NASDAQ:CROX stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 9, 2025

Discover CROCS INC (NASDAQ:CROX), an undervalued stock highlighted by our stock screener. NASDAQ:CROX showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Insights: NASDAQ:CROX

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:CROX has earned a 8 for valuation:

The Price/Earnings ratio is 8.30, which indicates a very decent valuation of CROX.
Based on the Price/Earnings ratio, CROX is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.34. CROX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.29, the valuation of CROX can be described as reasonable.
91.67% 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 (23.61), we can say CROX is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 83.33% of the companies listed in the same industry.
The 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.

Profitability Analysis 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 has a better Return On Assets (17.71%) than 95.83% of its industry peers.
CROX has a better Return On Equity (48.39%) than 97.92% of its industry peers.
CROX's Return On Invested Capital of 21.93% is amongst the best of the industry. CROX outperforms 91.67% 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 11.25%.
The 3 year average ROIC (30.08%) for CROX is well above the current ROIC(21.93%). The reason for the recent decline needs to be investigated.
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.
In the last couple of years the Operating Margin of CROX has grown nicely.
With a decent Gross Margin value of 58.15%, CROX is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Gross Margin of CROX has grown nicely.

Understanding NASDAQ:CROX's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CROX has achieved a 7 out of 10:

An Altman-Z score of 3.92 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX has a better Altman-Z score (3.92) than 75.00% 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's Debt to FCF ratio of 1.51 is fine compared to the rest of the industry. CROX outperforms 77.08% 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.
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.

Evaluating Growth: NASDAQ:CROX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:CROX has received 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.
The Earnings Per Share has been growing by 55.01% on average over the past years. This is a very strong growth
CROX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.49% yearly.

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

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

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.