Crocs (CROX) AI Stock Analysis

• Market Cap: $4.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.88
• Revenue Growth: <0.01%
• EPS Growth: -77.31%
• Country: US
• Employees: 7,910
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 2.92
• Shares Outstanding: 51,915,657
• 10 Day Avg. Volume: 1,028,219
• 30 Day Avg. Volume: 1,200,580
• PEG Ratio: 0.29
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 7.05
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: 16.03
• 1Y Price Target: $90.38
• Price Target Upside: 4.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $87.00 ▲(0.50% Upside)

Crocs' overall stock score is primarily influenced by its stable financial performance and strong profitability, despite recent declines in revenue growth and profitability margins. The technical analysis indicates a bearish trend, and the high P/E ratio suggests limited valuation appeal. The earnings call highlights strategic initiatives and international growth, but challenges in North America and HEYDUDE wholesale channels remain significant concerns.

Positive Factors

International Growth

Strong international growth indicates Crocs' successful expansion strategy, diversifying revenue streams and reducing reliance on North American markets.

Cost Savings Initiatives

Significant cost savings initiatives enhance operational efficiency, potentially improving margins and profitability over the long term.

Cash Flow Management

Effective cash flow management allows for strategic investments and debt reduction, strengthening Crocs' financial health and shareholder value.

Negative Factors

Revenue Decline

Declining revenue across key brands suggests challenges in maintaining market share and growth, potentially impacting long-term financial performance.

North America Performance

Weak performance in North America, a major market, highlights potential issues in demand and distribution strategies, affecting overall growth.

Tariff Headwinds

Tariff-related margin pressures could persist, affecting profitability and competitiveness in international markets over the medium term.

Crocs Business Overview & Revenue Model

Company Description

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. As of December 31, 2021, it had 193 outlet stores, 107 retail stores, 373 company-operated stores, 73 kiosks and store-in-stores, and 14 company-operated e-commerce sites. The company serves in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Crocs, Inc. was founded in 1999 and is headquartered in Broomfield, Colorado.

How the Company Makes Money

Crocs generates revenue primarily through the direct sale of its footwear products across multiple channels including retail stores, e-commerce platforms, and wholesale distribution. The company has established a strong online presence, leveraging its website and partnerships with major e-commerce retailers to reach a broader audience. Key revenue streams include sales from its signature clogs, seasonal collections, and collaborations with designers and brands that create limited-edition footwear. Additionally, Crocs benefits from a growing trend towards casual and comfortable footwear, which has been further amplified by the increasing consumer preference for versatile and functional shoes. Strategic partnerships with retailers and collaborations with influencers and celebrities also enhance brand visibility and drive sales, contributing significantly to the company's earnings.

Crocs Financial Statement Overview

Summary

Crocs demonstrates strong profitability and cash flow management, with consistent gross profit margins and healthy cash flow ratios. However, recent trends in the TTM period show declining revenue growth and profitability margins, which could pose challenges if not addressed. The balance sheet has improved in terms of leverage, but historical high debt levels could still pose risks. Overall, Crocs is in a stable financial position but needs to focus on reversing recent negative growth trends.

Income Statement

Crocs has shown strong gross profit margins consistently above 50%, indicating efficient production and pricing strategies. However, the recent TTM data shows a decline in revenue growth rate and net profit margin compared to previous years, suggesting potential challenges in maintaining growth and profitability. The EBIT and EBITDA margins have also decreased significantly in the TTM period, which could indicate rising operational costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, indicating better leverage management compared to previous years. Return on equity remains healthy, although it has decreased from its peak in 2022. The equity ratio has improved, suggesting a stronger balance sheet position. Overall, the balance sheet shows a trend towards stability, but historical high leverage remains a potential risk.

Cash Flow

Operating cash flow remains strong, with a healthy coverage ratio over net income. However, the free cash flow growth rate has turned negative in the TTM period, indicating potential challenges in generating cash from operations. The free cash flow to net income ratio remains robust, suggesting efficient cash conversion, but the recent decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.07B	4.10B	3.96B	3.55B	2.31B	1.39B
Gross Profit	2.41B	2.41B	2.18B	1.86B	1.42B	749.95M
EBITDA	378.20M	1.09B	1.09B	893.89M	717.47M	241.34M
Net Income	182.55M	950.07M	792.57M	540.16M	725.69M	312.86M
Balance Sheet
Total Assets	4.30B	4.81B	4.64B	4.50B	1.55B	1.12B
Cash, Cash Equivalents and Short-Term Investments	153.97M	180.49M	149.29M	191.63M	213.26M	137.34M
Total Debt	1.71B	1.70B	2.00B	2.59B	963.56M	373.46M
Total Liabilities	2.94B	2.98B	3.19B	3.68B	1.53B	828.09M
Stockholders Equity	1.36B	1.84B	1.45B	817.93M	14.08M	290.63M
Cash Flow
Free Cash Flow	716.23M	923.14M	814.82M	498.95M	511.25M	224.87M
Operating Cash Flow	779.84M	992.49M	930.44M	603.14M	567.16M	266.90M
Investing Cash Flow	-63.61M	-69.35M	-115.67M	-2.15B	-55.92M	-41.76M
Financing Cash Flow	-746.77M	-886.05M	-859.64M	1.53B	-429.64M	-198.04M

Crocs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 86.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CROX, the sentiment is Negative. The current price of 86.57 is below the 20-day moving average (MA) of 88.51, above the 50-day MA of 84.26, and below the 200-day MA of 92.47, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CROX.

Crocs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	79 Outperform	$15.65B	15.92	43.31%	―	12.38%	18.43%
BIRK	77 Outperform	$8.11B	21.14	12.67%	―	18.86%	88.29%
CAL	67 Neutral	$469.11M	22.42	3.33%	2.11%	-2.83%	-86.19%
SHOO	64 Neutral	$3.31B	57.21	6.68%	1.97%	6.26%	-66.51%
CROX	63 Neutral	$4.49B	28.23	11.82%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.52B	18.15	25.57%	2.28%	3.61%	―