DECK — Deckers Outdoor Corp
Snapshot dated September 1, 2026.
Deckers Outdoor Corporation designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle and high-performance activities. The company operates through a portfolio of brands, most notably HOKA, which focuses on performance running and walking footwear, and UGG, which is known for its sheepskin footwear and expanding categories in apparel and accessories. Revenue is generated through both direct-to-consumer channels, including retail stores and brand-specific e-commerce sites, and wholesale relationships with major department stores and independent retailers. With a global footprint, the company manages operations across North America, Europe, and Asia to reach a diverse consumer base. Recent strategic shifts have included a significant emphasis on scaling the HOKA brand to capture more market share in the technical performance footwear sector, positioning the company against competitors like Brooks and On Running.
Fair Value / Share
$132.78
Price on September 1, 2026
$84.36
Margin of Safety
57.4%
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
$84.36
Market Cap
$11,688,837,240
Net Income (TTM)
$1,014,840,000
Diluted Shares
138.6 million
EPS (TTM)
$7.32
Earnings Yield
8.68%
AI Analysis
Deckers Outdoor Corporation currently shows an earnings yield of 8.68%, calculated using an EPS of $7.32 and a stock price of $84.36. This yield is higher than the 4-5% annual return typically available from safe, guaranteed alternatives like bonds. Mechanically, this indicates that the current market price implies a lower cost per dollar of current earnings compared to the baseline. For this yield to increase, the stock price would need to decline while earnings remain constant, or earnings would need to rise while the price remains stable. Conversely, the yield would decrease if the price rises in anticipation of future growth. This single measure does not capture future growth expectations, debt levels, or the sustainability of current profit margins.
Return on Capital
EBIT ÷ (Net Working Capital + Net Fixed Assets) — how efficiently the business turns capital into profit.
EBIT (TTM)
$1,252,917,000
Net Working Capital
$255,809,000
Net Fixed Assets
$337,750,000
Invested Capital
$593,559,000
Return on Capital
211.09%
AI Analysis
Deckers Outdoor Corp (DECK) generated an EBIT of $1.3B on invested capital of $593.6M, resulting in a Return on Capital of 211.09%. This figure significantly exceeds the 30% benchmark typically associated with an efficient use of capital in this framework, indicating that the company generates substantial profit relative to the tangible operating capital deployed. A return of this magnitude suggests that the business model is highly efficient, requiring relatively little capital investment to support its operational output. This metric is driven by the relationship between EBIT and the tangible assets required to operate, meaning the result would change if profit margins compressed or if the company significantly increased its investment in property, plant, or working capital. It is important to note that this measure does not capture intangible factors like brand strength, nor does it account for the different capital intensities inherent in varying business models or industries.
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 | 8.1x |
| CROXCrocs, Inc. | $840.6M | $6.9B | 8.2x |
| NKENIKE, Inc. | $4.2B | $57B | 13.5x |
Where DECK sits: 8.1x against a peer median of 10.8x (peers: 8.2x and 13.5x) — 25.8% below the median.
Show the enterprise value bridge for each companyHide the enterprise value bridge
DECK
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.
CROX
Named as a competitor: competes in casual lifestyle footwear and proprietary comfort shoes
Debt $1.3B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $381.5M of operating lease liabilities as of 2026-06-30 ($291.4M non-current, $90.1M 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.
NKE
Named as a competitor: competes globally across performance athletic and lifestyle footwear
Debt $7.9B. This is the company's reported total debt — borrowings due within a year plus long-term borrowings. The company separately reports $3.1B of operating lease liabilities as of 2026-05-31 ($2.6B non-current, $478M 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 — DECK
AI Analysis
Deckers Outdoor Corp (DECK) has an enterprise value of $10.1B and operating earnings of $1.3B, resulting in an Acquirer's Multiple of 8.1x. Among the competitors analyzed, CROX shows an Acquirer's Multiple of 8.2x, while NKE has a multiple of 13.5x. In this set, DECK has the lowest multiple and NKE has the highest. The app provides a computed comparison of 8.1x against a peer median of 10.8x (peers: 8.2x and 13.5x) — 25.8% below the median. This measure evaluates the cost of purchasing the entire business relative to its core operating earnings. The spread between these figures reflects structural differences in how each company is capitalized and how its operating profitability compares to its enterprise value. This comparison would shift if the companies' debt levels or cash positions changed, or if one business generated higher operating earnings relative to its purchase price.
FS-Score
A 10-check read on financial health, across profitability, balance-sheet stability and operating momentum.
FS-Score
8/10
This company scores high on profitability, stability, and momentum.
Section 1
Current Profitability
3/3
Profitability is Strong, as the company passed all three checks by generating positive accounting earnings and even stronger cash flow relative to its asset base.
- Return on Assets is positive at 27.77%.
- Free Cash Flow to Total Assets is positive at 29.76%.
