NASDAQ:CROX is an undervalued gem with solid fundamentals.

Last update: Feb 1, 2024

Discover CROCS INC (NASDAQ:CROX), an undervalued stock highlighted by our stock screener. NASDAQ:CROX showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Analyzing Valuation Metrics

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:

With a Price/Earnings ratio of 8.39, the valuation of CROX can be described as very reasonable.
Based on the Price/Earnings ratio, CROX is valued cheaper than 93.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.93, CROX is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.42, the valuation of CROX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio to 21.16, which is the current average of the S&P500 Index.
91.84% of the companies in the same industry are more expensive than CROX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CROX is valued cheaper than 81.63% of the companies in the same industry.
The 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.

Looking at the Profitability

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:

The Return On Assets of CROX (14.77%) is better than 95.92% of its industry peers.
CROX's Return On Equity of 56.37% is amongst the best of 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.
CROX had an Average Return On Invested Capital over the past 3 years of 28.22%. This is significantly above the industry average of 10.59%.
The last Return On Invested Capital (20.12%) 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's Profit Margin of 17.14% is amongst the best of the industry. CROX outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of CROX has grown nicely.
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.
The Gross Margin of CROX (55.11%) is better than 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:

An Altman-Z score of 3.52 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX has a better Altman-Z score (3.52) than 63.27% of its industry peers.
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.
Although CROX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Growth Insights: NASDAQ:CROX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:CROX has achieved a 8 out of 10:

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.
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!
Based on estimates for the next years, CROX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.62% on average per year.
Based on estimates for the next years, CROX will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.