Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $855.77M
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 762
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 19,396,400
• 10 Day Avg. Volume: 2,244,905
• 30 Day Avg. Volume: 1,729,102
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: $43.00
• Price Target Upside: -2.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $43.00 ▼(-2.54% Downside)

Newegg Commerce's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, persistent losses, and cash flow challenges. Technical analysis also indicates bearish trends, with negative momentum and a downtrend in stock price. The lack of valuation metrics further adds uncertainty to the stock's attractiveness.

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 generates revenue primarily through the sale of products on its e-commerce platform. Its key revenue streams include direct sales of electronics and accessories, third-party seller fees from its marketplace, and advertising revenue from promoting products on its site. The company also benefits from partnerships with various brands, allowing it to offer exclusive products and promotions. Additionally, Newegg earns revenue through subscription services and value-added services such as extended warranties and tech support, which further diversify its income sources.

Newegg Commerce Financial Statement Overview

Summary

Newegg Commerce faces significant financial challenges, with declining revenue and persistent losses impacting profitability. While leverage has improved slightly, high liabilities remain a concern. Negative free cash flow highlights cash management issues, necessitating operational improvements.

Income Statement

Newegg Commerce shows declining revenue over recent years, with a decrease from $2.38 billion in 2021 to $1.24 billion in 2024. The gross profit margin has also decreased, indicating pressure on profitability. Net income has remained negative, reflecting ongoing challenges in achieving profitability. Despite these challenges, the company has managed to control operating expenses, as seen in the narrowing EBIT and EBITDA losses.

Balance Sheet

The balance sheet displays a stable equity position, though stockholders' equity has decreased from $182 million in 2021 to $121 million in 2024. The debt-to-equity ratio has improved slightly, indicating better leverage management. However, the equity ratio shows that liabilities still represent a significant portion of total assets, hinting at potential financial risk.

Cash Flow

Newegg Commerce has struggled with negative free cash flow, indicating issues with cash generation. Although operating cash flow has improved slightly from 2023 to 2024, it remains negative, highlighting challenges in turning revenue into cash. The company needs to focus on improving cash flow management to support future growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.50B	1.72B	2.38B	2.11B
Gross Profit	120.78M	167.56M	216.63M	325.98M	273.63M
EBITDA	-32.95M	-45.69M	-31.62M	44.35M	38.93M
Net Income	-43.33M	-58.99M	-57.43M	36.26M	30.43M
Balance Sheet
Total Assets	407.32M	499.05M	542.10M	626.58M	557.47M
Cash, Cash Equivalents and Short-Term Investments	99.74M	106.47M	122.56M	99.99M	156.63M
Total Debt	73.00M	90.56M	96.83M	107.23M	56.38M
Total Liabilities	301.23M	369.65M	386.87M	444.30M	429.97M
Stockholders Equity	106.09M	129.39M	155.22M	182.28M	127.50M
Cash Flow
Free Cash Flow	-4.44M	-34.10M	11.29M	-67.13M	78.36M
Operating Cash Flow	-821.00K	-3.84M	20.48M	-53.29M	84.51M
Investing Cash Flow	2.44M	-14.25M	-3.77M	-13.84M	-5.24M
Financing Cash Flow	-6.05M	1.56M	1.55M	12.74M	-1.73M

Newegg Commerce Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Neutral. The current price of 44.12 is below the 20-day moving average (MA) of 76.34, below the 50-day MA of 50.98, and above the 200-day MA of 18.69, indicating a neutral trend. The MACD of -4.62 indicates Positive momentum. The RSI at 43.50 is Neutral, neither overbought nor oversold. The STOCH value of 10.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	77 Outperform	$42.35B	20.48	42.63%	1.23%	3.05%	-10.82%
LQDT	74 Outperform	$836.21M	32.41	14.00%	―	38.40%	32.42%
CHWY	72 Outperform	$17.63B	47.41	76.24%	―	7.64%	369.79%
CPNG	62 Neutral	$52.38B	145.57	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.99B	12.87	-3.56%	2.97%	1.27%	-14.28%
ETSY	57 Neutral	$5.36B	43.23	-39.97%	―	2.38%	-38.88%
NEGG	43 Neutral	$855.77M	―	-45.59%	―	―	―