Why NASDAQ:CROX Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Nov 8, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether CROCS INC (NASDAQ:CROX) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but CROCS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Understanding NASDAQ:CROX's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:CROX, the assigned 8 reflects its growth potential:

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

Health Assessment of NASDAQ:CROX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:CROX was assigned a score of 5 for health:

An Altman-Z score of 3.33 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX's Altman-Z score of 3.33 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.
CROX's Debt to FCF ratio of 2.32 is fine compared to the rest of the industry. CROX outperforms 67.35% of its industry peers.
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.

What does the Profitability looks like for NASDAQ:CROX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:CROX has achieved a 9:

Looking at the Return On Assets, with a value of 14.77%, CROX belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
CROX has a better Return On Equity (56.38%) than 97.96% of its industry peers.
CROX has a better Return On Invested Capital (20.11%) than 93.88% of its industry peers.
CROX had an Average Return On Invested Capital over the past 3 years of 28.22%. This is significantly above the industry average of 10.71%.
The last Return On Invested Capital (20.11%) for CROX is well below the 3 year average (28.22%), which needs to be investigated, but indicates that CROX had better years and this may not be a problem.
CROX has a better Profit Margin (17.14%) than 100.00% of its industry peers.
CROX's Profit Margin has improved in the last couple of years.
CROX has a better Operating Margin (26.66%) than 100.00% of its industry peers.
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.

Why is NASDAQ:CROX a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:CROX is 7:

Although the technical rating is bad, CROX does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 82.73, a Stop Loss order could be placed below this zone.

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

For an up to date full fundamental analysis you can check the fundamental report of CROX

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.