Monday, July 29, 2013 2:42:30 PM
"Crocs is one of the famous manufacturers and designers of footwear, selling its products in more than 90 countries via retailers, distributors and directly to consumers via its 53 company-operated retail stores. The company derived most of its revenue, nearly $600 million, from wholesale segment while the retail segment contributed nearly $306.7 million in 2012 sales. Crocs also sold a lot of its products via the Internet, with the total sales of nearly $96 million in 2012.
To look at any retail business, investors should pay attention to the company’s financial strength. Investors should invest in businesses with a strong balance sheet, so the company could overcome any unforeseen future challenges in the market. Investors might find it safe to invest in Crocs because of its conservative capital structure. As of March, it had $634 million in equity, only around $1 million in short-term debt and as much as $233 million in cash.
Moreover, Crocs has been a good cannibal, returning cash to its shareholders via share repurchases. Since November 2012, the company spent around $37.5 million to retire around 2.7 million shares. There are still 2.6 million shares remaining in the current share repurchase authorization.
What I also like about Crocs is its low valuation. The company is trading at $16.90 per share, with the total market cap of around $1.5 billion. The market values Crocs at 6.84 times its trailing EBITDA (earnings before interest, taxes, depreciation and amortization).
I personally think that Crocs is a decent buyout candidate because of three main reasons. First is its decent cash flow generating capability. In the past five years, Crocs has managed to generate consistent positive operating cash flow and free cash flow. In 2012, its operating cash flow was $128 million while the free cash flow came in at $68 million. Second, the retailer has a conservative capital structure. Last, but not least, the company has a history of enhancing its shareholders' value with its share repurchase activities as mentioned above.
If Crocs is taken private, it could demand an EBITDA multiple of around 9, translating into more than $22 per share, a 30% premium to its current trading price."
http://beta.fool.com/hoangquocanh/2013/07/23/should-we-invest-in-these-three-outperform-rating/41258/?source=eogyholnk0000001
Rayank
Recent CROX News
- Squishmallows x Crocs Footwear & Accessories Available Now! • Business Wire • 09/23/2024 04:00:00 PM
- Crocs Launches the Keep It Going Classic Clog Made with 25% Recycled Material from Consumers' Well-Loved Shoes • PR Newswire (US) • 09/19/2024 01:00:00 PM
- Crocs Announces Industry Leading Sustainability Milestone as the Brand Reaches 25% Bio-Circular Croslite Material Across Its Entire Product Portfolio • PR Newswire (US) • 09/05/2024 01:00:00 PM
- Cruise and Uber Join Forces for Robotaxis, Alibaba Shifts Primary Listing to Hong Kong, Altria Hikes Dividend 4.1% • IH Market News • 08/23/2024 12:20:26 PM
- HEYDUDE Announces Sydney Sweeney as their Global Spokesperson • PR Newswire (US) • 08/21/2024 02:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 11:37:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 11:37:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 11:37:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 11:37:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 11:40:23 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 03:02:08 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 11:02:44 AM
- Crocs, Inc. Reports Record Second Quarter Revenues and Raises Full Year 2024 Earnings Per Share Outlook • PR Newswire (US) • 08/01/2024 11:00:00 AM
- Crocs, Inc. Announces Conference Call to Review Second Quarter 2024 Earnings Results • PR Newswire (US) • 07/16/2024 11:30:00 AM
- Crocs, Inc. Releases 2023 Comfort Report Detailing Efforts to Create a More Comfortable World for All • PR Newswire (US) • 06/27/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:50:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:50:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/17/2024 08:35:57 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/17/2024 08:33:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/17/2024 07:05:58 PM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 06/12/2024 11:39:31 PM
- Denim and Dudes: Lee and HEYDUDE Launch New Collaboration for Summer • Business Wire • 06/11/2024 12:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/10/2024 08:04:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/06/2024 11:59:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/06/2024 11:59:21 PM
North Bay Resources Commences Operations at Bishop Gold Mill, Inyo County, California; Engages Sabean Group Management Consulting • NBRI • Sep 25, 2024 9:15 AM
CEO David B. Dorwart Anticipates a Bright Future at Good Gaming Inc. Through His Most Recent Shareholder Update • GMER • Sep 25, 2024 8:30 AM
Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • BLOZF • Sep 24, 2024 8:50 AM
Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • INTV • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM