Is Crocs Stock Undervalued? What CROX's Latest Results Show, and How It Reached #1 on Our List

Short answer: is Crocs stock undervalued? Still yes, on the numbers, but by less than a month ago. At $153, CROX costs about 10 times the spare cash it made in the last year. It costs about 10.5 times the profit Crocs expects for 2026. That price assumes the business never grows again. The catch: shoe fashions fade, and the second brand, HEYDUDE, has only just stopped shrinking.

Data date: prices are closes from 2 November 2026. Company figures come from Crocs' SEC filings, the latest filed on 29 October 2026.¹ This is not investment advice. It is one company, worked through in plain numbers.

Crocs is also the #1 stock on our nightly undervalued list today.² Below we show exactly how it got there. Part of that story is a change we made to our own screen. We say so plainly.

What Crocs' latest results show

Crocs reported its third quarter (July to September 2026) on 29 October. CROX stock jumped 25.5% that day, from $119.69 to $150.26.³ Here is what investors saw.¹

• Sales: $1.04 billion, up 4.6% on a year ago.
• Crocs brand: $873 million, up 4.4%. Sales outside North America rose 11.8%. North America fell 2.1%.
• HEYDUDE brand: $170 million, up 6.1%. That is its first growth in over two years.⁴
• Profit per share: $4.52 on the official count, up from $2.70.
• Spare cash (free cash flow): $276 million for the quarter.
• Buybacks: Crocs bought back about 2 million of its own shares for $250 million.
• Outlook: it raised its 2026 forecast for the third time this year.

Free cash flow means the cash left after running the business and paying for new equipment. Think of it as money the owners could take out.

One number needs care. Profit got a one-time boost of $64 million. That was a refund of import taxes (tariffs), after the US Supreme Court struck those tariffs down in February 2026.¹ Crocs itself calls the refund non-recurring. It will not happen again.

That is why Crocs also reports "adjusted" profit. Adjusted profit strips out one-time items, good and bad. Adjusted profit per share was $3.69, up 26%.¹ Both numbers matter. We use both below and label each one.

The HEYDUDE story in four numbers

Crocs bought HEYDUDE, a maker of slip-on canvas shoes, in 2022.⁵ It has been the weak spot since.

Period	HEYDUDE sales	Change on a year ago
Full year 2025	$715 million	down 13.3%6
Oct to Dec 2025	$189 million	down 16.9%6
Apr to Jun 2026	$179 million	down 5.7%7
Jul to Sep 2026	$170 million	up 6.1%1

In mid-2025, Crocs wrote down the value of HEYDUDE by $737 million.⁶ A write-down (or "impairment") is an accounting admission that you paid too much for something. No cash left the company. But it turned 2025 into a loss on paper: minus $1.50 a share.⁶

Why the market priced Crocs stock so cheaply

Crocs makes a lot of money for a shoe company. Its adjusted operating margin was 22.3% last quarter.¹ That means 22 cents of every sales dollar is left after making and selling the shoes. So why was it so cheap?

1. Fear it is a fad. Crocs says so itself in its annual report. Several footwear companies, "including ours," have had rapid growth followed by "declining revenues and losses."⁵

2. HEYDUDE was shrinking. A brand that shrinks 13% a year drags on the whole company.

3. America was slowing. Crocs-brand sales in North America fell 2.1% last quarter.¹ Growth came from abroad.

4. Tariffs. Import taxes on shoes brought into the US raised Crocs' costs. It got $64 million of them back in the third quarter, after the court ruling.¹

At the start of 2026, the stock sat near $85.⁴ Its 52-week low was $73.21.² Even after the run, some analysts stay wary. Goldman Sachs kept a Sell rating on 30 October, with a $128 target. It wants proof the growth is more than an easy comparison with a weak 2025.⁴

How our screen ranked Crocs: the full record

Every night we score about 3,000 US companies on two tests. Is it a good business? Is it cheap compared to its profit and cash? Only figures from SEC filings count. Every list we publish is frozen and kept, so the record can't be edited later.⁸

Here is every point that matters for Crocs.

