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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Li-Cycle Holdings Corp.

Why is Cricut, Inc. ?

High Management Efficiency with a high ROE of 16.73%

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -13.69% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At USD 0.3 MM has Grown at 90%
OPERATING CASH FLOW(Y) Lowest at USD 165.92 MM
NET SALES(Q) Lowest at USD 159.47 MM

With ROE of 22.33%, it has a attractive valuation with a 2.34 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 -32.42%, its profits have risen by 22.1% ; the PEG ratio of the company is 0.5

High Institutional Holdings at 60.9%

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 -32.42% 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.

-32.42%

-0.79

44.44%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.87%

EBIT Growth (5y)

-13.69%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.72

Sales to Capital Employed (avg)

1.67

Tax Ratio

28.01%

Dividend Payout Ratio

56.66%

Pledged Shares

Institutional Holding

60.90%

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

2.34

EV to EBIT

5.53

EV to EBITDA

4.40

EV to Capital Employed

7.42

EV to Sales

0.75

PEG Ratio

0.47

Dividend Yield

6.32%

ROCE (Latest)

134.28%

ROE (Latest)

22.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.91 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.08 times

-9What is not working for the Company

INTEREST(HY)

At USD 0.3 MM has Grown at 90%

OPERATING CASH FLOW(Y)

Lowest at USD 165.92 MM

NET SALES(Q)

Lowest at USD 159.47 MM

Here's what is working for Cricut, Inc.

Inventory Turnover Ratio

Highest at 2.91 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

Debtors Turnover Ratio

Highest at 10.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At USD 0.3 MM has Grown at 90%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 165.92 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 159.47 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)