Cricut, Inc. (CRCT)
Valuation Overview•Is Cricut, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
High-quality fundamentals with a strong composite quality score of 80/100, backed by robust profitability and solvency.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: High-quality compounder, with growth as the only relative weakness.
Wall Street is cautious, forecasting potential downside. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
CRCT demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 41.3% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($245M) and minimal debt risk.
The company is facing top-line contraction (-7.2% 3Y CAGR) paired with stable bottom-line earnings. Operating efficiency remains adequate with margins around 12.7%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $159.5M | -0.5% | -7.2% | -5.9% | — | |
| EBITDA | $22.9M | — | -3.5% | — | — | |
| Net Income | $20.3M | +22.1% | +8.1% | — | — | |
| EPS (Diluted) | $0.10 | +20.7% | +7.7% | -12.9% | — | |
| Free Cash Flow | $17.7M | -28.7% | +28.0% | -4.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 54.5% | 49.8% | 44.8% | 40.1% |
| Operating Margin | 12.7% | 11.1% | 11.4% | 12.5% |
| Net Margin | 10.4% | 8.9% | 8.8% | 9.6% |
| FCF Margin | 19.5% | 31.3% | 18.5% | 13.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.05 | $0.10 | +100.0% | ||
| Q1'26 | $0.04 | $0.04 | +0.0% | ||
| Q4'25 | $0.05 | $0.10 | +100.0% | ||
| Q3'25 | $0.06 | $0.11 | +83.3% | ||
| Q2'25 | $0.08 | $0.11 | +37.5% | ||
| Q1'25 | $0.04 | $0.06 | +50.0% | ||
| Q4'24 | $0.05 | $0.05 | +0.0% | ||
| Q3'24 | $0.05 | $0.09 | +80.0% |
Total return is -18.0% (1Y), lagging the benchmark by -43.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -5.6% | -14.9% | — |
| 1Y | -18.0% | -43.0% | +14.4% |
| 3YCAGR | -24.0% | -43.8% | +15.9% |
| 5YCAGR | -27.0% | -38.6% | +8.2% |
| 10YCAGR | -8.5% | -22.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Cricut, Inc. (CRCT) valuation, health, and returns.
Based on peer relative multiples, Cricut, Inc. appears Limited: Slightly expensive versus peers compared to industry peers.
Cricut, Inc. has multiple valuation anchors: Peer Relative Fair Value: $3.67 | Wall Street Analyst Target: $3.88 (implying -13.0% upside). A convergence of these signals offers higher conviction.
Cricut, Inc. displays excellent financial health with a composite quality score of 80/100, supported by a Altman Z-Score of 4.7 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 41.3%.
Cricut, Inc. pays a 21.3% dividend yield, covered by a 263% payout ratio with 1 years of growth, supplemented by a 2.7% buyback yield.
Cricut, Inc.'s current growth trajectory is Accelerating. The company achieved -0.5% 1Y revenue growth and +20.7% 1Y EPS growth, compared to its 3Y revenue CAGR of -7.2%.
Wall Street consensus is Sell based on 4 analysts, beating EPS expectations in 75% of recent quarters with a 1-quarter streak. The consensus price target represents a -13.0% change from current levels.
Investment risks for Cricut, Inc. include: -48.1% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 1.06x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.