ROCKY BRANDS INC (RCKY) Stock Fundamental Analysis
NASDAQ:RCKY - Nasdaq - US7745151008 - Common Stock - Currency: USD
RCKY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of RCKY get a neutral evaluation. Nothing too spectacular is happening here. RCKY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RCKY was profitable.
RCKY had a positive operating cash flow in the past year.
In the past 5 years RCKY has always been profitable.
Of the past 5 years RCKY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RCKY (2.49%) is comparable to the rest of the industry.
RCKY has a Return On Equity (4.90%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 7.39%, RCKY is in line with its industry, outperforming 52.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RCKY is significantly below the industry average of 13.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.9% | ||
| ROIC | 7.39% |
ROA(3y)2.73%
ROA(5y)4.13%
ROE(3y)6.36%
ROE(5y)8.24%
ROIC(3y)7.55%
ROIC(5y)7.91%
1.3 Margins
Looking at the Profit Margin, with a value of 2.51%, RCKY is in line with its industry, outperforming 47.92% of the companies in the same industry.
In the last couple of years the Profit Margin of RCKY has declined.
The Operating Margin of RCKY (7.73%) is comparable to the rest of the industry.
RCKY's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 39.45%, RCKY is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RCKY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.73% | ||
| PM (TTM) | 2.51% | ||
| GM | 39.45% |
OM growth 3Y3.35%
OM growth 5Y-1.11%
PM growth 3Y-14.44%
PM growth 5Y-17.26%
GM growth 3Y1.41%
GM growth 5Y1.77%
2. Health
2.1 Basic Checks
RCKY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RCKY has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RCKY has been increased compared to 5 years ago.
The debt/assets ratio for RCKY has been reduced compared to a year ago.
2.2 Solvency
RCKY has an Altman-Z score of 2.56. This is not the best score and indicates that RCKY is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.56, RCKY is in line with its industry, outperforming 45.83% of the companies in the same industry.
RCKY has a debt to FCF ratio of 2.68. This is a good value and a sign of high solvency as RCKY would need 2.68 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.68, RCKY is doing good in the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that RCKY is somewhat dependend on debt financing.
The Debt to Equity ratio of RCKY (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.65
WACC11.35%
2.3 Liquidity
RCKY has a Current Ratio of 2.73. This indicates that RCKY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.73, RCKY is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
RCKY has a Quick Ratio of 2.73. This is a bad value and indicates that RCKY is not financially healthy enough and could expect problems in meeting its short term obligations.
RCKY has a Quick ratio of 0.88. This is in the lower half of the industry: RCKY underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.23% over the past year.
RCKY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.36% yearly.
Looking at the last year, RCKY shows a decrease in Revenue. The Revenue has decreased by -2.01% in the last year.
Measured over the past years, RCKY shows a quite strong growth in Revenue. The Revenue has been growing by 10.91% on average per year.
EPS 1Y (TTM)15.23%
EPS 3Y-16.61%
EPS 5Y2.36%
EPS Q2Q%78.05%
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y-4.08%
Revenue growth 5Y10.91%
Sales Q2Q%1.03%
3.2 Future
Based on estimates for the next years, RCKY will show a very negative growth in Earnings Per Share. The EPS will decrease by -29.15% on average per year.
The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y-21.49%
EPS Next 2Y-29.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.19%
Revenue Next 2Y4.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
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
RCKY is valuated cheaply with a Price/Earnings ratio of 7.07.
RCKY's Price/Earnings ratio is rather cheap when compared to the industry. RCKY is cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.85. RCKY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 15.85 indicates a correct valuation of RCKY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCKY is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, RCKY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 15.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCKY indicates a rather cheap valuation: RCKY is cheaper than 85.42% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCKY indicates a rather cheap valuation: RCKY is cheaper than 95.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.13 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
A cheap valuation may be justified as RCKY's earnings are expected to decrease with -29.15% in the coming years.
PEG (NY)N/A
PEG (5Y)2.99
EPS Next 2Y-29.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCKY has a Yearly Dividend Yield of 3.02%.
Compared to an average industry Dividend Yield of 3.72, RCKY pays a better dividend. On top of this RCKY pays more dividend than 83.33% of the companies listed in the same industry.
RCKY's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of RCKY has a limited annual growth rate of 2.84%.
RCKY has paid a dividend for at least 10 years, which is a reliable track record.
RCKY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.84%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
40.49% of the earnings are spent on dividend by RCKY. This is a bit on the high side, but may be sustainable.
DP40.49%
EPS Next 2Y-29.15%
EPS Next 3YN/A
20.21
-0.79 (-3.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change-0.68%
Ins Owners3.68%
Ins Owner Change1.69%
Market Cap150.77M
Analysts45.71
Price Target20.4 (0.94%)
Short Float %2.73%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend0.62
Dividend Growth(5Y)2.84%
DP40.49%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.67%
Min EPS beat(2)-23.36%
Max EPS beat(2)-3.98%
EPS beat(4)2
Avg EPS beat(4)489.48%
Min EPS beat(4)-23.36%
Max EPS beat(4)1909.8%
EPS beat(8)4
Avg EPS beat(8)223.96%
EPS beat(12)7
Avg EPS beat(12)158.52%
EPS beat(16)10
Avg EPS beat(16)127.14%
Revenue beat(2)1
Avg Revenue beat(2)-3.38%
Min Revenue beat(2)-6.84%
Max Revenue beat(2)0.07%
Revenue beat(4)2
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-6.84%
Max Revenue beat(4)4.06%
Revenue beat(8)3
Avg Revenue beat(8)-2.73%
Revenue beat(12)7
Avg Revenue beat(12)1.15%
Revenue beat(16)10
Avg Revenue beat(16)1.1%
PT rev (1m)-16.67%
PT rev (3m)-20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.75%
EPS NY rev (1m)-21.49%
EPS NY rev (3m)-38.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.35%
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.07 | ||
| Fwd PE | 15.85 | ||
| P/S | 0.33 | ||
| P/FCF | 3.13 | ||
| P/OCF | 2.86 | ||
| P/B | 0.65 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)2.86
EY14.15%
EPS(NY)1.27
Fwd EY6.31%
FCF(TTM)6.45
FCFY31.9%
OCF(TTM)7.07
OCFY35%
SpS60.83
BVpS31.13
TBVpS10.53
PEG (NY)N/A
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 4.9% | ||
| ROCE | 9.56% | ||
| ROIC | 7.39% | ||
| ROICexc | 7.47% | ||
| ROICexgc | 12.94% | ||
| OM | 7.73% | ||
| PM (TTM) | 2.51% | ||
| GM | 39.45% | ||
| FCFM | 10.6% |
ROA(3y)2.73%
ROA(5y)4.13%
ROE(3y)6.36%
ROE(5y)8.24%
ROIC(3y)7.55%
ROIC(5y)7.91%
ROICexc(3y)7.64%
ROICexc(5y)8.36%
ROICexgc(3y)12.59%
ROICexgc(5y)12.63%
ROCE(3y)9.77%
ROCE(5y)10.22%
ROICexcg growth 3Y11.94%
ROICexcg growth 5Y-0.53%
ROICexc growth 3Y8.68%
ROICexc growth 5Y-7.05%
OM growth 3Y3.35%
OM growth 5Y-1.11%
PM growth 3Y-14.44%
PM growth 5Y-17.26%
GM growth 3Y1.41%
GM growth 5Y1.77%
F-Score7
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 45.49% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 2.17 | ||
| Cash Conversion | 116.43% | ||
| Profit Quality | 422.42% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 2.56 |
F-Score7
WACC11.35%
ROIC/WACC0.65
Cap/Depr(3y)45.23%
Cap/Depr(5y)109.01%
Cap/Sales(3y)0.99%
Cap/Sales(5y)2.26%
Profit Quality(3y)383.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.23%
EPS 3Y-16.61%
EPS 5Y2.36%
EPS Q2Q%78.05%
EPS Next Y-21.49%
EPS Next 2Y-29.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.01%
Revenue growth 3Y-4.08%
Revenue growth 5Y10.91%
Sales Q2Q%1.03%
Revenue Next Year5.19%
Revenue Next 2Y4.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.96%
EBIT growth 3Y-0.87%
EBIT growth 5Y9.67%
EBIT Next Year25.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-30.95%
FCF growth 3YN/A
FCF growth 5Y35.92%
OCF growth 1Y-28.29%
OCF growth 3YN/A
OCF growth 5Y23.87%