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NASDAQ:CROX, an undervalued stock with good fundamentals.

By Mill Chart

Last update: Nov 6, 2023

Uncover the hidden value in CROCS INC (NASDAQ:CROX) as our stock screening tool recommends it as an undervalued choice. NASDAQ:CROX maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:CROX was assigned a score of 9 for valuation:

  • Based on the Price/Earnings ratio of 6.94, the valuation of CROX can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 95.92% of the companies listed in the same industry.
  • CROX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.86.
  • A Price/Forward Earnings ratio of 6.34 indicates a rather cheap valuation of CROX.
  • 95.92% of the companies in the same industry are more expensive than CROX, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 18.98. CROX is valued rather cheaply when compared to this.
  • Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaper than 89.80% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 89.80% 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 Insights: NASDAQ:CROX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 9 out of 10:

  • Looking at the Return On Assets, with a value of 14.77%, CROX belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 56.38%, CROX belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
  • CROX's Return On Invested Capital of 20.11% is amongst the best of the industry. CROX outperforms 93.88% 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 10.72%.
  • The last Return On Invested Capital (20.11%) for CROX is well below the 3 year average (28.22%), which needs to be investigated, but indicates that CROX had better years and this may not be a problem.
  • With an excellent Profit Margin value of 17.14%, CROX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • CROX's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 26.66%, CROX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of CROX has grown nicely.
  • CROX has a Gross Margin of 55.12%. This is in the better half of the industry: CROX outperforms 71.43% of its industry peers.

Health Insights: NASDAQ:CROX

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 5 out of 10:

  • An Altman-Z score of 3.35 indicates that CROX is not in any danger for bankruptcy at the moment.
  • CROX has a better Altman-Z score (3.35) than 65.31% of its industry peers.
  • CROX has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as CROX would need 2.32 years to pay back of all of its debts.
  • CROX has a Debt to FCF ratio of 2.32. This is in the better half of the industry: CROX outperforms 67.35% 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.

Exploring NASDAQ:CROX's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:CROX scores a 8 out of 10:

  • The Earnings Per Share has grown by an nice 16.23% over the past year.
  • Measured over the past years, CROX shows a very strong growth in Earnings Per Share. The EPS has been growing by 161.05% on average per year.
  • CROX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.49%.
  • The Revenue has been growing by 28.28% on average over the past years. This is a very strong growth!
  • The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
  • Based on estimates for the next years, CROX will show a quite strong growth in Revenue. The Revenue will grow by 10.20% 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.

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CROCS INC

NASDAQ:CROX (2/22/2024, 7:00:00 PM)

After market: 117.29 0 (0%)

117.29

+1.57 (+1.36%)

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