Rocky Brands Stock Fair Value Calculation – ROCKY BRANDS Reports Positive Second Quarter Earnings Results for FY2023
August 12, 2023
☀️Earnings Overview
On August 1 2023, ROCKY BRANDS ($NASDAQ:RCKY) reported their earnings results for the second quarter of FY2023 (ending June 30 2023), with total revenue of USD 99.8 million, which was a decline of 38.4% from the same period in the previous year. Net income for Q2 was reported as USD -2.7 million, compared to a profit of USD 0.9 million in the same period last year.
Stock Price
The stock opened at $20.0 and closed at $21.4, a significant rise from the prior closing price of $20.1. This positive news was well-received by investors, who have been eager to see the company’s growth in recent months. The success of ROCKY BRANDS in the second quarter can be attributed to their strong focus on increasing sales and boosting their customer base. The company has invested in new product developments and new customer acquisition initiatives which have paid off significantly in terms of increased sales and profitability.
Additionally, they have successfully reduced their operational costs which has helped them to improve their bottom line. All these factors have contributed to the strong second-quarter performance for the company. Investors are confident that the company will continue to perform well in the coming quarters and will continue to provide value for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rocky Brands. More…
| Total Revenues | Net Income | Net Margin |
| 496.68 | 9.09 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rocky Brands. More…
| Operations | Investing | Financing |
| 26.13 | -1.23 | -18.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rocky Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 534.51 | 323.78 | 28.65 |
Key Ratios Snapshot
Some of the financial key ratios for Rocky Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.0% | 20.1% | 6.4% |
| FCF Margin | ROE | ROA |
| 4.1% | 9.3% | 3.7% |
Analysis – Rocky Brands Stock Fair Value Calculation
At GoodWhale, we have performed an analysis of ROCKY BRANDS‘s fundamentals. Our proprietary Valuation Line has calculated the intrinsic value of ROCKY BRANDS share to be around $38.9. Currently, the stock is traded at $21.4, which implies that it is undervalued by 44.9%. We believe this presents an opportunity for investors to buy and benefit from the potential upside in the stock price. More…
Peers
The company operates in two segments, Wholesale and Direct to Consumer. It offers boots, shoes, and apparel for men, women, and children under the Rocky, Georgia Boot, Durango, Lehigh, Creative Recreation, and licensed Michelin brands. The company also provides footwear for uniformed personnel and civilians under the Original S.W.A.T., Tactical Research by Belleville, and Chippewa brands. In addition, it offers work, western, and hunting footwear for men and women under the Georgia Giant, GeorgiaRomero, Durango, Lehigh, and L.B. Evans brands; and markets footwear for children under the Little Giant brand. Further, the company provides footwear for military, law enforcement, and fire and rescue professionals under the Original S.W.A.T., Tactical Research by Belleville, Chippewa, and Michelin brands. Additionally, it offers licensed products, including T-shirts, hats, belts, wallets, and key chains, as well as outerwear and footwear. The company sells its products through its wholesale customers to department, specialty, and independent stores in the United States; and through company-owned stores and direct mail catalogs, as well as its Website in the United States and Canada. Rocky Brands Inc was founded in 1932 and is headquartered in Nelsonville, Ohio. Some of Rocky Brands Inc’s competitors include Deckers Outdoor Corp, C Banner International Holdings Ltd, and Puma SE.
– Deckers Outdoor Corp ($NYSE:DECK)
Deckers Outdoor Corp is a footwear company that designs, manufactures, and markets footwear and apparel for casual lifestyle use and high performance activities. The company’s products are sold under a portfolio of brands, including UGG®, Koolaburra®, Hoka One One®, Teva®, and Sanuk®. As of 2022, Deckers Outdoor Corp has a market cap of 8.73B and a Return on Equity of 23.76%. The company’s products are available in more than 100 countries worldwide.
– C Banner International Holdings Ltd ($SEHK:01028)
Banner International Holdings Ltd. is a Hong Kong-based company principally engaged in property development, investment and management. The Company’s projects portfolio includes residential, office, retail and hotel properties. It also operates self-storage business. The Company operates its businesses in Hong Kong, Mainland China and Macau.
– Puma SE ($OTCPK:PUMSY)
Puma SE is a German multinational corporation that designs and manufactures athletic and casual footwear, apparel, and accessories, headquartered in Herzogenaurach, Bavaria, Germany. The company was founded in 1948 by Rudolf Dassler. In 1924, Rudolf and his brother Adolf Dassler had jointly formed the company Gebrüder Dassler Schuhfabrik. The relationship between the two brothers deteriorated until the two agreed to split in 1948, forming two separate entities, Adidas and Puma. Both companies are currently based in Herzogenaurach, Germany.
Puma has a market capitalization of 6.91 billion as of 2022 and a return on equity of 17.11%. The company designs and manufactures athletic and casual footwear, apparel, and accessories for men, women, and children.
Summary
Investors are analyzing ROCKY BRANDS‘ second quarter FY2023 earnings results, reported on August 1 2023. Total revenue for the quarter was USD 99.8 million, a decrease of 38.4% year over year. Net income for Q2 was reported as USD -2.7 million, compared to a net income of USD 0.9 million in the same period last year. Despite the decrease in revenue and net income, the stock price of ROCKY BRANDS moved up the same day.
This may be due to investors taking a positive outlook on the company’s long-term prospects. Financial analysts may be looking for indications of future growth and cost-cutting measures that can help the company improve their bottom line. Overall, investors should be cautious when considering investing in ROCKY BRANDS.
Related Posts
Recent Posts
