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THE9 LTD-ADR (NCTY) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:NCTY - US88337K4013 - ADR

6.91 USD
-0.31 (-4.29%)
Last: 12/24/2025, 7:50:43 PM
Fundamental Rating

1

NCTY gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 278 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.
NCTY had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NCTY reported negative net income in multiple 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

Looking at the Return On Assets, with a value of -11.58%, NCTY is doing worse than 65.11% of the companies in the same industry.
NCTY has a Return On Equity of -16.73%. This is comparable to the rest of the industry: NCTY outperforms 43.17% of 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.
The number of shares outstanding for NCTY has been increased compared to 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

Based on the Altman-Z score of -8.40, we must say that NCTY is in the distress zone and has some risk of bankruptcy.
NCTY has a Altman-Z score of -8.40. This is amonst the worse of the industry: NCTY underperforms 88.13% 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.
The Debt to Equity ratio of NCTY (0.20) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF N/A
Altman-Z -8.4
ROIC/WACCN/A
WACC6.34%
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

A Current Ratio of 1.18 indicates that NCTY should not have too much problems paying its short term obligations.
NCTY's Current ratio of 1.18 is on the low side compared to the rest of the industry. NCTY is outperformed by 66.91% 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 has a worse Quick ratio (1.18) than 65.83% 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

The earnings per share for NCTY have decreased by 0.00% in the last year.
Looking at the last year, NCTY shows a very negative growth in Revenue. The Revenue has decreased by -37.45% in the last year.
NCTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 226.90% yearly.
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

The Price/Earnings Ratio is negative for NCTY. In the last year negative earnings were reported.
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 60.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 54.57
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 0%

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THE9 LTD-ADR

NASDAQ:NCTY (12/24/2025, 7:50:43 PM)

6.91

-0.31 (-4.29%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners0.98%
Inst Owner Change-45.28%
Ins Owners2.75%
Ins Owner ChangeN/A
Market Cap62.10M
Revenue(TTM)112.00M
Net Income(TTM)-73.77M
Analysts0
Price TargetN/A
Short Float %77.08%
Short Ratio3.22
Dividend
Industry RankSector Rank
Dividend Yield 0%
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 3.89
P/FCF N/A
P/OCF N/A
P/B 0.99
P/tB 1.01
EV/EBITDA 54.57
EPS(TTM)-1.21
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)-0.7
OCFYN/A
SpS1.78
BVpS7.01
TBVpS6.87
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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 -8.4
F-Score4
WACC6.34%
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

THE9 LTD-ADR / NCTY FAQ

Can you provide the ChartMill fundamental rating for THE9 LTD-ADR?

ChartMill assigns a fundamental rating of 1 / 10 to NCTY.


What is the valuation status of THE9 LTD-ADR (NCTY) stock?

ChartMill assigns a valuation rating of 1 / 10 to THE9 LTD-ADR (NCTY). This can be considered as Overvalued.


How profitable is THE9 LTD-ADR (NCTY) stock?

THE9 LTD-ADR (NCTY) has a profitability rating of 1 / 10.


Can you provide the dividend sustainability for NCTY stock?

The dividend rating of THE9 LTD-ADR (NCTY) is 0 / 10 and the dividend payout ratio is 0%.