You have an analogy you came up with that involves beer and a glass. >> Beer, right. So, I'm pouring it right down the middle so we get a nice thick head.Right now, we have a glass and we can see exactly how much foam there is and how much actual beer there is. Right. But imagine this was that I poured it into this vessel instead where we couldn't see that.The analogy is the stock market. So when most people think of the stock market, it's all this churning and trading. You know, what stocks are hot now, wh ...

Core Viewpoint - Deckers Outdoor has experienced significant stock losses in 2025, with a nearly 50% decline year-to-date, contrasting with slight gains in the S&P 500, yet the company's fundamentals remain strong, making it appealing for long-term investors [1][8] Financial Performance - Deckers reported mixed fiscal Q4 results, surpassing earnings expectations with Q4 revenue climbing 6.5% to over $1 billion and EPS rising to $1.00 from $0.82, driven by strong brand performance from HOKA and UGG [2] - HOKA saw a 10% increase in Q4 and 23.6% for the total year, while UGG rose by 3.6% and 13.1%, respectively [2] - Management anticipates Q1 sales between $890–$910 million, representing an 8%–10% year-over-year increase [2] Valuation and Fundamentals - DECK is currently trading at a price-to-earnings ratio of about 17x, down from over 32 at the close of 2024, significantly below the S&P 500's current P/E of 26 [3] - The company generates over $1 billion in annual cash flow with a market capitalization of $16 billion, equating to a 6% cash yield, alongside a 16% revenue growth in the past year [4] Growth and Profitability - Revenue has surged at an impressive annual rate of 16.4% over the last three years, more than triple the pace of the S&P 500, with operating margins at 24.9% and net income margins at 19.4% [5] Financial Strength - Deckers has a solid balance sheet with only $276 million in debt and $2.2 billion in cash, resulting in a debt-to-equity ratio of 1.3%, significantly lower than the average S&P 500 company [6] Downturn Resilience - Historically, Deckers has experienced sharper declines than the S&P 500 during market downturns but has shown robust recovery potential, rebounding significantly after past crises [7] Overall Assessment - Deckers is characterized as a high-quality growth company facing temporary challenges, with strong fundamentals, robust brands, a healthy balance sheet, and attractive valuation [8][10]