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Deckers Outdoor - AI Stock Analysis

Analysis generated February 6, 2025

Deckers Outdoor Corporation is an American company that designs, markets, and distributes footwear, apparel, and accessories. The company is best known for its UGG brand, but it also owns Teva, HOKA ONE ONE, Sanuk, and Koolaburra brands. Established in 1973, Deckers has grown into a multinational entity with a diverse portfolio that caters to a wide range of consumer needs. The company aims to create innovative, high-quality products while delivering exceptional customer service.

Fundamental Analysis

In the most recent quarter, Deckers Outdoor reported revenue of $1.31 billion, marking an impressive increase of 58.88% from the preceding quarter and a 20.09% year-over-year growth. Such significant increases in revenue highlight the company's strong sales performance and effective market strategies.

Net income for the last quarter stood at $242 million, indicating a remarkable growth of 109.57% quarter-over-quarter and 35.72% year-over-year. This underlines the company’s effective cost management and increased profitability.

The EBITDA was reported at $337 million, showing a robust increase of 101.16% from the previous quarter and 35.97% compared to the same quarter last year. This surge in EBITDA shows the company's strong operational efficiency and growing earnings potential.

The current P/E ratio for Deckers Outdoor is 27.51. While this may be considered high and potentially indicate overvaluation, it is essential to balance this with the company's strong revenue and profit growth. Additionally, recent insider selling could be a bearish signal, causing some concern among potential investors.

Technical Analysis

The current stock price is $172.52, representing a decrease of 17.24% compared to a month ago, which could be concerning in the short term. However, compared to a year ago, the price has increased by 24.21%, indicating a positive long-term trend. Despite the overall annual growth, the current trend is bearish.

The current Simple Moving Average (SMA10) is $187.52, slightly lower than the previous SMA10 of $191.46, suggesting a potential downward trend in price movement. Additionally, the Relative Strength Index (RSI) is at 71, indicating that the stock is potentially overbought, which could further support the bearish outlook.

Alternative Data Analysis

Deckers Outdoor currently has 281 open positions, a decrease of 30% in the last couple of months. This suggests that the company might be trying to improve its profit margins or cut costs, which isn't typically a positive indicator for a growing company. Conversely, employee sentiment remains highly positive, with 81% of employees having a favorable outlook on the company.

Regarding customer acquisition, Deckers Outdoor has an estimated 160,000 visitors to its webpage, down by 8% in the last couple of months. This decline could indicate a loss of customer interest or market share. However, customer engagement shows promise with a 10% increase in Instagram followers, totaling 3,900, suggesting rising interest in the company's offerings.

According to AltIndex's AI score, which integrates fundamental, technical, and alternative data metrics, Deckers Outdoor has a score of 62. This is considered a buy signal, indicating that the overall analysis, despite some negative short-term indicators, suggests potential for stock price growth.

Conclusion

Analyzing Deckers Outdoor from multiple perspectives reveals a complex but largely promising picture. Fundamental indicators such as revenue, net income, and EBITDA show strong growth and effective business strategies. However, the high P/E ratio and recent insider selling could be concerning. Technical analysis points to a bearish trend in the short term, but the long-term trend remains positive.

The alternative data analysis presents mixed results, with declining job postings and webpage visitors offset by high employee sentiment and increasing social media engagement. The AltIndex AI score of 62 further suggests a "buy" recommendation despite the apparent short-term challenges.

Based on the comprehensive analysis from various dimensions, Deckers Outdoor presents a strong case for long-term investment, albeit with caution in the short term due to current bearish trends and high P/E ratio.

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.