CTI Industries Corp.: Strong price momentum but will it sustain?

CTI Industries Corp. relative valuation is UNDERVALUED and it has a fundamental analysis score of 41.

Our analysis is based on comparing CTI Industries Corp. with the following peers – CSS Industries, Inc., Myers Industries, Inc., Sealed Air Corporation, Aptargroup, Inc., Berry Global Group Inc, Acme United Corporation, TriMas Corporation, Tupperware Brands Corporation, 3M Company and American Power Group Corporation (CSS-US, MYE-US, SEE-US, ATR-US, BERY-US, ACU-US, TRS-US, TUP-US, MMM-US and APGI-US).

CTI Industries Corp. has shown underwhelming performance overall, both over the last one year as well as over the last month. While, in what appears to be a redeeming aspect, CTI Industries Corp.’s price momentum over the last month, at -24.45% has been better than that over the last year, which was -35.81%, CTI Industries Corp. has actually lagged its peer group.

Company Snapshot

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • It trades at a lower Price/Book multiple (1.23) than its peer median (5.82).
  • The market expects faster earnings growth from CTIB-US than from its peers and also a turnaround in its current ROE.
  • CTIB-US has relatively low net profit margins while its asset efficiency is relatively high.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • CTIB-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.
  • The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
  • Compared with the peers chosen, CTIB-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
  • CTIB-US seems too levered to raise additional debt.
  • Our analysis rates CTI Industries Corp. as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative underperformance over the last year and the last month suggest a lagging position.

CTIB-US‘s share price performance of -35.81% for the last 12 months is below its peer median. The 30-day trend in its share price performance of -24.45% is also below the peer median implying that the company’s stock performance is lagging its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

CTI Industries Corp.’s price of USD 4.23 is lower than CapitalCube’s implied price of USD 11.00. CapitalCube believes that at these levels, CTI Industries Corp. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 3.83 and USD 6.99.

Valuation & Peer Metrics

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

Company Profile

CTI Industries Corp. engages in the provision of design and development of flexible film products. Its activities include development, production and distribution of innovative flexible film products for commercial and for consumer markets. Its products include balloon, vacuum sealing and commercial film. The company was founded on October 14, 1983 and is headquartered in Lake Barrington, IL.

Disclaimer

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