Acorn International, Inc.: Strong price momentum but will it sustain?

Acorn International, Inc. relative valuation is NEUTRAL and it has a fundamental analysis score of 34.

Our analysis is based on comparing Acorn International, Inc. with the following peers – Liberty Interactive Corporation QVC Group Class A, SGOCO Group Ltd., Overstock.com, Inc. and EVINE Live Inc. Class A (QVCA-US, SGOC-US, OSTK-US and EVLV-US).

Acorn International, Inc. has shown good performance overall, both over the last one year (at 142.27%) as well as over the last month (at 25.14%). Share price performance over the last month, though has been lower than that over the last year. But Acorn International, Inc.’s stock has done better than its overall peer group whose performance was 9.38% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It trades at a lower Price/Book multiple (0.74) than its peer median (1.25).
  • The market expects ATV-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • ATV-US’s relatively low net margins and poor asset turns suggest a problematic operating strategy.
  • Changes in annual earnings (relative to peers) are better than the change in its revenues (relative to peers), implying the company is focused more on earnings.
  • ATV-US’s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • Company appears to give away relatively high gross margins to relatively high operating costs suggesting a differentiated product portfolio with low pre-tax margins relative to peers.
  • While ATV-US’s revenues growth has been below the peer median in the last few years, the market still gives the stock a P/E ratio that is around peer median and seems to see the company as a long-term strategic bet.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • ATV-US currently does not have any debt.
  • Our analysis rates Acorn International, Inc. as NEUTRAL relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

ATV-US’s share price performance of 142.27% over the last 12 months is above peer median of 20.70%. The 30-day trend in its share price performance of 25.14% is also above the peer median of 9.38% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Acorn International, Inc. is currently neutrally valued, as its previous close of USD 18.17 lies within the CapitalCube estimate range of USD 13.09 to USD 18.64. Over the last 52 week period, Acorn International, Inc. has fluctuated between USD 5.99 and USD 19.99.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Acorn International, Inc. operates as a marketing and branding company. It engages in developing, promoting, and selling a portfolio of proprietary-branded products, as well as new products from established third parties. The company operates through Direct-Sales Platforms as well as a Nationwide Distribution Network. The Direct-Sales Platform segment involves marketing and selling products directly to consumers in China through outbound marketing platform and Internet sales platform. The Nationwide Distribution Network segment covers distributors and retail outlets in all Chinese provinces. Acorn International was founded by Robert Walter Roche and Dong Jie Yang in 1998 and is headquartered in Shanghai, China.

Disclaimer

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