Cricut, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Cricut, Inc.

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Why is Cricut, Inc. ?

High Management Efficiency with a high ROE of 16.73%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -6.24% of over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at USD 220.89 MM
INTEREST(HY) At USD 0.26 MM has Grown at 60.98%
INTEREST COVERAGE RATIO(Q) Lowest at 15,685.25

With ROE of 22.56%, it has a attractive valuation with a 2.41 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.68%, its profits have risen by 30% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 64.9%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.68% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cricut, Inc. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cricut, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cricut, Inc.

-24.59%

-0.78

52.03%

S&P 500

16.12%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.27%

EBIT Growth (5y)

-6.24%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

1.63

Tax Ratio

28.01%

Dividend Payout Ratio

68.63%

Pledged Shares

Institutional Holding

64.90%

ROCE (avg)

52.33%

ROE (avg)

16.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.41

EV to EBIT

6.88

EV to EBITDA

5.47

EV to Capital Employed

4.26

EV to Sales

0.92

PEG Ratio

0.35

Dividend Yield

5.87%

ROCE (Latest)

61.96%

ROE (Latest)

22.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 19.38%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.16 times

RAW MATERIAL COST(Y)

Fallen by -20.25% (YoY

CASH AND EQV(HY)

Highest at USD 584.04 MM

PRE-TAX PROFIT(Q)

At USD 25.63 MM has Grown at 80.98%

NET PROFIT(Q)

At USD 20.51 MM has Grown at 78.55%

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 220.89 MM

INTEREST(HY)

At USD 0.26 MM has Grown at 60.98%

INTEREST COVERAGE RATIO(Q)

Lowest at 15,685.25

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.86 times

Here's what is working for Cricut, Inc.

Inventory Turnover Ratio

Highest at 2.16 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Pre-Tax Profit

At USD 25.63 MM has Grown at 80.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 20.51 MM has Grown at 78.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 584.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -20.25% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Cricut, Inc.

Interest

At USD 0.26 MM has Grown at 60.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 220.89 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 15,685.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 7.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio