OTCPK:RTTO

Stock Analysis Report

Executive Summary

Rito Group Corp. engages in the e-commerce business in Hong Kong.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has Rito Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.5%

RTTO

-1.1%

US Retail Distributors

-1.1%

US Market


1 Year Return

81.6%

RTTO

4.9%

US Retail Distributors

17.9%

US Market

Return vs Industry: RTTO exceeded the US Retail Distributors industry which returned 4.9% over the past year.

Return vs Market: RTTO exceeded the US Market which returned 17.9% over the past year.


Shareholder returns

RTTOIndustryMarket
7 Day1.5%-1.1%-1.1%
30 Day-2.8%-2.2%1.4%
90 Dayn/a-3.9%6.9%
1 Year81.6%81.6%6.7%4.9%20.3%17.9%
3 Yearn/a18.5%12.9%47.8%38.3%
5 Yearn/a41.8%30.2%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Rito Group undervalued compared to its fair value and its price relative to the market?

1630.05x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: RTTO is unprofitable, so we can't compare its PE Ratio to the Retail Distributors industry average.

PE vs Market: RTTO 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 RTTO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RTTO is overvalued based on its PB Ratio (1630x) compared to the US Retail Distributors industry average (2.9x).


Next Steps

Future Growth

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

13.1%

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 Rito Group 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

  • Take a look at our analysis of RTTO’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Rito Group's filings and announcements here.
  • Explore growth companies in the Retail industry.

Past Performance

How has Rito Group performed over the past 5 years?

-26.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTTO is currently unprofitable.

Growing Profit Margin: RTTO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RTTO is unprofitable, and losses have increased over the past 5 years at a rate of -26.4% per year.

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

Earnings vs Industry: RTTO is unprofitable, making it difficult to compare its past year earnings growth to the Retail Distributors industry (-18.5%).


Return on Equity

High ROE: RTTO has a negative Return on Equity (-585.04%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rito Group's financial position?


Financial Position Analysis

Short Term Liabilities: RTTO's short term assets ($313.3K) exceed its short term liabilities ($205.2K).

Long Term Liabilities: RTTO's short term assets ($313.3K) exceed its long term liabilities ($23.2K).


Debt to Equity History and Analysis

Debt Level: RTTO's debt to equity ratio (31.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RTTO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: RTTO's debt is covered by short term assets (assets are 4.1x debt).


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: RTTO has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RTTO has less than a year of cash runway if free cash flow continues to reduce at historical rates of -34.6% each year


Next Steps

Dividend

What is Rito Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RTTO'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 RTTO'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?

4.7yrs

Average management tenure


CEO

Addy Choi (56yo)

4.9yrs

Tenure

US$64,258

Compensation

Mr. Tak Yin Choi, also known as Addy, has been the Chief Executive Officer and President of Rito Group Corp. since March 24, 2015. Mr. Choi focuses on providing one stop service, ranging from daily operati ...


CEO Compensation Analysis

Compensation vs Market: Addy's total compensation ($USD64.26K) is below average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Addy's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Tak Choi
CEO, President & Director4.9yrsUS$64.26k0.18% $690.0k
Wing Choy
CFO, Chief Accounting Officer4.7yrsUS$64.26kno data
Ka Or
COO, Secretary & Director4.7yrsUS$64.26k0.18% $690.0k
Pun Kao
CTO & Director4.7yrsno datano data

4.7yrs

Average Tenure

48yo

Average Age

Experienced Management: RTTO's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tak Choi
CEO, President & Director4.9yrsUS$64.26k0.18% $690.0k
Wing Choy
CFO, Chief Accounting Officer4.7yrsUS$64.26kno data
Ka Or
COO, Secretary & Director4.7yrsUS$64.26k0.18% $690.0k
Pun Kao
CTO & Director4.7yrsno datano data

4.7yrs

Average Tenure

48yo

Average Age

Experienced Board: RTTO's board of directors are considered experienced (4.7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Rito Group Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rito Group Corp.
  • Ticker: RTTO
  • Exchange: OTCPK
  • Founded: 2014
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: US$389.826m
  • Shares outstanding: 56.50m
  • Website: https://www.rito.hk

Location

  • Rito Group Corp.
  • Hong Kong Industrial Centre
  • 4th Floor
  • Lai Chi Kok
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTTOOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2017

Biography

Rito Group Corp. engages in the e-commerce business in Hong Kong. It intends to operate Rito Online Mall, an online to offline platform that provides deep-processed food products, cleansing and skin care products, brown rice drinks, natural spring water, dendrobium candidum, electric kettles and stainless cookware, water air revitalisors, earrings, rings, bracelets, necklaces, and watches. The company was founded in 2014 and is based in Lai Chi Kok, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 03:03
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
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.