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. There are concerns on the financial health of RCKY while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on RCKY.
1. Profitability
1.1 Basic Checks
RCKY had positive earnings in the past year.
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
RCKY has a Return On Assets of 2.94%. This is comparable to the rest of the industry: RCKY outperforms 52.08% of its industry peers.
The Return On Equity of RCKY (5.84%) is comparable to the rest of the industry.
RCKY's Return On Invested Capital of 7.45% is in line compared to the rest of the industry. RCKY outperforms 50.00% of its industry peers.
RCKY had an Average Return On Invested Capital over the past 3 years of 7.48%. This is below the industry average of 11.61%.
| 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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of RCKY has declined.
The Operating Margin of RCKY (7.85%) is comparable to the rest of the industry.
RCKY's Operating Margin has been stable in the last couple of years.
The Gross Margin of RCKY (39.98%) is worse than 77.08% of its industry peers.
RCKY's Gross Margin has improved in the last couple of years.
| 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
RCKY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RCKY has more shares outstanding
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 2.54 indicates that RCKY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RCKY (2.54) is worse than 64.58% 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.
Looking at the Debt to FCF ratio, with a value of 4.01, RCKY is in line with its industry, outperforming 56.25% of the companies in the same industry.
RCKY has a Debt/Equity ratio of 0.51. This is a neutral value indicating RCKY is somewhat dependend on debt financing.
RCKY has a worse Debt to Equity ratio (0.51) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 4.01 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.65
WACC11.49%
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.
Looking at the Current ratio, with a value of 2.64, RCKY is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
RCKY has a Quick Ratio of 2.64. 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 worse Quick ratio (0.85) than 68.75% of its industry peers.
| 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%.
RCKY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.91% yearly.
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
The Earnings Per Share is expected to grow by 3.16% on average over the next years.
RCKY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
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
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.
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 7.49.
RCKY's Price/Earnings ratio is rather cheap when compared to the industry. RCKY is cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCKY to the average of the S&P500 Index (26.60), we can say RCKY is valued rather cheaply.
RCKY is valuated cheaply with a Price/Forward Earnings ratio of 7.92.
87.50% of the companies in the same industry are more expensive than RCKY, based on the Price/Forward Earnings ratio.
RCKY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.49 | ||
| Fwd PE | 7.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCKY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCKY indicates a rather cheap valuation: RCKY is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.97 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.17
EPS Next 2Y3.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, RCKY has a reasonable but not impressive dividend return.
RCKY's Dividend Yield is a higher than the industry average which is at 3.72.
Compared to an average S&P500 Dividend Yield of 2.39, RCKY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of RCKY has a limited annual growth rate of 2.85%.
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)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.
RCKY's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP33.53%
EPS Next 2Y3.16%
EPS Next 3YN/A
NASDAQ:RCKY (6/13/2025, 10:47:29 AM)
21.42
-0.29 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change0.2%
Ins Owners3.68%
Ins Owner Change2.33%
Market Cap159.79M
Analysts45.71
Price Target20.4 (-4.76%)
Short Float %2.87%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)27.37%
EPS NY rev (3m)-22.19%
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 | 7.49 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.35 | ||
| P/FCF | 4.97 | ||
| P/OCF | 4.29 | ||
| P/B | 0.68 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)2.86
EY13.35%
EPS(NY)2.7
Fwd EY12.62%
FCF(TTM)4.31
FCFY20.12%
OCF(TTM)4.99
OCFY23.3%
SpS60.98
BVpS31.64
TBVpS11.13
PEG (NY)N/A
PEG (5Y)3.17
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 | 2.54 |
F-Score6
WACC11.49%
ROIC/WACC0.65
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%