Deckers Outdoor Corp., FCFE calculation

US$ in thousands

12 months ended:	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018
Net income	516,822)	451,949)	382,575)	276,142)	264,308)	114,394)
Net noncash charges	74,902)	46,401)	77,268)	61,179)	70,702)	79,651)
Changes in operating assets and liabilities	(54,302)	(325,997)	136,374)	(50,987)	24,495)	133,306)
Net cash provided by operating activities	537,422)	172,353)	596,217)	286,334)	359,505)	327,351)
Purchases of property and equipment	(81,025)	(51,017)	(32,218)	(32,455)	(29,086)	(34,813)
Proceeds from sales of property and equipment	12)	8)	49)	491)	68)	116)
Proceeds from short-term borrowings	—)	—)	9,100)	69,336)	162,001)	214,751)
Repayments of short-term borrowings	—)	—)	(9,478)	(69,197)	(161,621)	(214,889)
Debt issuance costs on short-term borrowings	—)	—)	—)	—)	(1,297)	—)
Repayments of mortgage principal	—)	—)	(30,901)	(603)	(578)	(550)
Free cash flow to equity (FCFE)	456,409)	121,344)	532,769)	253,906)	328,992)	291,966)

Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).

Operating Cash Flow Trend: The net cash provided by operating activities exhibited variability over the analyzed periods. From March 31, 2018, to March 31, 2019, there was a moderate increase, rising from 327,351 thousand USD to 359,505 thousand USD. However, this was followed by a decline to 286,334 thousand USD in March 2020, indicating a reduction in operating cash generation during that year. Subsequently, the cash flow experienced a substantial surge in March 2021, reaching 596,217 thousand USD, which represents the peak within the timeframe. This peak was followed by a significant drop to 172,353 thousand USD in March 2022, before rebounding again to 537,422 thousand USD in March 2023.
Free Cash Flow to Equity (FCFE) Trend: The FCFE also demonstrated a fluctuating pattern analogous to the operating cash flow movements. Beginning at 291,966 thousand USD in March 2018, it increased to 328,992 thousand USD in March 2019. This was followed by a decrease to 253,906 thousand USD by March 2020. A marked increase was observed in March 2021, with FCFE escalating to 532,769 thousand USD, closely mirroring the operating cash peak. Subsequently, FCFE decreased significantly to 121,344 thousand USD in March 2022, before recovering to 456,409 thousand USD in March 2023.
Analysis of Cash Flow Volatility: Both net operating cash flow and free cash flow to equity components displayed notable volatility, with peaks in the 2021 fiscal year followed by drops in 2022 and partial recoveries in 2023. The 2021 increases may indicate improved operational efficiency or favorable business conditions allowing greater cash generation, while the subsequent declines in 2022 suggest challenges impacting cash flows during that period. The rebound in 2023 points to a recovery phase, though not reaching the peak values of 2021. The close alignment between net operating cash and FCFE trends suggests that changes in operational cash flows had a direct and significant impact on the cash available to equity holders during these years.

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Deckers Outdoor Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	25,668,220
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	456,409)
FCFE per share	17.78
Current share price (P)	851.41
Valuation Ratio
P/FCFE	47.88
Benchmarks
P/FCFE, Competitors¹
lululemon athletica inc.	12.24
Nike Inc.	3,134.15
P/FCFE, Sector
Consumer Durables & Apparel	1,517.20
P/FCFE, Industry
Consumer Discretionary	99.92

Based on: 10-K (reporting date: 2023-03-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Deckers Outdoor Corp., historical P/FCFE calculation, comparison to benchmarks

	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018
No. shares of common stock outstanding¹	26,159,846	26,789,861	27,813,023	27,999,468	29,142,002	30,447,808
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	456,409)	121,344)	532,769)	253,906)	328,992)	291,966)
FCFE per share³	17.45	4.53	19.16	9.07	11.29	9.59
Share price^1, 4	465.18	271.85	335.44	195.82	151.73	110.00
Valuation Ratio
P/FCFE⁵	26.66	60.02	17.51	21.59	13.44	11.47
Benchmarks
P/FCFE, Competitors⁶
lululemon athletica inc.	124.26	44.24	72.00	67.67	—	—
Nike Inc.	37.66	39.39	44.23	20.27	—	—
P/FCFE, Sector
Consumer Durables & Apparel	43.71	40.28	46.76	22.57	—	—
P/FCFE, Industry
Consumer Discretionary	30.88	36.44	83.44	32.34	—	—

Based on: 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 456,409,000 ÷ 26,159,846 = 17.45

⁴ Closing price as at the filing date of Deckers Outdoor Corp. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 465.18 ÷ 17.45 = 26.66

⁶ Click competitor name to see calculations.

Share Price Trend: The share price exhibited a general upward trajectory over the six-year period. Starting at $110 in March 2018, it rose steadily to $151.73 in 2019 and further to $195.82 in 2020. The increase accelerated notably to $335.44 in 2021. However, there was a decline in 2022 to $271.85, followed by a significant rebound to $465.18 by March 2023. This indicates strong overall growth with a temporary dip in the penultimate year.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share showed variability over the period. It increased from $9.59 in 2018 to a peak of $11.29 in 2019, then declined to $9.07 in 2020. A substantial rise to $19.16 occurred in 2021, followed by a sharp decrease to $4.53 in 2022. In 2023, FCFE per share rebounded markedly to $17.45. The fluctuations indicate periods of varying cash generation capacity, with significant recovery after a low point in 2022.
Price to FCFE Ratio (P/FCFE): The P/FCFE ratio rose from 11.47 in 2018 to 13.44 in 2019, then increased sharply to 21.59 in 2020, reflecting a rising share price relative to FCFE. In 2021, it decreased slightly to 17.51 despite the share price increase, due to higher FCFE in that year. There was a dramatic spike to 60.02 in 2022, indicating the share price was significantly higher relative to FCFE per share, likely influenced by the substantial drop in FCFE. In 2023, the ratio decreased to 26.66, suggesting a partial realignment between share price and cash flow generation.
Overall Insights: The data reveals that while the company's share price generally appreciated over the years, the FCFE per share experienced volatility with a notable dip in 2022. The P/FCFE ratio reflected these dynamics, with relatively elevated valuation multiples during periods of lower cash flow. The fluctuations in FCFE and corresponding P/FCFE ratios highlight varying cash generation efficiency and market valuation adjustments. The rebound in both share price and FCFE in 2023 suggests recovery and improved underlying cash flow performance.

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Deckers Outdoor Corp. (NYSE:DECK)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical