NASDAQ:CROX is not too expensive for the growth it is showing.

Last update: Dec 19, 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

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:CROX boasts 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.
Looking at the last year, CROX shows a very strong growth in Revenue. The Revenue has grown by 23.50%.
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 10.62% on average over the next years. This is quite good.
Based on estimates for the next years, CROX will show a quite strong growth in Revenue. The Revenue will grow by 8.30% on average per year.

ChartMill's Evaluation of Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:CROX has achieved a 8 out of 10:

The Price/Earnings ratio is 8.56, which indicates a very decent valuation of CROX.
Compared to the rest of the industry, the Price/Earnings ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 95.92% of the companies listed in the same industry.
CROX is valuated cheaply when we compare the Price/Earnings ratio to 25.52, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.38, which indicates a very decent valuation of CROX.
Based on the Price/Forward Earnings ratio, CROX is valued cheaper than 95.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.10. CROX is valued rather cheaply when compared to this.
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.
83.67% of the companies in the same industry are more expensive than CROX, based on the Price/Free Cash Flow ratio.
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 Assessment of NASDAQ:CROX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:CROX, the assigned 5 for health provides valuable insights:

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.

Understanding NASDAQ:CROX's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:CROX was assigned a score of 9 for profitability:

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.
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.
With an excellent Return On Invested Capital value of 20.12%, CROX belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CROX is significantly above the industry average of 10.85%.
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.
CROX has a better Profit Margin (17.14%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of CROX has grown nicely.
CROX's Operating Margin of 26.66% is amongst the best of the industry. CROX outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of CROX has grown nicely.
CROX has a better Gross Margin (55.11%) than 71.43% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

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.