(NCTY) The9 - Ratings and Ratios
Gaming, Computing, Cloud Services
Description: NCTY The9
The9 Ltd ADR (NCTY) is a Chinese company operating in the Interactive Home Entertainment sub-industry. Its stock is listed on NASDAQ.
To evaluate NCTYs performance, we need to examine its financial health and operational efficiency. The companys Return on Equity (RoE) is -14.35%, indicating that it is currently unprofitable. A negative RoE suggests that the company is not generating income from its equity, which could be a concern for investors.
Key economic drivers for NCTY include the growth of the online gaming market in China and the global demand for interactive entertainment. The companys revenue is likely influenced by the popularity of its games, user engagement, and monetization strategies. To improve its financial performance, NCTY may need to focus on developing new games, enhancing user experience, and optimizing its revenue streams.
Some key performance indicators (KPIs) to monitor NCTYs progress include revenue growth, average revenue per user (ARPU), and user acquisition costs. Analyzing these metrics can provide insights into the companys operational efficiency and its ability to generate cash flows. Additionally, monitoring the companys cash burn rate and its ability to manage expenses will be crucial in assessing its financial sustainability.
Given the companys negative P/E ratio, investors are likely pricing in significant uncertainty or potential restructuring. To create value, NCTYs management should prioritize strategies that drive revenue growth, improve profitability, and enhance shareholder value. This may involve investing in new game development, expanding into new markets, or optimizing its cost structure.
NCTY Stock Overview
| Market Cap in USD | 107m |
| Sub-Industry | Interactive Home Entertainment |
| IPO / Inception | 2004-12-15 |
NCTY Stock Ratings
| Growth Rating | -33.6% |
| Fundamental | 28.1% |
| Dividend Rating | 0.08% |
| Return 12m vs S&P 500 | 8.86% |
| Analyst Rating | - |
NCTY Dividends
Currently no dividends paidNCTY Growth Ratios
| Growth Correlation 3m | -23.7% |
| Growth Correlation 12m | 1.9% |
| Growth Correlation 5y | -68.8% |
| CAGR 5y | -28.00% |
| CAGR/Max DD 5y | -0.28 |
| Sharpe Ratio 12m | 0.11 |
| Alpha | 7.49 |
| Beta | 1.252 |
| Volatility | 93.18% |
| Current Volume | 22.6k |
| Average Volume 20d | 27.9k |
| Stop Loss | 8.5 (-7.2%) |
| Signal | 0.12 |
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (-52.0m TTM) > 0 and > 6% of Revenue (6% = 17.4m TTM) |
| FCFTA -0.10 (>2.0%) and ΔFCFTA -65.40pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 13.10% (prev 50.42%; Δ -37.32pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.07 (>3.0%) and CFO -44.2m > Net Income -52.0m (YES >=105%, WARN >=100%) |
| NO Net Debt/EBITDA fails (EBITDA <= 0) |
| Current Ratio 1.19 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (5.10m) change vs 12m ago -99.64% (target <= -2.0% for YES) |
| Gross Margin -11.85% (prev -55.29%; Δ 43.44pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 58.13% (prev 32.69%; Δ 25.44pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -5.70 (EBITDA TTM -46.7m / Interest Expense TTM 34.2m) >= 6 (WARN >= 3) |
Altman Z'' -45.34
| (A) 0.06 = (Total Current Assets 243.7m - Total Current Liabilities 205.6m) / Total Assets 636.6m |
| (B) -6.96 = Retained Earnings (Balance) -4.43b / Total Assets 636.6m |
| warn (B) unusual magnitude: -6.96 — check mapping/units |
| (C) -0.39 = EBIT TTM -195.0m / Avg Total Assets 500.2m |
| (D) -19.46 = Book Value of Equity -4.07b / Total Liabilities 209.1m |
| Total Rating: -45.34 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 28.11
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield -6.96% = -3.48 |
| 3. FCF Margin -21.39% = -7.50 |
| 4. Debt/Equity 0.31 = 2.45 |
| 5. Debt/Ebitda -2.97 = -2.50 |
| 6. ROIC - WACC -45.76% = -12.50 |
| 7. RoE -14.35% = -2.39 |
| 8. Rev. Trend 53.99% = 2.70 |
| 9. Rev. CAGR 475.2% = 2.50 |
| 10. EPS Trend 33.46% = 0.84 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of NCTY shares?
