ROCKY BRANDS INC (RCKY) Stock Fundamental Analysis
NASDAQ:RCKY - Nasdaq - US7745151008 - Common Stock - Currency: USD
Overall RCKY gets a fundamental rating of 4 out of 10. We evaluated RCKY against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. RCKY has a medium profitability rating, but doesn't score so well on its financial health evaluation. RCKY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCKY was profitable.
RCKY had a positive operating cash flow in the past year.
Each year in the past 5 years RCKY has been profitable.
RCKY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RCKY has a Return On Assets (2.94%) which is comparable to the rest of the industry.
The Return On Equity of RCKY (5.84%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.45%, RCKY is in line with its industry, outperforming 52.08% of the companies in the same industry.
RCKY had an Average Return On Invested Capital over the past 3 years of 7.48%. This is below the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.84% | ||
| ROIC | 7.45% |
ROA(3y)2.67%
ROA(5y)4.1%
ROE(3y)6.24%
ROE(5y)8.17%
ROIC(3y)7.48%
ROIC(5y)7.86%
1.3 Margins
RCKY has a Profit Margin (3.03%) which is in line with its industry peers.
RCKY's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.85%, RCKY is in line with its industry, outperforming 54.17% of the companies in the same industry.
RCKY's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 39.98%, RCKY is not doing good in the industry: 75.00% 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 | 7.85% | ||
| PM (TTM) | 3.03% | ||
| GM | 39.98% |
OM growth 3Y2.89%
OM growth 5Y-1.38%
PM growth 3Y-15.42%
PM growth 5Y-17.83%
GM growth 3Y1.41%
GM growth 5Y1.77%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RCKY is destroying value.
The number of shares outstanding for RCKY has been increased compared to 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
An Altman-Z score of 2.58 indicates that RCKY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RCKY (2.58) is worse than 62.50% of its industry peers.
RCKY has a debt to FCF ratio of 4.01. This is a neutral value as RCKY would need 4.01 years to pay back of all of its debts.
RCKY has a Debt to FCF ratio (4.01) which is in line with its industry peers.
RCKY has a Debt/Equity ratio of 0.51. This is a neutral value indicating RCKY is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, RCKY perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.66
WACC11.32%
2.3 Liquidity
RCKY has a Current Ratio of 2.64. This indicates that RCKY is financially healthy and has no problem in meeting its short term obligations.
RCKY has a better Current ratio (2.64) than 66.67% of its industry peers.
A Quick Ratio of 0.85 indicates that RCKY may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, RCKY is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.23% over the past year.
The Earnings Per Share has been growing slightly by 2.36% on average over the past years.
RCKY shows a decrease in Revenue. In the last year, the revenue decreased by -2.01%.
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 small growth in Earnings Per Share. The EPS will grow by 3.16% on average per year.
Based on estimates for the next years, RCKY will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y-0.01%
EPS Next 2Y3.16%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RCKY is valuated reasonably with a Price/Earnings ratio of 8.30.
Based on the Price/Earnings ratio, RCKY is valued cheaper than 85.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, RCKY is valued rather cheaply.
RCKY is valuated reasonably with a Price/Forward Earnings ratio of 8.78.
83.33% of the companies in the same industry are more expensive than RCKY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RCKY to the average of the S&P500 Index (21.90), we can say RCKY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCKY is valued a bit cheaper than 79.17% of the companies in the same industry.
RCKY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RCKY is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.51 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.51
EPS Next 2Y3.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RCKY has a Yearly Dividend Yield of 2.61%.
Compared to an average industry Dividend Yield of 3.64, RCKY pays a bit more dividend than its industry peers.
RCKY's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of RCKY has a limited annual growth rate of 2.85%.
RCKY has been paying a dividend for at least 10 years, so it has a reliable track record.
RCKY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.85%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
RCKY pays out 33.53% of its income as dividend. This is a sustainable payout ratio.
The dividend of RCKY is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP33.53%
EPS Next 2Y3.16%
EPS Next 3YN/A
23.74
+0.09 (+0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners72.98%
Inst Owner Change0.2%
Ins Owners3.59%
Ins Owner Change2.33%
Market Cap177.10M
Analysts45.71
Price Target20.4 (-14.07%)
Short Float %2.83%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend0.62
Dividend Growth(5Y)2.85%
DP33.53%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.83%
Min EPS beat(2)-3.98%
Max EPS beat(2)37.63%
EPS beat(4)2
Avg EPS beat(4)21.43%
Min EPS beat(4)-23.36%
Max EPS beat(4)75.44%
EPS beat(8)5
Avg EPS beat(8)272.67%
EPS beat(12)7
Avg EPS beat(12)161.61%
EPS beat(16)10
Avg EPS beat(16)123.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)0.07%
Revenue beat(4)1
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-6.84%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.2%
Revenue beat(12)6
Avg Revenue beat(12)-0.56%
Revenue beat(16)9
Avg Revenue beat(16)-0.23%
PT rev (1m)0%
PT rev (3m)-16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.39 | ||
| P/FCF | 5.51 | ||
| P/OCF | 4.76 | ||
| P/B | 0.75 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)2.86
EY12.05%
EPS(NY)2.7
Fwd EY11.39%
FCF(TTM)4.31
FCFY18.15%
OCF(TTM)4.99
OCFY21.02%
SpS60.98
BVpS31.64
TBVpS11.13
PEG (NY)N/A
PEG (5Y)3.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 5.84% | ||
| ROCE | 9.66% | ||
| ROIC | 7.45% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 12.85% | ||
| OM | 7.85% | ||
| PM (TTM) | 3.03% | ||
| GM | 39.98% | ||
| FCFM | 7.07% |
ROA(3y)2.67%
ROA(5y)4.1%
ROE(3y)6.24%
ROE(5y)8.17%
ROIC(3y)7.48%
ROIC(5y)7.86%
ROICexc(3y)7.57%
ROICexc(5y)8.31%
ROICexgc(3y)12.5%
ROICexgc(5y)12.55%
ROCE(3y)9.7%
ROCE(5y)10.18%
ROICexcg growth 3Y11.48%
ROICexcg growth 5Y-0.77%
ROICexc growth 3Y8.19%
ROICexc growth 5Y-7.3%
OM growth 3Y2.89%
OM growth 5Y-1.38%
PM growth 3Y-15.42%
PM growth 5Y-17.83%
GM growth 3Y1.41%
GM growth 5Y1.77%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.01 | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 51.47% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 81.64% | ||
| Profit Quality | 233.31% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.58 |
F-Score6
WACC11.32%
ROIC/WACC0.66
Cap/Depr(3y)45.54%
Cap/Depr(5y)109.2%
Cap/Sales(3y)0.99%
Cap/Sales(5y)2.26%
Profit Quality(3y)400.28%
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-0.01%
EPS Next 2Y3.16%
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-19.19%
EBIT growth 3Y-1.31%
EBIT growth 5Y9.38%
EBIT Next Year5.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y58.84%
FCF growth 3YN/A
FCF growth 5Y36.05%
OCF growth 1Y42.48%
OCF growth 3YN/A
OCF growth 5Y23.98%