Taking everything into account, CROX scores 7 out of 10 in our fundamental rating. CROX was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. CROX gets an excellent profitability rating and is at the same time showing great financial health properties. CROX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, CROX could be worth investigating further for value and quality investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CROX was profitable.
CROX had a positive operating cash flow in the past year.
CROX had positive earnings in each of the past 5 years.
In the past 5 years CROX always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of CROX (4.25%) is better than 66.67% of its industry peers.
CROX has a Return On Equity of 13.39%. This is in the better half of the industry: CROX outperforms 73.33% of its industry peers.
CROX's Return On Invested Capital of 23.59% is amongst the best of the industry. CROX outperforms 91.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CROX is significantly above the industry average of 11.59%.
The last Return On Invested Capital (23.59%) for CROX is above the 3 year average (22.59%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	4.25%
ROE	13.39%
ROIC	23.59%

ROA(3y)16.27%

ROA(5y)24.75%

ROE(3y)57.44%

ROE(5y)1085.36%

ROIC(3y)22.59%

ROIC(5y)29.82%

1.3 Margins

Looking at the Profit Margin, with a value of 4.48%, CROX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CROX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.11%, CROX belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
In the last couple of years the Operating Margin of CROX has grown nicely.
CROX has a better Gross Margin (59.08%) than 75.56% of its industry peers.
CROX's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	23.11%
PM (TTM)	4.48%
GM	59.08%

OM growth 3Y-5.12%

OM growth 5Y19.52%

PM growth 3Y-9.62%

PM growth 5Y18.99%

GM growth 3Y-1.45%

GM growth 5Y3.22%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CROX is creating value.
Compared to 1 year ago, CROX has less shares outstanding
The number of shares outstanding for CROX has been reduced compared to 5 years ago.
The debt/assets ratio for CROX has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.76 indicates that CROX is not in any danger for bankruptcy at the moment.
CROX has a better Altman-Z score (3.76) than 73.33% of its industry peers.
The Debt to FCF ratio of CROX is 1.84, which is an excellent value as it means it would take CROX, only 1.84 years of fcf income to pay off all of its debts.
CROX has a Debt to FCF ratio of 1.84. This is amongst the best in the industry. CROX outperforms 84.44% of its industry peers.
CROX has a Debt/Equity ratio of 0.97. This is a neutral value indicating CROX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, CROX is doing worse than 75.56% 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.

		Industry Rank	Sector Rank
Debt/Equity	0.97
Debt/FCF	1.84
Altman-Z	3.76

ROIC/WACC2

WACC11.78%

2.3 Liquidity

CROX has a Current Ratio of 1.40. This is a normal value and indicates that CROX is financially healthy and should not expect problems in meeting its short term obligations.
CROX has a Current ratio of 1.40. This is amonst the worse of the industry: CROX underperforms 80.00% of its industry peers.
A Quick Ratio of 0.83 indicates that CROX may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, CROX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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.

		Industry Rank	Sector Rank
Current Ratio	1.4
Quick Ratio	0.83

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

CROX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.09%.
The Earnings Per Share has been growing by 51.64% on average over the past years. This is a very strong growth
CROX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.01%.
Measured over the past years, CROX shows a very strong growth in Revenue. The Revenue has been growing by 27.23% on average per year.

EPS 1Y (TTM)-4.09%

EPS 3Y16.39%

EPS 5Y51.64%

EPS Q2Q%-18.89%

Revenue 1Y (TTM)0.01%

Revenue growth 3Y21.04%

Revenue growth 5Y27.23%

Sales Q2Q%-6.2%

3.2 Future

The Earnings Per Share is expected to grow by 2.84% on average over the next years.
The Revenue is expected to grow by 2.29% on average over the next years.

EPS Next Y-6.35%

EPS Next 2Y-3.53%

EPS Next 3Y-2.2%

EPS Next 5Y2.84%

Revenue Next Year-1.85%

Revenue Next 2Y-1.22%

Revenue Next 3Y-0.38%

Revenue Next 5Y2.29%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.77, the valuation of CROX can be described as very cheap.
Based on the Price/Earnings ratio, CROX is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.21, CROX is valued rather cheaply.
The Price/Forward Earnings ratio is 7.01, which indicates a rather cheap valuation of CROX.
CROX's Price/Forward Earnings ratio is rather cheap when compared to the industry. CROX is cheaper than 95.56% of the companies in the same industry.
CROX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	6.77
Fwd PE	7.01

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 84.44% of the companies listed in the same industry.
91.11% of the companies in the same industry are more expensive than CROX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	6.22
EV/EBITDA	5.52

4.3 Compensation for Growth

CROX has an outstanding profitability rating, which may justify a higher PE ratio.
CROX's earnings are expected to decrease with -2.20% in the coming years. This may justify a cheaper valuation.