Stock in Focus: Deckers Outdoor Corp. (DECK)

Company Profile:

Deckers Outdoor Corporation designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high performance activities. It offers luxurious comfort footwear, handbags, apparel, home, and cold weather accessories under the UGG brand name; casual sandals, shoes, and boots under the Teva brand name; and action sport footwear under the Sanuk brand name. The company also provides outdoor performance and lifestyle footwear products under the Ahnu brand name; running footwear under the Hoka One One brand name; footwear for culinary professionals under the MOZO brand name; and dress and dress casual footwear products under the TSUBO brand name. It markets its products primarily to specialty retailers, selected department stores, outdoor retailers, sporting goods retailers, shoe stores, and online retailers. As of May 28, 2015, it operated 142 company-owned and operated retail stores. The company was founded in 1973 and is headquartered in Goleta, California.

Recent News:

Deckers Outdoor Corporation is expected to post quarterly earnings on 2015-10-22. Sell-side firms are looking for the company to post EPS of $1.14 for the quarter ending on 2015-09-30. This consensus number is based on the 12 brokers that are providing estimates.

Deckers Outdoor Corp. reported a Q1 EPS of ($1.43), beating estimates of ($1.49) by $0.06. Revenue for Q1 was at $221 million, beating the consensus estimate at $213.5 million by $7.5 million.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

DECK’s strengths can be seen in its better growth, profitability and efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 46.64. The current P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry. We rate Deckers Outdoor Corp. (DECK) a STRONG BUY.