Why NASDAQ:CROX Is a Standout High-Growth Stock in a Consolidation Phase.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether CROCS INC (NASDAQ:CROX) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but CROCS INC has surfaced on our radar for growth with base formation, warranting further examination.

Understanding NASDAQ:CROX's Growth Score

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:CROX was assigned a score of 8 for growth:

• CROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.23%, which is quite good.
• 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.
• Looking at the last year, CROX shows a very strong growth in Revenue. The Revenue has grown by 23.50%.
• CROX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.28% yearly.
• The Earnings Per Share is expected to grow by 10.62% on average over the next years. This is quite good.
• The Revenue is expected to grow by 8.30% on average over the next years. This is quite good.

Health Analysis for 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:

• CROX has an Altman-Z score of 3.54. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.54, CROX is doing good in the industry, outperforming 63.27% of the companies in the same industry.
• The Debt to FCF ratio of CROX is 2.32, which is a good value as it means it would take CROX, 2.32 years of fcf income to pay off all of its debts.
• CROX's Debt to FCF ratio of 2.32 is fine compared to the rest of the industry. CROX outperforms 63.27% 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.

Evaluating Profitability: NASDAQ:CROX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:CROX scores a 9 out of 10:

• CROX's Return On Assets of 14.77% is amongst the best of the industry. CROX outperforms 95.92% of its industry peers.
• Looking at the Return On Equity, with a value of 56.37%, CROX belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
• CROX's Return On Invested Capital of 20.12% is amongst the best of 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 10.75%.
• The 3 year average ROIC (28.22%) for CROX is well above the current ROIC(20.12%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 17.14%, CROX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• CROX's Profit Margin has improved in the last couple of years.
• The Operating Margin of CROX (26.66%) is better than 100.00% of its industry peers.
• CROX's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 55.11%, CROX is doing good in the industry, outperforming 71.43% of the companies in the same industry.

How does the Setup look for NASDAQ:CROX

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:

CROX has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 105.11. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 103.73, 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.

Check the latest full fundamental report of CROX for a complete fundamental analysis.

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

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.