Deckers Outdoor Corp. (NYSE:DECK)

The analyzed financial ratios reveal several notable trends over the six-year period ending March 31, 2023.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits considerable fluctuation, decreasing sharply from 29.28 in 2018 to 16.73 in 2019, followed by an increase to 19.86 in 2020. It then rises further to 24.39 in 2021 before declining again to 16.11 in 2022. In the latest year, 2023, it increases to 23.55. This pattern suggests varying investor expectations regarding earnings growth or changes in earnings volatility across these years.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows a somewhat similar volatility pattern. It starts at 15.05 in 2018, decreases to 13.51 in 2019, then increases to 16.21 in 2020 and further to 18.5 in 2021. Following that, it falls notably to 12.9 in 2022, before rising again sharply to 18.64 in 2023. These shifts might indicate fluctuations in the company's operating profitability or market perceptions of such profitability over time.

Price to Sales (P/S) Ratio

This ratio demonstrates a generally increasing trend with some variability. It progresses from 1.76 in 2018 to 2.19 in 2019 and 2.57 in 2020, then experiences a substantial jump to 3.66 in 2021. It declines to 2.31 in 2022 but increases again to 3.35 in 2023. The overall rising trend may indicate improving sales valuations, but the dips suggest episodic market corrections or changes in sales performance.

Price to Book Value (P/BV) Ratio

The P/BV ratio consistently grows with brief fluctuations. It begins at 3.56 in 2018, rises steadily to 4.23 in 2019 and 4.81 in 2020, followed by a marked increase to 6.46 in 2021. A decrease occurs in 2022 to 4.73, after which it increases again to reach the highest level of 6.89 in 2023. This trend may reflect increasing investor valuation relative to the company's net asset value, potentially indicating perceived asset growth or improved return prospects.

Overall, these ratios suggest fluctuating market valuations across earnings, operating profits, sales, and book value. There are clear indications of growth phases interspersed with periods of market adjustment or changing investor sentiment. The upward trends in P/S and P/BV ratios hint at improving perceptions of sales efficiency and asset value over the long term, despite the noticeable year-to-year variability in earnings and operating profit-related multiples.

Share Price Trends

The share price exhibited a generally upward trajectory over the six-year period. Starting at $110 in 2018, it increased steadily to $195.82 by 2020, followed by a marked acceleration to a peak of $335.44 in 2021. Although there was a decline to $271.85 in 2022, the price rebounded strongly to $465.18 in 2023, representing the highest value recorded in the timeframe.

Earnings per Share (EPS) Evolution

EPS showed consistent growth throughout the period, rising from $3.76 in 2018 to $19.76 in 2023. The increments were steady year over year, with a notable increase between 2020 and 2021, where EPS rose from $9.86 to $13.76. This upward trend indicates improving profitability and earnings capacity of the company.

Price-to-Earnings (P/E) Ratio Variability

The P/E ratio demonstrated volatility despite the rise in both share price and EPS. The P/E started at 29.28 in 2018, decreased sharply to 16.73 in 2019, and then fluctuated, reaching 24.39 in 2021. In 2022, the ratio dropped again to 16.11, before rising to 23.55 in 2023. These fluctuations suggest that market valuation multiples varied independently of earnings growth, possibly reflecting changing investor sentiment or market conditions.

Overall Insights

The financial performance indicates strong earnings growth aligned with a general upward movement in share price, signifying enhanced shareholder value. The variability in the P/E ratio suggests oscillations in market expectations about future growth or risk assessments over the observed timeframe. The significant rebound in share price in 2023, coupled with steady EPS growth, points to renewed market optimism despite prior fluctuation in valuation multiples.

The financial data for Deckers Outdoor Corp. reveals several notable trends over the six-year period ending March 31, 2023. The analysis focuses on the share price, operating profit per share, and the price-to-operating-profit (P/OP) ratio, highlighting the company's market valuation relative to its operating profitability.

