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THE9 LTD-ADR (NCTY) Stock Fundamental Analysis

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

10.08  -0.93 (-8.45%)

After market: 10.58 +0.5 (+4.96%)

Fundamental Rating

1

Overall NCTY gets a fundamental rating of 1 out of 10. We evaluated NCTY against 282 industry peers in the Software industry. Both the profitability and financial health of NCTY have multiple concerns. NCTY does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

NCTY had negative earnings in the past year.
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 2024 0 200M -200M -400M -600M -800M

1.2 Ratios

NCTY's Return On Assets of -11.58% is on the low side compared to the rest of the industry. NCTY is outperformed by 61.35% of its industry peers.
NCTY has a Return On Equity (-16.73%) which is in line with its industry peers.
Industry RankSector Rank
ROA -11.58%
ROE -16.73%
ROIC N/A
ROA(3y)-56.23%
ROA(5y)123.91%
ROE(3y)-719.65%
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 2024 0 500 -500 -1K -1.5K -2K

1.3 Margins

NCTY does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
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 2024 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.
NCTY has more shares outstanding than it did 1 year ago.
NCTY has more shares outstanding than it did 5 years ago.
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 2024 5M 10M 15M 20M
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 2024 200M 400M 600M 800M 1B

2.2 Solvency

NCTY has an Altman-Z score of -7.55. This is a bad value and indicates that NCTY is not financially healthy and even has some risk of bankruptcy.
NCTY's Altman-Z score of -7.55 is on the low side compared to the rest of the industry. NCTY is outperformed by 86.17% of its industry peers.
NCTY has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, NCTY is in line with its industry, outperforming 45.04% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z -7.55
ROIC/WACCN/A
WACC9.06%
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 2024 0 500M -500M

2.3 Liquidity

NCTY has a Current Ratio of 1.18. 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 worse Current ratio (1.18) than 64.89% of its industry peers.
NCTY has a Quick Ratio of 1.18. This is a normal value and indicates that NCTY is financially healthy and should not expect problems in meeting its short term obligations.
NCTY's Quick ratio of 1.18 is on the low side compared to the rest of the industry. NCTY is outperformed by 64.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.18
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 2024 200M 400M 600M 800M 1B

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2

3. Growth

3.1 Past

NCTY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Revenue for NCTY has decreased by -37.45% in the past year. This is quite bad
Measured over the past years, NCTY shows a very strong growth in Revenue. The Revenue has been growing by 226.90% on average per year.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-120%
Revenue 1Y (TTM)-37.45%
Revenue growth 3Y-6.24%
Revenue growth 5Y226.9%
Sales Q2Q%-75.61%

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 2024 50M 100M 150M

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1

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

Based on the Enterprise Value to EBITDA ratio, NCTY is valued a bit cheaper than the industry average as 60.64% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 86.06
NCTY Per share dataNCTY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

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

No dividends for NCTY!.
Industry RankSector Rank
Dividend Yield N/A

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THE9 LTD-ADR

NASDAQ:NCTY (5/29/2025, 8:00:01 PM)

After market: 10.58 +0.5 (+4.96%)

10.08

-0.93 (-8.45%)

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 Change53.85%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap90.59M
Analysts0
Price TargetN/A
Short Float %72.38%
Short Ratio2.23
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 5.82
P/FCF N/A
P/OCF N/A
P/B 1.47
P/tB 1.5
EV/EBITDA 86.06
EPS(TTM)-1.18
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.82
FCFYN/A
OCF(TTM)-0.68
OCFYN/A
SpS1.73
BVpS6.84
TBVpS6.7
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.58%
ROE -16.73%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-56.23%
ROA(5y)123.91%
ROE(3y)-719.65%
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 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.18
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Debt/EBITDA 10.15
Cap/Depr 14.75%
Cap/Sales 8.04%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.18
Quick Ratio 1.18
Altman-Z -7.55
F-Score4
WACC9.06%
ROIC/WACCN/A
Cap/Depr(3y)98.21%
Cap/Depr(5y)117.75%
Cap/Sales(3y)74.17%
Cap/Sales(5y)71.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-120%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-37.45%
Revenue growth 3Y-6.24%
Revenue growth 5Y226.9%
Sales Q2Q%-75.61%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y78.32%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-10.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.35%
OCF growth 3YN/A
OCF growth 5YN/A