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Crocs

CROX
69
Apparel - Footwear & Accessories · Consumer Cyclical
Price
$122.11
-0.98 (-0.80%)
Market Cap
$5.85B
Exchange
NASDAQ
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Mixed
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Strong

Share count falling — buybacks

14.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 63.7M (2021) → 54.2M (2025)

Winston Score History

The full picture

Crocs, Inc. makes and sells footwear. Its most famous product is the lightweight foam clog that has become a global casual shoe staple. The company also owns HeyDude, a casual shoe brand it acquired in 2022, which targets a younger, comfort-focused audience in the United States.

Crocs earns money by selling shoes through its own website, company-owned stores, and third-party retailers like department stores and online marketplaces. It operates globally, with meaningful sales in North America, Europe, and Asia, and generated roughly $4 billion in annual revenue in recent fiscal periods. The Crocs brand benefits from strong name recognition and a loyal fan base, but the company faces real risk from the cyclical nature of fashion — what is trendy today can fade quickly — and HeyDude has shown slowing growth, putting pressure on the company to stabilize that segment while continuing to expand the core Crocs brand internationally.

Score breakdown

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Quality

Profit per sale
Gross Margin
59.4%
Premium pricing power — 59.4% gross margin
Profit after running costs
Operating Margin
24.2%
Excellent — 24.2% operating margin
Return on the money invested
ROCE
47.6%
Exceptional — 47.6% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
-2.0%
Shrinking sales (-2.0% YoY)
Profit growth
EPS YoY
+206.0%
Earnings growing fast (+206.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
129%
Turns 129% of profit into real cash
Spare cash per sale
FCF Margin
17.4%
Converts sales into free cash efficiently (17.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.28
Conservative — low debt load (0.28)
Covers its interest
Interest Cover
319.61x
Comfortably covers interest (319.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
10.5x
Attractive valuation — P/E 10.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.3
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.
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