Don't overlook NASDAQ:CROX—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Feb 23, 2024

Our stock screening tool has pinpointed CROCS INC (NASDAQ:CROX) as an undervalued stock. NASDAQ:CROX maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Analyzing Valuation Metrics

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 7 for valuation:

With a Price/Earnings ratio of 9.75, the valuation of CROX can be described as very reasonable.
CROX's Price/Earnings ratio is rather cheap when compared to the industry. CROX is cheaper than 92.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CROX to the average of the S&P500 Index (26.32), we can say CROX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.73, the valuation of CROX can be described as reasonable.
Based on the Price/Forward Earnings ratio, CROX is valued cheaper than 88.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CROX to the average of the S&P500 Index (21.63), we can say CROX is valued rather cheaply.
88.00% of the companies in the same industry are more expensive than CROX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CROX indicates a somewhat cheap valuation: CROX is cheaper than 72.00% of the companies listed in the same industry.
CROX has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Analysis for NASDAQ:CROX

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:

CROX has a better Return On Assets (17.07%) than 98.00% of its industry peers.
CROX has a better Return On Equity (54.51%) than 98.00% of its industry peers.
CROX has a better Return On Invested Capital (21.96%) than 96.00% of its industry peers.
CROX had an Average Return On Invested Capital over the past 3 years of 30.07%. This is significantly above the industry average of 10.02%.
The last Return On Invested Capital (21.96%) for CROX is well below the 3 year average (30.07%), which needs to be investigated, but indicates that CROX had better years and this may not be a problem.
The Profit Margin of CROX (20.00%) is better than 100.00% of its industry peers.
CROX has a better Operating Margin (26.40%) than 100.00% of its industry peers.
CROX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 55.77%, CROX is doing good in the industry, outperforming 74.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CROX has grown nicely.

Health Assessment of NASDAQ:CROX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 6 out of 10:

An Altman-Z score of 3.78 indicates that CROX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.78, CROX is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
The Debt to FCF ratio of CROX is 2.04, which is a good value as it means it would take CROX, 2.04 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CROX (2.04) is better than 64.00% 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 Assessment of NASDAQ:CROX

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:CROX has earned a 6 for growth:

The Earnings Per Share has grown by an nice 10.27% over the past year.
CROX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.01% yearly.
The Revenue has grown by 11.46% in the past year. This is quite good.
CROX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.49% yearly.
The Earnings Per Share is expected to grow by 10.71% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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.