DB:65U

Stock Analysis Report

China Customer Relations Centers

Executive Summary

China Customer Relations Centers, Inc. provides business process outsourcing services for telecommunications companies in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has China Customer Relations Centers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 65U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

65U

1.1%

DE Commercial Services

1.7%

DE Market


1 Year Return

-11.2%

65U

-0.5%

DE Commercial Services

15.0%

DE Market

Return vs Industry: 65U underperformed the German Commercial Services industry which returned -0.5% over the past year.

Return vs Market: 65U underperformed the German Market which returned 15% over the past year.


Shareholder returns

65UIndustryMarket
7 Day1.9%1.1%1.7%
30 Day-14.3%1.0%0.8%
90 Day-11.5%6.6%3.7%
1 Year-11.2%-11.2%3.0%-0.5%18.5%15.0%
3 Year-35.3%-35.3%11.3%1.6%17.1%6.9%
5 Yearn/a2.6%-11.7%24.3%7.3%

Price Volatility Vs. Market

How volatile is China Customer Relations Centers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Customer Relations Centers undervalued compared to its fair value and its price relative to the market?

19.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 65U (€8.1) is trading below our estimate of fair value (€10.03)

Significantly Below Fair Value: 65U is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 65U is good value based on its PE Ratio (16.8x) compared to the Commercial Services industry average (32x).

PE vs Market: 65U is good value based on its PE Ratio (16.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 65U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 65U is good value based on its PB Ratio (2.9x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is China Customer Relations Centers forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.0%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Customer Relations Centers has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Customer Relations Centers performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 65U has high quality earnings.

Growing Profit Margin: 65U's current net profit margins (6.8%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: 65U's earnings have grown significantly by 30.3% per year over the past 5 years.

Accelerating Growth: 65U's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 65U had negative earnings growth (-36%) over the past year, making it difficult to compare to the Commercial Services industry average (9.4%).


Return on Equity

High ROE: 65U's Return on Equity (17.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Customer Relations Centers's financial position?


Financial Position Analysis

Short Term Liabilities: 65U's short term assets ($62.1M) exceed its short term liabilities ($18.3M).

Long Term Liabilities: 65U's short term assets ($62.1M) exceed its long term liabilities ($3.8M).


Debt to Equity History and Analysis

Debt Level: 65U's debt to equity ratio (6.2%) is considered satisfactory.

Reducing Debt: 65U's debt to equity ratio has reduced from 269% to 6.2% over the past 5 years.

Debt Coverage: 65U's debt is well covered by operating cash flow (299.7%).

Interest Coverage: 65U's interest payments on its debt are well covered by EBIT (33.1x coverage).


Balance Sheet

Inventory Level: 65U has a low level of unsold assets or inventory.

Debt Coverage by Assets: 65U's debt is covered by short term assets (assets are 17.1x debt).


Next Steps

Dividend

What is China Customer Relations Centers's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 65U's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 65U's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 65U's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 65U's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 65U's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure


CEO

Gary Wang (51yo)

5.4yrs

Tenure

US$107,880

Compensation

Mr. Gary Wang has been Chairman of The Board and Chief Executive Officer at China Customer Relations Centers, Inc since September 2014. Mr. Wang founded and has been Chairman and Chief Executive Officer of ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD634.28K).

Compensation vs Earnings: Gary's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Wang
Chairman of the Board & CEO5.4yrsUS$107.88k21.6% $33.6m
David Wang
Vice Chairman & CFO5.4yrsno data5.84% $9.1m
Tao Bai
Vice President of Sales & Marketing3.1yrsno datano data
Guoan Xu
VP & Director5.4yrsno data0.67% $1.0m

5.4yrs

Average Tenure

45yo

Average Age

Experienced Management: 65U's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Wang
Chairman of the Board & CEO5.4yrsUS$107.88k21.6% $33.6m
David Wang
Vice Chairman & CFO5.4yrsno data5.84% $9.1m
Guoan Xu
VP & Director5.4yrsno data0.67% $1.0m
Jie Xu
Independent Director5.4yrsUS$20.00kno data
Weixin Wang
Independent Director5.4yrsUS$20.00kno data
Owens Meng
Independent Director5.4yrsUS$20.00kno data
Tianjun Zhang
Independent Director4.3yrsUS$20.00kno data

5.4yrs

Average Tenure

46yo

Average Age

Experienced Board: 65U's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Customer Relations Centers, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Customer Relations Centers, Inc.
  • Ticker: 65U
  • Exchange: DB
  • Founded: 2014
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$168.805m
  • Listing Market Cap: US$155.688m
  • Shares outstanding: 18.33m
  • Website: https://www.ccrc.com

Number of Employees


Location

  • China Customer Relations Centers, Inc.
  • 1366 Zhongtianmen Street
  • Xinghuo Science and Technology Park
  • Taian
  • Shandong Province
  • 271000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCRCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2015
65UDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2015

Biography

China Customer Relations Centers, Inc. provides business process outsourcing services for telecommunications companies in the People’s Republic of China. It offers voice-based and online-based customer care services, including customer relationship management, technical support, sales, customer retention, marketing surveys, and research. The company was incorporated in 2014 and is headquartered in Taian, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:39
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.