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. Both the health and profitability get an excellent rating, making CROX a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on CROX. With these ratings, CROX could be worth investigating further for value and quality investing!.

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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.
In the past 5 years CROX has always been profitable.
CROX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

CROX has a Return On Assets of 4.25%. This is in the better half of the industry: CROX outperforms 66.67% of its industry peers.
The Return On Equity of CROX (13.39%) is better than 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.
Measured over the past 3 years, the Average Return On Invested Capital for CROX is significantly above the industry average of 11.60%.
The 3 year average ROIC (22.59%) for CROX is below the current ROIC(23.59%), indicating increased profibility in the last year.

		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

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

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CROX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CROX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CROX has less shares outstanding
Compared to 1 year ago, CROX has an improved debt to assets ratio.

2.2 Solvency

CROX has an Altman-Z score of 3.72. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.72, CROX is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
CROX has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of 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.
With a Debt to Equity ratio value of 0.97, CROX is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
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.

		Industry Rank	Sector Rank
Debt/Equity	0.97
Debt/FCF	1.84
Altman-Z	3.72

ROIC/WACC2.02

WACC11.68%

2.3 Liquidity

A Current Ratio of 1.40 indicates that CROX should not have too much problems paying its short term obligations.
CROX has a worse Current ratio (1.40) than 82.22% of its industry peers.
CROX has a Quick Ratio of 1.40. This is a bad value and indicates that CROX is not financially healthy enough and could expect problems in meeting its short term obligations.
CROX's Quick ratio of 0.83 is on the low side compared to the rest of the industry. CROX is outperformed by 66.67% of its industry peers.
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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CROX have decreased by -4.09% in the last year.
Measured over the past years, CROX shows a very strong growth in Earnings Per Share. The EPS has been growing by 51.64% on average per year.
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

CROX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.84% yearly.
Based on estimates for the next years, CROX will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

CROX is valuated cheaply with a Price/Earnings ratio of 6.62.
Based on the Price/Earnings ratio, CROX is valued cheaper than 93.33% of the companies in the same industry.
CROX is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.86, the valuation of CROX can be described as very cheap.
Based on the Price/Forward Earnings ratio, CROX is valued cheaply inside the industry as 95.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CROX is valued rather cheaply.

		Industry Rank	Sector Rank
PE	6.62
Fwd PE	6.86

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CROX is valued cheaper than 91.11% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.08
EV/EBITDA	5.36

4.3 Compensation for Growth

The excellent profitability rating of CROX 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.