Cricut, Inc.
Cricut, Inc. Fundamental Analysis
Cricut, Inc. (CRCT) shows moderate financial fundamentals with a PE ratio of 11.20, profit margin of 10.82%, and ROE of 20.44%. The company generates $0.7B in annual revenue with weak year-over-year growth of -6.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CRCT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCRCT demonstrates superior asset utilization.
Valuation Score
ExcellentCRCT trades at attractive valuation levels.
Growth Score
ModerateCRCT shows steady but slowing expansion.
Financial Health Score
ExcellentCRCT maintains a strong and stable balance sheet.
Profitability Score
ModerateCRCT maintains healthy but balanced margins.
Key Financial Metrics
Is CRCT Expensive or Cheap?
P/E Ratio
CRCT trades at 11.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRCT's PEG of -4.26 indicates potential undervaluation.
Price to Book
The market values Cricut, Inc. at 2.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.86 times EBITDA. This is generally considered low.
How Well Does CRCT Make Money?
Net Profit Margin
For every $100 in sales, Cricut, Inc. keeps $10.82 as profit after all expenses.
Operating Margin
Core operations generate 13.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.44 in profit for every $100 of shareholder equity.
ROA
Cricut, Inc. generates $13.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cricut, Inc. generates strong operating cash flow of $200.09M, reflecting robust business health.
Free Cash Flow
Cricut, Inc. generates strong free cash flow of $175.69M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.83 in free cash annually.
FCF Yield
CRCT converts 20.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How CRCT Stacks Against Its Sector Peers
| Metric | CRCT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.20 | 34.43 | Better (Cheaper) |
| ROE | 20.44% | 1135.00% | Weak |
| Net Margin | 10.82% | -134808.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 2.26 | 5.77 | Strong Liquidity |
| ROA | 13.21% | -310795.00% (disorted) | Strong |
CRCT outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cricut, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.41%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
54.73%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
6526.89%
Industry Style: Growth, Innovation, High Beta
High Growth