Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $665.49M
• Dividend Yield: N/A
• Average Volume (3M): 791.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 762
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 19,396,400
• 10 Day Avg. Volume: 1,126,449
• 30 Day Avg. Volume: 791,154
• PEG Ratio: -1.06
• Price to Book (P/B): 5.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -130.84
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: -3.10
• 1Y Price Target: $11.50
• Price Target Upside: -66.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: $34.00 ▼(-0.90%Downside)

Newegg Commerce's stock is moderately rated at 51. Financial performance is poor, characterized by declining revenue and negative cash flows, which heavily impacts the score. However, technical analysis shows positive momentum, providing some balance. Valuation remains unclear due to missing metrics, suggesting caution.

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce, Inc. (NEGG) is a prominent e-commerce company primarily focused on delivering a wide range of technology and electronics products. Catering to both consumers and businesses, Newegg offers products across categories such as computer hardware, software, gaming, consumer electronics, and accessories. The company operates globally, providing a comprehensive online shopping platform that includes detailed product information, customer reviews, and personalized shopping experiences.

How the Company Makes Money

Newegg makes money primarily through the sale of products on its e-commerce platform. The company generates revenue by purchasing goods from manufacturers and distributors, which it then sells to customers at a markup. Additionally, Newegg offers a marketplace platform where third-party sellers can list and sell their products, earning Newegg a commission on these sales. Key revenue streams also include premium membership services that offer benefits like expedited shipping, as well as advertising services where manufacturers and vendors pay for increased visibility on the platform. Newegg's strategic partnerships with tech manufacturers and distributors enable it to offer a wide selection of products, contributing significantly to its revenue.

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: Positive
• Last Price: 34.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Positive. The current price of 34.31 is above the 20-day moving average (MA) of 26.04, above the 50-day MA of 15.67, and above the 200-day MA of 10.52, indicating a bullish trend. The MACD of 5.12 indicates Positive momentum. The RSI at 61.35 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LQDT	80 Outperform	$775.52M	31.49	14.01%	―	35.78%	23.49%
EBAY	77 Outperform	$37.54B	19.46	36.48%	1.38%	2.04%	-15.61%
CHWY	74 Outperform	$15.08B	40.67	76.24%	―	7.64%	369.79%
CPNG	74 Outperform	$54.92B	218.73	6.06%	―	20.88%	-80.08%
ETSY	73 Outperform	$6.51B	44.37	-39.97%	―	2.18%	-32.87%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
NEGG	51 Neutral	$665.49M	―	-45.59%	―	―	―