Crocs Inc. Common Stock (CROX)

FairStock Score: 39/100 — MIXED

Key Financials

Strengths

• Generates $447 million in annual free cash flow (8.6% yield on market cap)

Concerns

• Revenue declining at 3.3% year-over-year signals potential demand weakness or market share loss

AI Analysis

Crocs Inc. Common Stock is a small-cap consumer cyclical company valued at $5.2 billion. The business generates $4.0 billion in annual revenue with a 2.6% net margin and $447 million in free cash flow. From a quality standpoint, Crocs shows Altman Z-Score of 2.6 in the grey zone and negative ROE indicating losses. On valuation, the stock is solid 4.8% FCF yield. Growth dynamics show revenue growing at -3.3% and profit growth of -71.5%. Our composite FairStock Score of 39/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $447 million in annual free cash flow (8.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer