NasdaqCM:CTHR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


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


Market Performance


7 Day Return

-2.9%

CTHR

1.9%

US Luxury

0.4%

US Market


1 Year Return

57.6%

CTHR

15.6%

US Luxury

6.9%

US Market

Return vs Industry: CTHR exceeded the US Luxury industry which returned 15.6% over the past year.

Return vs Market: CTHR exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

CTHRIndustryMarket
7 Day-2.9%1.9%0.4%
30 Day-2.9%6.7%-1.1%
90 Day-13.8%4.4%-0.5%
1 Year57.6%57.6%18.0%15.6%9.3%6.9%
3 Year15.5%15.5%56.4%49.5%45.8%36.4%
5 Year-46.0%-46.0%53.5%43.4%62.9%45.1%

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?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CTHR ($1.34) is trading below our estimate of fair value ($1.48)

Significantly Undervalued: CTHR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CTHR is good value based on its PE Ratio (12.9x) compared to the Luxury industry average (16.7x).

PE vs Market: CTHR is good value based on its PE Ratio (12.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (0.8x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

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

30.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTHR's forecast earnings growth (30.8% per year) is above the savings rate (2.7%).

Earnings vs Market: CTHR's earnings (30.8% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: CTHR's revenue (17.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CTHR's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CTHR's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

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

51.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTHR has become profitable over the past 5 years, growing earnings by 51.5% 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 (23.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: CTHR's Return on Assets is below or equal to the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: CTHR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Charles & Colvard's financial position?


Financial Position Analysis

Short Term Liabilities: CTHR's short term assets ($27.9M) exceeds its short term liabilities ($4.7M)

Long Term Liabilities: CTHR's short term assets (27.9M) exceeds its long term liabilities (729.6K)


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


Stability and Growth of Payments

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.

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?

2.4yrs

Average management tenure


CEO

Suzanne Miglucci (58yo)

3.8yrs

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 ($USD462.93K) is about average for companies of similar size in the US market ($USD489.74K).

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


Management Age and Tenure

2.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: CTHR's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

68yo

Average Age

Experienced Board: CTHR's board of directors are considered experienced (4.8 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
BuyUS$6,23019 Nov 18
Clint Pete
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares7,000
Max PriceUS$0.89

Ownership Breakdown


Management Team

  • Randy McCullough (67yo)

    Advisory Consulting

    • Tenure: 4.6yrs
    • Compensation: US$392.06k
  • Suzanne Miglucci (58yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$462.93k
  • Don O'Connell (53yo)

    COO & Senior VP of Supply Chain

    • Tenure: 2.4yrs
    • Compensation: US$339.81k
  • Clint Pete (57yo)

    CFO & Treasurer

    • Tenure: 2.4yrs
    • Compensation: US$297.45k
  • John Lane

    Vice President of Marketing

    • Tenure: 1.8yrs

Board Members

  • Neal Goldman (75yo)

    Independent Chairman

    • Tenure: 4.8yrs
    • Compensation: US$107.11k
  • Ollin Sykes (68yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$77.11k
  • Suzanne Miglucci (58yo)

    CEO, President & Director

    • Tenure: 3.8yrs
    • Compensation: US$462.93k
  • Anne Butler (70yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$69.61k
  • Benedetta Casamento (52yo)

    Independent Director

    • Tenure: 2.4yrs
    • 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$38.836m
  • 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 jewelry featuring moissanite worldwide. The company offers near-colorless moissanite jewels cut in various shap ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.