Deckers(US:DECK) The Motley Fool·2026-01-07 20:11Core Viewpoint - Deckers Outdoor's stock has faced downgrades from analysts, raising concerns about its growth and profitability despite strong cash flow and low valuation metrics [1][2][3]. Group 1: Analyst Downgrades - Baird downgraded Deckers to neutral, citing concerns about the company's growth not being sufficient to support its near-term valuation [2]. - Piper Sandler downgraded Deckers to "underperform," highlighting risks associated with discounting strategies that may harm profit margins and customer relationships [3]. Group 2: Financial Metrics - Deckers' current stock price is $104.03, with a market capitalization of $16 billion and a gross margin of 56.14% [4]. - The stock is trading at approximately 16 times earnings, with a free cash flow of $980 million, which supports over 96% of reported net income [4]. - The enterprise value to free cash flow ratio is less than 15 times, indicating a potentially undervalued stock [4]. Group 3: Growth Potential - If Deckers can achieve a 15% annual earnings growth, it may present a buying opportunity for investors [5].