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CRCT

Cricut NasdaqGS:CRCT Stock Report

Last Price

US$9.64

Market Cap

US$2.1b

7D

1.3%

1Y

-61.3%

Updated

05 Oct, 2022

Data

Company Financials +
CRCT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

CRCT Stock Overview

Cricut, Inc. designs and markets a creativity platform that enables users to turn ideas into professional-looking handmade goods.

Cricut Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cricut
Historical stock prices
Current Share PriceUS$9.64
52 Week HighUS$30.50
52 Week LowUS$5.88
Beta0
1 Month Change46.95%
3 Month Change37.13%
1 Year Change-61.30%
3 Year Changen/a
5 Year Changen/a
Change since IPO-45.84%

Recent News & Updates

Sep 16

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,"

Shareholder Returns

CRCTUS Consumer DurablesUS Market
7D1.3%2.7%1.9%
1Y-61.3%-28.4%-18.8%

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.

Price Volatility

Is CRCT's price volatile compared to industry and market?
CRCT volatility
CRCT Average Weekly Movement9.3%
Consumer Durables Industry Average Movement6.4%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
1969800Ashish Arorahttps://cricut.com

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

How do Cricut's earnings and revenue compare to its market cap?
CRCT fundamental statistics
Market CapUS$2.14b
Earnings (TTM)US$79.26m
Revenue (TTM)US$1.08b

27.0x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRCT income statement (TTM)
RevenueUS$1.08b
Cost of RevenueUS$685.12m
Gross ProfitUS$391.33m
Other ExpensesUS$312.07m
EarningsUS$79.26m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.36
Gross Margin36.35%
Net Profit Margin7.36%
Debt/Equity Ratio0%

How did CRCT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CRCT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

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

  • Analyst Forecast

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.

CRCT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA14x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does CRCT's PE Ratio compare to its peers?

CRCT PE Ratio vs Peers
The above table shows the PE ratio for CRCT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.1x
HELE Helen of Troy
14.9x21.3%US$2.5b
WHR Whirlpool
11.1x14.1%US$7.9b
HBB Hamilton Beach Brands Holding
5.3xn/aUS$162.0m
QEPC Q.E.P
9.2xn/aUS$73.5m
CRCT Cricut
27xn/aUS$2.1b

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.

CRCT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27x
Fair PE Ration/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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Future Growth

How is Cricut forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.5%

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%).


Discover growth companies

Past Performance

How has Cricut performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.4%

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.


Discover strong past performing companies

Financial Health

How is Cricut's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


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Dividend

What is Cricut current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Cricut Dividend Yield vs Market
How does Cricut dividend yield compare to the market?
SegmentDividend Yield
Company (Cricut)n/a
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Ashish Arora (54 yo)

1.58yrs

Tenure

US$39,051,267

Compensation

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
How has Ashish Arora's remuneration changed compared to Cricut's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$79m

Mar 31 2022n/an/a

US$115m

Dec 31 2021US$39mUS$464k

US$140m

Sep 30 2021n/an/a

US$190m

Jun 30 2021n/an/a

US$205m

Mar 31 2021n/an/a

US$191m

Dec 31 2020US$7mUS$453k

US$155m

Sep 30 2020n/an/a

US$101m

Dec 31 2019US$3mUS$447k

US$39m

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.


Leadership Team

Experienced Management: CRCT's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: CRCT's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

