How Does Deckers’ Forward PE Stack Up against Its Peers’?



Forward PE

As of September 4, Deckers Outdoor (DECK) was trading at a 12-month forward PE ratio of 18.2x. Since the release of its results for the fiscal first quarter of 2019 on July 26, the stock’s valuation multiple has decreased marginally (0.3%). In comparison, Foot Locker (FL), Nike (NKE), Skechers (SKX), and DSW (DSW) are trading at PEs of 10.3x, 15.4x, 28.7x, and 18.3x, respectively, as of September 4.

Forward PE multiples are one of the most often used metrics used to make investment decisions. Forward PE is calculated by dividing a stock’s price by analysts’ earnings estimates for it over the next four quarters.

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Comparing growth estimates for Deckers and its peers

For fiscal 2019 (which ends in March 2019), analysts expect Deckers to report sales growth of 2.5% to $1.95 billion.

In comparison, Wall Street expects Foot Locker to report sales growth of 0.2% to $7.80 billion in fiscal 2018 and 1.6% to $7.92 billion in fiscal 2019. DSW’s sales are projected to rise 8.4% to $3.04 billion in 2018 and 4.8% to $3.18 billion in 2019. Skechers’ sales are expected to rise 12.7% to $4.69 billion in 2018 and 10.6% to $5.19 billion in 2019. Nike’s top line is expected to rise 8.2% to $39.36 billion in fiscal 2019.

A look at share buybacks in the last reported quarter

Deckers does not pay dividends. In the first quarter of fiscal 2019 (which ended on June 30, 2018), the company repurchased shares worth $10 million. It has $241 million worth of shares left under its existing authorization.

Foot Locker pays a quarterly dividend per share of $0.345. In the fiscal second quarter so far, Foot Locker has repurchased stock worth $92.5 million. DSW pays a quarterly dividend per share of $0.25. In the second quarter, DSW has refrained from share buybacks.

Skechers doesn’t pay dividends, but it repurchased shares worth $15 million in the second quarter. Nike’s quarterly dividend payout stands at $0.20, and it repurchased shares worth $1.6 billion in the fourth quarter of fiscal 2018.


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