Latest news with #CROX
Yahoo
14 hours ago
- Business
- Yahoo
Crocs, Inc. (CROX): A Bull Case Theory
We came across a bullish thesis on Crocs, Inc. (CROX) on The Finance Corner's Substack by Kostadin Ristovski. In this article, we will summarize the bulls' thesis on CROX. Crocs, Inc. (CROX)'s share was trading at $100.17 as of 5th June. CROX's trailing and forward P/E were 6.18 and 8.61 respectively according to Yahoo Finance. andersphoto / Crocs, founded in 2002, has carved out a unique space in the footwear industry with its polarizing design and proprietary Croslite material, offering comfort, lightness, and odor resistance. While its classic clogs and sandals are not inherently exciting, the company has driven engagement through personalization, celebrity partnerships, and Jibbitz accessories—turning its products into cult items especially among Gen Z. The brand saw an unexpected surge during the pandemic, as demand for comfortable, at-home footwear soared, propelling revenue and pushing its stock price from $11 to $180 in just over a year. Recognizing the temporary nature of this boom, management sought to diversify with the acquisition of HEYDUDE for $2.5 billion—a move initially criticized by the market. While HEYDUDE added lightweight, casual loafers to the portfolio and aimed for $1B in revenue by 2024, it fell short at $824M, validating some investor scepticism. However, CEO Andrew Rees has demonstrated strategic discipline, notably through an earlier rationalization that saw a 40% reduction in Crocs stores. Today, the company generates ~$900M in annual free cash flow, focusing on deleveraging and aggressive share buybacks, having reduced shares outstanding by 7% in 2024 alone. Still, questions persist: Is Crocs a lasting brand or a fashion fad? Bear, base, and bull valuation cases suggest fair values between $76 and $143 per share, hinging on this very question. Encouragingly, international markets grew 42% over two years while North America stagnated, and global manufacturing diversification gives Crocs strategic flexibility. At a $5.5B market cap, the company offers attractive upside—if it avoids missteps and remains culturally relevant. Previously, we covered a on Crocs (CROX) by Taylor Nichols, which aligns with Kostadin Ristovski's take. Since then, the stock has seen an 11% appreciation in price. Both highlight strong cash flow, high margins, and smart capital allocation. Nichols emphasizes valuation upside and financial strength, while Ristovski focuses on brand relevance and international growth. Together, they make a compelling bull case from both quantitative and qualitative angles. Crocs, Inc. (CROX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held CROX at the end of the first quarter which was 41 in the previous quarter. While we acknowledge the risk and potential of CROX as an investment,our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
10-05-2025
- Business
- Globe and Mail
Will Tariffs Take a Bite Out of Crocs?
Crocs (NASDAQ: CROX) is growing faster than expected in 2025, but investors were still worried about the impact of tariffs on the company's bottom line. Management gave us an idea of how much tariffs could impact the business, and it may not be as big as you think. *Stock prices used were end-of-day prices of May 9, 2025. The video was published on May 10, 2025. Should you invest $1,000 in Crocs right now? Before you buy stock in Crocs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Crocs wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor 's total average return is907% — a market-crushing outperformance compared to163%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Travis Hoium has positions in Crocs. The Motley Fool recommends Crocs. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Forbes
16-04-2025
- Business
- Forbes
Time To Buy Crocs Stock?
Crocs' (NASDAQ: CROX) shares are down 18% in 2025, underperforming the S&P 500's 8% decline, as uneven brand performance has dampened investor confidence. The flagship Crocs Brand remains solid, posting 9% revenue growth in 2024 and contributing 80% of overall sales, whereas the $2.5 billion HeyDude acquisition continues to lag, with revenue down 13%. Still, Crocs achieved an impressive 20%+ adjusted operating margin in Q4, outperforming rivals such as Nike(NYSE: NKE). Yet, the stock trades at only 6x forward earnings, indicating possible undervaluation. Trefis The company is also contending with external challenges from evolving U.S. trade policies. Roughly 50% of Crocs' production takes place in Vietnam, which recently secured a 90-day reprieve from proposed 46% tariffs. Crocs also works with third-party manufacturers in China, where tariffs have jumped to 145%. Although these factors may weigh on margins, their effect appears manageable, given the company's continued investments in digital capabilities and international growth. At around $90, the stock appears to be a solid choice. However, some concerns remain with CROX stock, adding risk despite its currently modest valuation. We reach this conclusion by evaluating the company's present valuation relative to its historical and recent operating performance and financial standing. Our Crocs analysis focuses on four key areas—Growth, Profitability, Financial Stability, and Downturn Resilience—as outlined below. Measured by multiples of sales or profits, CROX stock appears inexpensive relative to the broader market. • Crocs' price-to-sales (P/S) ratio is 1.3 compared to 2.8 for the S&P 500 • Its price-to-operating income (P/EBIT) ratio stands at 5.4 versus 21.3 for the S&P 500 • Its price-to-earnings (P/E) ratio is 5.8 compared to the S&P 500's 21.3 Crocs' Revenues have exhibited modest growth in recent years. • Crocs' revenue grew at an average annual rate of 22.9% over the past three years (compared to 6.2% for the S&P 500) • Revenues increased 3.5% from $4.0 billion to $4.1 billion in