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NASDAQ:CROX, an undervalued stock with good fundamentals.

By Mill Chart

Last update: Nov 28, 2023

Discover CROCS INC (NASDAQ:CROX)—an undervalued stock our stock screener has picked out. NASDAQ:CROX demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Valuation Examination for NASDAQ:CROX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:CROX, the assigned 9 reflects its valuation:

  • A Price/Earnings ratio of 7.95 indicates a rather cheap valuation of CROX.
  • Based on the Price/Earnings ratio, CROX is valued cheaper than 93.88% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CROX to the average of the S&P500 Index (24.49), we can say CROX is valued rather cheaply.
  • The Price/Forward Earnings ratio is 7.27, which indicates a rather cheap valuation of CROX.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CROX indicates a rather cheap valuation: CROX is cheaper than 91.84% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 19.61, CROX is valued rather cheaply.
  • 85.71% of the companies in the same industry are more expensive than CROX, based on the Enterprise Value to EBITDA ratio.
  • 83.67% of the companies in the same industry are more expensive than CROX, based on the Price/Free Cash Flow ratio.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of CROX may justify a higher PE ratio.

Exploring NASDAQ:CROX's Profitability

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:

  • The Return On Assets of CROX (14.77%) is better than 95.92% of its industry peers.
  • With an excellent Return On Equity value of 56.37%, CROX belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 20.12%, CROX belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for CROX is significantly above the industry average of 10.83%.
  • The 3 year average ROIC (28.22%) for CROX is well above the current ROIC(20.12%). The reason for the recent decline needs to be investigated.
  • The Profit Margin of CROX (17.14%) is better than 100.00% of its industry peers.
  • CROX's Profit Margin has improved in the last couple of years.
  • The Operating Margin of CROX (26.66%) is better than 100.00% 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 55.11%, CROX is in the better half of the industry, outperforming 71.43% of the companies in the same industry.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:CROX, the assigned 5 for health provides valuable insights:

  • CROX has an Altman-Z score of 3.48. This indicates that CROX is financially healthy and has little risk of bankruptcy at the moment.
  • CROX has a better Altman-Z score (3.48) than 63.27% 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.
  • With a decent Debt to FCF ratio value of 2.32, CROX is doing good in the industry, outperforming 65.31% 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.

Evaluating Growth: NASDAQ:CROX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:CROX has achieved a 8 out of 10:

  • The Earnings Per Share has grown by an nice 16.23% over the past year.
  • The Earnings Per Share has been growing by 161.05% on average over the past years. This is a very strong growth
  • CROX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.50%.
  • 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.
  • The Revenue is expected to grow by 10.20% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of CROX for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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CROCS INC

NASDAQ:CROX (2/23/2024, 7:00:00 PM)

After market: 118 -0.31 (-0.26%)

118.31

+1.02 (+0.87%)

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