From Quiver Quantitative:

Hedge funds and asset managers are increasing their holdings in Crocs Inc. (NASDAQ: CROX), with firms such as Samlyn Capital, Fuller & Thaler Asset Management, and Coatue Management adding to their positions. In the third quarter of FY23, Crocs reported consolidated revenues of $1.045 billion dollars, Diluted EPS of $2.87/share, and $90 million dollars of debt repayments. The company also resumed its share repurchase program, repurchasing $150 million dollars worth of common stock. With these positive earnings results in mind, Crocs is seen as an actionable investment opportunity trading at a discount to intrinsic value. Additionally, Crocs distinguishes itself with unique footwear designs, innovative material formulations, competitive pricing, and a well-established distribution network. Management’s capital allocation strategy, including share repurchases and a lack of dividends, also aligns with shareholder value creation. Management’s compensation structure incentivizes critical financial performance and retention of key talent, as the business operates at a ROIC to WACC ratio of 2.62x. Since 2017, EBIT has grown at a CAGR of 73% and EBIT margins have expanded from 2.1% of revenue in 2017 to 25.6% of revenue today, while the business has grown revenue at a CAGR of 21.3% and gross profit at a CAGR of 22.3%. EPS has grown at a CAGR of 45.2% since 2019.

Crocs Inc. (NASDAQ: CROX) is seeing increased interest from hedge funds and asset managers, with firms such as Samlyn Capital, Fuller & Thaler Asset Management, and Coatue Management increasing their positions. The company reported consolidated revenues of $1.045 billion dollars and Diluted EPS of $2.87/share in the third quarter of FY23. Crocs also resumed its share repurchase program, repurchasing $150 million dollars worth of common stock. With these positive earnings results in mind, Crocs is seen as an actionable investment opportunity trading at a discount to intrinsic value. The company’s unique footwear designs, innovative material formulations, competitive pricing, and well-established distribution network set it apart from competitors, while management’s capital allocation strategy and compensation structure align with shareholder value creation. Crocs operates at a ROIC to WACC ratio of 2.62x, with EBIT growing at a CAGR of 73% and EBIT margins expanding from 2.1% of revenue in 2017 to 25.6% of revenue today. Since 2017, the business has grown revenue at a CAGR of 21.3% and gross profit at a CAGR of 22.3%, with EPS growing at a CAGR of 45.2% since 2019.



Read more: The Bull Case for Crocs Inc. (NASDAQ: CROX)