DB:CTL

Stock Analysis Report

Creative Technology

Executive Summary

Creative Technology Ltd, together with its subsidiaries, designs, manufactures, and distributes digital entertainment products worldwide.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Creative Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

CTL

-2.7%

DE Tech

0.1%

DE Market


1 Year Return

-39.5%

CTL

14.0%

DE Tech

14.1%

DE Market

Return vs Industry: CTL underperformed the German Tech industry which returned 17.6% over the past year.

Return vs Market: CTL underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

CTLIndustryMarket
7 Day-1.1%-2.7%0.1%
30 Day-11.1%10.7%0.2%
90 Day-2.6%17.4%3.3%
1 Year-39.5%-39.5%14.9%14.0%17.6%14.1%
3 Year153.1%153.1%152.9%147.6%14.8%4.8%
5 Year84.3%84.3%92.1%69.7%22.2%5.4%

Price Volatility Vs. Market

How volatile is Creative Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Creative Technology undervalued compared to its fair value and its price relative to the market?

1.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CTL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CTL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CTL is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: CTL is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CTL is overvalued based on its PB Ratio (1.4x) compared to the XE Tech industry average (1.3x).


Next Steps

Future Growth

How is Creative Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.5%

Forecasted Tech 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 Creative Technology 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 Creative Technology performed over the past 5 years?

54.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTL is currently unprofitable.

Growing Profit Margin: CTL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CTL is unprofitable, but has reduced losses over the past 5 years at a rate of 54.7% per year.

Accelerating Growth: Unable to compare CTL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CTL is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-8.4%).


Return on Equity

High ROE: CTL has a negative Return on Equity (-1.25%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Creative Technology's financial position?


Financial Position Analysis

Short Term Liabilities: CTL's short term assets ($122.0M) exceed its short term liabilities ($22.4M).

Long Term Liabilities: CTL's short term assets ($122.0M) exceed its long term liabilities ($13.4M).


Debt to Equity History and Analysis

Debt Level: CTL is debt free.

Reducing Debt: CTL has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CTL's debt is not covered by short term assets (assets are -1.3741045413061E+17x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if CTL has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CTL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Creative Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CTL'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 CTL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: CTL is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTL'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?

12.7yrs

Average board tenure


CEO

Wong Hoo Sim (64yo)

39.1yrs

Tenure

Mr. Wong Hoo Sim founded Creative Technology Ltd., in 1981 and has been its Chairman and Chief Executive Officer since 1981. Mr. Sim serves as the Chairman of US-based THX Ltd., well known for setting soun ...


Board Members

NamePositionTenureCompensationOwnership
Wong Hoo Sim
Founder39.1yrsno data33.06% $44.8m
Kheng Nam Lee
Lead Independent & Non-Executive Director5.5yrsUS$60.00k0.078% $105.9k
Kai Wa Ng
Independent & Non-Executive Director14.7yrsUS$60.00k3.05% $4.1m
Gwong-Yih Lee
Independent & Non-Executive Director10.7yrsUS$60.00k0.064% $86.7k

12.7yrs

Average Tenure

64yo

Average Age

Experienced Board: CTL's board of directors are seasoned and experienced ( 12.7 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 been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Creative Technology Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Creative Technology Ltd
  • Ticker: CTL
  • Exchange: DB
  • Founded: 1981
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: S$204.150m
  • Listing Market Cap: S$135.601m
  • Shares outstanding: 70.40m
  • Website: https://www.creative.com

Location

  • Creative Technology Ltd
  • 31 International Business Park
  • No. 03-01 Creative Resource
  • Singapore
  • 609921
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CREA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1992
CTLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1992
C76SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 1992

Biography

Creative Technology Ltd, together with its subsidiaries, designs, manufactures, and distributes digital entertainment products worldwide. The company primarily offers digitized sound and video boards, computers, and related multimedia and personal digital entertainment products. It also provides amplifiers, speakers, sound cards, gaming headsets, headphones, peripherals, accessories, software products, sound blasters, mice and keyboards, and others. In addition, the company offers multimedia solutions for personal computers and personal digital entertainment products. It markets its products and solutions to consumers and system integrators through a distribution network, including traditional marketing channels, original equipment manufacturers, and the Internet. The company was founded in 1981 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 20:55
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.