RCKYRocky Brands, Inc.
Is the business good?
The checks split: margins widening, but thin cash backing (0.7×).
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RCKY?
Rocky Brands, Inc. earns 9.2% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.20 points above what the capital costs: growth creates value
- Operating margin
- 8.8%
Operating margin · Footwear & Accessories median 8.8% · 12 months to Q2 2026
- Cash conversion
- 0.66×
Cash conversion · 1.13× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +1.4%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 9.8% |
| FY2021 | 7.0% |
| FY2022 | 7.2% |
| FY2023 | 7.7% |
| FY2024 | 6.9% |
| FY2025 | 7.7% |
Details›
- Gross margin12 months to Q2 2026
- 42%
- Operating margin12 months to Q2 2026
- 8.8%
- Net margin12 months to Q2 2026
- 5.7%
- Free cash flow margin
- 3.3%
- Revenue, trailing twelve months
- $505M
- Free cash flow, trailing twelve months
- $16M
- Net income, trailing twelve months
- $29M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Footwear & Accessories
Ranks #7 of 9 by RyuScore