Crocs, Inc.
CROX
$138.19
+1.15%
Crocs, Inc. designs, develops, markets, and distributes casual lifestyle footwear and accessories for men, women, and children, operating through its two primary segments: the Crocs Brand and the HEYDUDE Brand. As a dominant player in the global clog and casual footwear market, Crocs is recognized for its iconic foam clogs and has expanded its portfolio through the acquisition of HEYDUDE. The current investor narrative centers on the company's brand recovery and strategic initiatives to revitalize HEYDUDE, which has been a drag on overall performance, while the core Crocs brand continues to show resilience. Recent analyst upgrades and strong earnings have fueled optimism, but the lingering challenges at HEYDUDE and a high valuation relative to historical norms keep the stock in the spotlight.…
CROX
Crocs, Inc.
$138.19
Related headlines
CROX 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Crocs, Inc.'s 12-month outlook, with a consensus price target around $135.75 and implied upside of -1.8% versus the current price.
Average Target
$135.75
0 analysts
Implied Upside
-1.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$95 - $163
Analyst target range
The stock is covered by 12 analysts, with a consensus recommendation of 'Buy' (mean rating of 2.33). The average price target is $135.75, implying a modest upside of 1.17% from the current price of $134.18. The distribution includes 8 Buy ratings, 3 Hold, and 1 Sell, indicating a generally bullish sentiment. The low target is $95.00, suggesting a potential downside of -29.2%, while the high target is $163.00, implying an upside of 21.5%. The wide range reflects uncertainty about the HEYDUDE recovery and the sustainability of the Crocs brand's growth. Recent actions show upgrades from Piper Sandler (Overweight) and Baird (Outperform), while Goldman Sachs maintains a Sell, indicating mixed but improving sentiment. The relatively tight average target near the current price suggests analysts see limited near-term upside, but the high target indicates optimism about the long-term potential.
Bulls vs Bears: CROX Investment Factors
Crocs presents a mixed picture: strong brand recovery and attractive valuation metrics (forward PE 8.99, PEG 0.52) are countered by revenue decline, negative trailing margins, and the HEYDUDE overhang. The bull case is supported by analyst upgrades and robust free cash flow, while the bear case highlights leverage and earnings volatility. Currently, the bull side has slightly stronger evidence given the low valuation and potential for HEYDUDE recovery, but the key tension is whether HEYDUDE's turnaround can materialize to justify the market's expectations. If HEYDUDE fails to recover, the stock could face significant downside; if it succeeds, the upside is substantial.
Bullish
- Strong brand recovery and analyst upgrades: Recent upgrades from Piper Sandler (Overweight) and Baird (Outperform) reflect growing confidence in Crocs' brand recovery and strategic initiatives. The stock has surged 27.63% over the past year, outperforming the S&P 500 significantly, with a relative strength of 6.17.
- Attractive valuation with forward PE of 8.99: The forward PE of 8.99 is well below the industry average, and the PEG ratio of 0.52 suggests the stock is undervalued relative to its expected growth. This low multiple provides a margin of safety if earnings recover as anticipated.
- Healthy gross margin of 56.75%: Despite revenue decline, gross margin remains robust at 56.75%, indicating strong pricing power and cost management. This supports profitability even in a challenging demand environment.
- Positive free cash flow generation: Trailing twelve-month free cash flow is $670.66 million, demonstrating the company's ability to generate cash. This provides financial flexibility for debt reduction or shareholder returns.
Bearish
- Revenue decline and stagnation: Q1 2026 revenue fell 1.69% year-over-year to $921.46 million, and the trailing twelve-month net margin is negative at -2.01% due to a large loss in Q2 2025. This indicates underlying demand weakness and operational challenges.
- HEYDUDE brand remains a drag: HEYDUDE generated only $154.04 million in Q1 2026, and its turnaround is uncertain. The brand's struggles have been a persistent overhang, and failure to recover could continue to weigh on overall performance.
