Charles & Colvard (CTHR) AI Stock Analysis

• Market Cap: $491.86K
• Dividend Yield: N/A
• Average Volume (3M): 1.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -11.32
• Revenue Growth: -33.51%
• EPS Growth: 36.29%
• Country: US
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): N/A
• Shares Outstanding: 4,471,453
• 10 Day Avg. Volume: 1,909
• 30 Day Avg. Volume: 1,672
• PEG Ratio: 0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -0.62
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: -0.03
• 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: 45 Neutral
• Price Target: $0.50 ▲(233.33% Upside)

Charles & Colvard's stock score is significantly impacted by its poor financial performance and valuation. The company's strategic move to secure a convertible note agreement provides some positive outlook. However, technical indicators suggest a bearish trend, and the lack of earnings call data prevents a more comprehensive analysis.

Positive Factors

Strategic Investment

The $2M investment from Ethara Capital enhances financial stability and governance, potentially supporting long-term strategic initiatives and operational improvements.

Board Restructuring

Changes in board composition, including a new Chairman, may lead to improved strategic direction and governance, aligning with investor interests for sustainable growth.

Ethical Sourcing Appeal

Emphasizing ethical sourcing and sustainability aligns with consumer trends towards responsible luxury, potentially driving long-term revenue growth and brand loyalty.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial health and growth prospects.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and profitability challenges, which could hinder the company's ability to reinvest in growth and innovation over time.

Cash Flow Challenges

Persistent cash flow challenges suggest difficulties in converting earnings into cash, limiting the company's ability to fund operations and strategic initiatives sustainably.

Charles & Colvard Business Overview & Revenue Model

Company Description

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally. The company manufactures, markets, and distributes moissanite jewels and finished moissanite jewelry under the Charles & Colvard Created Moissanite brand; and premium moissanite gemstones under the Forever One brand name. It also markets and distributes lab grown diamonds, and finished jewelry with lab grown diamonds under the Caydia brand. The company sells its products at wholesale prices to distributors, manufacturers, retailers, and designers; and to end-consumers at retail prices through charlesandcolvard.com, third-party online marketplaces, drop-ship, and other e-commerce outlets. Charles & Colvard, Ltd. was founded in 1995 and is headquartered in Morrisville, North Carolina.

How the Company Makes Money

Charles & Colvard generates revenue through multiple streams, primarily driven by the sale of loose moissanite gemstones and finished jewelry products. The company markets its products through its own e-commerce website, which allows it to reach consumers directly and maintain higher profit margins. Additionally, it distributes its products wholesale to retailers and jewelry manufacturers, leveraging partnerships to expand its reach and enhance brand visibility. The company also benefits from strategic collaborations with designers and influencers, which help to promote its offerings and attract new customers. By focusing on sustainability and ethical sourcing, Charles & Colvard appeals to a growing segment of consumers interested in responsible luxury goods, thereby supporting its revenue growth.

Charles & Colvard Financial Statement Overview

Summary

The company faces significant financial challenges with a decline in revenue of -26.70%, negative EBIT and EBITDA margins, and a net profit margin of -65.41%. Despite a strong equity base, increasing debt and negative cash flow ratios indicate financial instability.

Income Statement

The company experienced a significant decline in revenue, with a revenue growth rate of -26.70% from 2023 to 2024. Despite a gross profit margin of 100% in 2024, the EBIT and EBITDA margins are negative, indicating substantial operational losses. The net profit margin is also negative at -65.41%, highlighting ongoing profitability challenges.

Balance Sheet

The company has a strong equity base, with an equity ratio of 115.73% in 2024, indicating low financial leverage. However, the debt-to-equity ratio increased to 0.17, reflecting higher debt levels. The return on equity is negative due to net losses, indicating inefficiencies in generating returns from equity.

