Cricut, Inc. (CRCT) stock analysis

P/E below its 5-year median

Cricut's P/E of 19.7 is below its own 5-year median of 20.6.

P/E below the industry

Cricut's P/E of 19.7 is below the Special Industry Machinery, except Metalworking median of 32.8.

EV/EBITDA above its 5-year median

Cricut's EV/EBITDA of 11.1 is above its 5-year median of 9.0.

P/B above the industry

Cricut's price-to-book of 4.66 is above the Special Industry Machinery, except Metalworking median of 2.10.

Trading below fair value

The share price of $8.88 is below our fair value estimate of $11.61.

Margin of safety over 20%

The price is 23.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 7.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 17.5% over the last twelve months, against a 5-year average of -13.1% a year.

Growing slower than the industry

Revenue grew -0.9% over the last twelve months; the Special Industry Machinery, except Metalworking median is 5.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 58.5% over the last twelve months, against 54.3% a year earlier.

Return on equity over 15%

Return on equity was 25.1% over the last twelve months and averaged 16.1% over five years.

Return on capital over 10%

Return on invested capital was 63.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cricut's return on equity of 25.1% is above the Special Industry Machinery, except Metalworking median of 4.6%.

Earnings shrank over 5 years

Net income shrank 13.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.4% over the last twelve months, against a 5-year average of 8.8%.

Net margin above the industry

Cricut's net margin of 13.4% is above the Special Industry Machinery, except Metalworking median of 5.1%.

No debt

Cricut has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 254.0 times.

Short-term assets cover short-term debts

Current assets are 2.40 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.89; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cricut paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cricut yields 2.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 44.3% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.