Crocs, Inc. (CROX): A Bull Case Theory

We came across a bullish thesis on Crocs, Inc. on CompanyCharts’s Substack by Charts&Companies. In this article, we will summarize the bulls’ thesis on CROX. Crocs, Inc.’s share was trading at $102.01 as of July 14^th. CROX’s trailing and forward P/E were 6.40 and 8.92 respectively according to Yahoo Finance.

Crocs, Inc. (CROX) presents a compelling investment opportunity, underpinned by robust fundamentals, a shareholder-friendly capital structure, and historically low valuation multiples. Despite trailing-twelve-month revenue stalling, revenue per share continues to rise due to aggressive share repurchases, which have reduced the outstanding share count from 90 million to 56 million.

Over the past 14 years, revenue has compounded at 18% annually, occasionally reaching mid-20s, with EBITA growing between 20–30% and free cash flow expanding at 20–25%, supported by nine consecutive years of positive FCF. Current valuation metrics such as P/E (8×), EV/EBITA, and P/CFFO (6×) sit near historical lows, creating an attractive entry point for investors amid 20%+ per-share earnings and cash flow growth.

CROX also boasts industry-leading profitability with gross margins at 59%, operating margins at 25%, net margins at 23%, ROE at 48%, and ROA at 19%, validating operational excellence. The balance sheet is solid, with $391 million in CROX stock, $166 million in cash, and over $1 billion in property assets, providing a margin of safety even after discounting $2 billion in assets.

The company’s strategy focuses on DTC channels to enhance margins while pursuing global expansion, especially in underpenetrated markets like China and India, to offset U.S. saturation. Management remains prudent and aware of macro headwinds. With a reasonable 20% long-term growth assumption and the potential for multiple expansion back to historical averages, CROX shares, trading at $107, could double or triple in value. The market’s caution contrasts sharply with Crocs’ financial resilience, offering a favorable risk/reward setup.

Previously, we covered a bullish thesis on Crocs, Inc. (CROX) by Kostadin Ristovski in June 2025, which highlighted the brand’s cultural relevance, international growth, and strong free cash flow. The company’s stock price has appreciated by approximately 1.8% since our coverage. This is because buybacks and global expansion played out. Charts&Companies shares a similar view but emphasizes valuation and financial consistency.

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Disclosure: None.