Crocs Marching to $100

Just to give you an idea of how strong a number that is, Nike, which knows something about the shoe biz, posts a return on capital of 18%, while Google(GOOG Quote), which is a super-profitable company, earns a return on capital of 24%. A return of 43% is off the charts, and it shows that management deploys funds provided by the capital markets in an extremely efficient, income-generating, shareholder-friendly way.

Looking at this another way, consider that Crocs' gross margins are the highest in the footwear industry at 56.5%, vs. 47.3% for its next-best peer, Timberland(TBL Quote), and 44% for Nike. Operating margins are the best in the industry, as well, at 26.9%, vs. 22.1% for the next-best, which is Deckers Outdoor(DECK Quote), maker of Teva sandals and Ugg boots.

By now you're probably wondering whether these shoes cure cancer or malaria -- or at least make you look 10 pounds thinner. But no, they are just comfortable, lightweight, colorful, antimicrobial and cheap enough to encourage multiple purchases, and they are popular with all genders and all ages, not to mention doctors, nurses, baristas and store clerks who spend a lot of time on their feet.

They are also easily customizable by kids with charms sold at extremely high margins by company subsidiary Jibbitz. Plus, the company has had great success at obtaining licenses from colleges, sports leagues and entertainment companies to jazz up the shoes with NFL and NCAA team logos and colors, Spider-Man and Mickey Mouse.