Is DECK a high-quality business?

AlphaMadera's AlphaQuality grade scores Deckers Outdoor Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how DECK compares to a Buffett-style quality bar.

What is Deckers Outdoor Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to DECK based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes DECK a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

DECK - Deckers Outdoor Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $117.93 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

A 89.4 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

A+ 98.2

5yr Avg ROIC 25.4% 100/100
Operating Margin Trend +1.60 pp/yr 94/100

Capital Efficiency

Weight: 15%

A+ 98.5

5yr Avg ROE 29.8% 100/100
5yr Share-Count CAGR -3.3% 96/100

Growth Quality

Weight: 15%

A+ 95.6

5yr Revenue CAGR 14.8% 90/100
5yr EPS CAGR 26.9% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A- 86.7

5yr FCF Margin 15.9% 83/100
5yr FCF/NI Conversion 0.91x 91/100

Balance Sheet

Weight: 20%

A+ 100.0

Net Debt / EBITDA -1.21x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 11.68 100/100

Stability

Weight: 15%

C 51.1

EPS Volatility (σ/μ) 0.84 6/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 2 added; 2 trimmed; 1 full exit.

Holders: 4
Avg Δ position: +64.3%
New buys: 0
Full exits: 1

Halvorsen sold -100%
Cooperman increased +257%
Greenblatt increased +65%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.