In a market where value is scarce, NASDAQ:CROX offers a refreshing opportunity with its solid fundamentals.

Last update: Sep 2, 2024

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.

A Closer Look at Valuation for NASDAQ:CROX

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:CROX has received a 7 out of 10:

With a Price/Earnings ratio of 11.37, the valuation of CROX can be described as very reasonable.
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.
Compared to an average S&P500 Price/Earnings ratio of 30.30, CROX is valued rather cheaply.
The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of CROX.
86.00% 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 (21.86), 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 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CROX is valued a bit cheaper than 66.00% of the companies in the same industry.
The excellent profitability rating of CROX may justify a higher PE ratio.

Assessing Profitability 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's Return On Assets of 17.20% is amongst the best of the industry. CROX outperforms 94.00% of its industry peers.
CROX has a better Return On Equity (49.11%) than 96.00% of its industry peers.
The Return On Invested Capital of CROX (21.95%) is better than 90.00% 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 12.05%.
The 3 year average ROIC (30.08%) for CROX is well above the current ROIC(21.95%). The reason for the recent decline needs to be investigated.
CROX's Profit Margin of 20.02% is amongst the best of the industry. CROX outperforms 100.00% of its industry peers.
The Operating Margin of CROX (26.36%) 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 57.11% is fine compared to the rest of the industry. CROX outperforms 74.00% of its industry peers.
In the last couple of years the Gross Margin of CROX has grown nicely.

Health Analysis for NASDAQ:CROX

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 7 out of 10:

An Altman-Z score of 4.32 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX's Altman-Z score of 4.32 is fine compared to the rest of the industry. CROX outperforms 72.00% of its industry peers.
The Debt to FCF ratio of CROX is 1.74, which is an excellent value as it means it would take CROX, only 1.74 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.74, CROX is doing good in the industry, outperforming 62.00% of the companies in the same industry.
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.
CROX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

ChartMill's Evaluation of 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:

CROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.80%, which is quite good.
The Earnings Per Share has been growing by 55.01% on average over the past years. This is a very strong growth
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 8.43% on average over the next years. This is quite good.

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

For an up to date full fundamental analysis you can check the fundamental report of CROX

Keep in mind

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.