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

Last update: Feb 2, 2024

Uncover the potential of CROCS INC (NASDAQ:CROX), a growth stock that our stock screener found to be reasonably priced. NASDAQ:CROX is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

A Closer Look at Growth 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.
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 8.70% on average over the next years. This is quite good.

Assessing Valuation Metrics for NASDAQ:CROX

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:CROX scores a 8 out of 10:

With a Price/Earnings ratio of 8.33, the valuation of CROX can be described as very reasonable.
93.88% of the companies in the same industry are more expensive than CROX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.18. CROX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.36, the valuation of CROX can be described as reasonable.
CROX's Price/Forward Earnings ratio is rather cheap when compared to the industry. CROX is cheaper than 97.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CROX to the average of the S&P500 Index (21.43), we can say CROX is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaper than 91.84% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 81.63% of the companies listed 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.
CROX has an outstanding profitability rating, which may justify a higher PE ratio.

Health Assessment of NASDAQ:CROX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 5 out of 10:

An Altman-Z score of 3.51 indicates that CROX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.51, CROX is doing good in the industry, outperforming 63.27% of the companies in the same industry.
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.

Evaluating Profitability: NASDAQ:CROX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 9 out of 10:

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.
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.
CROX's Operating Margin has improved in the last couple of years.
CROX's Gross Margin of 55.11% is fine compared to the rest of the industry. CROX outperforms 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.

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.