Cash Flow

The free cash flow growth rate is negative, and free cash flow to net income ratio is unfavorable due to negative cash flow and net income. The operating cash flow to net income ratio is also negative, indicating cash flow challenges. The company faces difficulties in converting its earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.75M	21.96M	29.95M	43.09M	39.24M	29.19M
Gross Profit	2.64M	5.19M	4.73M	20.24M	18.43M	7.99M
EBITDA	-11.50M	-14.61M	-13.03M	3.35M	7.05M	-5.67M
Net Income	-11.97M	-14.36M	-19.58M	2.37M	12.81M	-6.16M
Balance Sheet
Total Assets	29.11M	40.98M	48.88M	69.21M	64.92M	48.90M
Cash, Cash Equivalents and Short-Term Investments	1.26M	4.14M	10.45M	15.67M	21.30M	13.99M
Total Debt	1.46M	4.41M	2.93M	3.70M	4.17M	2.41M
Total Liabilities	10.02M	15.33M	9.11M	9.65M	9.23M	7.47M
Stockholders Equity	19.09M	25.65M	39.77M	59.56M	55.69M	41.44M
Cash Flow
Free Cash Flow	-5.46M	-8.32M	-5.16M	-988.11K	5.99M	-286.79K
Operating Cash Flow	-5.49M	-7.37M	-3.88M	572.55K	6.47M	249.19K
Investing Cash Flow	-498.78K	-1.04M	-1.28M	-1.56M	-733.47K	-535.98K
Financing Cash Flow	-500.00K	2.30M	-451.81K	720.50K	1.09M	1.90M

Charles & Colvard Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTHR, the sentiment is Positive. The current price of 0.15 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.13, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 20.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTHR.

Charles & Colvard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOV	73 Outperform	$357.56M	23.40	4.40%	6.79%	0.63%	-7.37%
SIG	64 Neutral	$3.75B	27.58	8.24%	1.46%	-0.40%	-68.99%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOSL	54 Neutral	$189.60M	-2.72	-48.62%	―	-12.89%	45.32%
BRLT	51 Neutral	$156.18M	-6.86	-2.88%	14.29%	1.32%	-175.81%
BGI	46 Neutral	$19.79M	-2.25	―	―	4.49%	-87.94%
CTHR	45 Neutral	$491.86K	-0.03	-47.86%	―	-33.51%	36.29%

Charles & Colvard Corporate Events

Charles & Colvard announces CEO termination, appoints executive chair

On January 5, 2026, Charles & Colvard’s Board of Directors terminated President and Chief Executive Officer Don O’Connell without cause, marking a significant leadership change at the company. Effective the same day, Board Chair Michael Levin, 63, was appointed Executive Chair for an initial three-month term to oversee the company’s affairs, lead the executive team, and conduct the search for a new CEO, receiving $18,000 per month in lieu of other board compensation; the board emphasized Levin’s extensive financial and operational experience and clarified there are no family relationships, material related-party transactions, or special arrangements tied to his appointment.

The most recent analyst rating on (CTHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Charles & Colvard stock, see the CTHR Stock Forecast page.

Charles & Colvard Faces Default Notice and Board Changes

On June 24, 2025, Charles & Colvard, Ltd. entered into a Convertible Secured Note Purchase Agreement with Ethara Capital LLC, issuing a convertible secured note for $2 million. However, on November 25, 2025, the company received a notice of default for failing to pay the principal and interest by the maturity date, leading to an increased interest rate and potential legal actions. The company is currently in litigation and discussions with the note holder. Additionally, on November 26, 2025, Neal Goldman resigned from the board of directors, and the company certified the results of its Annual Meeting of Shareholders, held on October 13, 2025, following a court injunction. Benjamin Franklin, Michael R. Levin, Duc Pham, and Lloyd M. Sems were elected to the board, with a tie creating a vacancy for the fifth seat.

The most recent analyst rating on (CTHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Charles & Colvard stock, see the CTHR Stock Forecast page.

Charles & Colvard Delays Shareholder Meeting Results

Charles & Colvard, Ltd. held its Annual Meeting of Shareholders on October 13, 2025, focusing on the election of five board nominees. Due to ongoing legal challenges, the company has delayed announcing the meeting results, with plans to file an amended report once the situation is resolved.

The most recent analyst rating on (CTHR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Charles & Colvard stock, see the CTHR Stock Forecast page.