Important note

This AI stock analysis for Deckers Outdoor is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Deckers Outdoor - AI Stock Analysis

Analysis generated February 2, 2025

Deckers Outdoor Corporation is an innovative company specializing in designing, marketing, and distributing footwear, apparel, and accessories. Known for its pioneering and high-quality portfolio of brands, including UGG and HOKA ONE ONE, Deckers has carved out a significant niche in the global market. The company has consistently demonstrated its ability to adapt to market trends, providing products that cater to lifestyle and performance needs. This stock analysis will delve further into its financial performance, stock trend, and various other metrics to provide a comprehensive view of its potential.

Fundamental Analysis

In the last quarter, Deckers Outdoor reported a revenue of $1.31 billion. This figure represents an increase of 58.88% compared to the previous quarter. Year over year, revenue increased by 20.09%, showcasing strong growth both on a quarterly and annual basis.

Net income for the last quarter was $242 million, reflecting an impressive increase of 109.57% from the previous quarter. Year over year, the net income increased by 35.72%, indicating strong profitability. Deckers’ ability to enhance its net income continually bodes well for its financial health and future growth.

EBITDA for the last quarter stood at $337 million, marking an increase of 101.16% from the previous quarter. Comparing it to the same quarter last year, there is an increase of 35.97%, which is indicative of robust operational efficiency and effective cost management.

The current P/E ratio for Deckers Outdoor is 36.2, which may be considered high. This potentially indicates overvaluation and a bearish outlook by some market analysts. However, it's crucial to juxtapose this with strong financial performance metrics.

It's worth noting that there has been insider selling in recent months, which can be perceived as a bearish signal. Insider activity often provides insights into how confident the company executives are about the future of the company.

Technical Analysis

As of today, Deckers Outdoor’s stock price is $177.36. This is a decrease of 13.29% compared to a month ago, which might be alarming for short-term investors. However, the stock price is up by 20.64% over the past year, suggesting a positive long-term trend.

Currently, the 10-day Simple Moving Average (SMA10) is $205.34, which is lower than the previous SMA10 of $209.46. This indicates a potential downward trend in price movement. Additionally, the Relative Strength Index (RSI) is 42.6, indicating a neutral condition. The RSI range between 30 and 70 suggests that the stock is neither overbought nor oversold.

Alternative Data Analysis

Examining job postings and employee sentiment, Deckers Outdoor has 326 open positions. This number is down by 19% in the last couple of months, indicating the company might be taking steps to improve its margins or cut costs. While this strategy is not uncommon, it can be a red flag for a company aiming for growth.

Interestingly, the business outlook among employees is quite optimistic, with 81% of employees having a positive outlook. Such a high percentage denotes a healthy internal company environment, which can often translate to better performance.

In terms of customer acquisition, Deckers Outdoor had approximately 160,000 visitors to their webpage. This number is down by 8% in the last couple of months, which is a worrisome trend indicating potential loss of customer interest.

On the flip side, customer engagement appears strong with 3,900 followers on their Instagram page, up by 10% in the last couple of months. This reflects an increased interest and engagement from the audience.

Additionally, according to AltIndex, an AI score that predicts a company's stock price based on fundamental, technical, and alternative data analysis, Deckers Outdoor has an AI score of 65, which is a buy signal.

Conclusion and Recommendation

Given the robust financial performance of Deckers Outdoor Corporation, with strong revenue growth, net income, and EBITDA figures, the company demonstrates a solid foundation. Despite a high P/E ratio and some insider selling, the long-term stock price trend remains positive.

The technical analysis suggests a bearish short-term trend, but the long-term outlook seems cautiously optimistic. The company shows resilience in internal employee sentiment and increasing social media engagement, although job posting reductions and declining website traffic might be concerning.

Considering the comprehensive analysis, including the AI score indicating a buy signal, stockholders are recommended to view Deckers Outdoor as a fundamentally strong candidate but remain vigilant to potential short-term fluctuations.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.