Fundamental analysis: Charles & Colvard, Ltd. (CTHR)

Awarener score: 5.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Modest) and growth (Poor), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.0

Business has been shrinking. It's been almost average when measured against peer companies.
Charles & Colvard, Ltd. business trend isn't so stable. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 4.7

CTHR profit margins -on goods and services sold- are usually sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be meagre. It's substantially worse when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a very weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still worse than most similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain weak when measured against rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands substantially worse when measured against comparable firms.

Growth score: 1.4

Charles & Colvard, Ltd. profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 7.0

CTHR had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses hardly consume a portion of revenues. It's weak when measured against competitors.
The company shows excellent business growth in relation to research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 4.2

Charles & Colvard, Ltd. usually gets low returns on the resources it controls. It proves substantially worse when measured against peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain a disappointment compared to similar companies.
Profitability -in relation to owned resources- is usually modest. It ranks weak when measured against competitors.
In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's substantially worse when measured against comparable enterprises.

Usage of Funds score: 5.0

CTHR usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands substantially worse when measured against rival firms.
The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is great when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually significantly enlarges the pool of investors, resulting in more mouths feeding on the pie of profits. It remains a disappointment compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
The company uses a low portion of genuine fund generation to reward investors, which can most likely be sustained. It still looks great when measured against competitors.

Balance Sheet score: 6.6

Charles & Colvard, Ltd. intangible assets (like brands and goodwill) represent a non-significant portion of resources controlled, according to accounting books, which is safer. It happens to be encouraging in relation to peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be impressive in relation to similar firms.
Roughly a tenth of resources controlled were provided for with financial debt. Creditors have minor claims on the company, and financial position is safe. It remains top-notch against rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks top tier when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is top-notch against similar enterprises.
Usually, sales are on less than a month credit. It still ranks almost average when measured against peers.
Normally has approximately five months of sales worth in inventory. It comes up as lacking compared to competitors.
On average, it takes higher than five months from the purchase to charging customers. It happens to be mediocre against peers.
On average pays suppliers longer than two months after the purchase. It ranks encouraging in relation to industry peers.
The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's lacking compared to similar companies.
Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in good shape compared to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 5.2

Charles & Colvard, Ltd. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
In the past twelve months, the company consumed funds. Either it reinvested significantly in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still weak when measured against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in a very weak position compared to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains better than most peer firms.
In the past twelve months, the operating business lost a lot of money. It happens to be last-in-rank when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 4.8

Company at a glance: Charles & Colvard, Ltd. (CTHR)

Sector, industry: Consumer Cyclical, Luxury Goods

Market Cap: 0.03 billions

Revenues TTM: 0.03 billions

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally. The company manufactures, markets, and distributes moissanite jewels and finished moissanite jewelry under the Charles & Colvard Created Moissanite brand; and premium moissanite gemstones under the Forever One brand name. It also markets and distributes lab grown diamonds, and finished jewelry with lab grown diamonds under the Caydia brand. The company sells its products at wholesale prices to distributors, manufacturers, retailers, and designers; and to end-consumers at retail prices through charlesandcolvard.com, third-party online marketplaces, drop-ship, and other e-commerce outlets. Charles & Colvard, Ltd. was founded in 1995 and is headquartered in Morrisville, North Carolina.