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

NasdaqGS:CRCT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
31 May 22SellUS$61,120Donald OlsenIndividual8,000US$7.64
06 May 22BuyUS$2,614,626Abdiel Capital Advisors, LPCompany216,413US$12.19
04 May 22BuyUS$1,034,758Abdiel Capital Advisors, LPCompany82,000US$13.17
22 Apr 22BuyUS$997,873Abdiel Capital Advisors, LPCompany75,702US$13.66
20 Apr 22BuyUS$1,067,512Abdiel Capital Advisors, LPCompany77,691US$13.88
14 Apr 22BuyUS$624,198Abdiel Capital Advisors, LPCompany46,607US$13.44
12 Apr 22BuyUS$1,301,080Abdiel Capital Advisors, LPCompany98,000US$13.43
07 Apr 22BuyUS$1,416,200Abdiel Capital Advisors, LPCompany105,000US$13.62
04 Apr 22BuyUS$1,527,550Abdiel Capital Advisors, LPCompany115,000US$13.44
30 Mar 22BuyUS$1,000,650Abdiel Capital Advisors, LPCompany80,000US$12.88
25 Mar 22BuyUS$1,219,600Abdiel Capital Advisors, LPCompany100,000US$12.55
22 Mar 22BuyUS$1,547,789Abdiel Capital Advisors, LPCompany125,000US$12.63
11 Mar 22BuyUS$8,383,397Abdiel Capital Advisors, LPCompany748,775US$12.00
09 Mar 22BuyUS$5,159,479Abdiel Capital Advisors, LPCompany461,348US$11.19
28 Feb 22BuyUS$667,875Abdiel Capital Advisors, LPCompany40,185US$16.62
25 Feb 22BuyUS$3,437,713Abdiel Capital Advisors, LPCompany205,714US$17.15
17 Feb 22BuyUS$2,094,207Abdiel Capital Advisors, LPCompany106,563US$20.26
15 Feb 22BuyUS$2,931,718Abdiel Capital Advisors, LPCompany148,069US$20.11
10 Feb 22BuyUS$867,540Abdiel Capital Advisors, LPCompany42,854US$20.44
07 Feb 22BuyUS$3,347,717Abdiel Capital Advisors, LPCompany178,187US$19.23
02 Feb 22BuyUS$5,221,512Abdiel Capital Advisors, LPCompany270,509US$20.17
28 Jan 22BuyUS$3,503,072Abdiel Capital Advisors, LPCompany179,795US$20.08
25 Jan 22BuyUS$4,435,482Abdiel Capital Advisors, LPCompany232,022US$20.07
20 Jan 22BuyUS$4,059,852Abdiel Capital Advisors, LPCompany199,082US$20.52
04 Jan 22BuyUS$915,287Abdiel Capital Advisors, LPCompany41,300US$22.99
04 Jan 22BuyUS$915,287Abdiel Capital Advisors, LPCompany41,300US$22.99
31 Dec 21BuyUS$2,852,800Abdiel Capital Advisors, LPCompany130,000US$22.12
22 Dec 21BuyUS$4,149,420Abdiel Capital Advisors, LPCompany181,000US$23.20
14 Dec 21BuyUS$113,314Abdiel Capital Advisors, LPCompany4,860US$23.54
06 Dec 21BuyUS$3,704,738Abdiel Capital Advisors, LPCompany162,047US$22.99
02 Dec 21BuyUS$4,921,198Abdiel Capital Advisors, LPCompany206,603US$23.86
30 Nov 21SellUS$481,151Gregory RowberryIndividual20,259US$23.75
29 Nov 21BuyUS$6,424,032Abdiel Capital Advisors, LPCompany270,106US$23.90
29 Nov 21SellUS$703,881Donald OlsenIndividual30,000US$23.83
29 Nov 21SellUS$1,904,480Gregory RowberryIndividual80,000US$24.02
24 Nov 21SellUS$1,029,980Gregory RowberryIndividual43,749US$24.00
23 Nov 21BuyUS$6,998,270Abdiel Capital Advisors, LPCompany294,383US$24.40
18 Nov 21SellUS$200,238Gregory RowberryIndividual7,700US$26.00
17 Nov 21SellUS$3,316,795Gregory RowberryIndividual128,292US$26.20
15 Nov 21BuyUS$7,195,139Abdiel Capital Advisors, LPCompany286,644US$26.17
08 Nov 21BuyUS$1,254,699Abdiel Capital Advisors, LPCompany45,642US$27.49
02 Nov 21BuyUS$798,822Abdiel Capital Advisors, LPCompany29,101US$27.45
28 Oct 21BuyUS$129,015Abdiel Capital Advisors, LPCompany4,700US$27.45
27 Oct 21BuyUS$1,152,664Abdiel Capital Advisors, LPCompany42,558US$27.38

Ownership Breakdown

What is the ownership structure of CRCT?
Owner TypeNumber of SharesOwnership Percentage
Hedge Funds14,548,4346.5%
General Public24,477,95411.0%
Individual Insiders48,758,85221.9%
Institutions134,399,15360.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 88.27% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
57.14%
Petrus Trust Company, LTA
126,965,929$1.2b0%63.75%
13.37%
Ashish Arora
29,710,721$286.4m5.36%no data
6.55%
Abdiel Capital Advisors, LP
14,548,434$140.2m5.64%7.85%
1.85%
Charles Sieber
4,112,087$39.6m0%no data
1.32%
Steven Blasnik
2,930,714$28.3m0%no data
1.31%
Martin Petersen
2,918,598$28.1m0%no data
1.03%
The Vanguard Group, Inc.
2,279,547$22.0m21.53%no data
0.99%
Vivekanand Jayaraman
2,200,471$21.2m0%no data
0.93%
Kim Kanarowski
2,075,301$20.0m0%no data
0.71%
Morgan Stanley Investment Management Inc.
1,572,356$15.2m-45.14%0.01%
0.68%
Len Blackwell
1,508,047$14.5m0%no data
0.52%
Russell Freeman
1,158,446$11.2m0%no data
0.27%
Donald Olsen
606,261$5.8m-0.44%no data
0.26%
Kimball Shill
575,393$5.5m0%no data
0.26%
BlackRock, Inc.
567,449$5.5m5.79%no data
0.24%
Jason Makler
543,961$5.2m0%no data
0.18%
Geode Capital Management, LLC
396,094$3.8m19.56%no data
0.14%
Goldman Sachs Group, Investment Banking and Securities Investments
312,041$3.0m1896.3%no data
0.092%
Bowie Capital Management, LLC
203,575$2.0m-61.61%0.29%
0.091%
Gregory Rowberry
202,166$1.9m-9.95%no data
0.074%
Wilcoxson Wealth Management
164,015$1.6m-0.06%no data
0.071%
Millennium Management LLC
158,777$1.5m129.37%no data
0.064%
Eaton Vance Management
142,972$1.4m0%no data
0.064%
State Street Global Advisors, Inc.
142,337$1.4m9.92%no data
0.058%
Invenomic Capital Management, LP
129,674$1.3m0.62%0.2%

Company Information

Cricut, Inc.'s employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Cricut, Inc.
  • 10855 South River Front Parkway
  • South Jordan
  • Utah
  • 84095
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRCTNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMar 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.