Deckers Outdoor Corp. (NYSE:DECK)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibited some fluctuations over the observed periods. Initially unreported, it began around 29.28, then showed a gradual decline to a low point near 15.64 in late 2018. Subsequently, the ratio increased steadily, peaking near 27.43 in early 2021. Thereafter, a downward trend followed, bottoming around 16.11 in mid-2022. The ratio rose again, with the latest value recorded at approximately 30.19. The pattern indicates cyclical investor sentiment or earnings variability impacting valuation multiples.

Price to Operating Profit (P/OP) Ratio

This ratio generally mirrors the trend observed in the P/E ratio, reflecting interconnected profitability measures. Starting at around 15.05, it experienced a mild dip to roughly 12.84 in late 2018. Following this, a sustained upward trajectory occurred, reaching a notable peak near 20.97 in early 2021. After a decline into mid-2022, the ratio again ascended, culminating near 24.58 by late 2023. The fluctuations may denote shifts in operating profitability relative to equity valuation over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio showed a generally increasing trend throughout the period. Beginning at about 1.76, it consistently rose with some variability, reaching approximately 3.52 by late 2020, followed by surges to 4.35 in early 2021 and temporarily retreating to around 2.31 in mid-2022. Subsequently, the ratio increased steadily, peaking at 5.3 in late 2023. This suggests an enhanced valuation of sales over time, potentially driven by revenue growth, pricing power, or market optimism.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio started at 2.26 and showed a generally upward trend with periodic oscillations. Notable increases were recorded between 2017 and 2019, with values rising from 2.26 to approximately 4.99. The ratio then surged further to 6.46 in early 2021 and attained a peak of 8.61 by late 2023, reaching 10.39 at the most recent period. The data imply appreciable market valuation above book equity, possibly due to growth expectations or asset revaluations.

Summary of Trends

Overall, all four valuation ratios exhibited growth over the analyzed periods, though with cyclical variations reflecting market conditions, investor sentiment, and intrinsic company performance. Ratios related to earnings and operating profit demonstrated more pronounced fluctuations, while valuation in relation to sales and book value followed a stronger upward trajectory, especially in recent years. The heightened multiples toward the end of the period could indicate increased confidence in the company's growth prospects or prevailing market valuation expansion trends.

The analysis of the financial data over the quarterly periods reveals several distinct trends related to the share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.

Share Price

The share price demonstrates a general upward trajectory from mid-2017 through the end of 2023. Starting at $64.43 in June 2017, the price steadily increased, experiencing particularly notable acceleration beginning around late 2020. By December 2023, the share price reached $851.41, indicating strong market valuation growth. Despite this overall rise, some periods, such as late 2021 to early 2022, show minor declines or slower growth phases, suggesting intermittent market corrections or volatility.

Earnings Per Share (EPS)

EPS figures begin from March 2018 and show consistent improvement throughout the recorded periods. Starting from $3.76 in March 2018, the EPS exhibits steady increments, reaching $28.20 by December 2023. This consistent earnings growth indicates a strengthening profitability trend within the company. There are no dramatic declines in EPS observed, underscoring stable operational performance and effective earnings management over time.

Price-to-Earnings (P/E) Ratio

The P/E ratio fluctuates more noticeably than share price or EPS. Initially reported at about 29.28 in March 2018, the ratio declines to a low near 15.64 by September 2019, reflecting a period where share prices were relatively lower compared to earnings or where earnings growth outpaced share price appreciation. Subsequently, the P/E ratio trends upwards, peaking around 30.19 by December 2023. This rise indicates that the market increasingly values earnings, possibly reflecting investor optimism or expectations for future growth. The P/E ratio’s variability suggests shifting market sentiments and valuation perspectives over the analyzed timeframe.

Overall, the data presents a positive picture of financial growth with strong earnings advancement and a significant escalation in share prices. The fluctuations in the P/E ratio highlight changing investor perceptions, but the continued rise toward the end of the period suggests sustained confidence in the company's future performance.

Share Price Trends

The share price exhibited a generally upward trajectory over the observed periods. Initially valued at $64.43 in mid-2017, it gradually increased to a peak of $851.41 by the end of 2023. There were notable surges particularly from mid-2020 onward, with the share price rising from $206.51 to above $800 within three years. Some fluctuations were observed in 2021 and early 2022, with a decline from $435.01 to $271.85, followed by recovery and subsequent strong growth. This suggests growing investor confidence or improved market conditions influencing valuation.

Operating Profit Per Share (OPPS)

Operating profit per share commenced reporting from March 31, 2018, starting at $7.31 and showed consistent upward growth across subsequent quarters. It increased steadily, reaching $34.64 by the end of 2023. This indicates strong and continuing profitability improvements at the operational level. Despite some minor fluctuations, the overall trend was positive, reflecting effective business operations and possibly expanding margins over time.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio (P/OP) fluctuated throughout the period. Starting around 15.05 in March 2018, the ratio declined slightly and showed variability between approximately 12.84 and 21.75 later on. Notably, the ratio increased significantly towards the end of the period, reaching a high of 24.58 at the close of 2023. This pattern indicates that the share price growth outpaced operating profit per share increases toward the latter periods, suggesting heightened market expectations or premium valuation relative to operational earnings.

Summary of Relationships and Insights

Overall, the data reflects a robust growth trajectory for both the share price and operating profit per share over the six-year period. The share price increases substantially outpaced growth in operating profits during the later years, as evidenced by the rising P/OP ratio, which may imply higher investor optimism or perceived growth potential. The steady increase in operating profit per share denotes improving operational efficiency or successful revenue expansion. Market valuation metrics indicate a progressively more premium valuation relative to operating income, potentially reflecting positive outlooks on future growth, competitive positioning, or broader market conditions impacting this company.

Share Price Trend

The share price exhibits a notable upward trajectory from June 2017 to December 2023. Starting at $64.43, it rises steadily with occasional accelerations, reaching $851.41 by the end of the period. Key surges are visible between mid-2020 and early 2021, as well as from mid-2022 to the end of 2023. Some pullbacks occur, for example, between late 2021 and mid-2022, but the overall movement remains strongly positive.

Sales Per Share Evolution

Sales per share data begins from March 2018 at $62.51 and generally increases over time, reaching $160.49 by December 2023. This indicates consistent revenue growth on a per-share basis. The increments are steady without significant volatility, suggesting stable business expansion or improved sales efficiency.

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

The P/S ratio demonstrates considerable variation during the analyzed period. Starting at 1.76 in March 2018, it gradually rises, peaking at 4.35 in March 2021, reflecting investors' increasing valuation relative to sales. A subsequent decline is observed through mid-2022, dropping to 2.31, indicating some market correction or moderation in valuation. However, from late 2022 onwards, the ratio rebounds significantly, finally registering a peak of 5.30 at the end of 2023. This suggests renewed investor optimism or expectations of future growth.

Interrelation of Metrics

The data reveals that while sales per share have shown consistent growth, the share price growth outpaces this, especially in the latter part of the period, leading to rising P/S ratios. Periods of P/S ratio decline coincide with relative share price softness or plateauing, despite underlying sales growth. This pattern may reflect changing market sentiment or shifts in valuation multiples rather than operational performance.

Summary of Observations

Overall, the analyzed data indicates sustained business growth as evidenced by increasing sales per share, accompanied by strong investor confidence marked by rising share prices. Valuation multiples, captured by the P/S ratio, fluctuate in response to market dynamics but display a long-term upward trend. The company's financial metrics highlight robust performance with growing market recognition, punctuated by periods of valuation adjustment.

The share price demonstrated a general upward trend from June 30, 2017, through December 31, 2023, starting at $64.43 and reaching $851.41 by the end of the period. Notable fluctuations occurred throughout the series, with some periods showing rapid increases, such as from September 30, 2020 ($278.57) to March 31, 2021 ($335.44), and others indicating more moderate growth or slight declines, particularly after peaking around March 31, 2021 ($335.44 to $435.01). The latter portion of the timeline showed a pronounced acceleration in the share price increase, culminating in a substantial rise to $851.41 by December 31, 2023.

Book value per share (BVPS) showed a more stable and modest upward trajectory compared to the share price. Beginning at $28.55 on June 30, 2017, BVPS increased to $81.98 by December 31, 2023. The progression exhibited smaller fluctuations with occasional short-term declines, such as slight drops from March 31, 2018 ($30.90) to September 30, 2018 ($29.08), and from June 30, 2022 ($57.44) to September 30, 2022 ($55.50). Overall, the BVPS growth was steady, reflecting consistent improvement in the underlying net asset value per share over time.

The price-to-book value ratio (P/BV) reflected notable volatility in relation to changes in share price and BVPS. Starting at 2.26 on June 30, 2017, the ratio rose sharply to peak values exceeding 10.0 by December 31, 2023. This increase in the P/BV ratio suggests that the market valuation of the company’s shares appreciated significantly faster than the book value. Periods of particularly high P/BV ratios were observed in the latter years, such as 8.48 on March 31, 2021, declining temporarily around late 2021 and early 2022, followed by a consistent upward trajectory through 2023. This pattern indicates heightened market optimism or strong growth expectations relative to the company’s book value during this period.

In summary, the data illustrate a strong capital market performance characterized by a significant increase in share price relative to book value per share. The rising P/BV ratio over the analyzed quarters highlights increased investor confidence or market premium on the company’s equity beyond its net asset value. The steady growth in BVPS alongside a more volatile but generally rising share price suggests improvements in company fundamentals accompanied by a market-driven expansion in valuation multiples.