Charles & Colvard Ltd. (CTHR) 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

Forward Industries, Inc.

MSA Safety, Inc.

Movado Group, Inc.

Superior Group of Cos., Inc.

Duluth Holdings, Inc.

Fossil Group, Inc.

Charles & Colvard Ltd.

Vera Bradley, Inc.

Adamas One Corp.

Why is Charles & Colvard Ltd. ?

Poor Management Efficiency with a low ROE of 5.05%

The company has been able to generate a Return on Equity (avg) of 5.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -155.52% of over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

INTEREST(HY) At USD 0.06 MM has Grown at 286.51%
OPERATING CASH FLOW(Y) Lowest at USD -6.54 MM
ROCE(HY) Lowest at -47.86%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -98.76%, its profits have risen by 42.7%

Below par performance in long term as well as near term

Along with generating -98.76% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gems, Jewellery And Watches)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Charles & Colvard Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Charles & Colvard Ltd.

-98.76%

-0.04

2520.21%

S&P 500

14.9%

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)

-13.42%

EBIT Growth (5y)

-155.52%

EBIT to Interest (avg)

-5.01

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.72

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

18.88%

ROCE (avg)

4.63%

ROE (avg)

5.05%

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

0.00

EV to EBIT

0.07

EV to EBITDA

0.08

EV to Capital Employed

-0.04

EV to Sales

-0.05

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-54.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Charles & Colvard Ltd.

Operating Profit

Highest at USD -1.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at -43.25 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD -1.97 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD -1.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD -0.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -2.09% (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 Charles & Colvard Ltd.

Interest

At USD 0.06 MM has Grown at 286.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD -6.54 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)

Net Sales

At USD 4.05 MM has Fallen at -23.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 8.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -1.29 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.6 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 20.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio