NasdaqGS:CROX

Stock Analysis Report

Executive Summary

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide.

Rewards

Trading at 8.3% below its fair value

Earnings are forecast to grow 50.91% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Crocs's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CROX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

CROX

2.7%

US Luxury

2.0%

US Market


1 Year Return

41.5%

CROX

22.3%

US Luxury

23.6%

US Market

Return vs Industry: CROX exceeded the US Luxury industry which returned 28% over the past year.

Return vs Market: CROX exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CROXIndustryMarket
7 Day-3.1%2.7%2.0%
30 Day5.9%1.7%3.9%
90 Day26.8%9.3%12.0%
1 Year41.5%41.5%24.8%22.3%26.2%23.6%
3 Year480.7%480.7%75.4%67.6%53.2%43.3%
5 Year286.1%286.1%59.5%48.9%75.7%56.3%

Price Volatility Vs. Market

How volatile is Crocs's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Crocs undervalued compared to its fair value and its price relative to the market?

12.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CROX ($42.9) is trading below our estimate of fair value ($46.78)

Significantly Below Fair Value: CROX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CROX is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: CROX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CROX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CROX is overvalued based on its PB Ratio (25x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is Crocs forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

45.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CROX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CROX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CROX's is expected to become profitable in the next 3 years.

Revenue vs Market: CROX's revenue (8.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CROX's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CROX's Return on Equity is forecast to be high in 3 years time (38.6%)


Next Steps

Past Performance

How has Crocs performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CROX is currently unprofitable.

Growing Profit Margin: CROX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CROX is unprofitable, but has reduced losses over the past 5 years at a rate of 17.7% per year.

Accelerating Growth: Unable to compare CROX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CROX is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (15%).


Return on Equity

High ROE: CROX has a negative Return on Equity (75.47%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crocs's financial position?


Financial Position Analysis

Short Term Liabilities: CROX's short term assets ($391.3M) exceed its short term liabilities ($233.5M).

Long Term Liabilities: CROX's short term assets ($391.3M) exceed its long term liabilities ($334.5M).


Debt to Equity History and Analysis

Debt Level: CROX's debt to equity ratio (157.4%) is considered high.

Reducing Debt: CROX's debt to equity ratio has increased from 1.7% to 157.4% over the past 5 years.


Balance Sheet

Inventory Level: CROX has a high level of physical assets or inventory.

Debt Coverage by Assets: CROX's debt is covered by short term assets (assets are 2.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CROX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CROX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 35.2% per year.


Next Steps

Dividend

What is Crocs's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CROX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CROX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CROX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CROX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CROX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Crocs's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Andrew Rees (52yo)

2.6yrs

Tenure

US$9,100,814

Compensation

Mr. Andrew Rees has been the Chief Executive Officer of Crocs, Inc. since June 1, 2017 and its President since June 9, 2014. Mr. Rees served as an Acting Principal Executive Officer of Crocs, Inc. from Jun ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD9.10M) is above average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Andrew's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.7yrs

Average Tenure

56yo

Average Age

Experienced Management: CROX's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

61yo

Average Age

Experienced Board: CROX's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$243,965,92904 Nov 19
The Blackstone Group Inc.
EntityCompany
Shares6,864,545
Max PriceUS$35.54

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Michael Margolis (67yo)

    Vice President of Sales & Marketing

    • Tenure: 15yrs
    • Compensation: US$1.24m
  • Marisa Jacobs

    Global Head of Investor Relations

    • Terence Reilly

      Chief Marketing Officer & Senior VP

      • Tenure: 4.3yrs
    • Dan Hart (60yo)

      Executive VP & Chief Legal and Risk Officer

      • Tenure: 10yrs
      • Compensation: US$1.73m
    • Andrew Rees (52yo)

      President

      • Tenure: 2.6yrs
      • Compensation: US$9.10m
    • Michelle Poole

      Senior Vice President of Global Product & Marketing

      • Tenure: 5.3yrs
    • David Thomson

      Senior VP & General Manager of Asia

      • Tenure: 4.7yrs
    • Anne Mehlman (39yo)

      Executive VP & CFO

      • Tenure: 1.4yrs
      • Compensation: US$877.09k
    • Shannon Sisler

      Senior Vice President of Global Human Resources


      Board Members

      • Doreen Wright (62yo)

        Independent Director

        • Tenure: 8.6yrs
        • Compensation: US$254.99k
      • Tom Smach (58yo)

        Independent Chairman

        • Tenure: 8.6yrs
        • Compensation: US$350.59k
      • Doug Treff (61yo)

        Independent Director

        • Tenure: 3.6yrs
        • Compensation: US$245.00k
      • Beth Kaplan (61yo)

        Director

        • Ron Frasch (70yo)

          Independent Director

          • Tenure: 13.3yrs
          • Compensation: US$224.99k
        • Prakash Melwani (61yo)

          Independent Director

          • Tenure: 6yrs
          • Compensation: US$215.00k
        • Ian Bickley (55yo)

          Independent Director

          • Tenure: 4.8yrs
          • Compensation: US$210.00k
        • Bill Gray (67yo)

          Independent Director

          • Tenure: 1.6yrs
          • Compensation: US$154.99k
        • Andrew Rees (52yo)

          President

          • Tenure: 2.6yrs
          • Compensation: US$9.10m

        Company Information

        Crocs, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Crocs, Inc.
        • Ticker: CROX
        • Exchange: NasdaqGS
        • Founded: 1999
        • Industry: Footwear
        • Sector: Consumer Durables
        • Market Cap: US$2.853b
        • Shares outstanding: 68.60m
        • Website: https://www.crocs.com

        Number of Employees


        Location

        • Crocs, Inc.
        • 7477 East Dry Creek Parkway
        • Niwot
        • Colorado
        • 80503
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        CROXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 2006
        C7NDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2006

        Biography

        Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide. It offers various footwear products, including clogs, sandals, flips and slides, shoes, and boots under the Crocs brand name. The company sells its products in approximately 85 countries through wholesalers and distributors, as well as through stores and e-commerce sites. As of December 31, 2018, it had 120 retail stores; 68 kiosks and store-in-stores; 195 outlet stores; and 13 company-operated e-commerce sites. The company was founded in 1999 and is headquartered in Niwot, Colorado. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/18 23:56
        End of Day Share Price2020/01/17 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.