CTIB  Cti Industries Corporation

Exchange

NASDAQ

Sector

Basic Industries

Industry

Specialty Chemicals

Market Cap.

13.68M

Vuru Grade

15.29/100

Current Price

$3.88
-0.03 (-0.77%)

Growth Price

$1.36
Overvalued by 64.97%

Stability Price

$2.79
Overvalued by 28.20%

Company Metrics

  • P/E 54.65
  • P/S 0.22
  • P/B 1.06
  • EPS 0.07
  • Cash ROIC -8.39%
  • Cash Ratio 0.02
  • Dividend 0 / 0%
  • Avg. Vol. 1,918.00
  • Shares 3.53M
  • Market Cap. 13.68M

Company Description

CTI Industries Corporation develops, manufactures, and supplies flexible film products in the United States and internationally. It also provides value-added design, engineering, and production for flexible film products. In addition, the company produces, markets, and sells novelty products, principally balloons, including foil balloons, latex balloons, punch balls, and other inflatable toy items... more


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

News

CTI Industries Corporation Reports Results of Operations For the Second ...
PR Newswire (press release) - Aug 11, 2017
11, 2017 /PRNewswire/ -- CTI Industries Corporation (CTIB - NASDAQ Capital Market), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the second ...
CTI Industries' (CTIB) Q2 2017 Results - Earnings Call Transcript - Seeking Alpha
CTI Industries Corporation 2016 Annual Report Available on Company Website
PR Newswire (press release) - May 11, 2017
LAKE BARRINGTON, Ill., May 11, 2017 /PRNewswire/ -- CTI Industries Corporation (NASDAQ: CTIB), a manufacturer and marketer of foil balloons, vacuum sealing systems, latex balloons, printed and laminated films, and home organization products, today ...
CTI Industries Corporation Reports Results for Full Year and Fourth Quarter 2016
PR Newswire (press release) - Mar 28, 2017
BARRINGTON, Ill., March 28, 2017 /PRNewswire/ -- CTI Industries Corporation (NASDAQ: CTIB), a manufacturer and marketer of novelty balloons, vacuum and flexible packaging and storage products and printed and laminated films, today announced its ...
CTI Industries' (CTIB) CEO John Schwan on Q4 2016 Results - Earnings Call ... - Seeking Alpha
CTI Industries Corporation Reports First Quarter 2017 Results
PR Newswire (press release) - May 15, 2017
LAKE BARRINGTON, Ill, May 15, 2017 /PRNewswire/ -- CTI Industries Corporation (NASDAQ: CTIB), a manufacturer and marketer of foil and latex balloons, vacuum storage products, laminated films and home organizing products, today announced its results ...
CTI Industries' (CTIB) Q1 2017 Results - Earnings Call Transcript - Seeking Alpha
CTI Industries Corp.
Wall Street Journal - Feb 12, 2011
News CTI Industries Corp.CTIB. Significant News Only. 08/21/17; Dow Jones Newswires. CTI Industries Files 8K - Direct Or Off-Balance Sheet Financial Obligation.
CTI Industries Corporation (NASDAQ:CTIB) Sees Unusual Trading Volume in Its Shares
Modern Readers - 3 hours ago
3,900 shares changed hands on Tuesday. Trading volume was up 663.21% over the stocks average daily volume. Traders are more bearish recently if you take a look at the increase in short interest.
CTI Industries Corp. (CTIB) Reaches $3.81 52-Week Low; 5 Analysts Are Bullish ...
NormanObserver.com - Oct 19, 2017
The stock of CTI Industries Corp. (NASDAQ:CTIB) hit a new 52-week low and has $3.70 target or 3.00% below today's $3.81 share price.
CTI Industries Corporation Launches Ziploc® Brand Vacuum Sealer System Website
Marketwired (press release) - Sep 25, 2013
LAKE BARRINGTON, IL--(Marketwired - Sep 25, 2013) - CTI Industries Corporation ( NASDAQ : CTIB), a manufacturer and marketer of vacuum sealing systems, foil balloons, latex balloons, printed and laminated films, has launched a website for the Ziploc® ...
CTI INDUSTRIES CORPORATION (NASDAQ:CTIB) Files An 8-K Entry into a Material ...
Market Exclusive - Oct 19, 2017
On October 17, 2017, Registrant and its senior lender, BMO Harris Bank N.A., (“Bank”) entered into Amendment No. 11 to the Credit Agreement among Registrant and the Bank.
How Financially Strong Is CTI Industries Corporation (CTIB)?
Simply Wall St - Oct 11, 2017
Investors are always looking for growth in small-cap stocks like CTI Industries Corporation (NASDAQ:CTIB), with a market cap of USD $14.59M.
CTI Industries Corporation (NASDAQ:CTIB) Experiences Heavier than Usual ... - HugoPress
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CTIB 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 CTIB'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.

