📊 DECK Key Takeaways
Is Deckers Outdoor Corp. (DECK) a Good Investment?
Deckers demonstrates exceptional fundamental quality with elite profitability metrics (57.7% gross margin, 23.1% operating margin, 18.7% net margin), a fortress balance sheet with zero debt and $1.9B cash, and outstanding capital efficiency (41% ROE, 27.8% ROA). The company generates $1.1B in free cash flow on $5.5B revenue with 9.8% YoY growth, demonstrating both scale and sustainable returns.
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.
Deckers Outdoor Corp. Key Strengths (DECK)
- Exceptional profitability: 57.7% gross margin, 23.1% operating margin, 18.7% net margin - among best-in-class
- Zero debt with fortress balance sheet: $1.9B cash, 3.54x current ratio, 0.00x debt/equity ratio
- Outstanding capital efficiency: 41% ROE, 27.8% ROA with 20.1% free cash flow margin
- Strong cash generation: $1.1B operating cash flow, $1.1B free cash flow with minimal capex intensity
- Solid growth profile: 9.8% revenue growth and 10.9% EPS growth
- 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
- Revenue growth (9.8%) outpacing net income growth (6.0%) - potential margin compression or operating cost escalation despite strong absolute margins
- Consumer discretionary exposure - footwear/apparel sector vulnerable to economic downturns and shifting consumer preferences
- Elevated insider trading activity (17 Form 4 filings in 90 days) - transactions warrant monitoring for directional signals
- 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 trend - maintaining above 57% critical to investment thesis
- Operating margin sustainability - monitor for compression below 22%
- Free cash flow growth - should track with revenue growth going forward
- Revenue growth acceleration - current 9.8% should maintain or improve
- 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 20.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.54x 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 74% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.86 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 Grade of A+ from Claude (A+) and ChatGPT (A+) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DECK's key strengths?
Claude: Exceptional profitability: 57.7% gross margin, 23.1% operating margin, 18.7% net margin - among best-in-class. Zero debt with fortress balance sheet: $1.9B cash, 3.54x current ratio, 0.00x debt/equity ratio. 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: Revenue growth (9.8%) outpacing net income growth (6.0%) - potential margin compression or operating cost escalation despite strong absolute margins. Consumer discretionary exposure - footwear/apparel sector vulnerable to economic downturns and shifting consumer preferences. 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 $5.5B.
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 $7.02.
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 grade reflects both perspectives for balanced insights.
What is DECK's fundamental grade?
Based on our AI fundamental analysis in June 2026, Deckers Outdoor Corp. has a A+ grade with 90% 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 41.0% (sector avg: 14%), net margin of 18.7% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is DECK's AI grade for 2026?
Our dual AI analysis gives Deckers Outdoor Corp. a combined A+ grade 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 $1.2B, with capital expenditures of $84.6M. FCF margin is 20.1%.
How does DECK compare to other Materials stocks?
Vs Materials sector averages: Net margin 18.7% (avg: 10%), ROE 41.0% (avg: 14%), current ratio 3.54 (avg: 1.6).
Why is DECK's return on equity (ROE) so high?
Deckers Outdoor Corp. has a return on equity of 41.0%, 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 18.7% net margin.