DECKERS OUTDOOR CORP (DO2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DO2 - US2435371073 - Common Stock
85 EUR
-1.88 (-2.16%)
Overall DO2 gets a fundamental rating of 7 out of 10. We evaluated DO2 against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. DO2 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. DO2 is not valued too expensively and it also shows a decent growth rate. These ratings could make DO2 a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year DO2 was profitable.
- In the past year DO2 had a positive cash flow from operations.
- DO2 had positive earnings in each of the past 5 years.
- Each year in the past 5 years DO2 had a positive operating cash flow.
1.2 Ratios
- DO2 has a Return On Assets of 26.84%. This is amongst the best in the industry. DO2 outperforms 100.00% of its industry peers.
- DO2 has a better Return On Equity (41.19%) than 94.23% of its industry peers.
- DO2 has a Return On Invested Capital of 34.00%. This is amongst the best in the industry. DO2 outperforms 98.08% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DO2 is significantly above the industry average of 11.64%.
- The 3 year average ROIC (29.23%) for DO2 is below the current ROIC(34.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.84% | ||
| ROE | 41.19% | ||
| ROIC | 34% |
ROA(3y)23.83%
ROA(5y)21.71%
ROE(3y)34.58%
ROE(5y)31.92%
ROIC(3y)29.23%
ROIC(5y)27.24%
1.3 Margins
- DO2 has a better Profit Margin (19.37%) than 92.31% of its industry peers.
- DO2's Profit Margin has improved in the last couple of years.
- DO2 has a better Operating Margin (23.51%) than 88.46% of its industry peers.
- In the last couple of years the Operating Margin of DO2 has grown nicely.
- With a Gross Margin value of 57.66%, DO2 is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of DO2 has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.51% | ||
| PM (TTM) | 19.37% | ||
| GM | 57.66% |
OM growth 3Y9.57%
OM growth 5Y8.3%
PM growth 3Y10.54%
PM growth 5Y8.4%
GM growth 3Y4.29%
GM growth 5Y2.26%
2. Health
2.1 Basic Checks
- DO2 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, DO2 has less shares outstanding
- DO2 has less shares outstanding than it did 5 years ago.
- There is no outstanding debt for DO2. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 10.60 indicates that DO2 is not in any danger for bankruptcy at the moment.
- DO2 has a better Altman-Z score (10.60) than 96.15% of its industry peers.
- DO2 has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.6 |
ROIC/WACC2.97
WACC11.46%
2.3 Liquidity
- DO2 has a Current Ratio of 3.07. This indicates that DO2 is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of DO2 (3.07) is better than 92.31% of its industry peers.
- A Quick Ratio of 2.20 indicates that DO2 has no problem at all paying its short term obligations.
- DO2 has a Quick ratio of 2.20. This is amongst the best in the industry. DO2 outperforms 94.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.2 |
3. Growth
3.1 Past
- DO2 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.70%, which is quite good.
- DO2 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.31% yearly.
- The Revenue has grown by 12.62% in the past year. This is quite good.
- The Revenue has been growing by 18.51% on average over the past years. This is quite good.
EPS 1Y (TTM)18.7%
EPS 3Y32.67%
EPS 5Y31.31%
EPS Q2Q%14.47%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y16.53%
Revenue growth 5Y18.51%
Sales Q2Q%9.11%
3.2 Future
- The Earnings Per Share is expected to grow by 9.37% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.69% on average over the next years. This is quite good.
EPS Next Y2.94%
EPS Next 2Y5.12%
EPS Next 3Y7.51%
EPS Next 5Y9.37%
Revenue Next Year8.09%
Revenue Next 2Y7.75%
Revenue Next 3Y7.9%
Revenue Next 5Y8.69%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.91, which indicates a correct valuation of DO2.
- Compared to the rest of the industry, the Price/Earnings ratio of DO2 indicates a rather cheap valuation: DO2 is cheaper than 82.69% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of DO2 to the average of the S&P500 Index (27.25), we can say DO2 is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 14.35, the valuation of DO2 can be described as correct.
- Based on the Price/Forward Earnings ratio, DO2 is valued cheaper than 80.77% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DO2 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DO2 is on the same level as its industry peers.
- DO2's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DO2 is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.97 | ||
| EV/EBITDA | 10.13 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DO2 does not grow enough to justify the current Price/Earnings ratio.
- DO2 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.07
PEG (5Y)0.48
EPS Next 2Y5.12%
EPS Next 3Y7.51%
5. Dividend
5.1 Amount
- No dividends for DO2!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DECKERS OUTDOOR CORP / DO2.DE FAQ
What is the fundamental rating for DO2 stock?
ChartMill assigns a fundamental rating of 7 / 10 to DO2.DE.
What is the valuation status of DECKERS OUTDOOR CORP (DO2.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to DECKERS OUTDOOR CORP (DO2.DE). This can be considered as Fairly Valued.
How profitable is DECKERS OUTDOOR CORP (DO2.DE) stock?
DECKERS OUTDOOR CORP (DO2.DE) has a profitability rating of 9 / 10.
What is the valuation of DECKERS OUTDOOR CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DECKERS OUTDOOR CORP (DO2.DE) is 14.91 and the Price/Book (PB) ratio is 5.95.
Can you provide the expected EPS growth for DO2 stock?
The Earnings per Share (EPS) of DECKERS OUTDOOR CORP (DO2.DE) is expected to grow by 2.94% in the next year.