- The accruals check shows a value of 1.15, indicating that operating cash flow exceeds net income.
This score indicates that current earnings are backed by realized cash, and a reversal would require a significant divergence where accounting profits rise while cash flows from operations fall.
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, with the company maintaining a debt-free position and reducing its share count while seeing a slight decrease in its liquidity ratio.
- Long-term debt remained at 0, passing the leverage check.
- The current ratio decreased from 3.72 to 3.54, failing the liquidity check.
- Net dilution was negative as diluted shares outstanding fell from 152.7 million to 145.8 million.
While the balance sheet remains unleveraged, the score would improve if current assets began growing faster than current liabilities to reverse the slight dip in the current ratio.
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
3/4
Operational improvements are Strong, with gains in asset efficiency and returns offsetting a marginal tightening of gross margins.
- Return on Assets improved from 27.06% to 27.77%.
- Free Cash Flow to Total Assets rose from 26.84% to 29.76%.
- Gross Margin fell slightly from 57.88% to 57.70%, failing the check.
- Asset Turnover improved from 1.4 to 1.48.
The business is currently generating more revenue per dollar of assets than it did a year ago, though the slight decline in gross margin suggests a minor shift in cost of goods or pricing.
Change in ROA (↑)
PassChange in FCFTA (↑)
PassChange in Gross Margin (↑)
FailChange in Asset Turnover (↑)
PassFramework conclusion
The company earned a total score of 8/10, a result driven by strong current profitability and improving operational efficiency across most metrics. This high score suggests that the company's financial health is robust; if the market price were low, this would typically indicate that the cheapness is due to mispricing rather than fundamental business deterioration. The score identifies specific strengths in cash generation and asset utilization while highlighting a minor softening in liquidity and gross margin.
- Return on Assets improved year-over-year to 27.77%.
- Asset Turnover increased from 1.4 to 1.48.
- The company remains debt-free with a long-term debt value of 0.
- The diluted share count was reduced to 145.8 million shares.
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)
$1.1B
+ After-Tax Interest Expense
$2.8M
= Unlevered Free Cash Flow
$1.1B
Business value (10-year DCF)
PV of Years 1–10
$8.5B
PV of Terminal Value
$8.3B
= Business Value
$16.8B
Business value → share value
Intrinsic Value (business)
$16.8B
+ Cash & Equivalents
$1.6B
− Debt
$0
= Shareholders' Value
$18.4B
÷ Diluted Shares
138.6 million
= Fair Value / Share
$132.78
Divided by 138.6 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
$1.1B
Growth rate (yrs 1–10)
8%
Terminal growth (after yr 10)
3%
AI Analysis
This valuation assumes a discount rate of 12%, categorizing Deckers Outdoor Corp as a mid-risk business. This reflects the company's established brand power behind UGG and HOKA balanced against the inherent volatility of footwear fashion cycles. The forecast relies on a starting unlevered free cash flow of $1.1B, which is then projected forward at an 8.00% annual growth rate over the next decade. This growth rate captures the company's strong historical cash flow momentum while tempering expectations for long-term apparel industry maturity. Beyond the ten-year horizon, the model applies a fixed 3% terminal growth rate, a standard assumption meant to align with long-term economic expansion rather than specific company prospects. This terminal value represents 49.1% of the total business value. After bridging the intrinsic value by adding cash and subtracting debt, the framework calculates a fair value per share of $132.78. Comparing this to the current price of $84.36 results in a 57.40% margin of safety, which serves as a buffer for potential errors in the forecast. Because nearly half of the total business value relies on the terminal value calculation, the most sensitive assumption in this model is the long-term growth rate applied beyond year 10; slight variations in this steady-state assumption would significantly alter the fair value estimate.
Overall Verdict
How the five signals above stack up together, then the full synthesis.
Earnings Yield
8.68% vs ~4-5% bond-yield benchmark
Return on Capital
211.09% ROC vs ~30% benchmark
Acquirer's Multiple
8.1x against a peer median of 10.8x (peers: 8.2x and 13.5x) — 25.8% below the median.
FS-Score
8/10 — Financial rockstar
Intrinsic Value
57.4% margin of safety
The framework evaluates DECK through both operational and valuation lenses. Return on Capital at 211.09% and an FS-Score of 8/10 measure the efficiency and financial health of the operations. Meanwhile, the Earnings Yield of 8.68%, an Acquirer's Multiple of 8.1x, and a 57.4% margin of safety relative to Intrinsic Value provide a gauge of the company's price against its earnings and asset base. All five checks align, indicating that the business exhibits returns on capital and a financial profile that stands distinct from the provided benchmarks, while simultaneously showing market pricing that remains below the calculated peer medians and intrinsic value models. There is no tension between the operational quality metrics and the valuation readings here. If the Intrinsic Value margin of safety were to compress, that measurement would change, reflecting a tighter alignment between the current market price and the computed intrinsic value.