Rocky Brands (RCKY) AI Stock Analysis

• Market Cap: $331.08M
• Dividend Yield: 2.08%
• Average Volume (3M): 49.54K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.15
• Revenue Growth: 4.13%
• EPS Growth: 53.56%
• Country: US
• Employees: 2,530
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.94
• Shares Outstanding: 7,536,488
• 10 Day Avg. Volume: 51,288
• 30 Day Avg. Volume: 49,540
• PEG Ratio: 0.10
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 22.55
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: 8.14
• 1Y Price Target: $53.00
• Price Target Upside: 20.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.11
• Revenue Forecast (FY): $496.57M

• Rating: 69 Neutral
• Price Target: $48.00 ▲(9.26% Upside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is anchored by improving profitability and a stronger balance sheet, plus strong technical momentum and a low P/E. It is held back primarily by weak/volatile cash generation and near-term tariff and cost headwinds highlighted in guidance (front-loaded into early 2026).

Positive Factors

Margin expansion & profitability

Sustained gross‑margin expansion and strong adjusted net‑income growth reflect improved pricing, mix, and cost control. Higher underlying margins provide durable earnings power, greater ability to absorb cost shocks, and more internal funding for reinvestment and shareholder returns over the medium term.

Improved balance sheet & lower leverage

Material leverage reduction and equity growth meaningfully lower financial risk and interest burden. A stronger balance sheet increases flexibility to fund working capital, support DTC investments, withstand tariff shocks, and return capital (dividends/buybacks) without compromising operations.

Brand and retail/DTC momentum

Rapid DTC and brand growth indicate durable structural gains: stronger direct margins, higher customer engagement, and scalable digital channels. Growing brand scale (XTRATUF, Muck) diversifies revenue, raises channel mix towards higher‑margin retail, and supports long‑term market positioning.

Negative Factors

Volatile cash generation

Sharp deterioration and historical volatility in operating cash flow undermine financial predictability. Weak cash conversion limits capacity to sustainably fund capex, inventory, buybacks or dividends, and raises refinancing or liquidity risk if adverse conditions persist or tariffs intensify.

Front‑loaded tariff pressure

Concentrated, front‑loaded tariff costs materially compress margins early in the year and create back‑loaded earnings. If tariffs persist or expand, structural margin erosion could require sustained price increases, margin tradeoffs, or incremental sourcing investments that hurt long‑term profitability.

Wholesale and contract manufacturing weakness

Sluggish wholesale and contract manufacturing reduce revenue diversification and expose the company to order‑timing and inventory cyclicality. Weakness here pressures overall sales stability, compresses segment margins, and can require higher promotional activity or working capital to stabilize wholesale relationships.

Rocky Brands Business Overview & Revenue Model

Company Description

Rocky Brands, Inc. designs, manufactures, and markets footwear and apparel under the Rocky, Georgia Boot, Durango, Lehigh, Muck, XTRATUF, Servus, NEOS, Ranger, and licensed Michelin brand names in the United States, Canada, and internationally. It operates through Wholesale, Retail, and Contract Manufacturing segments. The Wholesale segment offers products in approximately 10,000 retail locations through a range of distribution channels comprising sporting goods stores, outdoor retailers, independent shoe retailers, hardware stores, catalogs, mass merchants, uniform stores, farm store chains, specialty safety stores, and specialty and online retailers. The Retail segment sells its products directly to consumers through its e-commerce websites, including rockyboots.com, georgiaboot.com, durangoboot.com, lehighoutfitters.com, lehighsafetyshoes.com, slipgrips.com,muckbootcompany.com,xtratuf.com, and Rocky outlet store in Nelsonville, Ohio, and retail stores. The Contract Manufacturing segment include private label sales and any sales to customers which are contracted to manufacture a specific footwear product for a customer and include sales to the U.S. Military. It serves industrial and construction workers, as well as workers in the hospitality industry, such as restaurants or hotels; farmers and ranchers; consumers enamored with western influenced fashion; commercial military personnel; hunting, fishing, camping, and hiking enthusiasts; law enforcement, security personnel, and postal employees; and for the U.S. military personnel. Rocky Brands, Inc. was founded in 1932 and is headquartered in Nelsonville, Ohio.

How the Company Makes Money

Rocky Brands primarily makes money by selling branded footwear (its core product category) and, to a lesser extent, apparel and accessories through two main routes: (1) wholesale distribution and (2) direct-to-consumer (DTC) sales. In wholesale, the company sells inventory in bulk to third-party retailers, dealers, and e-commerce partners (and, in some cases, to commercial accounts such as uniform/workwear programs), generating revenue upon shipment/transfer of control under its customer terms; margins depend on wholesale pricing, product mix (work vs. outdoor vs. western), promotions/allowances, freight, and sourcing costs. In DTC, the company sells directly through its own e-commerce sites and other company-controlled selling initiatives, capturing the full retail price but also incurring higher operating costs for marketing, fulfillment, and customer service; DTC performance is influenced by website traffic, conversion, repeat purchase, and promotional cadence. A meaningful portion of earnings is driven by brand strength and distribution reach in key categories (work and duty footwear, outdoor footwear, and western/lifestyle boots), seasonal demand patterns, and the company’s ability to manage product sourcing, inventory levels, and input costs (materials, labor, and freight). Significant partnerships, if any, that materially contribute to earnings are null.

