NYSE:ATV

Stock Analysis Report

Acorn International

Executive Summary

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells products in the People’s Republic of China.

Rewards

PE ratio (1.5x) is below the US market (18.3x)

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (27.5%) are lower than last year

Does not have a meaningful market cap ($49M)



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Acorn International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

ATV

2.9%

US Online Retail

1.8%

US Market


1 Year Return

-35.0%

ATV

29.2%

US Online Retail

20.1%

US Market

Return vs Industry: ATV underperformed the US Online Retail industry which returned 29.2% over the past year.

Return vs Market: ATV underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

ATVIndustryMarket
7 Day0.7%2.9%1.8%
30 Day4.0%5.9%1.4%
90 Day8.0%19.2%8.8%
1 Year-30.3%-35.0%29.3%29.2%22.7%20.1%
3 Year344.7%112.6%111.6%111.4%50.1%40.4%
5 Year495.0%184.5%216.1%202.3%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Acorn International undervalued compared to its fair value and its price relative to the market?

1.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATV ($18.96) is trading above our estimate of fair value ($8.84)

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


Price To Earnings Ratio

PE vs Industry: ATV is good value based on its PE Ratio (1.5x) compared to the Online Retail industry average (32x).

PE vs Market: ATV is good value based on its PE Ratio (1.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ATV is good value based on its PB Ratio (0.7x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

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

21.2%

Forecasted Retail 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 Acorn International 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 Acorn International performed over the past 5 years?

70.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATV has a large one-off gain of $7.9M impacting its September 30 2019 financial results.

Growing Profit Margin: ATV's current net profit margins (27.5%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: ATV has become profitable over the past 5 years, growing earnings by 70.6% per year.

Accelerating Growth: ATV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATV had negative earnings growth (-71.1%) over the past year, making it difficult to compare to the Online Retail industry average (14%).


Return on Equity

High ROE: ATV's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Acorn International's financial position?


Financial Position Analysis

Short Term Liabilities: ATV's short term assets ($31.1M) exceed its short term liabilities ($12.3M).

Long Term Liabilities: ATV's short term assets ($31.1M) exceed its long term liabilities ($1.6M).


Debt to Equity History and Analysis

Debt Level: ATV is debt free.

Reducing Debt: ATV has no debt compared to 5 years ago when its debt to equity ratio was 8.1%.


Balance Sheet

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

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


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: ATV is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

What is Acorn International's current dividend yield, its reliability and sustainability?

5.27%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ATV's dividend (5.27%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ATV's dividend (5.27%) is in the top 25% of dividend payers in the US market (3.68%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ATV has been paying a dividend for less than 10 years.

Growing Dividend: ATV has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.2%), ATV's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Jake Fisch (42yo)

2.3yrs

Tenure

0

Mr. Jacob A. Fisch, also known as Jake, has been the President of Acorn International, Inc. since 2014 and has been its Chief Executive Officer since November 3, 2017. Mr. Fisch serves as a Partner at NEST ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Roche
Co-Founder & Executive Chairman4.8yrsno data33.75% $16.5m
Jacob Fisch
President & CEO2.3yrsno data1.9% $929.3k
Jan Jie Lu
Vice President of Business Operations3.8yrsno datano data
Martin Key
Chief Financial Officer1.5yrsno datano data
Lei Li
General Counsel1.6yrsno datano data
Jie Wu
Vice President of Human Resources1.7yrsno datano data
Aspen Bai
Financial Controller1.5yrsno datano data

1.7yrs

Average Tenure

41.5yo

Average Age

Experienced Management: ATV's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Roche
Co-Founder & Executive Chairman4.8yrsno data33.75% $16.5m
Pierre Cohade
Lead Director2.5yrsno data0.039% $19.0k
Hseau-Jean Wang
Independent Director2.4yrsno datano data
Haibing Wu
Independent Director3.4yrsno datano data
Urs P. Zimmerman
Independent Director2.1yrsno datano data

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: ATV's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Acorn International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acorn International, Inc.
  • Ticker: ATV
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$48.947m
  • Shares outstanding: 2.58m
  • Website: https://www.acorninternationalgroup.com

Number of Employees


Location

  • Acorn International, Inc.
  • YueShang Plaza
  • 5th Floor
  • Shanghai
  • 200042
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATVNYSE (New York Stock Exchange)YesSPONSORD ADR NEWUSUSDMay 2007
FEMADB (Deutsche Boerse AG)YesSPONSORD ADR NEWDEEURMay 2007

Biography

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells products in the People’s Republic of China. It operates through two segments, Direct Sales and Distribution Sales. The company, through its direct sales business platform, markets and sells products directly to consumers through its Internet/e-commerce sales platform, and outbound marketing platform. It also provides its products through offline distribution and e-commerce distribution network. The company offers health and collectible, mobile phones, kitchen and household, fitness, cosmetics, consumer electronics, and other products. Acorn International, Inc. was founded in 1998 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 01:27
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.