Crocs Inc (CROX, Financial) has recently experienced a notable surge in its stock price, capturing the attention of investors and market analysts alike. Over the past week, the company's shares have seen an impressive 11.37% gain, while the past three months have witnessed a substantial 22.65% increase. This performance has led to a market capitalization of $6.3 billion for the footwear giant. Currently, the stock is trading at around $104, which, when compared to the GF Value of $138.42, suggests that Crocs is modestly undervalued. This valuation is a shift from three months prior when the stock was considered significantly undervalued with a past GF Value of $149.51.
Introduction to Crocs Inc
Crocs Inc, a company renowned for its distinctive range of casual lifestyle footwear and accessories, operates within the Manufacturing - Apparel & Accessories industry. The brand has carved out a niche for itself by focusing on the design, development, marketing, distribution, and sale of its products across various geographic segments, including the Americas, Asia Pacific, and EMEA. The company's unique value proposition and global reach have positioned it as a key player in the casual footwear segment. 
Assessing Crocs' Profitability
Crocs' financial health is reflected in its strong Profitability Rank of 8/10, indicating a robust position within the industry. The company boasts an Operating Margin of 26.53%, outperforming 96.54% of 1,040 companies in the same sector. Additionally, Crocs' Return on Equity (ROE) stands at an impressive 70.39%, surpassing 96.96% of its peers. The Return on Assets (ROA) and Return on Invested Capital (ROIC) are equally commendable at 14.82% and 20.38%, respectively, further underscoring the company's efficiency in generating profits relative to its assets and invested capital. Over the past decade, Crocs has maintained profitability for seven years, demonstrating consistent performance. 
Growth Trajectory of Crocs Inc
Crocs' growth narrative is equally compelling, with a Growth Rank of 9/10. The company has achieved a remarkable 49.50% 3-Year Revenue Growth Rate per Share, outpacing 95.32% of 1,005 companies in the industry. The 5-Year Revenue Growth Rate per Share is also strong at 31.70%, better than 95.8% of its competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is projected at 6.61%, which is more favorable than 63.08% of the companies. The 3-Year EPS without NRI Growth Rate stands at a stellar 73.10%, indicating the company's ability to increase earnings at a rate that exceeds the vast majority of its industry counterparts. 
Notable Shareholders in Crocs Inc
Crocs' shareholder base includes several prominent investors, with Ray Dalio (Trades, Portfolio) leading the pack holding 125,956 shares, representing a 0.21% stake in the company. Philippe Laffont (Trades, Portfolio) follows closely with 109,930 shares, accounting for 0.18% of the company's shares. Bernard Horn (Trades, Portfolio) also holds a significant position with 48,176 shares, equating to a 0.08% share percentage. These investments by well-known figures in the financial world underscore the confidence in Crocs' business model and future prospects.
Competitive Landscape
In comparison to its competitors, Crocs stands out with its $6.3 billion market cap. Steven Madden Ltd (SHOO, Financial) has a market cap of $3.08 billion, while On Holding AG (ONON, Financial) and Birkenstock Holding PLC (BIRK, Financial) have market caps of $8.97 billion and $8.91 billion, respectively. This places Crocs in a competitive position within the industry, balancing between its smaller and larger peers.
Conclusion
In summary, Crocs Inc's recent stock performance and current valuation suggest a company on the rise, with its shares being modestly undervalued compared to the GF Value. The company's profitability metrics are robust, with high rankings in operating margin, ROE, ROA, and ROIC. Growth prospects remain promising, as evidenced by impressive revenue and EPS growth rates. The confidence of significant shareholders and a competitive stance in the industry further solidify Crocs' position as a compelling investment opportunity. As the company continues to innovate and expand its global footprint, investors may find Crocs an attractive addition to their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
