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

Last update: Jul 19, 2024

Our stock screener has spotted CROCS INC (NASDAQ:CROX) as an undervalued stock with solid fundamentals. NASDAQ:CROX shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Valuation Metrics for NASDAQ:CROX

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:CROX has achieved a 7 out of 10:

Based on the Price/Earnings ratio of 10.57, the valuation of CROX can be described as reasonable.
Based on the Price/Earnings ratio, CROX is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
CROX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.83.
A Price/Forward Earnings ratio of 9.36 indicates a reasonable valuation of CROX.
85.71% of the companies in the same industry are more expensive than CROX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CROX to the average of the S&P500 Index (20.60), we can say CROX is valued rather cheaply.
CROX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CROX is cheaper than 65.31% of the companies in the same industry.
CROX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CROX is cheaper than 63.27% of the companies in the same industry.
CROX has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for 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:

CROX's Return On Assets of 16.59% is amongst the best of the industry. CROX outperforms 93.88% of its industry peers.
With an excellent Return On Equity value of 49.81%, CROX belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
CROX has a Return On Invested Capital of 21.10%. This is amongst the best in the industry. CROX outperforms 93.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CROX is significantly above the industry average of 10.62%.
The last Return On Invested Capital (21.10%) for CROX is well below the 3 year average (30.08%), which needs to be investigated, but indicates that CROX had better years and this may not be a problem.
The Profit Margin of CROX (19.80%) is better than 100.00% of its industry peers.
The Operating Margin of CROX (26.43%) is better 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 56.16%, CROX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
CROX's Gross Margin has improved in the last couple of years.

How We Gauge Health for 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 6 out of 10:

CROX has an Altman-Z score of 3.99. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
CROX's Altman-Z score of 3.99 is fine compared to the rest of the industry. CROX outperforms 67.35% of its industry peers.
The Debt to FCF ratio of CROX is 2.19, which is a good value as it means it would take CROX, 2.19 years of fcf income to pay off 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.

What does the Growth looks like for NASDAQ:CROX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:CROX, the assigned 6 reflects its growth potential:

The Earnings Per Share has grown by an nice 8.46% 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 been growing by 29.49% on average over the past years. This is a very strong growth!
CROX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.43% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of CROX contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. 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.