Date	Our rank	List size	CROX price	S&P 500 (SPY)
3 Aug 2026	#377	500	$134.89	$757.67
9 Sep 2026	#384	500	$111.09	$762.40
10 Sep 2026	(low point)		$108.83	$757.83
22 Sep 2026	#744	1,315	$124.58	$773.38
23 Sep 2026	#1,061	1,759	$124.62	$767.81
24 Sep to 3 Oct	off the list	about 700
4 Oct 2026 list (bought 5 Oct)	#2	748	$118.19	$774.83
28 Oct 2026			$119.69	$772.31
29 Oct 2026 (results day)			$150.26	$769.36
2 Nov 2026	#1		$153.13	$752.10

Sources: our published lists for ranks and entry prices;⁸ daily closes for the other prices.³ The public list download runs 30 days behind (the live list is a paid feature), so it ends with the 4 October list. Today's rank comes from the stock page.²

What the numbers say:

• Since first listed (3 Aug): CROX is up 13.5%. SPY is down about 0.7%.
• Since it reached #2 (5 Oct): CROX is up 29.6%. SPY is down about 3%.
• The bumpy part: after it was listed, CROX fell 19%, to $108.83 on 10 September.³ Anyone who bought in August sat on a loss for weeks.
• Insiders bought the dip. Two directors bought about $613,000 of shares between $109 and $112 in September.² The CEO had sold about $4.2 million of shares at around $138 in August.²

Note the ranks in August and September. The list grew from 500 to over 1,300 names on 10 September, then to 1,759 on 23 September.⁸ So the slide from #377 to #1,061 was mostly a longer list, not a worse view of Crocs.

Why Crocs jumped from #1,061 to #2

This is the honest part. The jump did not come from a price drop or a fresh report. It came from a change in how our screen reads profit.

Step 1: a rebuilt engine dropped Crocs. On 23 September we fixed a fault in our engine. Some companies were being scored on out-of-date figures. After the fix, the screen read each company's latest annual report correctly.⁹ For Crocs, that report was 2025. It showed a loss, because of the $737 million HEYDUDE write-down. On those numbers Crocs looked expensive. Its profit yield was minus 1.4%.⁹ So from 24 September to 3 October, Crocs was off our list.

Step 2: we switched to the last 12 months. On 3 October we changed the "is it cheap?" test. It now uses the most recent 12 months of results, not the last calendar year.⁹ By then, the HEYDUDE write-down (April to June 2025) had dropped out of that 12-month window. Crocs' 12-month profit was $593 million.⁹ Our cheapness score for Crocs went from 0.33 to 1.00, the top mark.⁹ On the first list after the switch, Crocs was #2.

What did not cause it:

• Not the price. CROX was $124.62 on 23 September and $118.19 on 5 October. That 5% dip moves ranks a little, not 1,000 places.⁸
• Not new results. The report that made Crocs look cheap was filed on 30 July.⁷ It had been public for two months. Our screen just wasn't reading quarterly reports yet.

So the fair summary is this. Crocs looked cheap to anyone reading its quarterly reports since late July. Our screen caught up on 4 October, because we changed our method. Then 25 days later, strong results lifted the price 25% in a day. Nobody, including us, knew those results in advance. The price barely moved between 5 and 28 October (from $118.19 to $119.69).³ Almost all of the gain came on one day.

Is one winner proof? No. Here is the whole list

One good pick can be luck. So here is the full list's record since 3 August 2026, from our published data. Each line starts at 1,000.¹⁰

Portfolio	3 Aug 2026	2 Nov 2026	Change
Whole list	1,000	1,027.98	+2.8%
Top 10 of the list	1,000	1,151.95	+15.2%
S&P 500 (SPY)	1,000	995.11	-0.5%
Equal-weight S&P 500 (RSP)	1,000	1,017.03	+1.7%

These include dividends. "Equal-weight" means every S&P 500 company counts the same, so a few giants can't dominate.

The top-10 line rose 3.6% on 29 October alone, the day Crocs reported.¹⁰ One stock can move a 10-stock basket a lot. And the record has rough patches. On 5 October, the whole list was about 6% behind SPY.¹⁰

Three months is a short time. Past results don't promise future ones. You can check the full record yourself on our track record page.

Is Crocs stock undervalued after the run?

Here is the simple math at $153.13. We use 47.95 million shares, the diluted count from the latest quarter.¹ "Diluted" includes shares promised to staff.

Price to free cash flow

• Spare cash over the last 12 months: $754 million.¹⁶ That is $15.72 a share.
• $153.13 ÷ $15.72 = 9.7 times cash. That is a cash yield of about 10.3%.
• Take out the $64 million tariff refund: about $14.39 a share, or 10.6 times cash.

