NasdaqCM:CTHR

Stock Analysis Report

Executive Summary

Charles & Colvard, Ltd. manufactures, markets, and distributes moissanite jewels and finished jewelries worldwide.

Rewards

PE ratio (14.2x) is below the US market (18.6x)

Earnings are forecast to grow 32.83% per year

Became profitable this year

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($41M)



Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Charles & Colvard's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

CTHR

1.2%

US Luxury

0.7%

US Market


1 Year Return

58.9%

CTHR

29.1%

US Luxury

21.1%

US Market

Return vs Industry: CTHR exceeded the US Luxury industry which returned 29.1% over the past year.

Return vs Market: CTHR exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

CTHRIndustryMarket
7 Day0.7%1.2%0.7%
30 Day0.03%5.7%2.3%
90 Day7.3%9.3%5.0%
1 Year58.9%58.9%31.8%29.1%23.7%21.1%
3 Year33.6%33.6%67.1%59.7%47.0%37.4%
5 Year0%0%50.6%40.6%65.7%47.5%

Price Volatility Vs. Market

How volatile is Charles & Colvard's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Charles & Colvard undervalued compared to its fair value and its price relative to the market?

14.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTHR ($1.43) is trading above our estimate of fair value ($1.06)

Significantly Below Fair Value: CTHR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CTHR is good value based on its PE Ratio (14.2x) compared to the Luxury industry average (18.8x).

PE vs Market: CTHR is good value based on its PE Ratio (14.2x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: CTHR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CTHR is good value based on its PB Ratio (0.9x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is Charles & Colvard forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTHR's forecast earnings growth (32.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CTHR's earnings (32.8% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTHR's revenue (19.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CTHR's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CTHR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Charles & Colvard performed over the past 5 years?

60.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTHR has high quality earnings.

Growing Profit Margin: CTHR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CTHR has become profitable over the past 5 years, growing earnings by 60.4% per year.

Accelerating Growth: CTHR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CTHR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (2.6%).


Return on Equity

High ROE: CTHR's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Charles & Colvard's financial position?


Financial Position Analysis

Short Term Liabilities: CTHR's short term assets ($27.8M) exceed its short term liabilities ($6.1M).

Long Term Liabilities: CTHR's short term assets ($27.8M) exceed its long term liabilities ($1.1M).


Debt to Equity History and Analysis

Debt Level: CTHR is debt free.

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

Debt Coverage: CTHR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CTHR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CTHR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CTHR's debt is covered by short term assets.


Next Steps

Dividend

What is Charles & Colvard's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: CTHR is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Charles & Colvard's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Suzanne Miglucci (58yo)

4yrs

Tenure

US$462,926

Compensation

Ms. Suzanne T. Miglucci has been the Chief Executive Officer and President of Charles & Colvard, Ltd. since December 1, 2015. Ms. Miglucci served as the Chief Marketing Officer of ChannelAdvisor Corporatio ...


CEO Compensation Analysis

Compensation vs Market: Suzanne's total compensation ($USD462.93K) is about average for companies of similar size in the US market ($USD528.59K).

Compensation vs Earnings: Suzanne's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: CTHR's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

68yo

Average Age

Experienced Board: CTHR's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: CTHR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$10,05017 Sep 19
Suzanne Miglucci
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares7,500
Max PriceUS$1.34
BuyUS$24,99928 Jun 19
Sykes & Company, Profit Sharing Plan and Trust
EntityCompany
Shares15,923
Max PriceUS$1.57
BuyUS$7,58717 Jun 19
Don O'Connell
EntityIndividual
Role
Chief Operating Officer
COO & Senior VP of Supply Chain
Shares4,968
Max PriceUS$1.53
BuyUS$74,40012 Jun 19
Benedetta Casamento
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares46,500
Max PriceUS$1.60
BuyUS$24,80012 Jun 19
Jaqui Lividini
EntityIndividual
Shares15,500
Max PriceUS$1.60

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.


Management Team

  • Randy McCullough (67yo)

    Advisory Consulting

    • Tenure: 4.8yrs
    • Compensation: US$392.06k
  • Suzanne Miglucci (58yo)

    CEO, President & Director

    • Tenure: 4yrs
    • Compensation: US$462.93k
  • Tom Bergan

    Senior Vice President of Sales

    • Tenure: 2.3yrs
  • Don O'Connell (53yo)

    COO & Senior VP of Supply Chain

    • Tenure: 2.6yrs
    • Compensation: US$339.81k
  • Clint Pete (57yo)

    CFO & Treasurer

    • Tenure: 2.6yrs
    • Compensation: US$297.45k
  • John Lane

    Vice President of Marketing

    • Tenure: 1.9yrs

Board Members

  • Neal Goldman (75yo)

    Independent Chairman

    • Tenure: 4.9yrs
    • Compensation: US$107.11k
  • Ollin Sykes (68yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$77.11k
  • Suzanne Miglucci (58yo)

    CEO, President & Director

    • Tenure: 4yrs
    • Compensation: US$462.93k
  • Anne Butler (70yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$69.61k
  • Benedetta Casamento (52yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$38.89k

Company Information

Charles & Colvard, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Charles & Colvard, Ltd.
  • Ticker: CTHR
  • Exchange: NasdaqCM
  • Founded: 1995
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$41.444m
  • Shares outstanding: 28.98m
  • Website: https://www.charlesandcolvard.com

Number of Employees


Location

  • Charles & Colvard, Ltd.
  • 170 Southport Drive
  • Morrisville
  • North Carolina
  • 27560
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTHRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 1997
CDRDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1997

Biography

Charles & Colvard, Ltd. manufactures, markets, and distributes moissanite jewels and finished jewelries worldwide. The company offers stud earrings, solitaire and three stone rings, pendants, and bracelets ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:33
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.