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THE9 LTD-ADR (NCTY) Stock Fundamental Analysis

NASDAQ:NCTY - Nasdaq - US88337K4013 - ADR - Currency: USD

12.3  +0.43 (+3.62%)

Fundamental Rating

2

Taking everything into account, NCTY scores 2 out of 10 in our fundamental rating. NCTY was compared to 281 industry peers in the Software industry. NCTY may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, NCTY is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year NCTY has reported negative net income.
In the past year NCTY has reported a negative cash flow from operations.
In multiple years NCTY reported negative net income over the last 5 years.
NCTY had a negative operating cash flow in each of the past 5 years.
NCTY Yearly Net Income VS EBIT VS OCF VS FCFNCTY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M -600M -800M

1.2 Ratios

Looking at the Return On Assets, with a value of 5.50%, NCTY is in the better half of the industry, outperforming 75.18% of the companies in the same industry.
With a decent Return On Equity value of 9.70%, NCTY is doing good in the industry, outperforming 76.60% of the companies in the same industry.
Industry RankSector Rank
ROA 5.5%
ROE 9.7%
ROIC N/A
ROA(3y)-62.87%
ROA(5y)105.2%
ROE(3y)-731.78%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NCTY Yearly ROA, ROE, ROICNCTY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500 -500 -1K -1.5K -2K

1.3 Margins

The Profit Margin of NCTY (11.17%) is better than 75.18% of its industry peers.
NCTY's Profit Margin has declined in the last couple of years.
NCTY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 11.17%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-94.47%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
NCTY Yearly Profit, Operating, Gross MarginsNCTY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20K -20K 40K -40K 60K -60K

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2

2. Health

2.1 Basic Checks

NCTY does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NCTY has more shares outstanding
Compared to 5 years ago, NCTY has more shares outstanding
Compared to 1 year ago, NCTY has a worse debt to assets ratio.
NCTY Yearly Shares OutstandingNCTY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M
NCTY Yearly Total Debt VS Total AssetsNCTY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

Based on the Altman-Z score of -15.16, we must say that NCTY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -15.16, NCTY is doing worse than 91.84% of the companies in the same industry.
NCTY has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.08, NCTY is in line with its industry, outperforming 53.90% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Altman-Z -15.16
ROIC/WACCN/A
WACC9.36%
NCTY Yearly LT Debt VS Equity VS FCFNCTY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M

2.3 Liquidity

NCTY has a Current Ratio of 1.37. This is a normal value and indicates that NCTY is financially healthy and should not expect problems in meeting its short term obligations.
NCTY has a Current ratio (1.37) which is in line with its industry peers.
NCTY has a Quick Ratio of 1.37. This is a normal value and indicates that NCTY is financially healthy and should not expect problems in meeting its short term obligations.
NCTY has a Quick ratio (1.37) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.37
Quick Ratio 1.37
NCTY Yearly Current Assets VS Current LiabilitesNCTY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

NCTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 97.21%, which is quite impressive.
The earnings per share for NCTY have been decreasing by -92.55% on average. This is quite bad
The Revenue has grown by 65.70% in the past year. This is a very strong growth!
The Revenue has been growing by 59.40% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)97.21%
EPS 3Y-92.55%
EPS 5YN/A
EPS Q2Q%102.8%
Revenue 1Y (TTM)65.7%
Revenue growth 3Y568.25%
Revenue growth 5Y59.4%
Sales Q2Q%28.58%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
NCTY Yearly Revenue VS EstimatesNCTY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

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0

4. Valuation

4.1 Price/Earnings Ratio

NCTY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
NCTY Price Earnings VS Forward Price EarningsNCTY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0 0 0 0 0 0 0

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
NCTY Per share dataNCTY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

NCTY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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THE9 LTD-ADR

NASDAQ:NCTY (5/2/2025, 8:12:49 PM)

12.3

+0.43 (+3.62%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners2.73%
Inst Owner Change19.57%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap110.54M
Analysts0
Price TargetN/A
Short Float %70.33%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 4.49
P/FCF N/A
P/OCF N/A
P/B 3.9
P/tB 3.9
EV/EBITDA N/A
EPS(TTM)-4.86
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)-0.71
OCFYN/A
SpS2.74
BVpS3.16
TBVpS3.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.5%
ROE 9.7%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 11.17%
GM N/A
FCFM N/A
ROA(3y)-62.87%
ROA(5y)105.2%
ROE(3y)-731.78%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-94.47%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 2.43%
Cap/Sales 1.18%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.37
Quick Ratio 1.37
Altman-Z -15.16
F-Score6
WACC9.36%
ROIC/WACCN/A
Cap/Depr(3y)158%
Cap/Depr(5y)118.61%
Cap/Sales(3y)94.05%
Cap/Sales(5y)123.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)97.21%
EPS 3Y-92.55%
EPS 5YN/A
EPS Q2Q%102.8%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)65.7%
Revenue growth 3Y568.25%
Revenue growth 5Y59.4%
Sales Q2Q%28.58%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y42.01%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y88.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y70.06%
OCF growth 3YN/A
OCF growth 5YN/A