Price to earnings (P/E)

P/E is the share price divided by a year of profit per share. A P/E of 10 means you pay $10 for each $1 of yearly profit.

Basis	Profit per share	P/E at $153.13
Official (GAAP), last 12 months	$13.35	11.5
Adjusted, last 12 months	$13.50	11.3
Adjusted, Crocs' 2026 forecast (midpoint)	$14.55	10.5

GAAP means the official accounting rules. GAAP profit here includes the tariff refund. The last-12-months figures add October to December 2025 to January to September 2026.¹⁶ The forecast range is $14.45 to $14.65.¹

What the price assumes. Our free undervalued checker works this backwards. It asks what growth the price needs, if you want a 10% yearly return. For Crocs, the answer is about minus 0.2% a year, for ten years.¹¹ In plain English: the price assumes Crocs' cash never grows again. It even allows a slow shrink.

For comparison. On our numbers, Nike (NKE) trades near 19 times profit. Deckers (DECK), which owns HOKA and UGG, trades near 11 times.¹² So Crocs isn't alone in being cheap. Footwear as a whole is out of favour.

Two things work in owners' favour:

1. Buybacks. Crocs had 46.2 million shares at the end of September, down from 50.2 million in December.¹ That is 8% fewer in nine months. Each remaining share owns more of the company. It still has $1.7 billion approved for more buybacks.¹
2. Debt is shrinking slowly. Borrowings were $1.29 billion, against $1.32 billion a year earlier.¹ With $754 million of yearly spare cash, that is under two years of cash.

What could go wrong:

• The fad fear comes true. If clogs go out of style, cash can fall fast. At 10 times cash, a 30% drop in cash flow would leave it at about 14 times. That is no longer cheap.
• HEYDUDE's rebound fades. One quarter of growth is not a trend. Goldman's worry is exactly this.⁴
• North America keeps slipping. It is still Crocs' biggest market.¹
• The easy money is gone. At $118, the cash yield was about 13%. At $153, it is about 10%. The cushion is thinner.

Our verdict. So, is Crocs stock undervalued? It still looks that way, if you believe it can simply hold its sales. You are paying about 10 times cash for a business with 22% margins that is buying back its shares fast. That is cheap. But it is no longer the bargain it was in September. The bet now is mostly on the brand lasting, not on a price mistake.

Want to see every check we run on it? Visit the Crocs stock page. It shows the quality checks, warning-sign scan and insider trades. Our warning-sign scan of the latest filings found nothing serious.²

How to use this on other stocks

The Crocs story has a lesson that works anywhere. A big one-off write-down can make a good business look bad for a full year. Screens that read only the annual report can miss it. Ours did, until 4 October.

So when a stock looks expensive because of a loss, ask two questions:

1. Was the loss cash or paper? Check the cash flow statement. Crocs' cash flow stayed strong right through the write-down year.⁶
2. What does the last 12 months look like? Add the latest four quarters. If the one-off has dropped out, the picture can change completely.

For a step-by-step method, read how to find undervalued stocks. If you want income too, see our undervalued dividend stocks. Crocs pays no dividend.

Questions

Is Crocs stock undervalued right now?

On the numbers, yes, but less than before. At $153.13 it trades at about 10 times its yearly spare cash and 10.5 times this year's expected adjusted profit.¹ The price assumes no growth at all.¹¹ It is no longer as cheap as it was at $109 in September.

Why did CROX stock jump in October 2026?

Crocs reported third-quarter results on 29 October. Sales rose 4.6%, HEYDUDE grew for the first time in over two years, and Crocs raised its 2026 forecast.¹ The stock rose 25.5% that day.³

Did your screen predict the jump?

No. Our screen ranked Crocs #2 on 4 October, after we changed how it reads profit. That change, not new information, moved Crocs up. Nobody could know the 29 October results in advance. We show the whole record so you can judge it.⁸

Is CROX's profit inflated by one-offs?

A little, this year. Third-quarter profit includes a $64 million tariff refund that won't repeat.¹ We show P/E both with it (GAAP) and without it (adjusted). The gap is small: 11.5 versus 11.3 times.

What is the biggest risk to Crocs stock?

That the brand fades. Crocs warns of this in its own annual report.⁵ HEYDUDE is the second risk: one quarter of growth after two years of decline is a start, not proof.

Does Crocs pay a dividend?

No. Crocs returns cash by buying back its own shares instead. It spent $506 million on buybacks in the first nine months of 2026.¹