CRCT Stock Overview
Cricut, Inc. designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$9.64|
|52 Week High||US$30.50|
|52 Week Low||US$5.88|
|1 Month Change||46.95%|
|3 Month Change||37.13%|
|1 Year Change||-61.30%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-45.84%|
Recent News & Updates
Cricut: Facing Strong Macro Headwinds
Summary Cricut is down over 80% from its all-time high last year. Investors are worried about whether the DIY machinery company can continue to perform as the pandemic wanes and lockdowns eases. The recent earnings are very disappointing as macro headwinds continue to weigh on the company significantly. I rate the company as a sell. Investment Thesis Cricut (CRCT) went IPO in early 2021 and its share price skyrocketed by over 130% in a little over three months. However, as the pandemic waned and the lockdown eased, investors started to worry about whether the company can continue to outperform. The broad market also took a hit as the high inflation rate and supply chain blockage forced the Fed to raise rates while the economy continue to weaken. This resulted in the company's share price plummeting over 75% from its all-time high last year, now trading at $8.46 a share. Cricut is a US-based company that sells connected DIY cutting machines and heat presses machines. These machines enable users to easily create and craft different items with fabrics like wood, leather, plastic, and more. The company also provides an in-house app that allows users to design and search for ideas. Cricut performed very well during the pandemic as the nationwide lockdown forced people to stay at home, which significantly increased the demand for DIY crafting machines. It also benefited from the stimulus check handed out to households that boosted their spending power. Despite the huge drop in share price, I believe investors should stay away from Cricut. The company has multiple growth avenues ahead and continues to remain profitable with a strong balance sheet. However, the current macro headwind is likely to persist and will continue to significantly impact the company in the near term. This is shown in the latest quarterly earnings with revenue down 45%. Therefore I rate the company as a sell and will revisit if the macro outlook and the company's financials improve. CRCT data by YCharts Growth Avenues As the pandemic tailwinds faded, demand for Cricut's DIY machines has returned to pre-pandemic levels. However, despite the slowdown in demand, the company still has multiple long-term growth avenues. Unlike most typical machinery companies, Cricut doesn't only generate revenue from machinery revenues. It also has other revenue streams like subscription revenue and accessories and materials revenue. This allows them to continue to generate income from the consumer even after the machine is sold. Subscription revenue vastly improved revenue visibility and profitability as the revenue is recurring and has a high gross margin. Currently, Cricut has over 7 million users on its platform with over 2.3 million paid subscribers. Therefore, the company had been focusing on driving growth in its subscriptions and accessories and materials businesses. On the subscription side, it is aiming to gain more subscribers by enhancing the value proposition of subscriber products. For example, it is launching a new software exclusively for subscribers called Monogram Maker, which allows users to quickly create beautiful, personalized monograms from a wide library of template designs and fonts. On the accessories and materials side, it is continuing to launch new materials that are specifically catered to the Cricut machine and software. In my opinion, the rollout of these new offerings will be able to improve users' engagement rate. Cricut is also focused on international expansion. In newer markets like Germany and France, it is constantly adding new stores with existing retailers and onboarding new e-commerce partnerships. The company also recently launched in Turkey and is expected to launch in Japan and South Korea soon. Ashish Arora, CEO, on future growth: Our focus is on driving deeper engagement, including improving the onboarding process and making it easier for our new users beginning their journey. Driving more engagement in turn leads to more opportunities to monetize the user base through subscriptions and accessories and materials. We continue to invest in our future growth through continued innovation that will extend and expand our connected platform. In turn, this will enable us to continue to deliver profits and delight users around the world. Cricut Disappointing Financials Cricut reported its financial earnings last month and the growth rate is very disappointing as the macro economy continues to weigh on the company. It reported revenue of $183.8 million, down 41.5% YoY (year over year) compared to $334.5 million. The decrease in growth is largely due to a slowdown in machinery sales and accessories and materials sales, which are down 75.8% and 41.3% respectively. Subscription revenue continues to be the highlight, up 3.4% YoY. This is driven by the increase in paid subscribers, which was up 34% to 2.4 million. Total users on the platform increased by 34% to 7.2 million, while engaged users increase by 17% to 3.7 million. International revenue was also underwhelming, down 14.3% from the prior year. Ashish Arora, CEO, on Q2 results: "Our Q2 performance reflects the current macroeconomic environment, coupled with elevated channel inventory as a result of the pandemic. While top line results were disappointing, we believe those inventory levels will be rebalanced in the second half of the year,"
|CRCT||US Consumer Durables||US Market|
Return vs Industry: CRCT underperformed the US Consumer Durables industry which returned -27.6% over the past year.
Return vs Market: CRCT underperformed the US Market which returned -18.2% over the past year.
|CRCT Average Weekly Movement||9.3%|
|Consumer Durables Industry Average Movement||6.4%|
|Market Average Movement||7.0%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: CRCT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: CRCT's weekly volatility (9%) has been stable over the past year.
