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Deckers OutdoorMEX:DECK -0.24%72 Degree of Operating Leverage is 0.13 as of Mar. 2026. GuruFocus rates MEX:DECK with a GF Score™ of 72/100 and a GF Value™ of MXN2,572.81 (Significantly Undervalued). Among 1,022 Manufacturing - Apparel & Accessories companies, Deckers Outdoor ranks better than 57.24% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Deckers Outdoor's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 0.13. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Deckers Outdoor's Degree of Operating Leverage or its related term are showing as below:
MEX:DECK's Degree of Operating Leverage is ranked better than 57.24% of 1022
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.02
vs MEX:DECK: 0.13
Deckers Outdoor (MEX:DECK) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Deckers Outdoor Degree of Operating Leverage Related Terms
Deckers Outdoor Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Deckers Outdoor's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Deckers Outdoor Degree of Operating Leverage Chart
MEX:DECK vs ONON, BIRK, CROX: Degree of Operating Leverage Comparison
For the Footwear & Accessories subindustry, Deckers Outdoor's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Deckers Outdoor Degree of Operating Leverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Deckers Outdoor's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Deckers Outdoor's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 0.13 mean?
Deckers Outdoor (MEX:DECK) has a Degree of Operating Leverage of 0.13 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Deckers Outdoor and its competitors. According to the industry distribution chart, Deckers Outdoor ranks #437 out of 1022 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 42.8%.
Is Deckers Outdoor's Degree of Operating Leverage too high?
Deckers Outdoor's current Degree of Operating Leverage is 0.13. The Manufacturing - Apparel & Accessories industry median Degree of Operating Leverage is 1.02. Deckers Outdoor's value of 0.13 is 87.3% below this industry median. Based on the distribution chart, Deckers Outdoor ranks #437 out of 1022 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Deckers Outdoor has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Deckers Outdoor's Degree of Operating Leverage compare to ONON and BIRK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Deckers Outdoor ranks #437 out of 1022 companies for Degree of Operating Leverage. This puts Deckers Outdoor in the upper half of its industry. The industry median Degree of Operating Leverage is 1.02. Deckers Outdoor's value of 0.13 is 87.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Manufacturing - Apparel & Accessories company?
The median Degree of Operating Leverage among Manufacturing - Apparel & Accessories companies is 1.02, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Deckers Outdoor's current Degree of Operating Leverage of 0.13 is 87.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Deckers Outdoor and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Degree of Operating Leverage is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deckers Outdoor's current Degree of Operating Leverage is 0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deckers Outdoor stock overvalued right now?
Based on GuruFocus' analysis, Deckers Outdoor (MEX:DECK) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN2,572.81, compared to a current price of MXN1,660.00 — trading 35.5% below its estimated fair value. The current Degree of Operating Leverage is 0.13 and 87.3% below the Manufacturing - Apparel & Accessories industry median of 1.02. Deckers Outdoor's overall GF Score™ is 72/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Deckers Outdoor (MEX:DECK), the current Degree of Operating Leverage is 0.13 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deckers Outdoor (MEX:DECK) Overvalued in 2026?
Based on GuruFocus' analysis, Deckers Outdoor stock appears to be undervalued.
The current stock price of MXN1,660.00 is trading 35.5% below its estimated GF Value™ of MXN2,572.81.
GuruFocus considers Deckers Outdoor to be Significantly Undervalued.
Key valuation signals for MEX:DECK:
Degree of Operating Leverage: 0.13
GF Value™: MXN2,572.81 vs. price of MXN1,660.00 (35.5% below fair value)
Industry Position: 87.3% below the Manufacturing - Apparel & Accessories median (#437 of 1022)
No single metric tells the full story. See the MEX:DECK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1973, California-based Deckers designs and sells casual and performance footwear, apparel, and accessories. In fiscal 2026, Ugg and Hoka accounted for 50% and 47% of total sales, respectively. The firm also markets a niche sandal brand Teva. Deckers produces most of its sales through wholesale partnerships but also operates e-commerce in more than 50 countries and has more than 200 company-operated stores, about half of which are outlets. The firm generated 58% of its fiscal 2026 sales in the United States.
72GF Score
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