Creative Global Technology Holdings Limited (CGTL) AI Stock Analysis

• Market Cap: $24.79M
• Dividend Yield: N/A
• Average Volume (3M): 1.62M
• Price to Earnings (P/E): ―
• Beta (1Y): -2.21
• Revenue Growth: -36.13%
• EPS Growth: -556.93%
• Country: US
• Employees: 17
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.03
• Shares Outstanding: 21,437,500
• 10 Day Avg. Volume: 4,565,109
• 30 Day Avg. Volume: 1,617,335
• PEG Ratio: 0.58
• Price to Book (P/B): 5.81
• Price to Sales (P/S): 2.20
• P/FCF Ratio: -22.07
• Enterprise Value/Market Cap: 4.46
• Enterprise Value/Revenue: 6.64
• Enterprise Value/Gross Profit: 28.73
• Enterprise Value/Ebitda: 82.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ―

Creative Global Technology Holdings Limited displays strengths in income growth and balance sheet robustness, with a solid revenue expansion and low leverage. However, cash flow challenges pose a significant risk, and technical indicators suggest bearish momentum. The high P/E ratio relative to earnings indicates overvaluation, contributing to a cautious outlook.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates strong financial health, providing the company with flexibility to invest in growth opportunities without the burden of high-interest obligations.

Profitability

Improved net profit margins demonstrate effective cost management and pricing strategies, enhancing the company's ability to generate profits and reinvest in its business.

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion and competitive positioning.

Negative Factors

Cash Flow Challenges

Negative operating cash flow suggests difficulties in converting earnings into cash, potentially limiting the company's ability to fund operations and growth initiatives.

Revenue Decline

A significant decline in revenue growth can indicate market challenges or competitive pressures, potentially impacting long-term business sustainability and market share.

Cash Reserves Decrease

Decreasing cash reserves may limit the company's ability to invest in new projects or weather economic downturns, impacting its financial stability and growth prospects.

Creative Global Technology Holdings Limited Business Overview & Revenue Model

Company Description

Creative Global Technology Holdings Limited (CGTL) is a multinational corporation operating in the technology and innovation sector. The company specializes in the development and distribution of cutting-edge software solutions, hardware products, and digital services that cater to various industries including healthcare, finance, and consumer electronics. CGTL is committed to driving technological advancements and enhancing global connectivity through its diverse portfolio of high-tech products and services.

How the Company Makes Money

CGTL generates revenue through a multi-faceted business model that encompasses several key streams. Primarily, the company earns income from the sale of its proprietary software licenses and subscription-based digital services, which provide recurring revenue. Additionally, CGTL profits from the sale of hardware products, such as consumer electronics and specialized industry equipment. The company also engages in strategic partnerships and collaborations with other technology firms and industry leaders to expand its market reach and enhance its product offerings, contributing significantly to its earnings. Revenue is further bolstered by consulting services and technical support provided to its clients, ensuring comprehensive solutions and customer satisfaction.

Creative Global Technology Holdings Limited Financial Statement Overview

Summary

Creative Global Technology Holdings Limited demonstrates strong growth and profitability, supported by efficient cost management and revenue expansion. The balance sheet is robust with low leverage, but recent cash flow challenges warrant attention. The company is well-positioned in the retail discretionary sector, and addressing cash flow issues could further enhance financial stability.

Income Statement

Creative Global Technology Holdings Limited has shown strong income statement performance. The company exhibited a significant gross profit margin of 17.8% in the most recent year, indicating efficient cost management. Net profit margin rose to 12.0%, reflecting improved profitability. The revenue growth rate was 27.8% from 2022 to 2023, demonstrating robust growth. EBITDA margin was healthy at 14.6%. Overall, the company displays solid revenue growth and profitability trends.

Balance Sheet

The balance sheet of Creative Global Technology Holdings Limited indicates sound financial health with a low debt-to-equity ratio of 0.009, suggesting minimal leverage. The equity ratio stands at a high 82.5%, reflecting strong equity financing. Return on equity improved to 31.8%, showing effective utilization of equity to generate profits. However, the decrease in cash reserves could be a point of concern. Overall, the balance sheet reveals financial stability and prudent leverage management.

Cash Flow

The cash flow analysis shows mixed results. The company experienced negative operating cash flow in the latest period, which may indicate operational challenges. Free cash flow also turned negative, contrasting with previous positive trends. The operating cash flow to net income ratio was negative, highlighting a potential mismatch between earnings and cash generation. Despite these issues, prior periods showed strong free cash flow generation, suggesting potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.65M	35.61M	50.28M	27.86M	12.67M
Gross Profit	3.85M	6.34M	4.97M	4.45M	3.01M
EBITDA	1.35M	5.19M	3.80M	4.05M	2.84M
Net Income	790.38K	4.28M	3.16M	3.41M	2.49M
Balance Sheet
Total Assets	2.32M	16.32M	11.39M	8.10M	5.64M
Cash, Cash Equivalents and Short-Term Investments	28.37K	443.32K	4.31M	959.30K	297.86K
Total Debt	9.46K	126.89K	0.00	989.37K	953.70K
Total Liabilities	52.09K	2.86M	2.19M	2.08M	3.01M
Stockholders Equity	2.27M	13.46M	9.20M	6.02M	2.63M
Cash Flow
Free Cash Flow	-2.85M	-3.54M	4.87M	637.35K	-419.28K
Operating Cash Flow	-2.86M	-3.52M	4.87M	654.49K	-416.70K
Investing Cash Flow	1.12K	-18.60K	-3.78K	-17.14K	92.50K
Financing Cash Flow	578.08K	-299.32K	-1.55M	44.49K	368.49K

Creative Global Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TLF	61 Neutral	$24.28M	2.04	20.64%	―	-0.28%	363.27%
CGTL	57 Neutral	$24.79M	―	-88.34%	―	-36.13%	-556.93%
LGCB	45 Neutral	$21.86M	-2.33	-38.40%	―	5.80%	29.50%
SBDS	44 Neutral	$19.43M	―	-58.14%	―	-23.15%	62.52%
MOGU	40 Underperform	$21.91M	-2.71	-11.43%	―	-12.53%	-3.24%
TBHC	39 Underperform	$33.24M	-0.98	―	―	-8.63%	5.62%