Recent News
On February 24, 2026 Rocky Brands released fourth-quarter and full-year 2025 results, reporting net sales of $139.7M and EPS that exceeded analyst estimates; management cited a strong retail contribution and continued e-commerce investment. On February 17, 2026 the company declared a quarterly cash dividend. Management guided toward roughly 6% revenue growth for 2026 while allocating incremental spend to digital marketing and direct-to-consumer initiatives.
Technical Analysis
Directional indicators show a bullish tilt: DI+ registers 27.39 and trends higher while DI- sits at 17.92 and trends lower, creating a clear DI+ advantage that supports upward price bias. ADX at 20.82 signals an emerging trend rather than a well-established directional move, so momentum requires confirmation.
MACD reads 0.91 with the MACD line above the signal at 0.70, and the MACD trend moving higher; that cross constitutes a bullish momentum signal and aligns with the DI+ strength for near-term continuation potential.
MRO stands at 23.05 and registers a dip & reversal. The positive MRO implies price presently sits above the model target and carries moderate pullback risk, but the recent dip & reversal pattern suggests momentum attempting to re-accelerate from a short-term correction.
RSI at 57.85 with a peak & reversal pattern suggests recent overreach into higher momentum followed by a short-term top formation; that condition increases the likelihood of mean-reversion episodes before any sustained leg higher.
Price structure favors bulls: the close at $43.12 sits above the 12-day EMA ($42.30), the 20-day average ($41.76), the 50-day average ($40.17) and the 200-day average ($31.66), with the 12-day EMA trending up. Price occupies the upper Bollinger band band range but remains below the 1x upper band ($43.86), leaving room for continuation without an immediate volatility squeeze. Ichimoku components (Tenkan/Kijun at $41.06; Senkou A $40.30; Senkou B $38.52) place price above the cloud, reinforcing the constructive technical backdrop. SuperTrend lower support sits near $39.99, offering a visible near-term support level.
Fundamental Analysis
Revenue growth shows strength: total revenue reached $139.7M with revenue growth at 14.02% and revenue growth year‑over‑year at 18.94%, reflecting healthy top-line expansion. QoQ revenue growth dipped by 12.34%, indicating seasonal or quarter-specific variability; the YoY gain provides the more relevant momentum signal for valuation context.
Profitability metrics present mixed signals. Operating (EBIT) margin stands at 6.864%, up 3.34% YoY but down 28.32% QoQ. That margin sits below the industry peer mean of 13.665% and slightly below the industry peer median of 8.095%, indicating room for operational improvement relative to average peers while remaining modestly competitive versus the median.
Net income totaled $6.51M and EBITDA reached $12.11M. EPS reported at $0.94 versus an estimate of $0.49, producing a $0.45 beat and an EPS surprise of 91.84%, confirming the quarter’s bottom-line strength relative to consensus expectations.
Cash generation stands out: operating cash flow measured $17.59M and free cash flow reached $16.72M, yielding a free cash flow yield of 7.06%, which sits above the industry peer mean of 2.10% and the industry peer median of 0.39%, supporting valuation upside under a cash-focused lens. Cash flow to earnings equals 255.70%, indicating strong conversion of earnings into cash.
Balance sheet and working capital dynamics show adequate liquidity and elevated working capital absorption. Current ratio reads 2.82 and quick ratio 0.93, with the current ratio above the industry peer mean of 2.09. Total debt equals $127.02M with net debt at $119.74M; debt-to-assets stands at 26.60%, slightly below the industry peer mean of 31.13% and debt-to-equity at 50.39%, below the industry peer mean of 71.45%, signaling moderate leverage relative to peers. Cash conversion cycle runs long at 213 days versus the industry peer mean of 103 days, reflecting elevated inventory and receivables duration that ties up capital.
Return metrics remain modest: return on equity equals 2.58% while return on assets equals 1.34%, both below typical peer averages and highlighting limited capital efficiency gains to date. Gross margin at 41.32% supports healthy product-level economics and contributes to the company’s above‑average cash generation.
