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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Crocs

(

CROX

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Crocs as such a stock due to the following factors:

  • CROX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.8 million.
  • CROX traded 162,622 shares today in the pre-market hours as of 8:46 AM, representing 17.8% of its average daily volume.

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More details on CROX:

Crocs, Inc., together with its subsidiaries, engages in the design, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children in the Americas, Europe, and Asia. CROX has a PE ratio of 13.5. Currently there is 1 analyst that rates Crocs a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Crocs has been 1.5 million shares per day over the past 30 days. Crocs has a market cap of $1.2 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.25 and a short float of 3.7% with 3.55 days to cover. Shares are down 7.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Crocs as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • CROX's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CROX has a quick ratio of 2.43, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for CROCS INC is rather high; currently it is at 54.03%. Regardless of CROX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.51% trails the industry average.
  • Net operating cash flow has declined marginally to $56.57 million or 1.69% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, CROCS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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