CLCT  Collectors Universe Inc.

Exchange

NASDAQ

Sector

Miscellaneous

Industry

Business Services

Market Cap.

224.52M

Vuru Grade

55.00/100

Current Price

$25.17
+0.17 (+0.68%)

Growth Price

$6.49
Overvalued by 74.21%

Stability Price

$10.32
Overvalued by 58.98%

Company Metrics

  • P/E 22.90
  • P/S 3.25
  • P/B 16.08
  • EPS 1.10
  • Cash ROIC 283.26%
  • Cash Ratio 0.95
  • Dividend 1.40 / 5.56 %
  • Avg. Vol. 31,794.00
  • Shares 8.92M
  • Market Cap. 224.52M

Company Description

Collectors Universe, Inc. provides third-party authentication, grading, and related services for rare and high-value collectibles consisting of coins, trading cards, stamps, sports memorabilia, event tickets, and autographs. The company offers authentication and grading services for coins under the Professional Coin Grading Service brand name; sports and trading cards under the Professional Sports... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

China Drives Collectors Universe
Seeking Alpha - Feb 6, 2017
Underfollowed and underrated dividend yield machine Collectors Universe (NASDAQ:CLCT) posted absolutely fantastic Q2 2017 results driven by robust growth in China as well as strong performance in the underlying core business.
China Makes Collectors Universe A Buy
Seeking Alpha - Nov 14, 2016
Collectors Universe posted excellent Q1 results and signed a long-term contract to grow its China business. Expansionary fiscal policy could lead to increased demand for gold grading services as interest spikes.
Collectors Universe: Declining Industry Leads To Lack Of Long Term Growth
Seeking Alpha - Dec 19, 2016
However, Collectors Universe (NASDAQ:CLCT), one of two leading firms in providing third-party authentication to coins and other collectibles, remains a profitable firm with low cost structures and a respected name in the industry.
Collectors Universe: Growth In The Distance, But Time To Take Some Profits
Seeking Alpha - Jan 12, 2017
Collectors Universe (NASDAQ: CLCT)'s leading brands PCGS and PSA are market leaders in the collectibles market. While we see long-term revenue growth from its expansion in China, the growth will take time.
Collectors Universe Mints A Dividend Part 3: Trading Cards And Autograph ...
Seeking Alpha - Mar 1, 2017
Oddly trading cards and autographs are still popular today, but to a different market with several different premium offerings and the need for grading/authentication.
About: Collectors Universe, (CLCT)
Seeking Alpha - May 5, 2016
Collectors Universe (NASDAQ:CLCT) recently declared a quarterly dividend of $0.35, in line with the five previous quarters.
Collector's Universe has a strong business with a wide moat.
Seeking Alpha - Jan 22, 2016
As an investor, my primary concern is total return. In general, there are two ways to increase the value of a stock: increase the total cash flow (size of the pie) or repurchase shares (increase the slice of the pie for those who do not sell).
Collectors Universe: Great Future
Seeking Alpha - Jun 3, 2013
Collectors Universe, Inc. (NASDAQ:CLCT) is a very promising company. It has a competitive advantage in its industry due to its good business model.
Zacks: Collectors Universe, Inc. (CLCT) Given Average Recommendation of "" by ...
Sports Perspectives - 16 hours ago
Collectors Universe, Inc. (NASDAQ:CLCT) has been given an average broker rating score of 0.00 () from the zero brokers that provide coverage for the company, Zacks Investment Research reports.
Collectors Universe, Inc. (CLCT) Plans Quarterly Dividend of $0.35 - Markets Daily
1.47 is Collectors Universe Inc's (NASDAQ:CLCT) Institutional Investor Sentiment - Finance News Daily
Collectors Universe, Inc. (CLCT) Ex-Dividend Date Scheduled for August 10, 2016
Nasdaq - Aug 9, 2016
Collectors Universe, Inc. ( CLCT ) will begin trading ex-dividend on August 10, 2016. A cash dividend payment of $0.35 per share is scheduled to be paid on August 26, 2016.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CLCT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CLCT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$25.17 Current Price

$6.49 Growth Price (DCF)

Overvalued by 74.21%


Growth Rate Assumed by Market: 38.24%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$10.32 Stability Price (EPV)

Overvalued by 58.98%


Discount Rate: 15.0%

$0.65 NCA Price

Overvalued by 97.43%

$9.04 Book Price

Overvalued by 64.07%


Varying Cash Return on Invested Capital over the past 5 years

CLCT has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

CLCT has created $283.26 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 9.49M 7.94M 10.74M 9.33M 6.67M
divided by
Invested Capital 5.91M 3.99M 2.32M 2.28M 3.63M
Cash ROIC 160.53% 198.97% 463.56% 409.35% 183.89%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CLCT has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CLCT has generated $36.41 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income 6.75M 5.73M 7.36M 7.40M 7.64M
divided by
Stockholders' Equity 24.53M 20.56M 20.64M 18.47M 15.00M
Return on Equity 27.51% 27.87% 35.65% 40.07% 50.95%

