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CTW Cayman Class A
(NASDAQ:CTW)
Select Model
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Rating:51Neutral
Price Target:
$3.00
▲(16.28% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by the sharp deterioration in operating and free cash flow and the step-down in profitability, despite strong revenue growth and a generally stable, moderately levered balance sheet. Technical signals are mildly weak and valuation looks demanding (high P/E with no dividend support), limiting upside confidence.
Positive Factors
Strong Revenue Growth
Accelerating revenue growth indicates solid demand and expanding business activity. If sustained, the larger revenue base can improve operating leverage and support reinvestment, although profitability must recover for growth to translate into stronger shareholder returns.
Negative Factors
Sharp Cash-Flow Deterioration
Near-breakeven operating cash flow and negative free cash flow weaken the company’s ability to fund expansion internally. If persistent, the reversal from prior positive free cash flow could increase reliance on financing and constrain investment flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Accelerating revenue growth indicates solid demand and expanding business activity. If sustained, the larger revenue base can improve operating leverage and support reinvestment, although profitability must recover for growth to translate into stronger shareholder returns.
Read all positive factors
CTW Cayman Class A (CTW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$110.36M
Dividend YieldN/A
Average Volume (3M)15.03K
Price to Earnings (P/E)26.5
Beta (1Y)0.07
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees324
SectorGeneral
Sector StrengthN/A
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.06
Shares Outstanding50,529,050
10 Day Avg. Volume7,922
30 Day Avg. Volume15,032
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)9.64
Price to Sales (P/S)2.95
P/FCF Ratio-562.87
Enterprise Value/Market Cap1.38M
Enterprise Value/Revenue1.69M
Enterprise Value/Gross Profit2.23M
Enterprise Value/Ebitda17.03M
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.02
Revenue Forecast (FY)$92.00M
CTW Cayman Class A Business Overview & Revenue Model
Company Description
CTW Cayman Class A Ordinary Shares (CTW) manages an online gaming platform, primarily serving users in Japan and Singapore. Its flagship offering, G123.jp, is an HTML5-powered portal that delivers free-to-play games. This innovative approach elimi...
CTW Cayman Class A Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 19, 2027
Earnings Call Sentiment Neutral
The call presented a mixed outlook. CTW demonstrated disciplined advertising allocation, maintained ROAS above its 100% benchmark, increased segment profit, remained adjusted EBITDA positive and expanded international activity and platform investments. However, these positives were offset by lower revenue, gross in-game purchases, total users, operating results and adjusted EBITDA, along with declines in Japan and North America and continued risks associated with game launches and developer advances. Management expressed a vision to return to sustained growth in fiscal year 2027.Positive Updates
ROAS Remained Above Benchmark
ROAS was 105.8% in fiscal year 2026 versus 116.4% in fiscal year 2025. Although lower year-over-year, it remained above CTW's 100% benchmark, meaning in-game purchases from newly acquired users continued to exceed the advertising spend used to acquire them.
Negative Updates
Revenue and Gross In-Game Purchases Declined
Fiscal year 2026 revenue was $82.5 million versus $90.4 million in fiscal year 2025, a decrease of 8.7%. Gross in-game purchases were $96.8 million, down 9.5% year-over-year.
Read all updates
Q4-2026 Updates
Positive
Negative
ROAS Remained Above Benchmark
ROAS was 105.8% in fiscal year 2026 versus 116.4% in fiscal year 2025. Although lower year-over-year, it remained above CTW's 100% benchmark, meaning in-game purchases from newly acquired users continued to exceed the advertising spend used to acquire them.
Read all positive updates
Company Guidance
CTW said it had a “vision to return to sustained growth in fiscal year 2027” and expected North American revenue to “return to growth as we issue new titles and continue to implement our presence and growth initiatives in the region”; general and administrative expenses are expected to “increase only modestly in absolute terms over time,” while for the “next 2 fiscal years” the company expects “roughly $1 million amortization -- annual amortization for each of those 2 years.” It also expects to continue investing in platform and internal technology capabilities, including AI-enabled tools, data analytics tools and workflow automation, and said that in the near term there will continue to be “some divergence in MAU movements and the in-game purchase movements.”CTW Cayman Class A Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Jul 2025 | Jul 2024 | Jul 2023 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 90.37M | 68.42M | 62.94M | 8.16B | 8.49B |
| Gross Profit | 68.33M | 52.21M | 45.89M | 5.72B | 5.73B |
| EBITDA | 9.53M | 11.90M | 7.39M | 4.21B | 4.04B |
| Net Income | 3.83M | 5.98M | 3.40M | 1.83B | 1.67B |
Balance Sheet | |||||
| Total Assets | 50.85M | 43.94M | 38.28M | 20.33B | 20.58B |
| Cash, Cash Equivalents and Short-Term Investments | 12.37M | 14.46M | 14.85M | 2.00M | 5.00M |
| Total Debt | 7.01M | 7.31M | 7.68M | 1.19B | 5.96B |
| Total Liabilities | 23.20M | 20.10M | 19.40M | 21.00B | 10.71B |
| Stockholders Equity | 27.65M | 23.84M | 18.88M | 10.12B | 9.87B |
Cash Flow | |||||
| Free Cash Flow | -473.29K | 877.19K | 2.42M | 3.36B | 2.75B |
| Operating Cash Flow | 111.38K | 1.59M | 2.56M | 3.33B | 3.79B |
| Investing Cash Flow | -1.18M | -1.17M | -485.24K | -1.72B | -1.15B |
| Financing Cash Flow | -1.11M | 0.00 | 0.00 | -1.61B | -2.63B |
CTW Cayman Class A Risk Analysis
CTW Cayman Class A disclosed 52 risk factors in its most recent earnings report. CTW Cayman Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CTW Cayman Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $465.65M | 10.35 | 9.31% | 3.70% | -1.77% | 2.50% | |
62 Neutral | $173.95M | 2.31 | -88.88% | 21.33% | ― | ― | |
59 Neutral | $36.07M | 7.38 | 12.38% | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | $110.36M | 26.49 | 14.87% | ― | ― | ― | |
49 Neutral | $787.63M | -2.83 | 82.92% | 19.37% | 5.84% | -421.33% | |
44 Neutral | $120.46M | -4.71 | -97.92% | ― | ― | ― |
* General Sector Average
CTW
CTW Cayman Class A
1.77
-0.67
-27.37%
GRVY
Gravity Co
67.01
7.51
12.62%
GDEV
Nexters
9.57
-14.79
-60.71%
PLTK
Playtika Holding
2.07
-1.64
-44.28%
GCL
GCL Global Holdings
0.94
-0.90
-48.86%
GMHS
Gamehaus Holdings
0.64
-0.72
-52.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.