Last Updated: 14 Nov 2024
Executive Summary
Crocs Inc. (CROX) is a leading manufacturer and retailer of casual lifestyle footwear and accessories. The company has a strong brand presence and a loyal customer base. Crocs' financial performance has been solid in recent years, with revenue and earnings growth. The company's stock price has performed well over the past year, but it has pulled back in recent months. Crocs is currently trading at a forward P/E ratio of 8.31, which is below the industry average. The company's fundamentals remain strong, and its stock is considered to be undervalued.
Company Overview
Crocs Inc. was founded in 2002 and is headquartered in Broomfield, Colorado. The company designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children. Crocs' products are sold in over 90 countries through a variety of channels, including retail stores, online retailers, and department stores.
Fundamental Analysis
Crocs' financial performance has been solid in recent years. The company's revenue has grown from $1.2 billion in 2017 to $4.07 billion in 2023. Crocs' earnings per share (EPS) has also grown in recent years, from $0.78 in 2017 to $13.76 in 2023. The company's gross profit margin has remained relatively stable in recent years, at around 50%. Crocs' operating margin has also remained relatively stable, at around 25%. The company's return on assets (ROA) has improved in recent years, from 9.3% in 2017 to 14.3% in 2023. Crocs' return on equity (ROE) has also improved in recent years, from 22.6% in 2017 to 57.1% in 2023.
Technical Analysis
Crocs' stock price has performed well over the past year, but it has pulled back in recent months. The stock is currently trading at $98.96, which is below its 52-week high of $165.32. Crocs' stock is currently trading below its 50-day moving average of $129.17 and its 200-day moving average of $132.63. The stock's relative strength index (RSI) is currently at 39.46, which indicates that the stock is oversold.
Short Term Outlook
Crocs' stock is currently trading at a discount to its intrinsic value. The company's fundamentals remain strong, and its stock is considered to be undervalued. Crocs' stock is expected to rebound in the short term as the market recognizes the company's value.
Long Term Outlook
Crocs is a well-established company with a strong brand presence and a loyal customer base. The company's financial performance has been solid in recent years, and its stock is expected to continue to perform well over the long term. Crocs is a good investment for investors who are looking for a long-term growth stock.
Analyst Recommendations
The majority of analysts who cover Crocs have a buy rating on the stock. The average analyst target price for Crocs is $137.01, which is 38.3% above the current stock price.
