Despite its impressive fundamentals, NASDAQ:CROX remains undervalued.

Last update: Oct 30, 2024

Uncover the potential of CROCS INC (NASDAQ:CROX) as our stock screener's choice for an undervalued stock. NASDAQ:CROX maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

How We Gauge Valuation 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 8 out of 10:

The Price/Earnings ratio is 8.45, which indicates a very decent valuation of CROX.
92.00% of the companies in the same industry are more expensive than CROX, based on the Price/Earnings ratio.
CROX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.84.
CROX is valuated cheaply with a Price/Forward Earnings ratio of 7.84.
Based on the Price/Forward Earnings ratio, CROX is valued cheaper than 88.00% 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 22.57.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CROX indicates a somewhat cheap valuation: CROX is cheaper than 78.00% of the companies listed in the same industry.
CROX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CROX is cheaper than 78.00% of the companies 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.
The excellent profitability rating of CROX may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:CROX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:CROX, the assigned 9 is a significant indicator of profitability:

CROX's Return On Assets of 17.20% is amongst the best of the industry. CROX outperforms 94.00% of its industry peers.
The Return On Equity of CROX (49.11%) is better than 98.00% 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 11.90%.
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.
Looking at the Profit Margin, with a value of 20.02%, CROX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Operating Margin value of 26.36%, CROX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
CROX's Gross Margin has improved in the last couple of years.

Evaluating Health: NASDAQ:CROX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:CROX, the assigned 7 for health provides valuable insights:

CROX has an Altman-Z score of 3.88. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
CROX's Altman-Z score of 3.88 is fine compared to the rest of the industry. CROX outperforms 74.00% 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.
The Debt to FCF ratio of CROX (1.74) is better than 62.00% 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.
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.

Growth Insights: NASDAQ:CROX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:CROX was assigned a score of 6 for growth:

CROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.17%, 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 grown by 11.46% in the past year. This is quite good.
Measured over the past years, CROX shows a very strong growth in Revenue. The Revenue has been growing by 29.49% on average per year.
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.

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

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

Keep in mind

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.