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CTHR

Charles & ColvardNasdaqCM:CTHR Stock Report

Market Cap

US$89.1m

7D

8.3%

1Y

263.5%

Updated

23 Sep, 2021

Data

Company Financials +
CTHR fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends0/6

CTHR Overview

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally.

Charles & Colvard Competitors

Brilliant Earth Group

NasdaqGS:BRLT

US$142.7m

Sumitomo

TSE:8053

JP¥1.9t

ALROSA

MISX:ALRS

₽1.0t

C3.ai

NYSE:AI

US$5.0b

Price History & Performance

Summary of all time highs, changes and price drops for Charles & Colvard
Historical stock prices
Current Share PriceUS$3.00
52 Week HighUS$0.79
52 Week LowUS$3.66
Beta0.20
1 Month Change13.64%
3 Month Change-5.96%
1 Year Change263.50%
3 Year Change229.67%
5 Year Change158.62%
Change since IPO-73.30%

Recent News & Updates

Aug 26
Charles & Colvard (NASDAQ:CTHR) Shareholders Will Want The ROCE Trajectory To Continue

Charles & Colvard (NASDAQ:CTHR) Shareholders Will Want The ROCE Trajectory To Continue

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

May 13
Upgrade: Analysts Just Made A Sizeable Increase To Their Charles & Colvard, Ltd. (NASDAQ:CTHR) Forecasts

Upgrade: Analysts Just Made A Sizeable Increase To Their Charles & Colvard, Ltd. (NASDAQ:CTHR) Forecasts

Charles & Colvard, Ltd. ( NASDAQ:CTHR ) shareholders will have a reason to smile today, with the covering analyst...

Shareholder Returns

CTHRUS LuxuryUS Market
7D8.3%0.8%-0.5%
1Y263.5%37.6%37.5%

Return vs Industry: CTHR exceeded the US Luxury industry which returned 34% over the past year.

Return vs Market: CTHR exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is CTHR's price volatile compared to industry and market?
CTHR volatility
CTHR Beta0.20
Industry Beta1.13
Market Beta1

Stable Share Price: CTHR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CTHR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199551Don O'Connellhttps://www.charlesandcolvard.com

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally. The company manufactures, markets, and distributes moissanite jewels and finished moissanite jewelry under the Charles & Colvard Created Moissanite brand; and premium moissanite gemstones under the Forever One brand name. It also markets and distributes lab grown diamonds, and finished jewelry with lab grown diamonds under the Caydia brand.

Charles & Colvard Fundamentals Summary

How do Charles & Colvard's earnings and revenue compare to its market cap?
CTHR fundamental statistics
Market CapUS$89.14m
Earnings (TTM)US$12.81m
Revenue (TTM)US$39.24m

7.0x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTHR income statement (TTM)
RevenueUS$39.24m
Cost of RevenueUS$20.66m
Gross ProfitUS$18.58m
ExpensesUS$5.77m
EarningsUS$12.81m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.44
Gross Margin47.34%
Net Profit Margin32.65%
Debt/Equity Ratio0%

How did CTHR perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTHR ($3) is trading below our estimate of fair value ($33.05)

Significantly Below Fair Value: CTHR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTHR is good value based on its PE Ratio (7x) compared to the US Luxury industry average (19.6x).

PE vs Market: CTHR is good value based on its PE Ratio (7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CTHR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CTHR is good value based on its PB Ratio (1.6x) compared to the US Luxury industry average (1.9x).


Future Growth

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

-51.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTHR's earnings are forecast to decline over the next 3 years (-51.4% per year).

Earnings vs Market: CTHR's earnings are forecast to decline over the next 3 years (-51.4% per year).

High Growth Earnings: CTHR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CTHR's revenue (7.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: CTHR's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTHR's Return on Equity is forecast to be low in 3 years time (8%).


Past Performance

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

34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTHR has a high level of non-cash 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 34.1% 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 (79.5%).


Return on Equity

High ROE: CTHR's Return on Equity (23%) is considered high.


Financial Health

How is Charles & Colvard's financial position?


Financial Position Analysis

Short Term Liabilities: CTHR's short term assets ($35.8M) exceed its short term liabilities ($5.6M).

Long Term Liabilities: CTHR's short term assets ($35.8M) exceed its long term liabilities ($3.6M).


Debt to Equity History and Analysis

Debt Level: CTHR is debt free.

Reducing Debt: CTHR had no debt 5 years ago.

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


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: 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 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?

4.2yrs

Average management tenure


CEO

Don O'Connell (55 yo)

1.25yrs

Tenure

US$596,155

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 ($USD596.16K) is about average for companies of similar size in the US market ($USD551.14K).

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


Leadership Team

Experienced Management: CTHR's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: CTHR's board of directors are considered experienced (6.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

Charles & Colvard, Ltd.'s 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$89.141m
  • Shares outstanding: 29.91m
  • Website: https://www.charlesandcolvard.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:57
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.