One-glance verdict
Overvalued
$11.59 our estimate vs market $43.40
Wall Street consensus: $56.00 (383.1% higher than our fair-value estimate)
274% above our estimate, beyond the bull case
Fundamentals snapshot
Rocky Brands, Inc.
RCKY · NMS · Consumer Cyclical · Footwear & Accessories
Current price
$43.40
52-week range
$26.29 - $53.01
Market cap
$325.11M
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 6.4% (peer median: 15.6%).
- Risk Operating margin compressed from 7.2% to 2.4% over 3 years.
What this company does
Rocky Brands, Inc.
Rocky Brands sells durable footwear and clothing for work, outdoor activities, and military use, with popular brands like Rocky and Georgia Boot. Most of its money comes from wholesale (selling its products in bulk to other stores), but it also sells directly to customers online and through contracts with the U.S. military. This diverse mix of customers, from construction workers to soldiers, provides the company with multiple sources of income.
How the company got here
Rocky Brands started as the William Brooks Shoe Company in 1932, during the Great Depression, in Nelsonville, Ohio. The founders, two brothers who had lost their jobs, set up in a rent-free factory with borrowed equipment. The company made a name for itself by producing durable footwear, including boots for the military during World War II and the Korean War. In the 1970s, the founder's grandson introduced the 'Rocky' brand, focusing on rugged outdoor boots, which became the company's new identity. Over the years, it has grown by acquiring other well-known footwear brands like Georgia Boot, Durango, Muck Boot Company, and XTRATUF to expand its reach.
What it actually does
Rocky Brands designs and sells a wide variety of footwear and apparel for work, outdoor activities, and everyday use. You would recognize their products as sturdy work boots, western-style boots, and rugged outdoor and hunting boots. The company owns a portfolio of brands, including Rocky, Georgia Boot, Durango, Lehigh, Muck, and XTRATUF. They cater to people who need durable and functional footwear, such as construction workers, farmers, hunters, and even military personnel.
Wholesale
This is the company's largest business segment, making up the majority of its sales. In this part of the business, Rocky Brands sells its footwear and apparel in large quantities to other retailers. These retailers include big sporting goods stores, outdoor specialty shops, farm supply chains, and online stores. So, when you buy a pair of Georgia Boots from a local workwear store or an online retailer, you are participating in their wholesale business. This segment is the main way the company gets its various brands in front of a wide audience across thousands of retail locations.
Retail
This segment involves selling products directly to the end customer, which is a growing part of the company's business. This happens through the company's own websites, like rockyboots.com and durangoboot.com, as well as through third-party online marketplaces. They also operate their own physical retail stores, giving customers a direct way to see and buy their products. This direct-to-consumer approach allows the company to control the customer experience and often results in a higher profit margin (the amount of profit made on each sale) compared to wholesale.
Contract Manufacturing
This is the smallest slice of Rocky Brands' business. This segment focuses on two main activities: making footwear for other companies under their private labels and manufacturing boots under contract for the U.S. military. For example, another company might hire Rocky Brands to produce a specific boot design that will be sold under the other company's name. The military contracts provide a steady and reliable source of revenue (income from sales) for the company.
What management is betting on now
The company's current strategy focuses on strengthening its portfolio of well-known brands through product innovation and marketing, with a special emphasis on digital advertising. They are also working to grow their direct-to-consumer business by investing in their e-commerce (online sales) websites and capabilities. Another key priority is expanding their distribution with major retail partners. Finally, management aims to leverage its own manufacturing facilities to secure more contracts with the U.S. military, providing a stable source of income.
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
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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 $11.59 vs current price $43.40
Wall Street consensus is the average analyst price target: $56.00 (383.1% higher than our fair-value estimate).
Our most-likely fair value is $11.59 a share — about 73.3% below today's price of $43.40, 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 $1.23B 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.
-
Trades at 11.4x P/E vs peer median 12.1x (6.0% cheaper).
Risks
-
Insider ownership is only 6.4% (peer median: 15.6%).
-
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)
11.39x
Forward P/E
10.33x
P/B
1.23x
P/S
0.64x
EV/EBITDA
11.96x
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
1.6%
Payout ratio
16.7%
Last ex-div date
2026-09-01