NASDAQ:CROX is probably undervalued for the fundamentals it is displaying.

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.

How do we evaluate the Valuation for NASDAQ:CROX?

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:CROX boasts a 9 out of 10:

• With a Price/Earnings ratio of 7.42, the valuation of CROX can be described as very cheap.
• CROX's Price/Earnings ratio is rather cheap when compared to the industry. CROX is cheaper than 96.00% of the companies in the same industry.
• CROX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.58.
• CROX is valuated cheaply with a Price/Forward Earnings ratio of 7.30.
• Based on the Price/Forward Earnings ratio, CROX is valued cheaper than 96.00% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of CROX to the average of the S&P500 Index (23.52), we can say CROX is valued rather cheaply.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 82.00% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, CROX is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
• CROX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• CROX has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:CROX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:CROX has achieved a 9:

• Looking at the Return On Assets, with a value of 17.71%, CROX belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
• CROX's Return On Equity of 48.39% is amongst the best of the industry. CROX outperforms 98.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 21.93%, CROX belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
• CROX had an Average Return On Invested Capital over the past 3 years of 30.08%. This is significantly above the industry average of 11.54%.
• The last Return On Invested Capital (21.93%) 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.
• With an excellent Profit Margin value of 20.50%, CROX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• CROX has a Operating Margin of 26.15%. This is amongst the best in the industry. CROX outperforms 100.00% of its industry peers.
• CROX's Operating Margin has improved in the last couple of years.
• The Gross Margin of CROX (58.15%) is better than 74.00% of its industry peers.
• CROX's Gross Margin has improved in the last couple of years.

Deciphering NASDAQ:CROX's Health Rating

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:

• An Altman-Z score of 3.78 indicates that CROX is not in any danger for bankruptcy at the moment.
• CROX has a Altman-Z score of 3.78. This is in the better half of the industry: CROX outperforms 74.00% of its industry peers.
• CROX has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 1.51, CROX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
• 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.

Looking at the Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:CROX boasts a 6 out of 10:

• 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.
• 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.
• 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 8.43% on average over the next years. This is quite good.

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

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

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.