Should You Invest in the Iconic Footwear Brand Crocs?
November 8, 2023
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When it comes to investing in iconic footwear brands, few have had as much success and staying power as Crocs ($NASDAQ:CROX). But is investing in Crocs a good idea? Investing in Crocs comes with both risks and rewards. On one hand, the company has a strong and growing customer base that is loyal to its products. On the other hand, the footwear market can be unpredictable and competitive. As such, investors should always do their own research and consider any potential risks before investing in any company.
However, given Crocs’ history of success, it may be worth considering as part of a diversified portfolio.
Share Price
Investing in Crocs, the iconic footwear brand, may be a good option for those looking to increase their portfolio. On Tuesday, CROCS stock opened at $82.3 and closed at $84.4, a 2.7% rise from the prior closing price of $82.2. This indicates that investors may be interested in the potential of the company’s stock, which could make it a good investment opportunity. Moreover, in the midst of the current pandemic, Crocs has experienced a surge in sales due to its stylish and comfortable footwear option.
This could further drive up investor interest in the company’s stock. For those looking to benefit from the potential of this iconic footwear brand, investing in Crocs may be a good option. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Crocs. More…
| Total Revenues | Net Income | Net Margin |
| 3.95k | 676.72 | 17.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Crocs. More…
| Operations | Investing | Financing |
| 937.18 | -101.07 | -855.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Crocs. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.58k | 3.38k | 19.74 |
Key Ratios Snapshot
Some of the financial key ratios for Crocs are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 47.2% | 87.9% | 26.7% |
| FCF Margin | ROE | ROA |
| 21.2% | 55.1% | 14.4% |
Analysis
GoodWhale conducted an analysis of CROCS’s fundamentals and found that the company is classified as a ‘gorilla’ – a type of business that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Our health score for CROCS was 8/10, indicating that the company is capable of paying off its debt and funding future operations. Furthermore, CROCS has demonstrated strong growth, profitability, and weaker assets and dividends. Given these findings, we believe investors who are looking for companies with a strong competitive advantage and good financial health may be interested in CROCS. With its impressive growth and profitability, CROCS could offer investors with potentially higher returns over the long term. Crocs“>More…
Peers
Its competitors are Nike Inc, Skechers USA Inc, and Wolverine World Wide Inc.
– Nike Inc ($NYSE:NKE)
Nike is one of the largest sporting goods companies in the world. They design, develop, and manufacture footwear, apparel, and equipment for a variety of sports and fitness activities. Nike’s market cap as of 2022 is 138.47B. Their return on equity is 25.1%. Nike’s products are sold in over 190 countries worldwide.
– Skechers USA Inc ($NYSE:SKX)
Skechers USA Inc has a market cap of 5.44B as of 2022, a Return on Equity of 10.49%. The company is engaged in the design, development, marketing and sale of footwear for men, women and children.
– Wolverine World Wide Inc ($NYSE:WWW)
Wolverine World Wide Inc is a footwear company that designs, manufactures, and markets a range of shoes for men, women, and children. The company has a market cap of 1.3B as of 2022 and a Return on Equity of 18.81%. Wolverine World Wide is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol WWW. The company was founded in 1883 and is headquartered in Rockford, Michigan.
Summary
Investing in Crocs may be a good choice for investors looking for a company with strong financials, competitive advantages, and a history of positive returns. Crocs has a proven track record of consistent revenue growth, rising margins, and robust cash flow. The company’s competitive advantages include its patented Croslite foam material, which makes it stand out from its peers in the footwear industry. Its direct-to-consumer model, which enables favorable pricing and customer engagement, further strengthens its competitive position.
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