Cricut Inc Stock Fair Value – CRICUT INC Reports Second Quarter Earnings for FY2023 on August 8.
August 28, 2023
🌥️Earnings Overview
On August 8 2023, Cricut Inc ($NASDAQ:CRCT) released its earnings results for the second quarter of fiscal year 2023, which ended on June 30, 2023. Total revenue for this quarter amounted to 177.8 million US dollars, representing a 3.3% decrease compared to the same period in the previous year. Net income, however, increased by 15.8%, standing at 16.0 million US dollars.
Market Price
The company’s stock opened at $9.8 and closed at $10.1, representing a 0.1% decrease from the previous day’s closing price of $10.1. The decrease, while slight, was still a cause for concern in the market as the company’s stock had been on the rise lately. This growth had been mainly attributed to the company’s continued expansion into the online retail market, as well as the release of new products and services. Despite the second quarter earnings’ slight dip, analysts remain optimistic about the future of CRICUT INC.
The company is expected to report further growth throughout the year, and analysts believe that a rebound of the stock price in the near future is highly likely. With continued strong performance in their online retail segment, CRICUT INC is well-positioned to remain a leader in their industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cricut Inc. More…
| Total Revenues | Net Income | Net Margin |
| 816.75 | 48.46 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cricut Inc. More…
| Operations | Investing | Financing |
| 264.29 | -19.12 | -106.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cricut Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 898.34 | 416.03 | 2.2 |
Key Ratios Snapshot
Some of the financial key ratios for Cricut Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.1% | 14.3% | 7.1% |
| FCF Margin | ROE | ROA |
| 28.8% | 6.2% | 4.1% |
Analysis – Cricut Inc Stock Fair Value
We at GoodWhale recently performed an analysis of CRICUT INC‘s wellbeing, and found that the intrinsic value of CRICUT INC share is around $10.8. This determination was made using our proprietary Valuation Line. At the current time, CRICUT INC stock is traded at $10.1, meaning it is slightly undervalued by 6.8%. This presents a great opportunity for investors to purchase now while it is still a fair price. It is likely that the stock will increase in value soon, so this could be an opportune moment for savvy investors to purchase CRICUT INC stock. More…
Peers
They are one of the top competitors in the market, with Shenzhen FRD Science & Technology Co Ltd, Arisawa Mfg Co Ltd, and Advance Materials Corp also vying for market share. Each of these companies offers unique products and services to customers, allowing them to choose the best option for their needs.
– Shenzhen FRD Science & Techonology Co Ltd ($SZSE:300602)
Shenzhen FRD Science & Techonology Co Ltd is a Chinese technology company that specializes in providing software, hardware, and systems engineering services. The company has a market capitalization of 8.41 billion dollars as of 2023 and boasts a Return on Equity (ROE) of -2.24%. The market cap and ROE of Shenzhen FRD Science & Techonology Co Ltd indicate that the company is well-positioned for growth and profitability. Despite the relatively low ROE, Shenzhen FRD Science & Techonology Co Ltd has managed to generate significant revenue and profits for its shareholders. As the company continues to focus on innovation and developing new products, its market cap and ROE are expected to continue to increase in the coming years.
– Arisawa Mfg Co Ltd ($TSE:5208)
Arisawa Mfg Co Ltd is a Japanese company that manufactures and distributes engineering products and machined components. The company has a market capitalization of 45.62B as of 2023 and a Return on Equity of 6.74%. This suggests that the company is in a healthy financial position and is able to generate positive returns on its equity investments. The company has a strong presence in the Japanese market, but has extended its reach to other countries as well. Arisawa Mfg Co is well positioned to capitalize on the global engineering industry’s growth.
– Advance Materials Corp ($TPEX:3585)
Advance Materials Corp is a large international producer of high-performance ceramic materials, composites, and metal-matrix composites. As of 2023, the company has a market cap of 900.12M. The Return on Equity (ROE) for Advance Materials Corp is -7.65%, which is below the industry average, indicating that the company has been unable to generate an adequate return for its investors. The company is likely trying to improve its ROE through cost cutting and increasing efficiency, as well as focusing on higher margin products.
Summary
CRICUT INC reported their second quarter earnings for FY2023, revealing a total revenue decrease of 3.3% compared to the same period in the prior year. However, net income increased by 15.8% year-over-year, indicating the company was able to maintain profitability despite lower revenues. Investors should be encouraged by this news, as it suggests CRICUT INC is doing a good job of managing costs and executing on its business strategy. Going forward, investors should continue to monitor the company’s performance to ensure it is making progress towards its goals.
