On August 11, 2026, Crocs Inc CROX shares fell 4.7% to $131.71, continuing a downward trend that has seen the stock decline 6.7% over the past week. The stock has fluctuated between a 52-week high of $141.28 and a low of $73.21, highlighting its volatility in the market.
- GF Valueâ„¢ verdict: Current price is $131.71, which is 7.9% above the GF Valueâ„¢ of $122.03.
- GF Scoreâ„¢ of 80/100 indicates a strong overall rating.
- Insider activity shows $8.0M in sales over the last 3 months, with no buying reported.
Is CROX Overvalued or Undervalued?
The current market price of Crocs Inc CROX at $131.71 is deemed overvalued when compared to the GF Valueâ„¢, which is estimated at $122.03. This indicates a margin of safety of 7.9%, suggesting that investors may be paying a premium for the stock. The GF Valuation label categorizes CROX as fairly valued, but the overvaluation signal warns of potential risks for investors looking for a bargain. In essence, GF Valueâ„¢ is GuruFocus' proprietary estimate of the intrinsic value of a stock, derived from historical trading multiples, past business growth, and anticipated future performance.
Given the current price's position above the GF Valueâ„¢, investors may want to exercise caution. The recent price drop of 4.7% could suggest that the market is reassessing the stock's value, which could potentially lead to further declines if investor sentiment does not shift positively.
How Does CROX's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 11.4x | 9.9x |
| Forward P/E | 9.5x | N/A |
CROX's current P/E of 11.4x is significantly above its 5-year median P/E of 9.9x, indicating that the stock is trading at a higher valuation than it has historically. This analysis supports the GF Valueâ„¢ verdict of being overvalued, as it suggests that the stock is trading at a premium compared to its historical norms.
What Does CROX's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures a stock's performance across multiple factors, including financial strength, profitability, growth, valuation, and momentum. Crocs Inc has a GF Scoreâ„¢ of 80/100, indicating strong overall performance. Its strongest sub-rank is in profitability, with a score of 9/10, while the growth rank is the weakest at 4/10.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 80/100 |
| Financial Strength | 6/10 |
| Profitability | 9/10 |
| Growth | 4/10 |
| Valuation | 7/10 |
| Momentum | 6/10 |
The high profitability score indicates that Crocs Inc is generating strong returns, which is a positive sign for potential investors. However, the lower growth rank suggests that the company may face challenges in expanding its business at a rapid pace. This mixed bag of scores emphasizes the need for cautious evaluation before investing.
What Are Gurus and Insiders Doing with CROX?
Currently, 11 gurus hold Crocs Inc stock, with 7 adding to their positions and 4 trimming their holdings in recent quarters. This suggests a generally positive sentiment among knowledgeable investors, although the insider selling of $8.0M without any buying indicates a potential lack of confidence from those closest to the company.
The pattern of insider selling could be interpreted as a red flag, as it may suggest that insiders believe the stock is overvalued at current levels. This could potentially impact investor confidence and put downward pressure on the stock price if more insiders choose to sell.
What This Means for Investors
In conclusion, Crocs Inc CROX appears to be overvalued based on its current market price relative to the GF Valueâ„¢. The high P/E ratio compared to historical averages and the recent insider selling further support this assessment. Investors should proceed with caution and consider the potential risks associated with the current valuation before making any investment decisions. For more detailed information, you can visit the Crocs Inc (CROX) stock page, and explore the GF Valueâ„¢ page or the GuruFocus Stock Screener.
Frequently Asked Questions
What is CROX's GF Scoreâ„¢?
CROX has a GF Scoreâ„¢ of 80/100, indicating a strong overall rating based on various performance metrics.
Is CROX overvalued or undervalued?
CROX is currently overvalued, with a GF Valueâ„¢ estimate of $122.03 compared to its market price of $131.71.
What is CROX's P/E ratio?
The P/E ratio for CROX is 11.4x, which is above its 5-year median P/E of 9.9x, indicating a higher than historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
