NYSE:CTK

Stock Analysis Report

Executive Summary

CooTek (Cayman) Inc. operates as an artificial intelligence (AI) and big data-driven mobile Internet company in the United States and internationally.


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


Market Performance


7 Day Return

16.9%

CTK

9.6%

US Software

10.5%

US Market


1 Year Return

-37.4%

CTK

8.0%

US Software

-11.5%

US Market

Return vs Industry: CTK underperformed the US Software industry which returned 8% over the past year.

Return vs Market: CTK underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

CTKIndustryMarket
7 Day16.9%9.6%10.5%
30 Day10.1%-7.8%-15.4%
90 Day37.0%-7.1%-21.4%
1 Year-37.4%-37.4%9.2%8.0%-9.6%-11.5%
3 Yearn/a100.6%92.0%12.6%5.4%
5 Yearn/a170.4%151.5%32.8%18.1%

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?

11.02x

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 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 (11x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

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

121.1%

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 (1.7%).

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 (62.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CTK's revenue (62.2% 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?

-463.1%

Last years 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: Insufficient data to determine if CTK's year-on-year earnings growth rate was positive over the past 5 years.

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 (18.7%).


Return on Equity

High ROE: CTK has a negative Return on Equity (-94.7%), 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 ($95.6M) exceed its short term liabilities ($62.3M).

Long Term Liabilities: CTK's short term assets ($95.6M) exceed its long term liabilities ($596.0K).


Debt to Equity History and Analysis

Debt Level: CTK's debt to equity ratio (23.2%) 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

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

Debt Coverage by Assets: CTK's debt is covered by short term assets (assets are 10.6x 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: CTK has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CTK has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 57.2% each year.


Next Steps

Dividend

What is CooTek (Cayman)'s 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 payouts.

High Dividend: Unable to evaluate CTK'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 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?


CEO

Michael Wang (40yo)

no data

Tenure

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


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 been substantially diluted in the past year, with total shares outstanding growing by 115.5%.


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$435.526m
  • Shares outstanding: 63.58m
  • Website: https://www.cootek.com

Number of Employees


Location

  • CooTek (Cayman) Inc.
  • Building 7
  • No. 2007 Hongmei Road
  • Shanghai
  • 201103
  • 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 an artificial intelligence (AI) and big data-driven mobile Internet company in the United States and internationally. Its primary product is TouchPal Smart Input, an input method for mobile devices that supports approximately 110 languages. The company also offers other mobile applications, such as fitness application comprising HiFit, ManFIT, Abs Workout, and Step Tracker; Cherry that helps women track menstrual cycles and provides women with healthcare-related content; Horoscope Secret, which provides horoscope and fortune-related content; and Drink Water Reminder that helps users drink an appropriate amount of water on a daily basis. In addition, it provides Blue Light Filter, which helps protect users’ eyes by adjusting the screen color of a mobile device; VeeU that displays horizontal aggregated video content and professional user-generated short video content; and Breeze, which provides high-quality peaceful music, soothing sounds, and videos of guided meditations, as well as TouchPal Phonebook, a Chinese communication application that enables users in China to make phone calls through Internet for free, to search contacts on the dial pad, and to block spam calls. The company was founded in 2008 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 Analysis2020/03/28 03:47
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.