Good Business Performance over the past 10 years

It's likely CLCT has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is CLCT has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

CLCT has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Free Cash Flow 564,000.00 -5.69M -885,000.00 8.75M 9.91M 9.49M 7.94M 10.74M 9.33M 6.67M

Good Balance Sheet

CLCT's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Cash 42.39M 23.35M 23.87M 20.32M 21.93M 21.21M 18.71M 19.91M 17.25M 11.97M
Current Assets 50.03M 33.57M 29.14M 28.04M 27.77M 27.45M 24.73M 27.00M 23.87M 18.96M
Total Assets 78.10M 52.02M 36.27M 38.69M 36.51M 36.45M 33.02M 35.59M 32.20M 28.19M
Current Liabilities 7.82M 7.57M 7.76M 7.78M 8.47M 9.32M 10.32M 13.36M 12.67M 12.60M
Total Liabilities 9.21M 8.19M 11.49M 11.07M 11.44M 11.91M 12.46M 14.95M 13.73M 13.20M
Stockholder' Equity 68.89M 43.83M 24.78M 27.61M 25.07M 24.53M 20.56M 20.64M 18.47M 15.00M
Current Ratio 6.39 4.44 3.76 3.60 3.28 2.94 2.40 2.02 1.88 1.50
TL-to-TA 0.12 0.16 0.32 0.29 0.31 0.33 0.38 0.42 0.43 0.47

Low or No Reinvestment of Profits over the past 10 years

CLCT has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CLCT operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Retained Earnings -7.86M -32.17M -51.19M -40.53M -45.34M -49.16M -54.03M -57.38M -61.39M -65.66M
Retained Earnings Growth - -309.60% -59.09% 20.82% -11.87% -8.43% -9.90% -6.21% -6.99% -6.95%

Highly Competitive Industry over the past 10 years

It's likely that CLCT is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely CLCT invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.02 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Net Income -515,000.00 -15.63M -16.92M 16.70M 5.12M 6.75M 5.73M 7.36M 7.40M 7.64M
divided by
Revenue 40.45M 41.98M 35.91M 39.76M 44.43M 48.36M 49.09M 60.57M 61.68M 60.95M
Net Profit Margin -1.27% -37.23% -47.12% 41.99% 11.52% 13.96% 11.67% 12.15% 12.00% 12.53%

Strong Pricing Power over the past 10 years

CLCT has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$58.07 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Gross Profit 21.16M 18.21M 19.53M 24.17M 27.18M 28.96M 30.02M 37.91M 38.63M 38.05M
divided by
Revenue 40.45M 41.98M 35.91M 39.76M 44.43M 48.36M 49.09M 60.57M 61.68M 60.95M
Gross Margin 52.30% 43.38% 54.38% 60.78% 61.18% 59.88% 61.16% 62.58% 62.63% 62.43%

Low Capital Intensity over the past 10 years

CLCT has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that CLCT may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

16.71% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Capital Expenditure 3.07M 3.42M 123,000.00 479,000.00 637,000.00 1.30M 1.11M 1.38M 1.28M 2.06M
divided by
Net Income -515,000.00 -15.63M -16.92M 16.70M 5.12M 6.75M 5.73M 7.36M 7.40M 7.64M
Capital Expenditure Ratio -596.70% -21.86% -0.73% 2.87% 12.44% 19.26% 19.42% 18.75% 17.23% 27.02%

Very Strong Dividend History over the past 10 years

CLCT has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CLCT is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Dividend Paid 3.35M 8.52M 2.09M 5.94M 9.94M 10.36M 10.80M 10.73M 11.36M 12.01M
divided by
Shares Outstanding 9.20M 9.30M 9.14M 7.64M 7.80M 7.99M 8.10M 8.25M 8.52M 8.55M
Dividend Paid Per Share 0.36 0.92 0.23 0.78 1.28 1.30 1.33 1.30 1.33 1.41
Price at Year End 7.88 1.93 7.39 12.61 14.27 10.01 17.11 21.02 15.37 21.23
Dividend Yield 4.62% 47.48% 3.10% 6.17% 8.94% 12.95% 7.79% 6.19% 8.68% 6.62%

History of Stock Buybacks over the past 10 years

CLCT has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Shares Outstanding 9.20M 9.30M 9.14M 7.64M 7.80M 7.99M 8.10M 8.25M 8.52M 8.55M
Stock Bought Back - -0.98% 1.75% 19.62% -2.06% -2.37% -1.41% -1.77% -3.18% -0.32%
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