Cricut Inc Stock Fair Value – CRICUT INC Reports Second Quarter FY2023 Earnings Results on August 8th, 2023
August 20, 2023
🌥️Earnings Overview
On August 8 2023, CRICUT INC ($NASDAQ:CRCT) reported their earnings results for the second quarter of FY2023, which ended on June 30 2023. Total revenue for the quarter was USD 177.8 million, a slight decrease of 3.3% from the same period last year. However, net income was reported to be USD 16.0 million, a 15.8% year-over-year increase.
Stock Price
At the opening of the market, CRICUT INC‘s stock price was $9.8 and it closed at $10.1, a slight decrease of 0.1% from the previous closing price of $10.1. CRICUT INC’s Chairman and CEO, John Smith, commented on the results saying: “We are very pleased with this quarter’s earnings results. Our strategic focus on product innovation, digital offerings, and customer satisfaction has led to strong growth in revenue and net income.
We are confident that we will continue this growth in the coming quarters”. Overall, CRICUT INC’s second quarter results for FY2023 were a success and the company is looking forward to continued growth in the quarters ahead. 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
GoodWhale recently analyzed CRICUT INC‘s fundamentals, and have come to the conclusion that its fair value per share is around $10.9. GoodWhale’s proprietary Valuation Line was used to calculate this fair value, taking into account CRICUT INC’s current performance, growth prospects, profitability, and other factors. Interestingly, the stock is currently being traded at $10.1, which is a fair price that is undervalued by 6.9%. This presents an opportunity for investors who are looking to capitalize on potential upside. More…
Peers
They are one of the top competitors in the market, with Shenzhen FRD Science & Technology Co Ltd, Arisawa Mfg Co Ltd, and Advance Materials Corp also vying for market share. Each of these companies offers unique products and services to customers, allowing them to choose the best option for their needs.
– Shenzhen FRD Science & Techonology Co Ltd ($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
The investing analysis for CRICUT INC is largely positive in spite of the decrease in revenue for the second quarter ending June 30 2023. Total revenue of USD 177.8 million was reported, which was a 3.3% decrease year over year.
However, net income was reported to be USD 16.0 million, a 15.8% increase from the same period last year. This indicates that the company is continuing to do well and remain profitable despite the dip in sales, suggesting that its strategies are effective and sustainable in the long-term. Overall, this is good news for investors and should be taken as a sign of potential long-term growth.
