NYSE:CTK

Stock Analysis Report

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Executive Summary

CooTek (Cayman) Inc. operates as a mobile internet company in the United States, the People's Republic of China, and internationally.

Rewards

Earnings are forecast to grow 122.06% per year

Risk Analysis

No risks detected for CTK from our risk checks.


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has CooTek (Cayman)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.6%

CTK

-2.3%

US Software

0.5%

US Market


1 Year Return

6.1%

CTK

42.3%

US Software

18.7%

US Market

Return vs Industry: CTK underperformed the US Software industry which returned 40.2% over the past year.

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


Shareholder returns

CTKIndustryMarket
7 Day-3.6%-2.3%0.5%
30 Day-4.6%0.9%4.9%
90 Day-6.4%15.0%19.8%
1 Year6.1%6.1%43.1%42.3%21.2%18.7%
3 Yearn/a150.3%142.2%46.2%36.8%
5 Yearn/a258.3%237.5%85.3%65.1%

Price Volatility Vs. Market

How volatile is CooTek (Cayman)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CooTek (Cayman) undervalued compared to its fair value and its price relative to the market?

15.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CTK is overvalued based on its PB Ratio (15.1x) compared to the US Software industry average (7.2x).


Next Steps

Future Growth

How is CooTek (Cayman) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

122.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CTK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CTK's is expected to become profitable in the next 3 years.

Revenue vs Market: CTK's revenue (55.3% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: CTK's revenue (55.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CTK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CooTek (Cayman) performed over the past 5 years?

-16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTK is currently unprofitable.

Growing Profit Margin: CTK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CTK is unprofitable, and losses have increased over the past 5 years at a rate of 16.3% per year.

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

Earnings vs Industry: CTK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (10.2%).


Return on Equity

High ROE: CTK has a negative Return on Equity (-176.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is CooTek (Cayman)'s financial position?


Financial Position Analysis

Short Term Liabilities: CTK's short term assets ($115.3M) exceed its short term liabilities ($94.5M).

Long Term Liabilities: CTK's short term assets ($115.3M) exceed its long term liabilities ($562.0K).


Debt to Equity History and Analysis

Debt Level: CTK's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CTK's debt to equity ratio has reduced over the 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: CTK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CTK has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 54.6% each year


Next Steps

Dividend

What is CooTek (Cayman) current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

0.3yrs

Average management tenure


CEO

Michael Wang (41 yo)

no data

Tenure

Mr. Jialiang Wang serves as Chief Executive Officer and Director at CooTek (Cayman) Inc.


Leadership Team

NamePositionTenureCompensationOwnership
Kan Zhang
CTO & Chairman of the Board of Directorsno datano data7.97%
$ 31.8m
Jialiang Wang
CEO & Directorno datano data6.84%
$ 27.3m
Qiaoling Li
President & Directorno datano data6.98%
$ 27.9m
Junkai Lin
Financial Controller & Interim CFO0.33yrno datano data
Jiang Zhu
Chief Growth Officer0.42yrno datano data

0.3yrs

Average Tenure

40.5yo

Average Age

Experienced Management: CTK's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


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

CooTek (Cayman) Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CooTek (Cayman) Inc.
  • Ticker: CTK
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$399.274m
  • Shares outstanding: 61.81m
  • Website: https://www.cootek.com

Number of Employees


Location

  • CooTek (Cayman) Inc.
  • No.16, Xinlong Road
  • 9-11 Floors
  • Shanghai
  • 201101
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTKNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDSep 2018
CT7ADB (Deutsche Boerse AG)YesSPONSORED ADSDEEURSep 2018

Biography

CooTek (Cayman) Inc. operates as a mobile internet company in the United States, the People's Republic of China, and internationally. Its primary product is TouchPal Smart Input, an input method for mobile ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 00:05
End of Day Share Price2020/08/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.