U.S. markets closed
  • S&P Futures

    3,432.50
    -19.25 (-0.56%)
     
  • Dow Futures

    28,041.00
    -148.00 (-0.53%)
     
  • Nasdaq Futures

    11,613.75
    -49.75 (-0.43%)
     
  • Russell 2000 Futures

    1,622.10
    -13.50 (-0.83%)
     
  • Crude Oil

    39.18
    -0.67 (-1.68%)
     
  • Gold

    1,899.00
    -6.20 (-0.33%)
     
  • Silver

    24.35
    -0.32 (-1.30%)
     
  • EUR/USD

    1.1844
    -0.0024 (-0.20%)
     
  • 10-Yr Bond

    0.8410
    -0.0070 (-0.83%)
     
  • Vix

    27.55
    -0.56 (-1.99%)
     
  • GBP/USD

    1.3036
    -0.0002 (-0.01%)
     
  • USD/JPY

    104.8510
    +0.1610 (+0.15%)
     
  • BTC-USD

    13,074.73
    +74.29 (+0.57%)
     
  • CMC Crypto 200

    263.10
    +1.64 (+0.63%)
     
  • FTSE 100

    5,860.28
    +74.63 (+1.29%)
     
  • Nikkei 225

    23,501.70
    -14.89 (-0.06%)
     

Did You Miss Deckers Outdoor's (NYSE:DECK) Whopping 326% Share Price Gain?

Simply Wall St
·3 mins read

Long term investing can be life changing when you buy and hold the truly great businesses. And highest quality companies can see their share prices grow by huge amounts. To wit, the Deckers Outdoor Corporation (NYSE:DECK) share price has soared 326% over five years. If that doesn't get you thinking about long term investing, we don't know what will. Also pleasing for shareholders was the 25% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 11% in 90 days).

See our latest analysis for Deckers Outdoor

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, Deckers Outdoor managed to grow its earnings per share at 18% a year. This EPS growth is slower than the share price growth of 34% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

We know that Deckers Outdoor has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's good to see that Deckers Outdoor has rewarded shareholders with a total shareholder return of 65% in the last twelve months. That gain is better than the annual TSR over five years, which is 34%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Deckers Outdoor you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.