Charles & Colvard Ltd. CTHR

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
27/100
Developing

Ranked against 10 peers in Luxury Goods

About Charles & Colvard Ltd.

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally. It operates through two segments: Online Channels and Traditional. The company manufactures, markets, and distributes moissanite jewels and finished moissanite jewelry under the Charles & Colvard Created Moissanite brand; and premium moissanite gemstones under the Forever One brand name. It also markets and distributes … Full CTHR analysis →

Key risks

  • Commodity Pressure / Weak Differentiation Gross margin at 22.2th percentile with high volatility suggests weak pricing power or commoditized products.
  • Scale Without Profitability Despite scale, profitability lags peers (score 0.22), suggesting limited competitive advantage.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
11
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where CTHR ranks in Luxury Goods

Charles & Colvard Ltd. ranks #9 of 11 scored companies in Luxury Goods by moat score — the top 82%. The widest moat in the group is Envela Corporation (ELA) at 77/100.

# Company Moat score Rating
3 Signet Jewelers Limited SIG 64/100 Moderate
4 Movado Group Inc. MOV 62/100 Moderate
5 Birks Group Inc. BGI 53/100 Moderate
6 Brilliant Earth Group, Inc. BRLT 53/100 Moderate
7 Capri Holdings Limited CPRI 52/100 Moderate
8 The RealReal, Inc. REAL 40/100 Developing
9 Charles & Colvard Ltd. CTHR 27/100 Developing
10 Lanvin Group Holdings Limited LANV 10/100 Weak
11 MYT Netherlands Parent B.V. MYTE 0/100 Weak

See every General Corporate company ranked by moat score →

How CTHR scores on the Corporate Default defenses

Pricing Power

Score 11 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 22 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 53 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 36 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 27 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 15 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CTHR's moat

What is Charles & Colvard Ltd.'s moat score?

Charles & Colvard Ltd. (CTHR) scores 27 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #9 of 11 scored companies in Luxury Goods, the top 82%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 10 companies in Luxury Goods. Its strongest defense is Customer Stickiness (53/100) and its weakest is Pricing Power (11/100).

How does Charles & Colvard Ltd. compare with other Luxury Goods companies?

Charles & Colvard Ltd. ranks #9 of 11 scored companies in Luxury Goods by moat score. The widest moat in Luxury Goods is Envela Corporation (ELA) at 77/100. The companies ranked closest are The RealReal, Inc. (REAL) at 40 just above it and Lanvin Group Holdings Limited (LANV) at 10 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 10 companies in Luxury Goods. The defenses are then weighted to produce the overall score out of 100.

Why is Charles & Colvard Ltd. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Charles & Colvard Ltd.?

The Corporate Default template measures 6 defenses, and CTHR scores: Pricing Power (11), Cost Advantage (22), Customer Stickiness (53), Capital Efficiency (36), Resilience (27), Scale & Market Position (15). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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