ScoreWhy is Charles & Colvard Ltd. ?
1
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
2
Poor long term growth as Operating profit has grown by an annual rate -155.52% of over the last 5 years
3
With a fall in Net Sales of -23.04%, the company declared Very Negative results in Mar 25
- 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%
4
Risky - No result in last 6 months
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -92.17%, its profits have risen by 34.2%
5
Below par performance in long term as well as near term
- Along with generating -92.17% 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 ReportHow 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.
-91.65%
-0.04
2361.32%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
25.31%
ROCE (avg)
4.63%
ROE (avg)
5.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.04
EV to EBIT
0.39
EV to EBITDA
0.41
EV to Capital Employed
-0.27
EV to Sales
-0.23
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
-50.25%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.09% (YoY
OPERATING PROFIT(Q)
Highest at USD -1.75 MM
OPERATING PROFIT MARGIN(Q)
Highest at -43.25 %
PRE-TAX PROFIT(Q)
Highest at USD -1.97 MM
NET PROFIT(Q)
Highest at USD -1.97 MM
EPS(Q)
Highest at USD -0.63
-27What is not working for the Company
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%
NET SALES(Q)
At USD 4.05 MM has Fallen at -23.04%
CASH AND EQV(HY)
Lowest at USD 8.6 MM
DEBT-EQUITY RATIO
(HY)
Highest at -1.29 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.6 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 20.67 times
Here's what is working for Charles & Colvard Ltd.
Operating Profit
Highest at USD -1.75 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at -43.25 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD -1.97 MM
in the last five periodsMOJO 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 periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD -0.63
in the last five periodsMOJO 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 periodMOJO 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 yearsMOJO 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 periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at -1.29 %
in the last five Semi-Annual periodsMOJO 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 periodsMOJO 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 periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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