$3.88 Current Price

$1.36 Growth Price (DCF)

Overvalued by 64.97%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


CTIB's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$2.79 Stability Price (EPV)

Overvalued by 28.20%


Discount Rate: 15.0%

$1.29 NCA Price

Overvalued by 66.84%

$4.64 Book Price

Undervalued by 19.48%


Very Poor Cash Return on Invested Capital over the past 5 years

CTIB has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CTIB has lost $8.39 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -3.31M -1.89M -4.53M 1.91M -1.08M
divided by
Invested Capital 20.43M 21.97M 21.97M 21.26M 19.47M
Cash ROIC -16.21% -8.60% -20.62% 9.00% -5.54%

Poor Return on Equity over the past 5 years

CTIB has shown an inability to deliver strong results for shareholders. This could be due to poor management, CTIB operating in a highly competitive industry, or having a weak business in general.

CTIB has only generated $3.71 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 46,330.00 408,028.00 349,281.00 937,672.00 621,936.00
divided by
Stockholders' Equity 12.24M 12.66M 12.88M 12.79M 12.72M
Return on Equity 0.38% 3.22% 2.71% 7.33% 4.89%

Poor Business Performance over the past 10 years

CTIB's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

CTIB has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -1.49M -1.80M 2.38M 1.21M -288,934.00 -3.31M -1.89M -4.53M 1.91M -1.08M

Weak Balance Sheet

CTIB's financial position is not ideal. The key is to check whether CTIB is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 483,112.00 180,578.00 870,446.00 761,874.00 338,523.00 351,064.00 666,616.00 150,332.00 346,404.00 563,043.00
Current Assets 17.80M 17.69M 19.15M 21.43M 23.30M 27.13M 28.17M 32.47M 32.44M 35.73M
Total Assets 29.32M 29.99M 30.40M 32.86M 33.62M 37.75M 39.07M 43.05M 41.80M 43.91M
Current Liabilities 16.48M 16.22M 16.73M 17.95M 17.69M 16.96M 16.43M 20.93M 20.20M 23.88M
Total Liabilities 22.73M 22.25M 21.63M 21.08M 21.75M 25.50M 26.42M 30.17M 29.02M 31.20M
Stockholder' Equity 6.59M 7.73M 8.76M 11.78M 11.86M 12.24M 12.66M 12.88M 12.79M 12.72M
Current Ratio 1.08 1.09 1.14 1.19 1.32 1.60 1.71 1.55 1.61 1.50
TL-to-TA 0.78 0.74 0.71 0.64 0.65 0.68 0.68 0.70 0.69 0.71

Consistent Reinvestment of Profits over the past 10 years

CTIB has consistently retained profits. This may put CTIB in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CTIB can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -4.36M -3.21M -2.21M -379,210.00 -368,122.00 -266,372.00 109,137.00 623,455.00 1.67M 2.32M
Retained Earnings Growth - 26.45% 31.25% 82.82% 2.92% 27.64% 140.97% 471.26% 167.99% 39.06%

Highly Competitive Industry over the past 10 years

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

Only $1.40 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 81,898.00 1.15M 1.00M 1.83M 483,910.00 46,330.00 408,028.00 349,281.00 937,672.00 621,936.00
divided by
Revenue 36.51M 44.98M 41.30M 47.75M 47.17M 49.54M 56.06M 57.83M 59.36M 64.27M
Net Profit Margin 0.22% 2.57% 2.43% 3.83% 1.03% 0.09% 0.73% 0.60% 1.58% 0.97%

Inconsistent Gross Profit Margins over the past 10 years

CTIB has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$31.45 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 8.68M 10.32M 9.21M 10.60M 47.17M 10.91M 12.61M 14.20M 16.35M 17.12M
divided by
Revenue 36.51M 44.98M 41.30M 47.75M 47.17M 49.54M 56.06M 57.83M 59.36M 64.27M
Gross Margin 23.79% 22.95% 22.31% 22.20% 100.00% 22.01% 22.50% 24.56% 27.54% 26.64%

High Capital Intensity over the past 10 years

CTIB spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

771.04% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 2.85M 2.20M 731,596.00 2.01M 1.11M 1.21M 2.06M 1.17M 681,952.00 630,187.00
divided by
Net Income 81,898.00 1.15M 1.00M 1.83M 483,910.00 46,330.00 408,028.00 349,281.00 937,672.00 621,936.00
Capital Expenditure Ratio 3,477.50% 190.66% 72.93% 109.84% 228.74% 2,615.88% 504.60% 336.17% 72.73% 101.33%

No Dividend History over the past 10 years

CTIB has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 2.59M 2.90M 2.78M 3.04M 3.18M 3.29M 3.40M 3.44M 3.44M 3.73M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.57 2.03 2.19 6.02 4.38 5.14 5.75 3.97 5.00 5.85
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CTIB 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 December
2007200820092010201120122013201420152016
Shares Outstanding 2.59M 2.90M 2.78M 3.04M 3.18M 3.29M 3.40M 3.44M 3.44M 3.73M
Stock Bought Back - -10.65% 4.45% -8.70% -4.45% -3.40% -3.28% -1.01% 0.07% -7.79%
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