Valuation context presents a disconnect: price-to-book registers 0.94, well below the industry peer mean of 6.09 and the industry peer median of 6.99, while enterprise value to revenue and enterprise multiple reflect conservative market pricing versus cash flow strength. WMDST values the stock as under-valued given above-average free cash flow yield, EPS outperformance, and conservative price/book metrics despite below‑median profitability metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-24 |
| NEXT REPORT DATE: | 2026-05-26 |
| CASH FLOW | Begin Period Cash Flow | $ 3.3 M |
| Operating Cash Flow | $ 17.6 M | |
| Capital Expenditures | $ -867.00 K | |
| Change In Working Capital | $ 4.7 M | |
| Dividends Paid | $ -1.16 M | |
| Cash Flow Delta | $ -417.00 K | |
| End Period Cash Flow | $ 2.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 139.7 M | |
| Forward Revenue | $ 41.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 82.0 M | |
| Depreciation | $ 2.5 M | |
| Depreciation and Amortization | $ 2.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 130.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 57.7 M | |
| EBITDA | $ 12.1 M | |
| EBIT | $ 9.6 M | |
| Operating Income | $ 9.6 M | |
| Interest Income | — | |
| Interest Expense | $ 2.6 M | |
| Net Interest Income | $ -2.64 M | |
| Income Before Tax | $ 7.0 M | |
| Tax Provision | $ 438.0 K | |
| Tax Rate | 6.302 % | |
| Net Income | $ 6.5 M | |
| Net Income From Continuing Operations | $ 6.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.49 | |
| EPS Actual | $ 0.94 | |
| EPS Difference | $ 0.45 | |
| EPS Surprise | 91.837 % | |
| Forward EPS | $ 1.02 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 477.5 M | |
| Intangible Assets | $ 150.9 M | |
| Net Tangible Assets | $ 101.2 M | |
| Total Current Assets | $ 270.7 M | |
| Cash and Short-Term Investments | $ 2.9 M | |
| Cash | $ 2.9 M | |
| Net Receivables | $ 77.1 M | |
| Inventory | $ 181.1 M | |
| Long-Term Investments | $ 1.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 53.0 M | |
| Short-Term Debt | $ 8.4 M | |
| Total Current Liabilities | $ 96.1 M | |
| Net Debt | $ 119.7 M | |
| Total Debt | $ 127.0 M | |
| Total Liabilities | $ 225.4 M | |
| EQUITY | ||
| Total Equity | $ 252.1 M | |
| Retained Earnings | $ 176.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 33.59 | |
| Shares Outstanding | 7.505 M | |
| Revenue Per-Share | $ 18.62 | |
| VALUATION | Market Capitalization | $ 236.8 M |
| Enterprise Value | $ 360.9 M | |
| Enterprise Multiple | 29.813 | |
| Enterprise Multiple QoQ | 22.975 % | |
| Enterprise Multiple YoY | 78.557 % | |
| Enterprise Multiple IPRWA | high: 85.499 median: 85.499 mean: 60.818 RCKY: 29.813 low: -26.368 |
|
| EV/R | 2.583 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.894 | |
| Asset To Liability | 2.118 | |
| Debt To Capital | 0.335 | |
| Debt To Assets | 0.266 | |
| Debt To Assets QoQ | -6.947 % | |
| Debt To Assets YoY | 1355.252 % | |
| Debt To Assets IPRWA | high: 0.701 mean: 0.311 median: 0.299 RCKY: 0.266 low: 0.034 |
|
| Debt To Equity | 0.504 | |
| Debt To Equity QoQ | -12.198 % | |
| Debt To Equity YoY | 1299.639 % | |
| Debt To Equity IPRWA | high: 5.089 median: 0.801 mean: 0.714 RCKY: 0.504 low: 0.045 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.939 | |
| Price To Book QoQ | 11.522 % | |
| Price To Book YoY | 22.411 % | |
| Price To Book IPRWA | high: 9.303 median: 6.991 mean: 6.088 RCKY: 0.939 low: 0.492 |
|
| Price To Earnings (P/E) | 33.566 | |
| Price To Earnings QoQ | 24.894 % | |
| Price To Earnings YoY | 67.087 % | |
| Price To Earnings IPRWA | high: 125.538 median: 125.538 mean: 88.68 RCKY: 33.566 low: -7.846 |
|
| PE/G Ratio | -3.841 | |
| Price To Sales (P/S) | 1.695 | |
| Price To Sales QoQ | 0.193 % | |
| Price To Sales YoY | 21.79 % | |
| Price To Sales IPRWA | high: 15.231 median: 7.923 mean: 7.448 RCKY: 1.695 low: 0.408 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 28.757 | |
| Forward PE/G | -3.291 | |
| Forward P/S | 5.753 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.304 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.288 | |
| Asset Turnover Ratio QoQ | 13.258 % | |
| Asset Turnover Ratio YoY | 4.707 % | |
| Asset Turnover Ratio IPRWA | high: 0.496 mean: 0.342 median: 0.331 RCKY: 0.288 low: 0.029 |
|
| Receivables Turnover | 1.751 | |
| Receivables Turnover Ratio QoQ | 6.383 % | |
| Receivables Turnover Ratio YoY | 1.926 % | |
| Receivables Turnover Ratio IPRWA | high: 15.778 mean: 4.438 median: 2.323 RCKY: 1.751 low: 0.99 |
|
| Inventory Turnover | 0.438 | |
| Inventory Turnover Ratio QoQ | 13.616 % | |
| Inventory Turnover Ratio YoY | -1.076 % | |
| Inventory Turnover Ratio IPRWA | high: 1.07 median: 0.932 mean: 0.82 RCKY: 0.438 low: 0.402 |
|
| Days Sales Outstanding (DSO) | 52.124 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 213.084 | |
| Cash Conversion Cycle Days QoQ | -12.12 % | |
| Cash Conversion Cycle Days YoY | 10.425 % | |
| Cash Conversion Cycle Days IPRWA | high: 338.107 RCKY: 213.084 mean: 103.453 median: 95.506 low: 21.797 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.8 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.345 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 366.4 M | |
| Net Invested Capital | $ 374.7 M | |
| Invested Capital | $ 374.7 M | |
| Net Tangible Assets | $ 101.2 M | |
| Net Working Capital | $ 174.6 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.03 | |
| Current Ratio | 2.816 | |
| Current Ratio QoQ | 2.825 % | |
| Current Ratio YoY | 3.309 % | |
| Current Ratio IPRWA | high: 4.224 RCKY: 2.816 mean: 2.086 median: 2.063 low: 0.217 |
|
| Quick Ratio | 0.932 | |
| Quick Ratio QoQ | 5.916 % | |
| Quick Ratio YoY | 5.654 % | |
| Quick Ratio IPRWA | high: 2.869 median: 1.399 mean: 1.393 RCKY: 0.932 low: 0.111 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.492 | |
| Cost Of Debt | 1.41 % | |
| Interest Coverage Ratio | 3.633 | |
| Interest Coverage Ratio QoQ | -22.829 % | |
| Interest Coverage Ratio YoY | 30.013 % | |
| Interest Coverage Ratio IPRWA | high: 701.0 mean: 107.276 RCKY: 3.633 median: -15.015 low: -165.305 |
|
| Operating Cash Flow Ratio | 0.173 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 72.414 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 5.599 | |
| Dividend Payout Ratio | 0.179 | |
| Dividend Rate | $ 0.15 | |
| Dividend Yield | 0.005 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -3.345 % | |
| Revenue Growth | 14.017 % | |
| Revenue Growth QoQ | -12.339 % | |
| Revenue Growth YoY | 18.939 % | |
| Revenue Growth IPRWA | high: 61.21 % RCKY: 14.017 % mean: 13.096 % median: 6.032 % low: -12.568 % |
|
| Earnings Growth | -8.738 % | |
| Earnings Growth QoQ | -110.012 % | |
| Earnings Growth YoY | -116.02 % | |
| Earnings Growth IPRWA | high: 223.077 % mean: 21.336 % median: 8.163 % RCKY: -8.738 % low: -44.737 % |
|
| MARGINS | ||
| Gross Margin | 41.316 % | |
| Gross Margin QoQ | 2.745 % | |
| Gross Margin YoY | -0.51 % | |
| Gross Margin IPRWA | high: 100.0 % mean: 51.238 % median: 42.431 % RCKY: 41.316 % low: 11.955 % |
|
| EBIT Margin | 6.864 % | |
| EBIT Margin QoQ | -28.321 % | |
| EBIT Margin YoY | 3.342 % | |
| EBIT Margin IPRWA | high: 32.08 % mean: 13.665 % median: 8.095 % RCKY: 6.864 % low: -19.556 % |
|
| Return On Sales (ROS) | 6.864 % | |
| Return On Sales QoQ | -28.321 % | |
| Return On Sales YoY | 3.342 % | |
| Return On Sales IPRWA | high: 31.384 % mean: 13.746 % median: 8.095 % RCKY: 6.864 % low: -19.556 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 16.7 M | |
| Free Cash Flow Yield | 7.06 % | |
| Free Cash Flow Yield QoQ | -383.307 % | |
| Free Cash Flow Yield YoY | -45.058 % | |
| Free Cash Flow Yield IPRWA | high: 25.352 % RCKY: 7.06 % mean: 2.097 % median: 0.392 % low: -22.722 % |
|
| Free Cash Growth | -423.679 % | |
| Free Cash Growth QoQ | -456.185 % | |
| Free Cash Growth YoY | -175.335 % | |
| Free Cash Growth IPRWA | high: 1193.641 % mean: 270.489 % median: -38.231 % RCKY: -423.679 % low: -647.462 % |
|
| Free Cash To Net Income | 2.567 | |
| Cash Flow Margin | 11.918 % | |
| Cash Flow To Earnings | 2.557 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.341 % | |
| Return On Assets QoQ | -10.301 % | |
| Return On Assets YoY | 30.194 % | |
| Return On Assets IPRWA | high: 12.202 % mean: 3.856 % median: 2.109 % RCKY: 1.341 % low: -18.558 % |
|
| Return On Capital Employed (ROCE) | 2.515 % | |
| Return On Equity (ROE) | 0.026 | |
| Return On Equity QoQ | -11.873 % | |
| Return On Equity YoY | 24.964 % | |
| Return On Equity IPRWA | high: 0.238 mean: 0.068 median: 0.056 RCKY: 0.026 low: -0.206 |
|
| DuPont ROE | 2.614 % | |
| Return On Invested Capital (ROIC) | 2.398 % | |
| Return On Invested Capital QoQ | 0.841 % | |
| Return On Invested Capital YoY | -98.511 % | |
| Return On Invested Capital IPRWA | high: 6.729 % mean: 4.165 % median: 3.609 % RCKY: 2.398 % low: -0.137 % |
|