Crocs plans major debt paydown and $750M stock buyback, trading at a discount with strong growth potential.

Crocs, Inc. is aggressively reducing debt from its HeyDude acquisition and aims to cut debt significantly by 2026, freeing up $750 million for stock buybacks. The company is trading at a low valuation of 5.7x EV/EBITDA with a strong 23% operating profit margin, offering a notable discount compared to peers like Deckers and Nike. Growth is driven by the main Crocs brand through Jibbitz charms and international expansion, while HeyDude is rapidly growing overseas. A DCF valuation supports an intrinsic value between $140 and $160, though risks remain if HeyDude's decline is structural or macroeconomic pressures impact cash flow.