The9 Limited American Depository Shares (NCTY)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with business quality and durability. The9 is classified in financial services/capital markets, but its actual operations are crypto mining and online games, run by only 44 employees. That is not a business with a visible moat; it is cyclical, capital-intensive, and dependent on crypto prices and game traffic. The provided numbers are noisy. At the close on 2026-10-13, price was $3.49, market cap $82.6M, P/B 0.59, P/E -3.92, and EPS -$0.89. A sub-book price can attract a Graham-style investor, but only if assets are real and earnings are reliable. Here, ROE is 7.13% but ROCE is -29.09%, and debt-to-equity is 0.37. Piotroski F-Score 7/9 suggests some accounting improvement, yet the FairStock Score is 33/100. Revenue growth was -80.76%, while profit growth was 8405.08%. The latest filed quarter, fiscal Q2 2026, showed revenue $4.8M and net income $220.9M, a 4571.92% margin. That is so far above revenue that I would treat it as likely one-off or non-operating until proven otherwise; it does not make the annual EPS positive. As a financial-sector name, I would want CET1, NIM, combined ratio, loan-loss or credit-risk data, but none are given. With beta 2.09, the price is volatile and the 52-week range $3.12-$10.54 shows how much sentiment can swing. I see a statistically cheap asset multiple attached to an unproven, erratic earnings stream. Without clearer asset quality and repeatable profit, I would call it speculative, not a durable bargain.

In plain English: The9 is a small company that runs cryptocurrency mining and online game services. The business looks weak: annual profit is negative, revenue has fallen sharply, and the latest quarter's huge net income is much larger than revenue, which makes it look unusual. The stock trades below its accounting book value, but because earnings are so unstable and negative, it is hard to call it clearly cheap rather than speculative.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer