COLM — Columbia Sportswear Co
Snapshot dated September 1, 2026.
Columbia Sportswear Company is an outdoor apparel and footwear manufacturer primarily known for its namesake Columbia brand, which focuses on active outdoor clothing and gear. The company operates a portfolio of distinct brands including SOREL, which focuses on footwear, Mountain Hardwear, known for technical climbing and outdoor equipment, and prAna, which emphasizes lifestyle and yoga-inspired apparel. It generates revenue through both wholesale distribution to sporting goods retailers and department stores, and through its own direct-to-consumer channels including e-commerce platforms and company-operated retail stores. With a global footprint, the company manages supply chains spanning multiple continents and sells its products in approximately 90 countries. The company positions itself as a long-standing incumbent in the outdoor activewear sector, competing against other major apparel conglomerates like VF Corporation and Deckers Outdoor. In recent periods, the company has navigated shifting consumer demand patterns by adjusting its inventory management strategies and enhancing its direct-to-consumer digital infrastructure.
Fair Value / Share
$84.26
Price on September 1, 2026
$57.05
Margin of Safety
47.71%
Data by Equibles and SEC filings. Figures are as of September 1, 2026 and are not live.
Earnings Yield
Earnings Yield shows how much profit a company generates relative to its share price. EPS ÷ Stock Price.
Stock Price
$57.05
Market Cap
$2,924,354,880
Net Income (TTM)
$206,033,000
Diluted Shares
51.3 million
EPS (TTM)
$4.02
Earnings Yield
7.05%
AI Analysis
Columbia Sportswear's current earnings yield is 7.05%, derived from an EPS (TTM) of $4.02 and a share price of $57.05. This yield sits above the 4-5% return typically available from safe, guaranteed bond alternatives. A yield above this benchmark implies that the current share price attributes less value to each dollar of the company's current annual earnings compared to assets priced closer to the benchmark. This result would change if the earnings per share were to decline, increasing the cost of those earnings relative to the price, or if the share price were to rise, which would mathematically lower the yield. This measure only accounts for trailing earnings and does not capture prospective changes in the company's operational costs, market demand, or future growth.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$256,999,000
Net Working Capital
$584,948,000
Net Fixed Assets
$266,595,000
Invested Capital
$851,543,000
Return on Capital
30.18%
AI Analysis
Columbia Sportswear Co (COLM) achieved a Return on Capital of 30.18%. This figure is derived by dividing an EBIT of $257M by the total invested capital of $851.5M, which combines $584.9M in net working capital and $266.6M in net fixed assets. A return of 30.18% sits just above the 30% benchmark, indicating that the business is producing a strong level of profit for every dollar of tangible capital deployed. This measure captures the efficiency of capital usage based on established operating metrics, but it does not account for industry-specific capital requirements or external economic conditions. Significant changes in the business model, such as substantial new investments in property or shifts in inventory management, would alter the capital base and cause this percentage to move accordingly.
Acquirer's Multiple
Enterprise Value ÷ Operating Earnings — how many years of operating earnings it would take to buy the whole business.
| Company | Operating earnings | Enterprise value | Multiple |
|---|---|---|---|
| DECKDeckers Outdoor Corp | $1.3B | $10.1B | 8.0x |
| COLMColumbia Sportswear Co | $257M | $2.4B | 9.3x |
| VFCV F Corp | $576.6M | $7.9B | 13.7x |
Where COLM sits: 9.3x against a peer median of 10.9x (peers: 13.7x and 8.0x) — 14.4% below the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
COLM
Debt $0. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $461.2M of operating lease liabilities as of 2026-06-30 ($377.2M non-current, $84M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
VFC
Named as a competitor: competes in outdoor apparel and footwear through brands like The North Face
Debt $3.5B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $1.5B of operating lease liabilities as of 2026-03-28 ($1.1B non-current, $333.5M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
DECK
Named as a competitor: competes in performance and outdoor footwear through HOKA and Teva
Debt $0. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $472.3M of operating lease liabilities as of 2026-06-30 ($399M non-current, $73.4M current). These are excluded from debt because operating lease cost already sits inside operating earnings — counting the liability again as debt would charge the business twice for the same thing.
Operating earnings — COLM
AI Analysis
Columbia Sportswear Co (COLM) has an Acquirer's Multiple of 9.3x, derived from an enterprise value of $2.4B and TTM operating earnings of $257M. Among the comparison group, VFC shows the highest multiple at 13.7x (based on $7.9B enterprise value and $576.6M operating earnings), while DECK shows the lowest multiple at 8.0x (based on $10.1B enterprise value and $1.3B operating earnings). The result for COLM is 9.3x against a peer median of 10.9x (peers: 13.7x and 8.0x) — 14.4% below the median. This measure captures the relationship between the price to purchase the entire business and its core operating profitability; any difference in result between these companies stems from variations in capital structure or underlying profit margins. The gap would close if COLM's operating earnings increased or if the peers saw their operating earnings decline or their enterprise values rise relative to those earnings.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
7/10
Decent score — worth a deeper look before investing.
Section 1
Current Profitability
3/3
Profitability is Strong, as the company passed all three checks by generating positive accounting earnings and substantial free cash flow.
- Return on Assets is positive at 6.05%.
- Free Cash Flow to Total Assets is positive at 7.40%.
- The accruals check of 1.6 shows that cash flow from operations is higher than net income, suggesting high-quality earnings.
This score indicates the business is currently generating real cash, though the result would weaken if cash from operations fell below net income.
Return on Assets (ROA > 0)
PassFree Cash Flow to Total Assets (FCFTA > 0)
PassAccruals (CFO / Net Income > 1)
PassSection 2
Stability
2/3
The stability profile is Mixed, reflecting a reduction in share count offset by a slight decrease in the current ratio.
- Long-term debt remained at 0, passing the leverage stability check.
- The current ratio declined from 2.62 to 2.59, missing the liquidity improvement target.
- Diluted weighted-average shares decreased to 54.8 million from 58.5 million, passing the net dilution check.
Stability is bolstered by the lack of long-term debt, but a further decline in the current ratio would suggest tightening liquidity.
Change in Leverage (↓ or unchanged)
PassChange in Liquidity (↑ Current Ratio)
FailNet Dilution (annual diluted weighted-average shares, this year vs last)
PassSection 3
Recent Operational Improvements
2/4
Recent operational improvements are Mixed, with gains in pricing power and asset efficiency negated by year-over-year declines in profitability ratios.
- Return on Assets fell to 6.05% from 7.50% a year ago.
- Free Cash Flow to Total Assets dropped to 7.40% from 14.49%.
- Gross Margin improved to 50.53% from 50.20%.
- Asset Turnover increased from 1.13 to 1.16.
The score reflects a business becoming more efficient at moving inventory and maintaining margins, but failing to match the high profitability levels of the prior year.
Change in ROA (↑)
FailChange in FCFTA (↑)
FailChange in Gross Margin (↑)
PassChange in Asset Turnover (↑)
PassFramework conclusion
Columbia Sportswear Co earns a total score of 7/10, a result driven by strong current profitability and no long-term debt, though tempered by declining year-over-year returns. This score suggests the company is fundamentally stable, meaning if the stock is priced low, it is less likely due to immediate financial distress. However, the drop in both ROA and FCFTA indicates that while the company is healthy, its operational momentum has slowed compared to the previous period.
- Return on Assets is positive but fell year-over-year to 6.05%.
- Long-term debt remains at 0, indicating no increase in leverage.
- The accruals ratio of 1.6 confirms earnings are fully backed by cash flow.
- Gross Margin increased slightly to 50.53%, showing stable pricing power.
Intrinsic Value (DCF)
A 10-year discounted cash flow, then the bridge from business value to value per share.
Reported cash flow → unlevered free cash flow
Free Cash Flow (reported)
$321.3M
+ After-Tax Interest Expense
$0
= Unlevered Free Cash Flow
$321.3M
Business value (10-year DCF)
PV of Years 1–10
$2.1B
PV of Terminal Value
$1.7B
= Business Value
$3.8B
Business value → share value
Intrinsic Value (business)
$3.8B
+ Cash & Equivalents
$532.3M
− Debt
$0
= Shareholders' Value
$4.3B
÷ Diluted Shares
51.3 million
= Fair Value / Share
$84.26
Divided by 51.3 million diluted shares — the weighted-average diluted count from the most recent quarterly income statement, for the quarter ended 2026-06-30.
Risk bucket → discount rate
mid (12%)
Year-1 FCF
$321.3M
Growth rate (yrs 1–10)
4%
Terminal growth (after yr 10)
3%
AI Analysis
Columbia Sportswear (COLM) is modeled here using a 12% discount rate, reflecting a mid-risk profile characterized by the company's established position in the apparel sector, offset by moderate cyclicality and persistent industry competition. The forecast utilizes a fixed Year-1 FCF of $321.3M as the starting point. We applied a 4.00% annual growth rate for the first decade, a figure chosen to reflect conservative expansion expectations following the company's recent volatile cash flow history. Beyond year 10, a 3% terminal growth rate—fixed for all companies in this framework—is applied. This assumption accounts for 44.5% of the total business value. The intrinsic value is derived by calculating the present value of forecasted cash flows and the terminal value, adding $532.3M in cash and equivalents, and subtracting $0 in debt, then dividing by 51.3 million shares. This results in a fair value per share of $84.26. Given the current price of $57.05, the model indicates a margin of safety of 47.71%, which serves as a quantitative buffer for potential errors in the underlying assumptions. The estimate is most sensitive to the 4.00% growth rate; because the terminal value relies on the final year of this decade-long forecast, small deviations in growth expectations have a compounded impact on the final fair value per share.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
7.05% vs ~4-5% bond-yield benchmark
Return on Capital
30.18% ROC vs ~30% benchmark
Acquirer's Multiple
9.3x against a peer median of 10.9x (peers: 13.7x and 8.0x) — 14.4% below the median.
FS-Score
7/10 — Solid but mixed
Intrinsic Value
47.71% margin of safety
The analysis of Columbia Sportswear Co integrates metrics measuring business performance against those assessing current price. The return on capital of 30.18% aligns with the 30% benchmark, while the FS-Score of 7/10 indicates solid but mixed operational health. These quality-focused checks suggest the company maintains efficiency in deploying capital. Simultaneously, the valuation-based checks—the 7.05% earnings yield relative to the 4-5% bond-yield benchmark, the 9.3x Acquirer's Multiple standing 14.4% below the peer median, and the 47.71% margin of safety—indicate the business is currently priced below the calculated thresholds. This alignment between operational stability and valuation creates a consistent picture, as the business is not demonstrating a tension between high efficiency and high price. If the FS-Score were to shift toward the upper bound of its scale, it would indicate a more robust improvement in underlying financial health, which would alter the current interpretation of the operational side of the business.