CROX: The Perfect Large Cap Value Stock

Guest post by Shailesh from Astute Investor's Calculus

Hi all, MktContext here. From time to time we look for incredible Substack authors to share their investing ideas with you. This post from Astute Investor’s Calculus is a deep dive on the well-known shoe brand, Crocs. Subscribe to AIC for more analysis like this!

Large-cap stocks are generally not known to throw up a lot of value ideas. For any of these stocks to get significantly undervalued requires scores of Wall Street analysts to be sleeping, at the exact same time.

But CROX -3.43%↓ seems to be undervalued. This company has grown sales on average at 28% rate for the past 5 years and the stock today trades at merely 7.9 times earnings. What gives?

In this article, we will review

• Business overview of Crocs Inc

• It’s recent financial performance and sales and earnings trends

• Balance sheet strength and liquidity

• What went wrong and can it be fixed

• My estimate of its fair value and whether the stock today is an attractive investment or not

Put on your most comfortable pair of shoes and grab a c…