We assign a fundamental rating of 7 out of 10 to CROX. CROX was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. CROX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on CROX. These ratings would make CROX suitable 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

CROX had positive earnings in the past year.
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 better Return On Assets (4.25%) than 66.67% of its industry peers.
CROX's Return On Equity of 13.39% is fine compared to the rest 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.
Measured over the past 3 years, the Average Return On Invested Capital 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

CROX has a Profit Margin of 4.48%. This is in the better half of the industry: CROX outperforms 66.67% of its industry peers.
CROX's Profit Margin has improved in the last couple of years.
CROX's Operating Margin of 23.11% is amongst the best of the industry. CROX outperforms 95.56% of its industry peers.
CROX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.08%, CROX is doing good in the industry, outperforming 75.56% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

2.2 Solvency

CROX has an Altman-Z score of 3.74. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CROX (3.74) is better than 75.56% 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.
Looking at the Debt to FCF ratio, with a value of 1.84, CROX belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
A Debt/Equity ratio of 0.97 indicates that CROX is somewhat dependend on debt financing.
CROX has a worse Debt to Equity ratio (0.97) than 75.56% 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.

		Industry Rank	Sector Rank
Debt/Equity	0.97
Debt/FCF	1.84
Altman-Z	3.74

ROIC/WACC2.02

WACC11.69%

2.3 Liquidity

A Current Ratio of 1.40 indicates that CROX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, CROX is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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.
The Quick ratio of CROX (0.83) is worse than 66.67% of its industry peers.
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.

		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.
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%.
CROX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.23% yearly.

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.64 indicates a rather cheap valuation of CROX.
Compared to the rest of the industry, the Price/Earnings ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 93.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.82. CROX is valued rather cheaply when compared to this.
CROX is valuated cheaply with a Price/Forward Earnings ratio of 6.88.
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 25.95, CROX is valued rather cheaply.

		Industry Rank	Sector Rank
PE	6.64
Fwd PE	6.88

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaper than 88.89% of the companies in the same industry.
CROX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CROX is cheaper than 91.11% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	6.1
EV/EBITDA	5.44

4.3 Compensation for Growth

The excellent profitability rating of CROX may justify a higher PE ratio.
A cheap valuation may be justified as CROX's earnings are expected to decrease with -2.20% in the coming years.