While growth is established for NASDAQ:CROX, the stock's valuation remains reasonable.

Last update: Nov 6, 2023

Discover CROCS INC (NASDAQ:CROX), an undervalued growth gem identified by our stock screener. NASDAQ:CROX is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Evaluating Growth: NASDAQ:CROX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:CROX scores a 8 out of 10:

The Earnings Per Share has grown by an nice 16.23% over the past year.
Measured over the past years, CROX shows a very strong growth in Earnings Per Share. The EPS has been growing by 161.05% on average per year.
The Revenue has grown by 23.49% in the past year. This is a very strong growth!
Measured over the past years, CROX shows a very strong growth in Revenue. The Revenue has been growing by 28.28% on average per year.
The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.20% on average over the next years. This is quite good.

Understanding NASDAQ:CROX's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:CROX has received a 9 out of 10:

CROX is valuated cheaply with a Price/Earnings ratio of 6.94.
CROX's Price/Earnings ratio is rather cheap when compared to the industry. CROX is cheaper than 95.92% of the companies in the same industry.
CROX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.86.
CROX is valuated cheaply with a Price/Forward Earnings ratio of 6.34.
Based on the Price/Forward Earnings ratio, CROX is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
CROX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 18.98.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 89.80% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CROX is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
CROX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CROX has an outstanding profitability rating, which may justify a higher PE ratio.

Health Analysis for NASDAQ:CROX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CROX has received a 5 out of 10:

An Altman-Z score of 3.35 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX's Altman-Z score of 3.35 is fine compared to the rest of the industry. CROX outperforms 65.31% of its industry peers.
CROX has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as CROX would need 2.32 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.32, CROX is doing good in the industry, outperforming 67.35% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for CROX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Evaluating Profitability: NASDAQ:CROX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 9 out of 10:

CROX has a better Return On Assets (14.77%) than 95.92% of its industry peers.
Looking at the Return On Equity, with a value of 56.38%, CROX belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
CROX has a Return On Invested Capital of 20.11%. This is amongst the best in the industry. CROX outperforms 93.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CROX is significantly above the industry average of 10.72%.
The 3 year average ROIC (28.22%) for CROX is well above the current ROIC(20.11%). The reason for the recent decline needs to be investigated.
CROX's Profit Margin of 17.14% is amongst the best of the industry. CROX outperforms 100.00% of its industry peers.
CROX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 26.66%, CROX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CROX has grown nicely.
With a decent Gross Margin value of 55.12%, CROX is doing good in the industry, outperforming 71.43% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of CROX contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.