Crocs Inc. has shown strong revenue growth in recent quarters and has outperformed the S&P 500 so far this year. The company is known for its line of casual foam footwear and has expanded to offer various styles and accessories. In 2021, Crocs acquired HeyDude to further broaden its product offerings. Its largest segment, the flagship brand, generated the majority of its sales in 2023.
Crocs reported record fourth-quarter and full-year 2023 financial results, with revenue, net income, and Ebitda all showing growth from the previous year. CEO Andrew Rees highlighted the company’s performance and growth across all regions and channels. Looking ahead, Crocs has guided for first-quarter 2024 revenue growth and adjusted earnings per share. The company’s balance sheet shows a cash-to-debt ratio indicating it may struggle to pay off its debt using cash on hand.
Gurus and insiders have shown interest in Crocs, with nine gurus having investments in the company and notable shareholders including Steven Cohen, Ray Dalio’s Bridgewater Associates, Bernard Horn, and Paul Tudor Jones. While gurus have been bullish on the stock, insiders have been more bearish over the past year. The stock is currently trading at a market cap of $8.87 billion with a price-earnings ratio, price-book ratio, and price-sales ratio indicating some overvaluation.
The GF Value Line suggests the stock is modestly overvalued based on historical ratios, financial performance, and analysts’ future earnings projections. The GF Score of 91 out of 100 indicates high outperformance potential for the company. Despite having a good amount of debt, Crocs’ fundamentals appear solid, and its revenue growth continues to be strong. Investors may want to keep an eye on the stock for potential opportunities in the future.
In conclusion, Crocs Inc. has shown strong performance, with revenue growth and outperformance relative to the S&P 500. The company’s expansion, solid earnings, and stock buybacks have caught the attention of gurus, while insiders have shown a more bearish sentiment. While the stock may be slightly overvalued currently, its fundamentals remain strong, and investors should consider monitoring it for potential investment opportunities.
