NASDAQ:CROX: good value for what you're paying.

Our stock screening tool has identified CROCS INC (NASDAQ:CROX) as an undervalued gem with strong fundamentals. NASDAQ:CROX boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

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 7 out of 10:

• CROX is valuated reasonably with a Price/Earnings ratio of 11.15.
• Compared to the rest of the industry, the Price/Earnings ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 84.00% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of CROX to the average of the S&P500 Index (26.07), we can say CROX is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.56, which indicates a very decent valuation of CROX.
• Based on the Price/Forward Earnings ratio, CROX is valued cheaper than 84.00% 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 22.35.
• 68.00% of the companies in the same industry are more expensive than CROX, based on the Enterprise Value to EBITDA ratio.
• CROX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CROX is cheaper than 64.00% of the companies in the same industry.
• CROX has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NASDAQ:CROX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:CROX scores a 9 out of 10:

• Looking at the Return On Assets, with a value of 17.07%, CROX belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
• CROX's Return On Equity of 54.51% is amongst the best of the industry. CROX outperforms 98.00% of its industry peers.
• The Return On Invested Capital of CROX (21.96%) is better than 96.00% of its industry peers.
• CROX had an Average Return On Invested Capital over the past 3 years of 30.08%. This is significantly above the industry average of 10.10%.
• The 3 year average ROIC (30.08%) for CROX is well above the current ROIC(21.96%). The reason for the recent decline needs to be investigated.
• CROX has a better Profit Margin (20.00%) 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.
• CROX's Gross Margin of 55.77% is fine compared to the rest of the industry. CROX outperforms 72.00% of its industry peers.
• CROX's Gross Margin has improved in the last couple of years.

A Closer Look at Health for 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 5 out of 10:

• CROX has an Altman-Z score of 3.96. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.96, CROX is doing good in the industry, outperforming 66.00% of the companies in the same industry.
• CROX has a debt to FCF ratio of 2.04. This is a good value and a sign of high solvency as CROX would need 2.04 years to pay back of all of its debts.
• 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.

Exploring NASDAQ:CROX's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:CROX scores a 6 out of 10:

• The Earnings Per Share has grown by an nice 10.27% 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 55.01% on average per year.
• The Revenue has grown by 11.46% in the past year. This is quite good.
• The Revenue has been growing by 29.49% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 10.71% on average over the next years. This is quite good.

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

Check the latest full fundamental report of CROX for a complete fundamental analysis.

Disclaimer

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.