Over the past week, the price has changed by +8.34%, over one month by +2.87%, over three months by -9.18% and over the past year by +27.33%.
Is The9 a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NCTY is around 6.90 USD . This means that NCTY is currently overvalued and has a potential downside of -24.67%.
Is NCTY a buy, sell or hold?
What are the forecasts/targets for the NCTY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 3.5 | -61.8% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 7.9 | -13.3% |
Last update: 2025-08-22 04:44
NCTY Fundamental Data Overview
CCE Cash And Equivalents = 10.9m CNY (Cash And Short Term Investments, last quarter)
P/S = 0.9579
P/B = 1.7419
Beta = 1.812
Revenue TTM = 290.8m CNY
EBIT TTM = -195.0m CNY
EBITDA TTM = -46.7m CNY
Long Term Debt = 3.53m CNY (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 135.0m CNY (from shortTermDebt, last quarter)
Debt = 138.5m CNY (Calculated: Short Term 135.0m + Long Term 3.53m)
Net Debt = 125.7m CNY (from netDebt column, last quarter)
Enterprise Value = 893.2m CNY (765.5m + Debt 138.5m - CCE 10.9m)
Interest Coverage Ratio = -5.70 (Ebit TTM -195.0m / Interest Expense TTM 34.2m)
FCF Yield = -6.96% (FCF TTM -62.2m / Enterprise Value 893.2m)
FCF Margin = -21.39% (FCF TTM -62.2m / Revenue TTM 290.8m)
Net Margin = -17.89% (Net Income TTM -52.0m / Revenue TTM 290.8m)
Gross Margin = -11.85% ((Revenue TTM 290.8m - Cost of Revenue TTM 325.2m) / Revenue TTM)
Tobins Q-Ratio = -0.22 (set to none) (Enterprise Value 893.2m / Book Value Of Equity -4.07b)
Interest Expense / Debt = 24.70% (Interest Expense 34.2m / Debt 138.5m)
Taxrate = 21.0% (US default)
NOPAT = -195.0m (EBIT -195.0m, no tax applied on loss)
Current Ratio = 1.19 (Total Current Assets 243.7m / Total Current Liabilities 205.6m)
Debt / Equity = 0.31 (Debt 138.5m / last Quarter total Stockholder Equity 441.3m)
Debt / EBITDA = -2.97 (Net Debt 125.7m / EBITDA -46.7m)
Debt / FCF = -2.23 (Debt 138.5m / FCF TTM -62.2m)
Total Stockholder Equity = 362.5m (last 4 quarters mean)
RoA = -8.17% (Net Income -52.0m, Total Assets 636.6m )
RoE = -14.35% (Net Income TTM -52.0m / Total Stockholder Equity 362.5m)
RoCE = -53.28% (Ebit -195.0m / (Equity 362.5m + L.T.Debt 3.53m))
RoIC = -33.76% (NOPAT -195.0m / Invested Capital 577.7m)
WACC = 11.99% (E(765.5m)/V(904.1m) * Re(10.63%)) + (D(138.5m)/V(904.1m) * Rd(24.70%) * (1-Tc(0.21)))
Shares Correlation 5-Years: 0.0 | Cagr: -69.57%
Discount Rate = 10.63% (= CAPM, Blume Beta Adj.)
Fair Price DCF = unknown (Cash Flow -62.2m)
Revenue Correlation: 53.99 | Revenue CAGR: 475.2%
Rev Growth-of-Growth: -405.4
EPS Correlation: 33.46 | EPS CAGR: 0.0%
EPS Growth-of-Growth: -108.5
Additional Sources for NCTY Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle