Crocs Inc.
Find Ratings ReportsCROCS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. CROCS INC has weak liquidity. Currently, the Quick Ratio is 0.69 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 77.75% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 960.1 | 945.16 |
EBITDA ($mil) | 233.28 | 250.54 |
EBIT ($mil) | 219.51 | 237.81 |
Net Income ($mil) | 253.59 | 137.74 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 149.29 | 191.63 |
Total Assets ($mil) | 4643.83 | 4501.8 |
Total Debt ($mil) | 1996.36 | 2594.96 |
Equity ($mil) | 1453.92 | 817.93 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 56.71 | 53.8 |
EBITDA Margin | 24.29 | 26.5 |
Operating Margin | 22.86 | 25.16 |
Sales Turnover | 0.85 | 0.79 |
Return on Assets | 17.06 | 11.99 |
Return on Equity | 54.51 | 66.04 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.3 | 1.6 |
Debt/Capital | 0.58 | 0.76 |
Interest Expense | 36.44 | 49.8 |
Interest Coverage | 6.02 | 4.78 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 60.5 | 61.75 |
Div / share | 0.0 | 0.0 |
EPS | 4.16 | 2.2 |
Book value / share | 24.03 | 13.25 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1545624.0 | 1413181.0 |
BUY. CROCS INC's P/E ratio indicates a significant discount compared to an average of 31.14 for the Leather and Allied Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.24 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.26. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CROCS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CROX 9.84 | Peers 31.14 | CROX 8.19 | Peers 19.85 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CROX is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CROX is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CROX 9.27 | Peers 23.39 | CROX NM | Peers 2.17 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CROX is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CROX's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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CROX 5.24 | Peers 9.26 | CROX 47.41 | Peers 13.36 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CROX is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CROX is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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CROX 1.92 | Peers 3.18 | CROX 11.45 | Peers 8.95 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CROX is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. CROX has a sales growth rate that significantly exceeds its peers. |
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