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For those who appreciate growth without the sticker shock, NASDAQ:CROX is worth considering.

By Mill Chart

Last update: Nov 28, 2023

CROCS INC (NASDAQ:CROX) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:CROX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Evaluating Growth: NASDAQ:CROX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:CROX, the assigned 8 reflects its growth potential:

  • CROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.23%, which is quite good.
  • 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.
  • The Revenue has grown by 23.50% in the past year. This is a very strong growth!
  • CROX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.28% yearly.
  • Based on estimates for the next years, CROX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.34% on average per year.
  • 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.

ChartMill's Evaluation of 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:

  • CROX is valuated cheaply with a Price/Earnings ratio of 7.95.
  • Based on the Price/Earnings ratio, CROX is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 24.49. CROX is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 7.27, the valuation of CROX can be described as very cheap.
  • 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.
  • CROX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.61.
  • Based on the Enterprise Value to EBITDA ratio, CROX is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
  • 83.67% of the companies in the same industry are more expensive than CROX, based on the Price/Free Cash Flow ratio.
  • CROX's 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.

Health Assessment of NASDAQ:CROX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:CROX has earned a 5 out of 10:

  • An Altman-Z score of 3.48 indicates that CROX is not in any danger for 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.
  • Looking at the Debt to FCF ratio, with a value of 2.32, CROX is in the better half of 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.

Analyzing Profitability Metrics

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:

  • With an excellent Return On Assets value of 14.77%, CROX belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
  • CROX's Return On Equity of 56.37% is amongst the best of the industry. CROX outperforms 97.96% of its industry peers.
  • The Return On Invested Capital of CROX (20.12%) is better than 93.88% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years 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.
  • 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.
  • CROX has a Operating Margin of 26.66%. This is amongst the best in the industry. CROX outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of CROX has grown nicely.
  • 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of CROX

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 (2/21/2024, 1:57:51 PM)

115.355

-0.23 (-0.2%)

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