- High leverage with debt-to-equity of 1.25: The company carries moderate-to-high leverage, which increases financial risk, especially if cash flows remain volatile. Interest expenses of $20.46 million in Q1 2026 add to fixed costs.
- Negative trailing EPS and volatile earnings: Trailing EPS is -$0.0175 due to the Q2 2025 loss, and earnings have been volatile across quarters. This makes the stock risky for investors seeking stable profitability.
CROX Technical Analysis
Crocs is in a strong uptrend, with the stock price at $134.18 as of August 6, 2026, reflecting a 27.63% gain over the past year. The current price is near the upper end of its 52-week range, sitting at approximately 95.6% of the range (calculated as (134.18 - 73.21) / (140.42 - 73.21) = 0.956). This positioning near the highs suggests strong momentum, though it also raises the risk of overextension. The stock has outperformed the S&P 500 significantly, with a relative strength of 6.17 over the past year, indicating robust relative performance.
Beta
1.53
1.53x market volatility
Max Drawdown
-32.5%
Largest decline past year
52-Week Range
$73-$141
Price range past year
Annual Return
+83.7%
Cumulative gain past year
| Period | CROX Return | S&P 500 |
|---|---|---|
| 1m | +4.1% | +2.4% |
| 3m | +39.1% | +4.7% |
| 6m | +67.0% | +11.7% |
| 1y | +83.7% | +21.3% |
| ytd | +58.9% | +13.4% |
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CROX Fundamental Analysis
Revenue in the most recent quarter (Q1 2026) was $921.46 million, a slight decline of 1.69% year-over-year, marking a deceleration from the prior year's growth. The Crocs Brand segment contributed $767.42 million, while HEYDUDE brought in $154.04 million, showing the core brand's dominance. Over the past four quarters, revenue has been volatile, with Q2 2025 showing a spike to $1.15 billion, but the overall trend is one of stagnation. The company's net income for Q1 2026 was $137.56 million, a significant recovery from the loss in Q2 2025, but the trailing twelve-month net margin is negative at -2.01%, reflecting the impact of that loss. Gross margin remains healthy at 56.75%, though it has compressed from the 61.67% seen in Q2 2025. The balance sheet shows a debt-to-equity ratio of 1.25, indicating moderate leverage, and the current ratio of 1.27 suggests adequate liquidity. Free cash flow for the trailing twelve months was $670.66 million, but Q1 2026 saw negative free cash flow of -$71.15 million due to working capital swings, highlighting some cash flow volatility.
Quarterly Revenue
$921457000.0B
2026-03
Revenue YoY Growth
-1.7%
YoY Comparison
Gross Margin
56.8%
Latest Quarter
Free Cash Flow
$670662000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CROX Overvalued?
Given that the trailing twelve-month net income is negative (EPS of -$0.0175), the price-to-sales (PS) ratio is the most appropriate valuation metric. The current PS ratio is 1.15, which is below the industry average of 2.04 (based on EV/Sales), indicating a potential discount. The forward PE ratio is 8.99, suggesting the market expects earnings to recover strongly, as the negative trailing EPS is an anomaly from the Q2 2025 loss. The PEG ratio of 0.52 implies that the stock is undervalued relative to its expected growth. Historically, the PS ratio has ranged from around 3.1 to 14.2 over the past five years, with the current level near the lower end, suggesting the stock is trading at a significant discount to its own historical valuation. This could indicate a value opportunity, but it also reflects the market's concerns about HEYDUDE's turnaround and the sustainability of earnings.
PE
-57.0x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 4x~16x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
25.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include a high debt-to-equity ratio of 1.25, which amplifies vulnerability to rising interest rates or cash flow disruptions. The company's negative trailing net margin of -2.01% and volatile earnings (e.g., a -$492 million loss in Q2 2025) underscore profitability instability. Additionally, free cash flow turned negative in Q1 2026 at -$71.15 million, indicating working capital pressures that could strain liquidity if sustained. These factors elevate the risk of financial distress, especially if revenue continues to decline.