ROCKY BRANDS INC (RCKY)
US7745151008 - Common Stock
RCKY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCKY was profitable.
In the past year RCKY had a positive cash flow from operations.
Each year in the past 5 years RCKY has been profitable.
Of the past 5 years RCKY 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.17%, RCKY is in line with its industry, outperforming 48.00% of the companies in the same industry.
RCKY has a Return On Equity (4.66%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 7.74%, RCKY is doing good in the industry, outperforming 66.00% of the companies in the same industry.
RCKY had an Average Return On Invested Capital over the past 3 years of 6.94%. This is below the industry average of 10.07%.
The 3 year average ROIC (6.94%) for RCKY is below the current ROIC(7.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.66% | ||
| ROIC | 7.74% |
ROA(3y)3%
ROA(5y)5.33%
ROE(3y)8.2%
ROE(5y)9.38%
ROIC(3y)6.94%
ROIC(5y)8.31%
1.3 Margins
RCKY's Profit Margin of 2.26% is in line compared to the rest of the industry. RCKY outperforms 46.00% of its industry peers.
RCKY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 8.93%, RCKY is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RCKY has grown nicely.
RCKY has a Gross Margin of 38.69%. This is in the lower half of the industry: RCKY underperforms 72.00% of its industry peers.
RCKY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.93% | ||
| PM (TTM) | 2.26% | ||
| GM | 38.69% |
OM growth 3Y-4.33%
OM growth 5Y3.7%
PM growth 3Y-33.2%
PM growth 5Y-17.13%
GM growth 3Y0.8%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCKY is destroying value.
RCKY has more shares outstanding than it did 1 year ago.
RCKY has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, RCKY has an improved debt to assets ratio.
2.2 Solvency
RCKY has an Altman-Z score of 2.75. 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.
The Altman-Z score of RCKY (2.75) is comparable to the rest of the industry.
RCKY has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as RCKY would need 2.49 years to pay back of all of its debts.
RCKY has a Debt to FCF ratio of 2.49. This is comparable to the rest of the industry: RCKY outperforms 56.00% of its industry peers.
RCKY has a Debt/Equity ratio of 0.76. This is a neutral value indicating RCKY is somewhat dependend on debt financing.
RCKY has a worse Debt to Equity ratio (0.76) than 72.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for RCKY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.89
WACC8.71%
2.3 Liquidity
RCKY has a Current Ratio of 3.61. This indicates that RCKY is financially healthy and has no problem in meeting its short term obligations.
RCKY's Current ratio of 3.61 is fine compared to the rest of the industry. RCKY outperforms 78.00% of its industry peers.
A Quick Ratio of 1.24 indicates that RCKY should not have too much problems paying its short term obligations.
The Quick ratio of RCKY (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for RCKY have decreased strongly by -40.12% in the last year.
Measured over the past 5 years, RCKY shows a small growth in Earnings Per Share. The EPS has been growing by 0.86% on average per year.
RCKY shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.97%.
Measured over the past years, RCKY shows a quite strong growth in Revenue. The Revenue has been growing by 12.82% on average per year.
EPS 1Y (TTM)-40.12%
EPS 3Y-13.82%
EPS 5Y0.86%
EPS growth Q2Q-9.26%
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y18.53%
Revenue growth 5Y12.82%
Revenue growth Q2Q-9.32%
3.2 Future
RCKY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.20% yearly.
Based on estimates for the next years, RCKY will show a small growth in Revenue. The Revenue will grow by 0.27% on average per year.
EPS Next Y21.23%
EPS Next 2Y25.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.51%
Revenue Next 2Y0.27%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.01 indicates a rather expensive valuation of RCKY.
Compared to the rest of the industry, the Price/Earnings ratio of RCKY indicates a somewhat cheap valuation: RCKY is cheaper than 62.00% of the companies listed in the same industry.
RCKY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 14.84, which indicates a correct valuation of RCKY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCKY indicates a somewhat cheap valuation: RCKY is cheaper than 66.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. RCKY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCKY is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
92.00% of the companies in the same industry are more expensive than RCKY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.73 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
RCKY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RCKY's earnings are expected to grow with 25.20% in the coming years.
PEG (NY)0.85
PEG (5Y)20.89
EPS Next 2Y25.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCKY has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
RCKY's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to the average S&P500 Dividend Yield of 2.41, RCKY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
The dividend of RCKY has a limited annual growth rate of 5.70%.
RCKY has paid a dividend for at least 10 years, which is a reliable track record.
RCKY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.7%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
RCKY pays out 43.84% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RCKY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP43.84%
EPS Next 2Y25.2%
EPS Next 3YN/A
ROCKY BRANDS INC
NASDAQ:RCKY (5/3/2024, 7:15:04 PM)
After market: 35.11 0 (0%)35.11
+1.11 (+3.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap260.17M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.85
PEG (5Y)20.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.93% | ||
| PM (TTM) | 2.26% | ||
| GM | 38.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.61 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-40.12%
EPS 3Y-13.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y18.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y