the last 12 months (vs. 5.3% growth for the S&P 500) • Quarterly revenue rose 3.1% to $990 million from $960 million a year earlier (vs. 4.9% growth for the S&P 500) Crocs' margins are above average compared to most companies in the Trefis universe. • Operating income over the past year was $1.0 billion, reflecting a healthy margin of 24.9% (vs. 13.1% for the S&P 500) • Operating cash flow came in at $992 million, with a high OCF-to-Sales ratio of 24.2% (vs. 15.7% for the S&P 500) The company's balance sheet appears relatively weak. • Crocs' debt totaled $1.7 billion at the end of the last quarter, with a market cap of $5.2 billion (as of 4/14/2025), translating to a moderate Debt-to-Equity ratio of 30.9% (vs. 21.5% for the S&P 500) • Cash and equivalents amounted to $180 million out of $4.8 billion in total assets, yielding a low Cash-to-Assets ratio of 3.8% (vs. 15.0% for the S&P 500) CROX stock has underperformed the S&P 500 during recent market sell-offs. While hopes remain for a soft economic landing, here's how the stock fared in past recessions, based on our dashboard How Low Can Stocks Go During A Market Crash, which tracks performance across six major market crashes. • CROX stock dropped 73.9% from $180.57 (11/12/2021) to $47.21 (6/17/2022), vs. a 25.4% decline for the S&P 500 • The stock has not yet regained its pre-crisis high • Its post-crisis peak was $159.68 on 6/17/2024; it currently trades around $90 • CROX stock fell 75.2% from $43.40 (1/9/2020) to $10.77 (3/20/2020), vs. a 33.9% S&P 500 drop • The stock fully recovered by 9/14/2020 • CROX stock plunged 98.7% from $74.75 (10/31/2007) to $0.94 (11/20/2008), vs. a 56.8% decline in the S&P 500 • The stock fully recovered by 1/11/2021 In summary, Crocs' performance across major dimensions is: • Growth: Strong • Profitability: Strong • Financial Stability: Weak • Downturn Resilience: Extremely Weak • Overall: Neutral Despite some risks, CROX stock appears to be a worthwhile option based on the outlined metrics. For broader investment ideas, consider the Trefis Reinforced Value Portfolio, which has consistently outperformed a composite benchmark of large-, mid-, and small-cap indices. Why does it work? This quarterly rebalanced portfolio captures upside potential while mitigating downside risk, as detailed in its performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Forbes
14-04-2025
- Business
- Forbes
Is CROX Stock A Bargain At $100?
A woman walks past a Crocs store in Beijing on April 9, 2025. (Photo by Pedro PARDO / AFP) (Photo by ... More PEDRO PARDO/AFP via Getty Images) Crocs stock (NASDAQ: CROX) has declined by over 30% in the past six months, presenting what we believe to be an attractive value opportunity for investors. The recent downturn isn't solely due to tariffs. CROX began its downward trend in mid-2024, with a notable drop in late October after reporting revenue declines from its acquired HeyDude brand. This decline was especially concerning as Crocs had incurred significant long-term debt to finance the acquisition. Furthermore, the latest tariff announcements have sparked a broad selloff in consumer discretionary stocks, disproportionately impacting Crocs given its manufacturing presence in countries like China and Mexico. For investors seeking growth with less volatility than individual stocks, the High-Quality portfolio offers a compelling option, having outperformed the S&P 500 with over 91% returns since inception. Despite these setbacks, investors who buy CROX now gain exposure to: CROX vs. Peers Technically, CROX appears poised for a rebound. The stock has a history of wide cyclical moves over the past four years and currently trades near a cyclical low. This level has previously acted as a launch point, sparking prolonged rallies in April 2021, November 2022 (post-consolidation), and again in November 2023. CROX Stock Price History Worried about CROX's volatility? Consider the Trefis High Quality Portfolio, a set of 30 stocks that has consistently outperformed the S&P 500 over the past four years. Why? Because HQ Portfolio stocks deliver stronger returns with reduced risk — a smoother ride than the benchmark, as shown in HQ Portfolio performance metrics. Invest with Trefis Market Beating Portfolios | Rules-Based Wealth
Yahoo
10-04-2025
- Business
- Yahoo
3 Reasons to Sell CROX and 1 Stock to Buy Instead
Crocs has gotten torched over the last six months - since October 2024, its stock price has dropped 29.2% to $96.76 per share. This may have investors wondering how to approach the situation. Is now the time to buy Crocs, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it's free. Even though the stock has become cheaper, we don't have much confidence in Crocs. Here are three reasons why you should be careful with CROX and a stock we'd rather own. Founded in 2002, Crocs (NASDAQ:CROX) sells casual footwear and is known for its iconic clog shoe. In addition to reported revenue, constant currency revenue is a useful data point for analyzing Footwear companies. This metric excludes currency movements, which are outside of Crocs's control and are not indicative of underlying demand. Over the last two years, Crocs's constant currency revenue averaged 8.2% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Over the next year, analysts predict Crocs's cash conversion will fall. Their consensus estimates imply its free cash flow margin of 22.5% for the last 12 months will decrease to 19.6%. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Unfortunately, Crocs's ROIC has decreased significantly over the last few years. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. Crocs isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 8× forward price-to-earnings (or $96.76 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're fairly confident there are better investments elsewhere. We'd recommend looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
