Crox good investment

Crocs (CROX) appears to be a mixed investment opportunity. The company has shown strong financial health with a healthy EPS of $2.9 and a robust market capitalization of $6.3 billion. The P/E ratio of 8.77 indicates that the stock is currently undervalued. Additionally, the company has exhibited a commendable return on equity (ROE) of 53.41%. However, the high debt-to-equity ratio of 159.85% raises concerns about the company's leverage and financial stability. It's important to note that Crocs has been experiencing growth in recent years, with a total revenue interval growth rate of approximately 21.6% from 2019 to 2023.

In the earnings call, Crocs' management indicated that they expect consolidated revenues to grow 6% to 9% in current currency rates. They also mentioned that the company has been investing in its brands and expanding its marketing efforts, which may lead to increased SG&A expenses in the short term. The management's focus on deleveraging and paying down debt once they reach their growth leverage target is reassuring.

In terms of market position, Crocs has maintained a strong presence in the market, with a daily turnover of $704.27 million and a ranking of 76 in the market. The stock has shown positive performance, with an upward trend in recent days and months. However, the 15-minute chart for Crocs indicates a potential downward momentum, with a contraction of the Bollinger Bands and a bearish crossover in the KDJ indicator. This suggests a decrease in volatility and a shift towards a downward trajectory, which may indicate further decline in the stock's value.

Overall, Crocs presents an opportunity for investors seeking a stable investment with a strong market position. However, the high debt levels and potential downward momentum require close monitoring. Investors should carefully assess the company's financial health and growth prospects before making an investment decision.