One-glance verdict
Overvalued
$18.15 our estimate vs market $46.84
Wall Street consensus: $50.00 (175.4% higher than our fair-value estimate)
158% above our estimate, beyond the bull case
Fundamentals snapshot
Rocky Brands, Inc.
RCKY · NMS · Consumer Cyclical · Footwear & Accessories
Current price
$46.84
52-week range
$27.22 - $53.01
Market cap
$350.92M
Balance sheet
Stretched
3.72x Stretched
Net debt $127.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 11.5% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 6.5% (peer median: 15.7%).
- Risk Operating margin compressed from 7.2% to 2.4% over 3 years.
What this company does
Rocky Brands, Inc.
Rocky Brands makes and sells boots and outdoor clothing for workers and outdoor enthusiasts under popular names like Rocky and Muck Boot. Most of their money comes from selling these products to stores that then sell them to you, but they also sell directly to customers online and through their own stores. This approach matters because it shows how they get their products to people and who they are trying to reach with their gear.
How the company got here
Rocky Brands began in 1932 during the Great Depression when brothers William and F.M. Brooks started The William Brooks Shoe Company in Nelsonville, Ohio, after losing their jobs. They began with a small operation, producing about 300 pairs of shoes daily. Over the decades, the company grew, even producing boots for the military during World War II and the Korean War. A significant turning point came in the 1970s when John Brooks, with his son Mike, bought the business back and launched the "Rocky" brand, focusing on rugged outdoor footwear. The company went public in 1993, and through strategic acquisitions like EJ Footwear (bringing in Georgia Boot and Durango) and later Honeywell's performance and lifestyle footwear business (adding Muck Boot and XTRATUF), Rocky Brands expanded its portfolio and market reach.
What it actually does
Rocky Brands designs, manufactures, and markets a wide range of footwear and apparel. Their products are built for durability and functionality, catering to various needs from outdoor adventures and demanding work environments to everyday wear. The company operates under a portfolio of well-recognized brand names, each with a history of quality and performance in their respective markets.
Wholesale
The Wholesale segment is Rocky Brands' largest revenue generator. This is where the company sells its footwear and apparel products in bulk to a wide variety of retailers. These include sporting goods stores, outdoor outfitters, independent shoe stores, mass-market retailers, and online stores. Essentially, this segment acts as the company's main distribution channel to get its products into many different physical and online stores where consumers can then purchase them.
Retail
The Retail segment involves Rocky Brands selling its products directly to consumers. This happens through several avenues: their own e-commerce websites (like rockyboots.com and muckbootcompany.com), third-party online marketplaces, and their own physical retail stores, such as the Rocky Outdoor Gear Stores. This direct-to-consumer approach allows the company to have a closer relationship with its customers and capture a larger portion of the sale price.
Contract Manufacturing
The Contract Manufacturing segment is a distinct way Rocky Brands generates revenue. In this segment, the company manufactures footwear products for other businesses under their brand names (private label sales). They also fulfill specific footwear contracts, including supplying products to the U.S. Military. This segment leverages the company's manufacturing capabilities to serve specific client needs beyond their own branded product lines.
What management is betting on now
Rocky Brands is focused on growing its business by expanding its well-known brands into new markets and product categories, aiming to outfit consumers from head to toe. They are investing in marketing, particularly digital channels, to increase brand awareness and drive demand. Additionally, the company is working to improve its direct-to-consumer sales through technology and personnel investments, while also optimizing its manufacturing operations for efficiency and capitalizing on opportunities like commercial military contracts.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$3.46M
FY2024 Q4
$22.90M
FY2025 Q1
$529.00K
FY2025 Q2
$-2.36M
FY2025 Q3
$-5.17M
FY2025 Q4
$16.72M
FY2026 Q1
$744.00K
FY2026 Q2
$4.14M
Revenue
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Net income
$13.88M
Diluted EPS
1.83
Operating cash flow
$7.83M
Free cash flow
$4.14M
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Sources
Revenue
—
Net income
$1.26M
Diluted EPS
0.17
Operating cash flow
$1.89M
Free cash flow
$744.00K
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Sources
Revenue
—
Net income
$6.51M
Diluted EPS
0.86
Operating cash flow
$17.59M
Free cash flow
$16.72M
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Sources
Revenue
—
Net income
$7.21M
Diluted EPS
0.96
Operating cash flow
$-3.33M
Free cash flow
$-5.17M
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Sources
Revenue
—
Net income
$3.61M
Diluted EPS
0.48
Operating cash flow
$812.00K
Free cash flow
$-2.36M
Fetching…
Sources
Revenue
—
Net income
$4.94M
Diluted EPS
0.66
Operating cash flow
$1.23M
Free cash flow
$529.00K
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Sources
Revenue
—
Net income
$4.80M
Diluted EPS
0.65
Operating cash flow
$24.39M
Free cash flow
$22.90M
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Sources
Revenue
—
Net income
$5.28M
Diluted EPS
0.70
Operating cash flow
$4.50M
Free cash flow
$3.46M
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Sources
Is it cheap or expensive?
Fair value $18.15 vs current price $46.84
Wall Street consensus is the average analyst price target: $50.00 (175.4% higher than our fair-value estimate).
Our most-likely fair value is $18.15 a share — about 61.2% below today's price of $46.84, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $127.4M. Interest coverage 3.7x.
Net debt
$127.38M
Interest coverage
3.72x
Rocky Brands, Inc.'s profit covers its interest bill about 3.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
RCKY
BASELINE
Rocky Brands, Inc.
Total debt $130.01M Interest coverage 3.72x This is the baseline the peer rows are being compared against.
Total debt $9.11M Interest coverage 14,586.00x +392,408% vs RCKY Carries about 3925.1x more debt cushion than RCKY.
Total debt $583.91M Interest coverage 5.29x +42% vs RCKY Carries about 1.4x more debt cushion than RCKY.
Total debt $877.31M Interest coverage 1.48x -60% vs RCKY Carries about 2.5x less debt cushion than RCKY.
Total debt $1.21B Interest coverage 0.91x -76% vs RCKY Carries about 4.1x less debt cushion than RCKY.
What you should know
The case for and against RCKY
3 Rewards
2 Risks
Rewards
-
Returns 11.5% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 1.4% with 14-year payout history.
Risks
-
Insider ownership is only 6.5% (peer median: 15.7%).
-
Operating margin compressed from 7.2% to 2.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
12.29x
Forward P/E
11.15x
P/B
1.33x
P/S
0.69x
EV/EBITDA
12.70x
PEG ratio
1.17x
Profitability
How much profit each dollar creates
Gross margin
38.7%
Operating margin
2.4%
Net margin
5.7%
ROE
11.5%
ROA
3.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.49x
Current ratio
2.97x
Quick ratio
1.06x
Total debt
$130.01M
Total cash
$2.63M
Growth
How the business has been compounding
Revenue TTM
$265.03M
Revenue 5Y CAGR
0.1%
EPS TTM
3.81
EPS 5Y CAGR
2.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$23.97M
Free CF TTM
$9.72M
FCF margin
3.7%
Dividend
Shareholder payout
Yield
1.5%
Payout ratio
16.7%
Last ex-div date
2026-09-01