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THE9 LTD-ADR (NCTY) Stock Fundamental Analysis

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

16.47  +1.59 (+10.69%)

After market: 16.34 -0.13 (-0.79%)

Fundamental Rating

2

Overall NCTY gets a fundamental rating of 2 out of 10. We evaluated NCTY against 284 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.


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.
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 0 200M -200M -400M -600M -800M

1.2 Ratios

NCTY has a better Return On Assets (5.50%) than 77.54% of its industry peers.
NCTY has a better Return On Equity (9.70%) than 78.26% of its industry peers.
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

With a decent Profit Margin value of 11.17%, NCTY is doing good in the industry, outperforming 77.17% of the companies in the same industry.
In the last couple of years the Profit Margin of NCTY has declined.
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.
The number of shares outstanding for NCTY has been increased compared to 1 year ago.
The number of shares outstanding for NCTY has been increased compared to 5 years ago.
NCTY has a worse debt/assets ratio than last year.
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

NCTY has an Altman-Z score of -14.13. This is a bad value and indicates that NCTY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NCTY (-14.13) is worse than 92.39% 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.
The Debt to Equity ratio of NCTY (0.08) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.08
Debt/FCF N/A
Altman-Z -14.13
ROIC/WACCN/A
WACC12.58%
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

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 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.
Looking at the Quick ratio, with a value of 1.37, NCTY is in line with its industry, outperforming 43.84% of the companies in the same 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

The Earnings Per Share has grown by an impressive 97.21% over the past year.
NCTY shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -92.55% yearly.
NCTY shows a strong growth in Revenue. In the last year, the Revenue has grown by 65.70%.
NCTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 59.40% yearly.
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
NCTY Yearly EPS VS EstimatesNCTY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

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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 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 (2/21/2025, 8:00:01 PM)

After market: 16.34 -0.13 (-0.79%)

16.47

+1.59 (+10.69%)

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 Change899.5%
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap148.01M
Analysts0
Price TargetN/A
Short Float %64.02%
Short Ratio1.4
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend140
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 6
P/FCF N/A
P/OCF N/A
P/B 5.21
P/tB 5.21
EV/EBITDA N/A
EPS(TTM)-4.88
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)-0.71
OCFYN/A
SpS2.75
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 -14.13
F-Score6
WACC12.58%
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