Northann Corp. (NCL) AI Stock Analysis

• Market Cap: $11.46M
• Dividend Yield: N/A
• Average Volume (3M): 293.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.51
• Revenue Growth: -16.56%
• EPS Growth: -39.85%
• Country: US
• Employees: 73
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.19
• Shares Outstanding: 21,933,050
• 10 Day Avg. Volume: 282,981
• 30 Day Avg. Volume: 293,933
• PEG Ratio: 0.25
• Price to Book (P/B): 22.03
• Price to Sales (P/S): 3.73
• P/FCF Ratio: -37.43
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: -8.67
• Enterprise Value/Ebitda: -1.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ―

Northann Corp. faces substantial financial hurdles, marked by high leverage and negative profitability. While technical indicators offer some stability, the lack of profitability and unattractive valuation metrics weigh heavily on its stock performance. Strategic improvements are needed to enhance financial health and investor confidence.

Northann Corp. Business Overview & Revenue Model

Company Description

Northann Corp. engages in the manufacture, wholesale, and retail of the 3D printed vinyl flooring panels and other decorative panels in North America, Europe, and internationally. The company offers its products under the Benchwick brand name. Northann Corp. was founded in 2013 and is based in Elk Grove, California.

How the Company Makes Money

Northann Corp. generates revenue through the sale of its advanced materials and components to a global customer base, including leading manufacturers in the automotive, aerospace, and electronics industries. The company capitalizes on its proprietary technologies and patents to offer high-performance products that command premium pricing. Additionally, Northann Corp. engages in strategic partnerships and collaborations with other industry leaders to expand its market reach and enhance its product offerings. The company also invests in research and development to continually innovate and meet the evolving needs of its clients, thereby maintaining a competitive edge in the market.

Northann Corp. Financial Statement Overview

Summary

Northann Corp. is facing significant financial challenges, with persistent losses and cash flow issues. Despite some revenue growth and equity improvement, high leverage and negative profitability metrics indicate a need for strategic realignment. Focus on operational efficiency and cost management is crucial.

Income Statement

Northann Corp. shows volatile revenue trends with significant declines in recent years. The gross profit margin improved in the TTM to 28.2%, compared to 8.7% in 2023. However, the company has struggled with negative EBIT and net profit margins, indicating inefficiencies and cost challenges. The revenue growth rate from 2023 to TTM was 11.5%, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio due to a modest equity base, which poses financial risk. Despite this, equity improved from 2023 to TTM, suggesting some progress in financial stability. The equity ratio is low at around 9.5% in TTM, highlighting leverage risks. Return on equity has been negative, reflecting ongoing financial struggles.

Cash Flow

The company has consistently reported negative free cash flow, with a slight improvement in TTM. There is a negative operating cash flow to net income ratio, indicating cash flow inefficiencies. Financing activities have been crucial, but reliance on financing could pose liquidity risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.00M	15.35M	13.97M	20.96M	34.53M	13.09M
Gross Profit	-2.06M	3.98M	1.21M	5.75M	5.83M	4.52M
EBITDA	-16.75M	-3.26M	-4.08M	2.33M	1.70M	1.41M
Net Income	-17.63M	-4.38M	-7.13M	929.06K	322.68K	444.10K
Balance Sheet
Total Assets	14.95M	13.88M	13.62M	14.41M	14.51M	10.83M
Cash, Cash Equivalents and Short-Term Investments	40.88K	245.16K	1.10M	251.10K	748.81K	350.84K
Total Debt	2.84M	6.66M	6.80M	7.45M	6.39M	4.66M
Total Liabilities	13.11M	11.28M	13.04M	12.44M	14.86M	11.87M
Stockholders Equity	1.84M	2.60M	582.61K	1.97M	-353.00K	-1.04M
Cash Flow
Free Cash Flow	-6.39M	-1.53M	-4.68M	0.00	3.24M	-1.66M
Operating Cash Flow	-5.42M	-1.23M	-4.68M	-3.65M	4.55M	-897.90K
Investing Cash Flow	-966.14K	-296.36K	0.00	-150.61K	-1.32M	-758.72K
Financing Cash Flow	3.67M	-1.19M	5.38M	2.78M	-3.14M	2.14M

Northann Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NCL, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.79, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 21.83 is Positive, neither overbought nor oversold. The STOCH value of 14.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NCL.

Northann Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CRWS	45 Neutral	$29.79M	-2.90	-22.07%	11.55%	-1.49%	-399.62%
ATER	45 Neutral	$8.53M	―	-46.32%	―	-26.81%	40.22%
NCL	42 Neutral	$11.46M	-0.37	-179.41%	―	-16.56%	-39.85%
FGI	42 Neutral	$9.86M	-3.50	-18.10%	―	6.66%	-1404.42%
NTZ	40 Underperform	$31.50M	-1.66	-39.95%	―	-5.98%	-29.87%