NASDAQ:CROX is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

CROCS INC (NASDAQ:CROX) has caught the attention of our stock screener as a great value stock. NASDAQ:CROX excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Unpacking NASDAQ:CROX's Valuation Rating

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:

• CROX is valuated reasonably with a Price/Earnings ratio of 8.09.
• Based on the Price/Earnings ratio, CROX is valued cheaply inside the industry as 94.00% 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 27.72.
• The Price/Forward Earnings ratio is 8.03, which indicates a very decent valuation of CROX.
• 96.00% 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 (22.64), we can say CROX is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
• 86.00% of the companies in the same industry are more expensive than CROX, based on the Price/Free Cash Flow ratio.
• 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.

Understanding NASDAQ:CROX's Profitability

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:

• The Return On Assets of CROX (17.71%) is better than 94.00% of its industry peers.
• The Return On Equity of CROX (48.39%) is better than 98.00% of its industry peers.
• CROX's Return On Invested Capital of 21.93% is amongst the best of the industry. CROX outperforms 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 11.70%.
• 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.
• The Profit Margin of CROX (20.50%) is better than 100.00% of its industry peers.
• With an excellent Operating Margin value of 26.15%, 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 58.15% is fine compared to the rest of the industry. CROX outperforms 72.00% of its industry peers.
• In the last couple of years the Gross Margin of CROX has grown nicely.

Assessing Health for NASDAQ:CROX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:CROX was assigned a score of 7 for health:

• An Altman-Z score of 3.88 indicates that CROX is not in any danger for bankruptcy at the moment.
• CROX has a better Altman-Z score (3.88) than 76.00% of its industry peers.
• The Debt to FCF ratio of CROX is 1.51, which is an excellent value as it means it would take CROX, only 1.51 years of fcf income to pay off all of its debts.
• CROX has a better Debt to FCF ratio (1.51) than 78.00% of its industry peers.
• 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.
• The current and quick ratio evaluation for CROX is rather negative, while it does have 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

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 5 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.
• 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.

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.

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.