Don't overlook NASDAQ:CROX—a stock with solid growth prospects and a reasonable valuation.

Last update: Jan 10, 2024

Consider CROCS INC (NASDAQ:CROX) as an affordable growth stock, identified by our stock screening tool. NASDAQ:CROX is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Understanding NASDAQ:CROX's Growth

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:

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.
The Earnings Per Share has been growing by 161.05% on average over the past years. This is a very strong growth
CROX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.50%.
The Revenue has been growing by 28.28% on average over the past years. This is a very strong growth!
CROX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.62% yearly.
CROX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.

ChartMill's Evaluation of Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:CROX boasts a 8 out of 10:

CROX is valuated reasonably with a Price/Earnings ratio of 8.27.
Based on the Price/Earnings ratio, CROX is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
CROX is valuated cheaply when we compare the Price/Earnings ratio to 25.84, which is the current average of the S&P500 Index.
CROX is valuated reasonably with a Price/Forward Earnings ratio of 8.10.
Based on the Price/Forward Earnings ratio, CROX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CROX is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.76, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
CROX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CROX is cheaper than 83.67% of the companies in the same industry.
CROX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CROX may justify a higher PE ratio.

Health Assessment of NASDAQ:CROX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CROX has achieved a 5 out of 10:

An Altman-Z score of 3.50 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX has a Altman-Z score of 3.50. This is in the better half of the industry: CROX outperforms 63.27% 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 has a Debt to FCF ratio of 2.32. This is in the better half 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.

Assessing Profitability 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:

With an excellent Return On Assets value of 14.77%, CROX belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
The Return On Equity of CROX (56.37%) is better than 97.96% of its industry peers.
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 10.60%.
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 Profit Margin of 17.14%. This is amongst the best in the industry. CROX outperforms 100.00% of its industry peers.
CROX's Profit Margin has improved in the last couple of years.
CROX has a Operating Margin of 26.66%. This is amongst the best in the industry. CROX outperforms 100.00% of its industry peers.
CROX's Operating Margin has improved in the last couple of years.
CROX has a Gross Margin of 55.11%. This is in the better half of the industry: CROX outperforms 71.43% of its industry peers.

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

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

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.