Why NASDAQ:CROX Is a Promising High-Growth Stock in the Midst of Consolidation.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether CROCS INC (NASDAQ:CROX) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but CROCS INC has surfaced on our radar for growth with base formation, warranting further examination.

Understanding 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.
• The Earnings Per Share has been growing by 161.05% on average over the past years. This is a very strong growth
• Looking at the last year, CROX shows a very strong growth in Revenue. The Revenue has grown by 23.50%.
• 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 10.62% 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 8.30% on average per year.

Deciphering NASDAQ:CROX's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:CROX scores a 5 out of 10:

• An Altman-Z score of 3.51 indicates that CROX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CROX (3.51) is better 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 63.27% 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.

A Closer Look at Profitability for NASDAQ:CROX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:CROX, the assigned 9 is noteworthy for profitability:

• CROX has a Return On Assets of 14.77%. This is amongst the best in the industry. CROX outperforms 95.92% of its industry peers.
• CROX has a better Return On Equity (56.37%) than 97.96% of its industry peers.
• 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.
• CROX had an Average Return On Invested Capital over the past 3 years of 28.22%. This is significantly above the industry average of 10.66%.
• The last Return On Invested Capital (20.12%) 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.
• CROX's Profit Margin of 17.14% is amongst the best of the industry. CROX outperforms 100.00% of its industry peers.
• In the last couple of years the Profit Margin of CROX has grown nicely.
• CROX's Operating Margin of 26.66% is amongst the best of the industry. CROX outperforms 100.00% of its industry peers.
• CROX's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 55.11%, CROX is doing good in the industry, outperforming 71.43% of the companies in the same industry.

How does the Setup look for NASDAQ:CROX

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:CROX exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

CROX has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 98.72, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of CROX contains the most current fundamental analsysis.

Our latest full technical report of CROX contains the most current technical analsysis.

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.