CROX

Crocs Inc

Consumer


Presented:07/26/2023
Price:$119.80
Cap:$7.43B
Current Price:$140.45
Cap:$8.34B

Presented

Date07/26/2023
Price$119.80
Market Cap$7.43B
Ent Value$9.16B
P/E Ratio11.2x
Book Value$19.16
Div Yield0%
Shares O/S62.03M
Ave Daily Vol1,853,588
Short Int12.12%

Current

Price$140.45
Market Cap$8.34B
Crocs, Inc. engages in the design, development, manufacturing, worldwide marketing, sale, and distribution of casual footwear and accessories for men, women, and children. It operates through the following segments: North America, Asia Pacific, Europe, Middle East, Africa, and Latin America (EMEALA), and HEYDUDE Brand. The company was founded by Scott Seamans, George B. Boedecker, Jr., and Lyndon V. Hanson III in 2002 and is headquartered in Broomfield, CO.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Crocs Inc (CROX), Deckers Outdoor Corp (DECK)

Please note, following this presentation, CROX reported Q2 on 7/27 and shares fell 15% due to weaker-than-expected Heydude wholesale demand. At $102 per share, it trades sub-8x consensus 2024 EPS.

Highlights

The presenter is long shares of Crocs Inc (CROX) given its long track record of growth and software-like margins. CROX has been around for twenty years and doesn’t seem to be going away, with the presenter pointing to strong consumer appeal and significant runway for geographic expansion across the Crocs and Heydude brands. The Crocs brand accounted for ~3/4 of total revenues as of Q1’23 and generates structurally higher margins than most footwear peers because of its relatively simplistic manufacturing via injection molding. Heydude generates similarly strong margins, allowing the total company to generate 28% operating margins and strong FCF (consensus FCF per share of $9.79 and $11.45 in 2023 and 2024, respectively). At its $120 pre-earnings share price, CROX traded at 9x consensus 2024 EPS, which seems low given its economics, and could rerate in line with peers like DECK (20x consensus 2024 EPS). 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.