Rocky Brands Financial Statement Overview

Summary

Fundamentals are mixed: profitability improved in 2025 (gross margin ~41%, net margin ~4.6%) and leverage is meaningfully better (debt-to-equity ~0.49x). The main drag is cash-flow quality—2025 operating cash flow fell sharply (~$16M vs ~$53M in 2024) and free cash flow declined, with a history of volatility.

Income Statement

Revenue has rebounded modestly in 2025 (up 2.5% after a slight decline in 2024), but remains below the 2022 peak, signaling a choppy demand backdrop. Profitability improved meaningfully in 2025 with higher gross margin (~41%) and a stronger net margin (~4.6%) versus 2024 (~2.5%), indicating better pricing/mix and/or cost control. That said, net margins are still relatively thin and results have been volatile over the last several years.

Balance Sheet

Leverage has improved substantially: debt-to-equity has fallen from elevated levels in 2021–2022 (above 1.0x) to ~0.49x in 2025, reducing financial risk. Equity has grown steadily (from ~$180M in 2020 to ~$252M in 2025), supporting balance-sheet resilience. Returns on equity are decent but not consistently strong, and total debt is still meaningful (~$124M), so the balance sheet is improved but not pristine.

Cash Flow

Cash generation weakened sharply in 2025: operating cash flow dropped to ~$16M from ~$53M in 2024, and free cash flow fell to ~$10M (down ~39% year over year). Cash conversion versus earnings also deteriorated in 2025 (free cash flow at ~60% of net income), and operating cash flow has been volatile historically (including a negative year in 2021). Overall, cash flow quality and consistency are the primary weak spot despite still-positive free cash flow in the latest year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	481.98M	453.77M	461.83M	615.48M	514.23M
Gross Profit	197.29M	179.01M	178.60M	225.22M	194.54M
EBITDA	37.19M	41.32M	46.31M	56.36M	47.29M
Net Income	22.27M	11.39M	10.43M	20.46M	20.56M
Balance Sheet
Total Assets	477.49M	457.30M	479.38M	592.76M	624.58M
Cash, Cash Equivalents and Short-Term Investments	2.90M	3.72M	4.47M	5.72M	5.91M
Total Debt	124.37M	135.05M	181.27M	268.18M	278.85M
Total Liabilities	225.40M	225.08M	255.83M	377.29M	426.72M
Stockholders Equity	252.09M	232.22M	223.56M	215.47M	197.85M
Cash Flow
Free Cash Flow	9.72M	48.10M	69.66M	12.42M	-75.93M
Operating Cash Flow	16.30M	52.76M	73.58M	19.12M	-54.88M
Investing Cash Flow	-6.20M	-2.96M	13.38M	-1.23M	-233.46M
Financing Cash Flow	-10.91M	-50.55M	-88.21M	-18.08M	265.89M

Rocky Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCKY, the sentiment is Positive. The current price of 43.93 is above the 20-day moving average (MA) of 40.27, above the 50-day MA of 35.15, and above the 200-day MA of 28.97, indicating a bullish trend. The MACD of 3.00 indicates Positive momentum. The RSI at 66.29 is Neutral, neither overbought nor oversold. The STOCH value of 32.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCKY.

Rocky Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEYS	74 Outperform	$318.15M	12.56	9.57%	9.66%	-3.64%	-16.12%
RCKY	69 Neutral	$331.08M	9.84	8.67%	2.08%	4.13%	53.56%
CROX	62 Neutral	$4.00B	-57.09	-5.37%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	61 Neutral	$1.31B	15.53	26.62%	2.28%	3.61%	―
SHOO	56 Neutral	$2.38B	66.08	5.21%	1.97%	6.26%	-66.51%
CAL	49 Neutral	$318.96M	39.24	3.39%	2.11%	-2.83%	-86.19%

Rocky Brands Corporate Events

Rocky Brands Announces New $7.5 Million Share Buyback

On February 23, 2026, Rocky Brands, Inc.’s board authorized a new 12‑month share repurchase program of up to $7.5 million of the company’s common stock, effective February 24, 2026. The authorization allows purchases in open market or privately negotiated transactions in line with SEC Rule 10b‑18 and may be suspended at the company’s discretion, signaling capital deployment aimed at enhancing shareholder value and potentially supporting the stock in the market.

The most recent analyst rating on (RCKY) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Rocky Brands stock, see the RCKY Stock Forecast page.