About the Company
Cricut, Inc. designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates in three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations.
Cricut Fundamentals Summary
|CRCT fundamental statistics|
Is CRCT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CRCT income statement (TTM)|
|Cost of Revenue||US$685.12m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.36|
|Net Profit Margin||7.36%|
How did CRCT perform over the long term?See historical performance and comparison
Is CRCT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CRCT?
Other financial metrics that can be useful for relative valuation.
|What is CRCT's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CRCT's PE Ratio compare to its peers?
|CRCT PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
HELE Helen of Troy
HBB Hamilton Beach Brands Holding
Price-To-Earnings vs Peers: CRCT is expensive based on its Price-To-Earnings Ratio (27x) compared to the peer average (10.1x).
Price to Earnings Ratio vs Industry
How does CRCT's PE Ratio compare vs other companies in the US Consumer Durables Industry?
Price-To-Earnings vs Industry: CRCT is expensive based on its Price-To-Earnings Ratio (27x) compared to the US Consumer Durables industry average (6.1x)
Price to Earnings Ratio vs Fair Ratio
What is CRCT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||27x|
|Fair PE Ratio||n/a|
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CRCT's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of CRCT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CRCT ($9.64) is trading below our estimate of fair value ($55.87)
Significantly Below Fair Value: CRCT is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is lower than the current share price.
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How is Cricut forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if CRCT's forecast earnings growth is above the savings rate (1.9%).
Earnings vs Market: Insufficient data to determine if CRCT's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if CRCT's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CRCT's revenue (3.5% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: CRCT's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CRCT's Return on Equity is forecast to be low in 3 years time (13.5%).
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How has Cricut performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CRCT has a high level of non-cash earnings.
Growing Profit Margin: CRCT's current net profit margins (7.4%) are lower than last year (16.6%).
Past Earnings Growth Analysis
Earnings Trend: CRCT's earnings have grown significantly by 21.4% per year over the past 5 years.
Accelerating Growth: CRCT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CRCT had negative earnings growth (-61.4%) over the past year, making it difficult to compare to the Consumer Durables industry average (30.8%).
Return on Equity
High ROE: CRCT's Return on Equity (10.9%) is considered low.
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How is Cricut's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CRCT's short term assets ($825.1M) exceed its short term liabilities ($193.1M).
Long Term Liabilities: CRCT's short term assets ($825.1M) exceed its long term liabilities ($25.2M).
Debt to Equity History and Analysis
Debt Level: CRCT is debt free.
Reducing Debt: CRCT had no debt 5 years ago.
Debt Coverage: CRCT has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CRCT has no debt, therefore coverage of interest payments is not a concern.
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What is Cricut current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Cricut Dividend Yield vs Market|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.5%|
|Industry Average (Consumer Durables)||2.7%|
|Analyst forecast in 3 Years (Cricut)||0%|
Notable Dividend: Unable to evaluate CRCT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CRCT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CRCT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CRCT's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CRCT has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ashish Arora (54 yo)
Mr. Ashish Arora has been the Chief Executive Officer and President of Cricut, Inc. since February 7, 2012 and also serves as its Director since March 2021. Mr. Arora has experience in the consumer technol...
CEO Compensation Analysis
|Ashish Arora's Compensation vs Cricut Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$39m||US$464k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$7m||US$453k|
|Sep 30 2020||n/a||n/a|
|Dec 31 2019||US$3m||US$447k|
Compensation vs Market: Ashish's total compensation ($USD39.05M) is above average for companies of similar size in the US market ($USD5.48M).
Compensation vs Earnings: Ashish's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: CRCT's management team is considered experienced (3.8 years average tenure).
