NasdaqCM:CTHR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

CTHR

-0.5%

US Luxury

2.3%

US Market


1 Year Return

-54.6%

CTHR

-4.8%

US Luxury

6.7%

US Market

Return vs Industry: CTHR underperformed the US Luxury industry which returned -4.8% over the past year.

Return vs Market: CTHR underperformed the US Market which returned 6.1% over the past year.


Shareholder returns

CTHRIndustryMarket
7 Day1.6%-0.5%2.3%
30 Day-7.9%-5.6%1.5%
90 Day7.1%14.1%17.8%
1 Year-54.6%-54.6%-3.6%-4.8%9.0%6.7%
3 Year-18.0%-18.0%45.2%38.5%36.6%27.7%
5 Year-54.3%-54.3%28.3%19.7%64.2%46.2%

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?

0.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CTHR is good value based on its PB Ratio (0.5x) compared to the US Luxury industry average (1x).


Next Steps

Future Growth

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

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTHR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CTHR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CTHR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CTHR's revenue is expected to decline over the next 3 years (-47.2% per year).

High Growth Revenue: CTHR's revenue is forecast to decline over the next 3 years (-47.2% 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?

57.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTHR is currently unprofitable.

Growing Profit Margin: CTHR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CTHR is unprofitable, but has reduced losses over the past 5 years at a rate of 57.5% per year.

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

Earnings vs Industry: CTHR is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-13.8%).


Return on Equity

High ROE: CTHR has a negative Return on Equity (-11.78%), as it is currently unprofitable.


Next Steps

Financial Health

How is Charles & Colvard's financial position?


Financial Position Analysis

Short Term Liabilities: CTHR's short term assets ($20.1M) exceed its short term liabilities ($5.8M).

Long Term Liabilities: CTHR's short term assets ($20.1M) exceed its long term liabilities ($356.9K).


Debt to Equity History and Analysis

Debt Level: CTHR is debt free.

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


Balance Sheet


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 CTHR has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.9yrs

Average management tenure


CEO

Don O'Connell (53yo)

0.083

Tenure

US$339,805

Compensation

Mr. Don O'Connell serves as the President, Chief Executive Officer & Director of Charles & Colvard, Ltd. since June 1, 2020. He had been Chief Operating Officer and Senior Vice President of Supply Chain at ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD339.81K) is below average for companies of similar size in the US market ($USD620.12K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Don O'Connell
President0.083yrUS$339.81k0.58% $119.8k
Clint Pete
CFO & Treasurer3.17yrsUS$297.45k0.39% $81.5k
Tom Bergan
Senior Vice President of Sales2.92yrsno datano data
John Lane
Vice President of Marketing2.5yrsno datano data
Randall McCullough
Advisory Consulting5.33yrsUS$392.06kno data

2.9yrs

Average Tenure

58yo

Average Age

Experienced Management: CTHR's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Don O'Connell
President0.083yrUS$339.81k0.58% $119.8k
Neal Goldman
Independent Chairman5.5yrsUS$81.20k1.34% $276.3k
Ollin Sykes
Independent Director12.17yrsUS$73.06k2.32% $479.1k
Anne Butler
Independent Director8.08yrsUS$73.36k1.13% $233.0k
Benedetta Casamento
Independent Director3.17yrsUS$72.42k0.23% $47.8k

5.5yrs

Average Tenure

69yo

Average Age

Experienced Board: CTHR's board of directors are considered experienced (5.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$20.667m
  • 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. It also provides colorless moissanite jewel with 27 cuts and in sizes ranging from .002 carats to 6.13 carats, under the brand name Forever One, as well as gemstones under the brand name Moissanite by Charles & Colvard. In addition, the company offers Exotics product line with 15.55 carats diamond equivalent weight. It sells its products through distributors, manufacturers, retailers, and designers; and at retail to end consumers through its direct-to-consumer e-commerce site, charlesandcolvard.com, as well as third-party online marketplaces, drop-ship, and e-commerce outlets. Charles & Colvard, Ltd. was founded in 1995 and is based in Morrisville, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 00:06
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.