Crocs (CROX) AI Stock Analysis

• Market Cap: $4.94B
• Dividend Yield: N/A
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.84
• Revenue Growth: 2.04%
• EPS Growth: -71.52%
• Country: US
• Employees: 7,910
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 4.23
• Shares Outstanding: 54,617,360
• 10 Day Avg. Volume: 1,581,566
• 30 Day Avg. Volume: 2,447,384
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 20.91
• 1Y Price Target: $88.70
• Price Target Upside: 2.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: $91.00 ▲(4.86% Upside)

Crocs' overall stock score is driven by its strong financial performance and positive earnings call sentiment, highlighting international growth and strategic cost management. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate attractiveness. Challenges in the HEYDUDE segment and North American market, along with tariff impacts, present risks that need monitoring.

Positive Factors

International Growth

Crocs international sales grew 16%, suggesting feasible growth for the next several quarters.

Leadership Change

Taking over as CFO will be Patraic Reagan, who most recently served as CFO at SharkNinja and spent 14 years at Nike.

Valuation

Raising the 12-month price target to $100, as the prior target utilized too conservative a valuation multiple.

Negative Factors

Market Sentiment

There is a lot of 'noise' in the business at the moment, making it likely to take some time to regain investor momentum.

Operating Margins

Operating margin guidance for 3Q of 18-19% is significantly below the consensus estimate.

Revenue Decline

Crocs' sales guidance for 3Q is down 9-11%, with a significant decline in N.A. Heydude sales.

Crocs Business Overview & Revenue Model

Company Description

Crocs, Inc. is a global footwear company known for its innovative and comfortable shoes, particularly its signature clogs made from Croslite material. Founded in 2002, Crocs operates primarily in the footwear sector, offering a diverse range of products that include casual footwear, sandals, and clogs for men, women, and children. The company has expanded its product line to include collaborations with designers and brands, appealing to a broad consumer base and lifestyle segments.

How the Company Makes Money

Crocs generates revenue primarily through the sale of its footwear products, which includes direct-to-consumer sales via its own retail stores and e-commerce platforms, as well as wholesale distribution to third-party retailers. Key revenue streams include seasonal collections, limited-edition collaborations, and classic styles that enjoy high demand. The company also benefits from strategic partnerships and licensing agreements that expand its market reach. Additionally, Crocs has successfully leveraged brand collaborations with celebrities and fashion designers to create buzz and drive sales, contributing to its overall earnings.

Crocs Financial Statement Overview

Summary

Crocs has demonstrated strong revenue growth and stable gross margins, but recent declines in net profit and cash flow growth rates highlight potential areas of concern. The balance sheet has strengthened with improved leverage ratios, but the decrease in return on equity warrants attention. Overall, Crocs remains a financially stable company with room for improvement in profitability and cash flow generation.

Income Statement

Crocs has demonstrated strong revenue growth over the years, with a significant increase in total revenue from 2020 to TTM 2025. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin has decreased in the TTM period compared to previous years, suggesting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline in the TTM period, which could be a concern if not addressed.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, indicating better leverage management. However, the return on equity has decreased compared to previous years, which may suggest a decline in profitability relative to shareholder equity. The equity ratio has shown improvement, reflecting a stronger balance sheet position.

Cash Flow

Operating cash flow remains strong, with a healthy ratio to net income. However, the free cash flow growth rate has turned negative in the TTM period, which could indicate potential challenges in generating cash. The free cash flow to net income ratio remains robust, suggesting efficient cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14B	4.10B	3.96B	3.55B	2.31B	1.39B
Gross Profit	2.46B	2.41B	2.21B	1.86B	1.42B	749.95M
EBITDA	345.44M	1.09B	1.09B	893.89M	717.47M	241.34M
Net Income	236.53M	950.07M	792.57M	540.16M	725.69M	312.86M
Balance Sheet
Total Assets	4.45B	4.81B	4.64B	4.50B	1.55B	1.12B
Cash, Cash Equivalents and Short-Term Investments	200.61M	180.49M	149.29M	191.63M	213.20M	135.80M
Total Debt	1.77B	1.70B	2.00B	2.59B	963.56M	373.46M
Total Liabilities	3.03B	2.98B	3.19B	3.68B	1.53B	828.09M
Stockholders Equity	1.42B	1.84B	1.45B	817.93M	14.08M	290.63M
Cash Flow
Free Cash Flow	768.90M	923.14M	814.82M	498.95M	511.25M	224.87M
Operating Cash Flow	837.39M	992.49M	930.44M	603.14M	567.16M	266.90M
Investing Cash Flow	-68.49M	-69.35M	-115.67M	-2.15B	-55.92M	-41.76M
Financing Cash Flow	-739.11M	-886.05M	-859.64M	1.53B	-429.64M	-198.04M

Crocs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 86.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CROX, the sentiment is Neutral. The current price of 86.78 is above the 20-day moving average (MA) of 83.73, below the 50-day MA of 95.85, and below the 200-day MA of 101.88, indicating a neutral trend. The MACD of -2.03 indicates Negative momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 68.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CROX.

Crocs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	83 Outperform	$18.23B	18.99	43.58%	―	15.43%	24.20%
BIRK	78 Outperform	$9.59B	28.09	11.36%	―	18.66%	183.98%
SKX	77 Outperform	$9.49B	14.45	14.79%	―	12.11%	17.08%
SHOO	74 Outperform	$2.14B	23.15	11.09%	2.79%	7.80%	-48.10%
WWW	69 Neutral	$2.55B	30.28	27.52%	1.25%	-2.83%	―
CROX	68 Neutral	$4.94B	23.30	15.39%	―	2.04%	-71.52%
Sector *	61 Neutral	$17.96B	13.14	-5.36%	3.00%	1.25%	-13.95%

Crocs Corporate Events

Crocs Appoints New CFO Amid Leadership Change

On August 29, 2025, Crocs, Inc. announced the appointment of Patraic Reagan as Executive Vice President and Chief Financial Officer, effective September 22, 2025, succeeding Susan Healy who resigned on August 28, 2025. Reagan, with extensive financial leadership experience from SharkNinja and Nike, will oversee Crocs’ financial strategies, aiming to drive long-term shareholder value. The company reaffirmed its third-quarter 2025 financial outlook and highlighted Reagan’s consumer-centric mindset and international expertise as key assets to its leadership team.

Crocs Confirms Key Decisions at Annual Meeting

On June 10, 2025, Crocs, Inc. held its annual meeting of stockholders virtually, where key decisions were made. The election of Class II directors, the ratification of Deloitte & Touche LLP as the independent auditor for 2025, and the approval of executive compensation were all confirmed, indicating continued stability and strategic direction for the company.