Experienced Board: CRCT's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|31 May 22||SellUS$61,120||Donald Olsen||Individual||8,000||US$7.64|
|06 May 22||BuyUS$2,614,626||Abdiel Capital Advisors, LP||Company||216,413||US$12.19|
|04 May 22||BuyUS$1,034,758||Abdiel Capital Advisors, LP||Company||82,000||US$13.17|
|22 Apr 22||BuyUS$997,873||Abdiel Capital Advisors, LP||Company||75,702||US$13.66|
|20 Apr 22||BuyUS$1,067,512||Abdiel Capital Advisors, LP||Company||77,691||US$13.88|
|14 Apr 22||BuyUS$624,198||Abdiel Capital Advisors, LP||Company||46,607||US$13.44|
|12 Apr 22||BuyUS$1,301,080||Abdiel Capital Advisors, LP||Company||98,000||US$13.43|
|07 Apr 22||BuyUS$1,416,200||Abdiel Capital Advisors, LP||Company||105,000||US$13.62|
|04 Apr 22||BuyUS$1,527,550||Abdiel Capital Advisors, LP||Company||115,000||US$13.44|
|30 Mar 22||BuyUS$1,000,650||Abdiel Capital Advisors, LP||Company||80,000||US$12.88|
|25 Mar 22||BuyUS$1,219,600||Abdiel Capital Advisors, LP||Company||100,000||US$12.55|
|22 Mar 22||BuyUS$1,547,789||Abdiel Capital Advisors, LP||Company||125,000||US$12.63|
|11 Mar 22||BuyUS$8,383,397||Abdiel Capital Advisors, LP||Company||748,775||US$12.00|
|09 Mar 22||BuyUS$5,159,479||Abdiel Capital Advisors, LP||Company||461,348||US$11.19|
|28 Feb 22||BuyUS$667,875||Abdiel Capital Advisors, LP||Company||40,185||US$16.62|
|25 Feb 22||BuyUS$3,437,713||Abdiel Capital Advisors, LP||Company||205,714||US$17.15|
|17 Feb 22||BuyUS$2,094,207||Abdiel Capital Advisors, LP||Company||106,563||US$20.26|
|15 Feb 22||BuyUS$2,931,718||Abdiel Capital Advisors, LP||Company||148,069||US$20.11|
|10 Feb 22||BuyUS$867,540||Abdiel Capital Advisors, LP||Company||42,854||US$20.44|
|07 Feb 22||BuyUS$3,347,717||Abdiel Capital Advisors, LP||Company||178,187||US$19.23|
|02 Feb 22||BuyUS$5,221,512||Abdiel Capital Advisors, LP||Company||270,509||US$20.17|
|28 Jan 22||BuyUS$3,503,072||Abdiel Capital Advisors, LP||Company||179,795||US$20.08|
|25 Jan 22||BuyUS$4,435,482||Abdiel Capital Advisors, LP||Company||232,022||US$20.07|
|20 Jan 22||BuyUS$4,059,852||Abdiel Capital Advisors, LP||Company||199,082||US$20.52|
|04 Jan 22||BuyUS$915,287||Abdiel Capital Advisors, LP||Company||41,300||US$22.99|
|04 Jan 22||BuyUS$915,287||Abdiel Capital Advisors, LP||Company||41,300||US$22.99|
|31 Dec 21||BuyUS$2,852,800||Abdiel Capital Advisors, LP||Company||130,000||US$22.12|
|22 Dec 21||BuyUS$4,149,420||Abdiel Capital Advisors, LP||Company||181,000||US$23.20|
|14 Dec 21||BuyUS$113,314||Abdiel Capital Advisors, LP||Company||4,860||US$23.54|
|06 Dec 21||BuyUS$3,704,738||Abdiel Capital Advisors, LP||Company||162,047||US$22.99|
|02 Dec 21||BuyUS$4,921,198||Abdiel Capital Advisors, LP||Company||206,603||US$23.86|
|30 Nov 21||SellUS$481,151||Gregory Rowberry||Individual||20,259||US$23.75|
|29 Nov 21||BuyUS$6,424,032||Abdiel Capital Advisors, LP||Company||270,106||US$23.90|
|29 Nov 21||SellUS$703,881||Donald Olsen||Individual||30,000||US$23.83|
|29 Nov 21||SellUS$1,904,480||Gregory Rowberry||Individual||80,000||US$24.02|
|24 Nov 21||SellUS$1,029,980||Gregory Rowberry||Individual||43,749||US$24.00|
|23 Nov 21||BuyUS$6,998,270||Abdiel Capital Advisors, LP||Company||294,383||US$24.40|
|18 Nov 21||SellUS$200,238||Gregory Rowberry||Individual||7,700||US$26.00|
|17 Nov 21||SellUS$3,316,795||Gregory Rowberry||Individual||128,292||US$26.20|
|15 Nov 21||BuyUS$7,195,139||Abdiel Capital Advisors, LP||Company||286,644||US$26.17|
|08 Nov 21||BuyUS$1,254,699||Abdiel Capital Advisors, LP||Company||45,642||US$27.49|
|02 Nov 21||BuyUS$798,822||Abdiel Capital Advisors, LP||Company||29,101||US$27.45|
|28 Oct 21||BuyUS$129,015||Abdiel Capital Advisors, LP||Company||4,700||US$27.45|
|27 Oct 21||BuyUS$1,152,664||Abdiel Capital Advisors, LP||Company||42,558||US$27.38|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Cricut, Inc.'s employee growth, exchange listings and data sources
- Name: Cricut, Inc.
- Ticker: CRCT
- Exchange: NasdaqGS
- Founded: 1969
- Industry: Household Appliances
- Sector: Consumer Durables
- Implied Market Cap: US$2.142b
- Shares outstanding: 222.18m
- Website: https://cricut.com
Number of Employees
- Cricut, Inc.
- 10855 South River Front Parkway
- South Jordan
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CRCT||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Stock||US||USD||Mar 2021|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/05 00:00|
|End of Day Share Price||2022/10/05 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.