Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $71.18M
• Dividend Yield: N/A
• Average Volume (3M): 44.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 932
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 19,396,400
• 10 Day Avg. Volume: 59,014
• 30 Day Avg. Volume: 44,014
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.25
• Price to Cash Flow (P/CF): 0.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Newegg Commerce's overall stock score reflects significant financial challenges, including declining revenues and negative cash flows, which impact its ability to maintain operations. Technical analysis indicates bearish trends, and the absence of concrete valuation metrics adds uncertainty. Strategic improvements are necessary for better financial health.

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video, home audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; Xbox, Playstation, legacy gaming, and gaming titles; and home networking, commercial networking, server and components, and smart home products. It also provides display and printing, office technology furniture, office supplies, and mailing and inventory supplies; software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products; car electronics, marine and aviation, motorcycles and ATV, performance parts, tools and equipment, and wheels and tires; home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, pet supplies, and generators; and fitness, sports, and health and beauty supplies. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

How the Company Makes Money

Newegg Commerce generates revenue primarily through the sale of electronic goods and computer components via its e-commerce platform. The company capitalizes on its extensive product catalog and competitive pricing to attract a global customer base. Newegg also benefits from partnerships with leading technology brands and manufacturers, allowing it to offer exclusive deals and promotions. Additional revenue streams include advertising income from vendors who wish to promote their products on Newegg's platform and third-party marketplace commissions, where other sellers can list their products for sale on Newegg's site. These diverse income sources, combined with a strong brand reputation in the tech community, contribute to Newegg's financial performance.

Newegg Commerce Financial Statement Overview

Summary

Newegg Commerce faces significant financial challenges, with declining revenues and negative profitability. The balance sheet demonstrates some liquidity, but with increased reliance on debt. Cash flow issues are pronounced, affecting the company's ability to sustain operations without external financing. While past profitability offers hope, strategic adjustments are essential for financial stability.

Income Statement

Newegg Commerce has experienced declining revenue over recent years, with a notable drop from 2021 to 2022. The company is currently operating at a loss, as indicated by negative net profit and EBIT margins. The gross profit margin has decreased, reflecting challenges in maintaining cost efficiency. However, the company had profitable years in 2020 and 2021, indicating potential for recovery.

Balance Sheet

Newegg's balance sheet shows a moderate debt-to-equity ratio, with debt increasing in recent years. The equity ratio is relatively low, suggesting reliance on liabilities. Despite this, the company maintains a reasonable level of cash and short-term investments, providing some liquidity cushion. The negative stockholders' equity in 2019 marks a significant improvement in subsequent years.

Cash Flow

The cash flow analysis reveals a negative free cash flow trend, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, with operating cash flow often negative. This highlights the company's struggle to convert income into cash, posing liquidity risks.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.39B	1.50B	1.72B	2.38B	2.11B	1.53B
	Gross Profit
145.62M	167.56M	216.63M	325.98M	273.63M	164.87M
	EBIT
-66.45M	-71.08M	-49.54M	33.51M	33.03M	-9.46M
	EBITDA
-45.60M	-45.69M	-31.62M	49.55M	38.93M	1.25M
	Net Income Common Stockholders
-54.61M	-58.99M	-57.43M	36.26M	30.43M	-16.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.81M	106.47M	122.56M	99.99M	156.63M	166.31K
	Total Assets
15.56M	499.05M	542.10M	626.58M	557.47M	2.33M
	Total Debt
1.54M	90.56M	96.83M	107.23M	56.38M	1.21M
	Net Debt
-5.27M	-11.95M	-25.73M	7.24M	-100.25M	1.19M
	Total Liabilities
4.41M	369.65M	386.87M	444.30M	429.97M	3.62M
	Stockholders Equity
11.15M	129.39M	155.22M	182.28M	127.50M	-1.29M
Cash Flow		Free Cash Flow
3.20M	-34.10M	11.29M	-67.13M	78.36M	-20.36M
	Operating Cash Flow
7.92M	-3.84M	20.48M	-53.29M	84.51M	-10.08M
	Investing Cash Flow
9.90M	-14.25M	-3.77M	-13.84M	-5.24M	84.68M
	Financing Cash Flow
-15.57M	1.56M	1.55M	12.74M	-1.73M	-49.69M

Newegg Commerce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Negative. The current price of 3.67 is below the 20-day moving average (MA) of 4.65, below the 50-day MA of 6.58, and below the 200-day MA of 11.87, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 32.92 is Neutral, neither overbought nor oversold. The STOCH value of 15.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHWY	76 Outperform	$14.01B	37.67	101.78%	―	6.40%	891.13%
EBAY	73 Outperform	$30.58B	16.65	34.29%	1.66%	2.79%	-23.30%
LQDT	72 Outperform	$936.77M	40.06	13.48%	―	32.16%	27.32%
ETSY	60 Neutral	$4.77B	18.78	-39.97%	―	2.18%	5.77%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
CPNG	57 Neutral	$38.62B	258.02	3.76%	―	24.14%	-88.77%
NEGG	40 Underperform	$71.18M	―	-45.59%	―	―	―