Creative Technology (C76) AI Stock Analysis

• Market Cap: S$54.91M
• Dividend Yield: N/A
• Average Volume (3M): 30.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: 13.62%
• EPS Growth: -25.44%
• Country: SG
• Employees: N/A
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): N/A
• Shares Outstanding: 75,000,000
• 10 Day Avg. Volume: 11,280
• 30 Day Avg. Volume: 30,180
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ―

Creative Technology's overall score is low due to significant financial performance challenges, including declining revenues and persistent cash flow issues. The technical analysis indicates weak momentum, and the negative valuation metrics further stress the need for improvement in financial health and strategic direction.

Creative Technology Business Overview & Revenue Model

Company Description

Creative Technology Ltd, together with its subsidiaries, designs, manufactures, and distributes digital entertainment products worldwide. The company offers digitized sound and video boards, computers, and related multimedia and personal digital entertainment products. It also provides headphones, gaming headsets, speakers, sound cards, sound blasters, work solutions, webcams, adapters and accessories, audio products, refurbished products, amplifiers, and others. In addition, the company offers multimedia solutions for personal computers and personal digital entertainment products. It markets its products and solutions to consumers and system integrators through a distribution network, including traditional marketing channels, original equipment manufacturers, and the Internet. Creative Technology Ltd was founded in 1981 and is headquartered in Singapore.

How the Company Makes Money

Creative Technology makes money primarily through the sale of its audio and multimedia products, such as sound cards, speakers, headphones, and related accessories. It also generates revenue from licensing its technology and intellectual property to other companies. Additionally, Creative has partnerships and collaborations with various technology firms to integrate its audio solutions into their products, further contributing to its earnings. The company focuses on maintaining a strong presence in the consumer electronics market, tapping into both direct sales to consumers and business-to-business channels.

Creative Technology Financial Statement Overview

Summary

Creative Technology is facing challenges with declining revenues and ongoing losses impacting profitability. The balance sheet is strong due to low leverage, but cash flow issues are a major concern, indicating a need for external funding or strategic changes.

Income Statement

The company has shown a decline in revenue from $84.47 million in 2021 to $68.37 million in TTM 2024, indicating a negative growth trajectory. Gross profit margin for TTM 2024 is roughly 30%, consistent with previous reports. However, the company is not profitable, as shown by a negative net profit margin and EBIT margin. The consistent negative EBITDA margin further highlights operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is low due to minimal leverage, which is a strength. The company's equity ratio is approximately 63% in TTM 2024, indicating a strong capital structure. However, return on equity is negative, reflecting ongoing losses. The overall liquidity position remains solid due to substantial cash reserves.

Cash Flow

Operating cash flow and free cash flow are consistently negative, indicating cash consumption rather than generation. This trend is concerning, given the company's negative operating cash flow to net income ratio in TTM 2024. The lack of positive cash flow poses a risk to long-term sustainability without external funding.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	62.78M	56.24M	61.32M	84.47M	61.16M
Gross Profit	19.01M	13.92M	19.50M	28.08M	17.10M
EBITDA	-9.11M	-19.30M	-15.68M	-4.96M	-16.70M
Net Income	-10.83M	-16.71M	-10.98M	-7.67M	-17.57M
Balance Sheet
Total Assets	80.06M	91.16M	107.96M	122.03M	130.50M
Cash, Cash Equivalents and Short-Term Investments	42.12M	56.32M	71.24M	86.00M	96.80M
Total Debt	2.06M	3.20M	2.38M	3.71M	5.54M
Total Liabilities	29.63M	31.09M	31.01M	34.20M	38.11M
Stockholders Equity	50.04M	59.69M	76.58M	87.46M	92.07M
Cash Flow
Free Cash Flow	-12.35M	―	―	―	―
Operating Cash Flow	-12.30M	-12.27M	-19.31M	―	―
Investing Cash Flow	-48.00K	―	9.97M	485.75K	―
Financing Cash Flow	-1.53M	―	―	―	―

Creative Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 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 SG:C76, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.82, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.17 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:C76.

Creative Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
D05	78 Outperform	$141.40B	12.56	17.10%	5.28%	2.67%	6.32%
A17U	72 Outperform	$12.44B	16.92	6.96%	5.66%	2.35%	365.31%
H02	72 Outperform	$3.09B	12.34	6.37%	10.12%	5.85%	6.82%
AWX	55 Neutral	S$451.26M	32.41	2.87%	―	4.60%	―
Sector *	55 Neutral	$296.27M	4.23	-5.17%	2.67%	9.75%	-67.81%
C76	43 Neutral	S$54.91M	―	-25.55%	―	13.62%	-25.44%

Creative Technology Corporate Events

Creative Technology CEO Retires, Interim Leadership Announced

Creative Technology announced the retirement of CEO Song Siow Hui after a 30-year career, with Executive Chairman Dr. Tan Jok Tin stepping in as Interim CEO. The company is conducting a global search for a new leader to drive its next phase of growth, emphasizing sustainable growth and operational excellence.