NASDAQ:CROX, an undervalued stock with good fundamentals.

Last update: Jan 11, 2024

Uncover the hidden value in CROCS INC (NASDAQ:CROX) as our stock screening tool recommends it as an undervalued choice. NASDAQ:CROX maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Examination for NASDAQ:CROX

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:CROX has earned a 8 for valuation:

With a Price/Earnings ratio of 8.69, the valuation of CROX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 93.88% of the companies listed in the same industry.
CROX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.92.
CROX is valuated reasonably with a Price/Forward Earnings ratio of 8.51.
Based on the Price/Forward Earnings ratio, CROX is valued cheaper than 97.96% of the companies in the same industry.
CROX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.83.
CROX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CROX is cheaper than 87.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CROX is valued 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.

Profitability Assessment of NASDAQ:CROX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:CROX, the assigned 9 is a significant indicator of profitability:

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.
CROX has a Return On Equity of 56.37%. This is amongst the best in the industry. CROX outperforms 97.96% of its industry peers.
The Return On Invested Capital of CROX (20.12%) is better than 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 10.60%.
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.
The Profit Margin of CROX (17.14%) is better than 100.00% of its industry peers.
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.
In the last couple of years the Operating Margin of CROX has grown nicely.
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.

Deciphering NASDAQ:CROX's Health Rating

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:

CROX has an Altman-Z score of 3.56. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CROX (3.56) is better than 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 better Debt to FCF ratio (2.32) than 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.

What does the Growth looks like for NASDAQ:CROX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:CROX has received 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.
CROX shows a strong growth in Revenue. In the last year, 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.
CROX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental 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.