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 56.

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 110.85%) as well as over the last month (at 24.60%). 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 1.96% 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 (0.49) than its peer median (0.86).
  • ATV-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • ATV-US‘s relatively high profit margins are burdened by relative asset inefficiency.
  • 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.
  • Over the last five years, ATV-US‘s return on assets has improved from below median to better than the median among its peers, suggesting that the company has improved its relative operations markedly.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs 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 110.85% over the last 12 months is above peer median of 10.06%. The 30-day trend in its share price performance of 24.60% is also above the peer median of 1.96% 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 12.44 lies within the CapitalCube estimate range of USD 11.77 to USD 15.29. Over the last 52 week period, Acorn International, Inc. has fluctuated between USD 5.57 and USD 14.60.

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 diverse portfolio of proprietary-branded products, as well as well-established and promising new products from established third parties. The company operates through the following divisions: Direct Sales Platforms and 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 all provinces in China through distributors and allows reaching retail outlets across China. Acorn International was founded by Robert Walter Roche and Dong Jie Yang in 1998 and is headquartered in Shanghai, China.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.