Share Price

The share price demonstrated a strong upward trajectory from 2018 to 2023, increasing from $110 in 2018 to $465.18 in 2023. This reflects a significant appreciation of approximately 322% over the six-year period. The price growth was particularly pronounced between 2019 and 2021, where the share price surged from $151.73 to $335.44. Although there was a temporary decline in 2022 to $271.85, the price rebounded sharply in 2023 to its highest point in the period.

Operating Profit Per Share (OPPS)

Operating profit per share also showed consistent growth, rising from $7.31 in 2018 to $24.95 in 2023. This represents more than a threefold increase, indicating that the company’s profitability on a per-share basis improved steadily. The growth in OPPS was steady year-over-year, with no periods of decline, suggesting efficient operational management and favorable business conditions.

Price-to-Operating-Profit (P/OP) Ratio

The P/OP ratio fluctuated over the period, starting at 15.05 in 2018 and ending at 18.64 in 2023. It peaked at 18.5 in 2021, coinciding with a high share price relative to operating profit per share. Notably, the ratio dropped to a low of 12.9 in 2022, which suggests that the market valuation temporarily became more conservative relative to operating profitability. The increase to 18.64 in 2023 indicates renewed investor confidence or higher market expectations of future profitability growth.

Overall, the data indicates robust growth in shareholder value as reflected in the rising share price and operating profit per share. The variations in the P/OP ratio may signify shifts in market sentiment and valuation multiples, with the latest increase potentially reflecting optimism about sustained earnings growth or strategic developments. The steady improvement in operating profit per share underpins the positive share price performance, suggesting that the company's profit-generating capability has been a key driver of its market valuation.

Share Price

The share price exhibited a generally strong upward trend over the analyzed period. Starting at $110 in March 2018, it rose steadily each year, reaching a peak of $335.44 by March 2021. Although there was a decline to $271.85 in March 2022, the share price rebounded sharply to $465.18 by March 2023, marking the highest value in the period under review.

Sales per Share

Sales per share showed consistent growth throughout the period, increasing from $62.51 in March 2018 to $138.66 in March 2023. The growth was steady year-over-year, with notable acceleration starting in March 2020, culminating in nearly doubling sales per share by the end of the period.

Price-to-Sales Ratio (P/S Ratio)

The P/S ratio demonstrated variability during the period. It increased from 1.76 in March 2018 to a high of 3.66 in March 2021, indicating that the share price was appreciating faster than sales. However, this ratio decreased to 2.31 by March 2022, suggesting a relative stock price correction or strong sales growth. The ratio then rose again to 3.35 by March 2023, reflecting renewed market optimism or valuation expansion relative to sales.

Share Price

The share price demonstrated a significant upward trend over the analyzed period, increasing from $110 in March 2018 to $465.18 in March 2023. Notably, the price saw a strong surge between 2020 and 2021, rising from $195.82 to $335.44, before experiencing a slight decline in 2022 to $271.85, and then a marked increase again in 2023.

Book Value per Share (BVPS)

BVPS showed a consistent positive trajectory across the years. Starting at $30.90 in 2018, it increased each year, reaching $67.50 by 2023. This steady increase indicates ongoing growth in the company's net asset value on a per-share basis.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio fluctuated throughout the period, generally reflecting changes in share price relative to book value growth. It rose from 3.56 in 2018 to a peak of 6.46 in 2021, suggesting the market price was increasingly valuing the stock at a premium compared to its book value. The ratio then declined to 4.73 in 2022, possibly reflecting the share price decrease that year, before rising again to a high of 6.89 in 2023, the highest in the period studied. This pattern suggests periods of varying market sentiment and valuation multiples over the five years.

Overall Observations

The data indicate strong growth in both market valuation and underlying book value per share. While the book value growth was steady and consistent, the market valuation represented by the share price showed more volatility with sharp increases and some corrections. The P/BV ratio's fluctuations highlight changing investor confidence and valuation perceptions, reaching all-time highs by the end of the period. This suggests an increasingly positive market outlook for the company, although with some periods of reassessment by investors.