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Charles & Colvard Ltd
NASDAQ:CTHR

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Charles & Colvard Ltd Logo
Charles & Colvard Ltd
NASDAQ:CTHR
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Price: 0.341 USD 0.26% Market Closed
Updated: Mar 29, 2024

Intrinsic Value

CTHR's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

Charles & Colvard Ltd. engages in the manufacture and distribution of moissanite jewels and finished jewelry featuring moissanite for sale in the worldwide jewelry market. [ Read More ]

The intrinsic value of one CTHR stock under the Base Case scenario is 0.567 USD. Compared to the current market price of 0.341 USD, Charles & Colvard Ltd is Undervalued by 40%.

Key Points:
CTHR Intrinsic Value
Base Case
0.567 USD
Undervaluation 40%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Charles & Colvard Ltd

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Fundamental Analysis

Company Navigates Economic Challenge
2024-Q2 Earnings Call

Company Navigates Economic Challenge

In Q2 2024, the company saw net sales fall 24% to $7.9 million, signaling the general economic uncertainties and a strategic shift towards direct-to-consumer sales, which now represent 84% of total sales, up from 76% a year prior. Despite this, gross margins declined to 36% from 41%, and operating expenses rose 5%. The shift in strategy and legal fees pushed net loss to $2.9 million, a sizable increase from the $1 million loss during the same quarter last year. However, the company retains a strong financial base with $11.1 million in cash, no debt, and a $5 million credit line available. The leadership remains optimistic, emphasizing their ability to overcome industry challenges for future growth.

Financials

Balance Sheet Decomposition
Charles & Colvard Ltd

Current Assets 23.7m
Cash & Short-Term Investments 5.8m
Receivables 1.8m
Other Current Assets 16.1m
Non-Current Assets 20.8m
PP&E 4.5m
Intangibles 338.2k
Other Non-Current Assets 15.9m
Current Liabilities 8.3m
Accounts Payable 6m
Accrued Liabilities 1.6m
Other Current Liabilities 681.1k
Non-Current Liabilities 1.6m
Other Non-Current Liabilities 1.6m
Efficiency

Earnings Waterfall
Charles & Colvard Ltd

Revenue
25.1m USD
Cost of Revenue
-17.2m USD
Gross Profit
7.8m USD
Operating Expenses
-24.9m USD
Operating Income
-17.1m USD
Other Expenses
-6m USD
Net Income
-23.1m USD

Free Cash Flow Analysis
Charles & Colvard Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

CTHR Profitability Score
Profitability Due Diligence

Charles & Colvard Ltd's profitability score is 28/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Negative Free Cash Flow
Negative 3-Years Revenue Growth
Negative 1-Year Revenue Growth
28/100
Profitability
Score

Charles & Colvard Ltd's profitability score is 28/100. The higher the profitability score, the more profitable the company is.

CTHR Solvency Score
Solvency Due Diligence

Charles & Colvard Ltd's solvency score is 47/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Low D/E
Short-Term Solvency
Low Altman Z-Score
47/100
Solvency
Score

Charles & Colvard Ltd's solvency score is 47/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

CTHR Price Targets Summary
Charles & Colvard Ltd

Wall Street analysts forecast CTHR stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for CTHR is 1.1 USD .

Lowest
Price Target
Not Available
Average
Price Target
1.1 USD
223% Upside
Highest
Price Target
Not Available
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

CTHR Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

CTHR Price
Charles & Colvard Ltd

1M 1M
-6%
6M 6M
-40%
1Y 1Y
-62%
3Y 3Y
-88%
5Y 5Y
-70%
10Y 10Y
-88%
Annual Price Range
0.341
52w Low
0.3
52w High
1.21
Price Metrics
Average Annual Return 18.76%
Standard Deviation of Annual Returns 84.17%
Max Drawdown -92%
Shares Statistics
Market Capitalization 10.3m USD
Shares Outstanding 30 345 000
Percentage of Shares Shorted 0.82%

CTHR Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

Charles & Colvard Ltd Logo
Charles & Colvard Ltd

Country

United States of America

Industry

Textiles, Apparel & Luxury Goods

Market Cap

10.3m USD

Dividend Yield

0%

Description

Charles & Colvard Ltd. engages in the manufacture and distribution of moissanite jewels and finished jewelry featuring moissanite for sale in the worldwide jewelry market. The company is headquartered in Morrisville, North Carolina and currently employs 51 full-time employees. The company also markets and distributes Caydia lab grown diamonds and finished jewelry featuring lab grown diamonds. The firm operates through two operating segments: Online Channels segment, which encompasses digital properties components, comprises charlesandcolvard.com Website, e-commerce outlets, including marketplaces, drop-ship customers and other e-commerce customers; and Traditional segment, which consists of domestic and international distributors and retail customers. The firm sells loose moissanite jewels, loose lab grown diamonds, and finished jewelry featuring both moissanite and lab grown diamonds to distributors, manufacturers, retailers, and designers. The Company’s finished jewelry and loose moissanite jewels are sold at retail outlets and via the Internet.

Contact

NORTH CAROLINA
Morrisville
170 Southport Dr
+19194680399.0
https://www.charlesandcolvard.com/

IPO

1997-11-14

Employees

51

Officers

President, CEO & Director
Mr. Don O'Connell
CFO & Treasurer
Mr. Clint J. Pete

See Also

Discover More
What is the Intrinsic Value of one CTHR stock?

The intrinsic value of one CTHR stock under the Base Case scenario is 0.567 USD.

Is CTHR stock undervalued or overvalued?

Compared to the current market price of 0.341 USD, Charles & Colvard Ltd is Undervalued by 40%.