Fundamental Analysis of THE9 LTD-ADR(NASDAQ:NCTY) stock

Fundamental Rating

Overall NCTY gets a fundamental rating of 2 out of 10. We evaluated NCTY against 277 industry peers in the Software industry. NCTY has a bad profitability rating. Also its financial health evaluation is rather negative. NCTY is quite expensive at the moment. It does show a decent growth rate.

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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.

In the past 5 years NCTY always reported negative operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 5.50%, NCTY belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.

NCTY's Return On Equity of 9.70% is amongst the best of the industry. NCTY outperforms 82.61% of its industry peers.

		Industry Rank	Sector 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

1.3 Margins

With an excellent Profit Margin value of 11.17%, NCTY belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.

In the last couple of years the Profit Margin of NCTY has declined.

The Operating Margin and Gross Margin are not available for NCTY so they could not be analyzed.

		Industry Rank	Sector 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

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ROA

ROE

ROIC

Operating and Profit Margin

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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

NCTY has more shares outstanding than it did 5 years ago.

Compared to 1 year ago, NCTY has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of -17.20, we must say that NCTY is in the distress zone and has some risk of bankruptcy.

NCTY has a worse Altman-Z score (-17.20) than 89.86% of its industry peers.

NCTY has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.

NCTY has a Debt to Equity ratio (0.08) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.08
Debt/FCF	N/A
Altman-Z	-17.2

ROIC/WACCN/A

WACC8.9%

2.3 Liquidity

A Current Ratio of 1.37 indicates that NCTY should not have too much problems paying its short term obligations.

NCTY has a Current ratio (1.37) which is comparable to the rest of the industry.

A Quick Ratio of 1.37 indicates that NCTY should not have too much problems paying its short term obligations.

NCTY has a Quick ratio (1.37) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.37
Quick Ratio	1.37

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 97.21% over the past year.

The earnings per share for NCTY have been decreasing by -92.55% on average. This is quite bad

Looking at the last year, NCTY shows a very strong growth in Revenue. The Revenue has grown by 65.70%.

Measured over the past years, NCTY shows a very strong growth in Revenue. The Revenue has been growing by 59.40% on average per year.

EPS 1Y (TTM)97.21%

EPS 3Y-92.55%

EPS 5YN/A

EPS growth Q2Q102.8%

Revenue 1Y (TTM)65.7%

Revenue growth 3Y568.25%

Revenue growth 5Y59.4%

Revenue growth Q2Q28.58%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NCTY. In the last year negative earnings were reported.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

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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5. Dividend

5.1 Amount

No dividends for NCTY!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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THE9 LTD-ADR

NASDAQ:NCTY (5/13/2024, 7:00:02 PM)

7.18

+0.52 (+7.81%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap40.10M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	5.5%
ROE	9.7%
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	11.17%
GM	N/A
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.49

Health

		Industry Rank	Sector Rank
Debt/Equity	0.08
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	1.37
Quick Ratio	1.37
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)97.21%

EPS 3Y-92.55%

EPS 5Y

EPS growth Q2Q

EPS Next YN/A

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)65.7%

Revenue growth 3Y568.25%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

THE9 LTD-ADR (NCTY)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens