Crocs (NasdaqGS:CROX) - Share price, News & Analysis

CROX fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	3/6
Financial Health	2/6
Dividends	0/6

CROX Stock Overview

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

Rewards

Trading at 73.5% below our estimate of its fair value

Earnings are forecast to grow 7.55% per year

Earnings have grown 76.6% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Crocs Competitors

Deckers Outdoor

NYSE:DECK

US$6.8b

Skechers U.S.A

NYSE:SKX

US$5.7b

Steven Madden

NasdaqGS:SHOO

US$2.7b

Wolverine World Wide

NYSE:WWW

US$1.6b

Price History & Performance

Summary of all time highs, changes and price drops for Crocs
Historical stock prices
Current Share Price	US$53.50
52 Week High	US$183.88
52 Week Low	US$51.26
Beta	1.85
1 Month Change	-24.84%
3 Month Change	-34.11%
1 Year Change	-47.50%
3 Year Change	143.18%
5 Year Change	711.84%
Change since IPO	274.78%

Recent News & Updates

May 09

Reaffirming Crocs As A Buy

The Heydude acquisition transaction closed in February 2022 and is expected to provide $800M in revenue for FY2022. For Full year 2022, Crocs is expecting revenues to be approximately $3.5B, which will represent between 52% and 55% growth when compared to 2021. Crocs has identified more sustainable alternatives for packaging, including the integration of post-industrial and post-consumer recycled materials, said to be introduced throughout 2022.

Shareholder Returns

	CROX	US Luxury	US Market
7D	-5.3%	-4.4%	-0.5%
1Y	-47.5%	-23.9%	-12.3%

Return vs Industry: CROX underperformed the US Luxury industry which returned -23.3% over the past year.

Return vs Market: CROX underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is CROX's price volatile compared to industry and market?
CROX volatility
CROX Average Weekly Movement	9.4%
Luxury Industry Average Movement	7.5%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CROX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CROX's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	5,770	Andrew Rees	https://www.crocs.com

Crocs, Inc., together with its subsidiaries, designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. It offers various footwear products, including clogs, sandals, slides, flip-flops, boots, flats, wedges, platforms, socks, shoe charms, loafers, sneakers, and slippers under the Crocs brand name. The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces.

Crocs Fundamentals Summary

How do Crocs's earnings and revenue compare to its market cap?
CROX fundamental statistics
Market Cap	US$3.29b
Earnings (TTM)	US$700.06m
Revenue (TTM)	US$2.51b

4.7x

P/E Ratio

1.3x

P/S Ratio

Is CROX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CROX income statement (TTM)
Revenue	US$2.51b
Cost of Revenue	US$991.84m
Gross Profit	US$1.52b
Other Expenses	US$821.57m
Earnings	US$700.06m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	11.37
Gross Margin	60.54%
Net Profit Margin	27.85%
Debt/Equity Ratio	823.8%

How did CROX perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CROX ($53.5) is trading below our estimate of fair value ($201.71)

Significantly Below Fair Value: CROX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CROX is good value based on its PE Ratio (4.7x) compared to the US Luxury industry average (10.7x).

PE vs Market: CROX is good value based on its PE Ratio (4.7x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: CROX is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: CROX is overvalued based on its PB Ratio (9.4x) compared to the US Luxury industry average (1.7x).

Future Growth

How is Crocs forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CROX's forecast earnings growth (7.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CROX's earnings (7.5% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: CROX's earnings are forecast to grow, but not significantly.

Revenue vs Market: CROX's revenue (14.3% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: CROX's revenue (14.3% 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 very high in 3 years time (46.1%).

Past Performance

How has Crocs performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

76.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CROX has high quality earnings.

Growing Profit Margin: CROX's current net profit margins (27.9%) are higher than last year (25.6%).

Past Earnings Growth Analysis

Earnings Trend: CROX has become profitable over the past 5 years, growing earnings by 76.6% per year.

Accelerating Growth: CROX's earnings growth over the past year (74.9%) is below its 5-year average (76.6% per year).

Earnings vs Industry: CROX earnings growth over the past year (74.9%) underperformed the Luxury industry 96.3%.

Return on Equity

High ROE: Whilst CROX's Return on Equity (200.49%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Crocs's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CROX's short term assets ($1.0B) exceed its short term liabilities ($530.8M).

Long Term Liabilities: CROX's short term assets ($1.0B) do not cover its long term liabilities ($3.6B).

Debt to Equity History and Analysis

Debt Level: CROX's net debt to equity ratio (774.5%) is considered high.

Reducing Debt: CROX's debt to equity ratio has increased from 1.1% to 823.8% over the past 5 years.

Debt Coverage: CROX's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: CROX's interest payments on its debt are well covered by EBIT (19.1x coverage).

Balance Sheet

Dividend

What is Crocs's 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
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate CROX'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 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.

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 CROX has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.2yrs

Average management tenure

CEO

Andrew Rees (54 yo)

4.92yrs

Tenure

US$15,785,920

Compensation

Mr. Andrew Rees has been the Chief Executive Officer of Crocs, Inc. since June 1, 2017 and served as its President since joining in June 9, 2014 until September 10, 2020. Mr. Rees served as an Acting Princ...

CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD15.79M) is above average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CROX's management team is considered experienced (2.2 years average tenure).

Board Members

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

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: CROX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31