| Q3 2025 | $1.6B | $63.6M | $2.52 |
| Q2 2025 | $1.1B | $63.6M | $1.14 |
| Q1 2025 | $675.8M | $63.6M | $2.41 |
| Q3 2024 | $1.3B | $44.8M | $10.48 |
| Q2 2024 | $875.6M | $44.8M | $3.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Deckers Outdoor Corp. Dividends, Buybacks & Capital Allocation
DECK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Deckers Outdoor Corp. (CIK: 0000910521)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DECK
What is the AI rating for DECK?
Deckers Outdoor Corp. (DECK) has a Combined AI Rating of STRONG BUY from Claude (STRONG BUY) and ChatGPT (STRONG BUY) with 92% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DECK's key strengths?
Claude: Exceptional profitability margins across all levels (gross, operating, net) significantly above sector averages. Strong revenue growth (16.3% YoY) coupled with operating leverage driving 30.2% EPS growth. ChatGPT: High-quality growth with revenue up 16.3% YoY and diluted EPS up 30.2% YoY. Outstanding profitability, including 57.7% gross margin, 25.4% operating margin, and 34.0% ROE.
What are the risks of investing in DECK?
Claude: High profitability metrics may face compression if competitive pressures intensify or brand positioning weakens. Footwear industry exposure to consumer discretionary demand cyclicality and economic slowdown sensitivity. ChatGPT: Growth may moderate if brand momentum or consumer demand in premium footwear weakens. High margins can face pressure from promotions, input costs, freight, or channel mix changes.
What is DECK's revenue and growth?
Deckers Outdoor Corp. reported revenue of $4.4B.
Does DECK pay dividends?
Deckers Outdoor Corp. does not currently pay dividends.
Where can I find DECK SEC filings?
Official SEC filings for Deckers Outdoor Corp. (CIK: 0000910521) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DECK's EPS?
Deckers Outdoor Corp. has a diluted EPS of $6.04.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DECK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Deckers Outdoor Corp. has a STRONG BUY rating with 92% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DECK stock overvalued or undervalued?
Valuation metrics for DECK: ROE of 34.0% (sector avg: 14%), net margin of 20.4% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy DECK stock in 2026?
Our dual AI analysis gives Deckers Outdoor Corp. a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DECK's free cash flow?
Deckers Outdoor Corp.'s operating cash flow is $1.1B, with capital expenditures of $67.5M. FCF margin is 23.4%.
How does DECK compare to other Materials stocks?
Vs Materials sector averages: Net margin 20.4% (avg: 10%), ROE 34.0% (avg: 14%), current ratio 2.86 (avg: 1.6).
Why is DECK's return on equity (ROE) so high?
Deckers Outdoor Corp. has a return on equity of 34.0%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 20.4% net margin.