Nova Lifestyle (NVFY) AI Stock Analysis

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Nova Lifestyle

(NASDAQ:NVFY)

40Underperform

Nova Lifestyle's stock is heavily impacted by its poor financial performance, characterized by declining revenues and a weak balance sheet. Slight technical momentum provides minor support, but the negative valuation metrics significantly detract from the stock's appeal. Overall, the company's financial instability presents considerable risk.

Nova Lifestyle (NVFY) vs. S&P 500 (SPY)

Market Cap

$7.93M

Dividend YieldN/A

Average Volume (3M)1.12M

Price to Earnings (P/E)―

Beta (1Y)0.81

Revenue Growth-12.63%

EPS Growth61.30%

CountryUS

Employees27

SectorConsumer Cyclical

Sector Strength63

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)-1.74

Shares Outstanding13,207,322

10 Day Avg. Volume45,408

30 Day Avg. Volume1,119,803

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.47

Price to Cash Flow (P/CF)-2.70

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Nova Lifestyle Business Overview & Revenue Model

Company DescriptionNova Lifestyle, Inc. (NVFY) is a U.S.-based company that designs, manufactures, and sells modern home furniture. The company operates primarily in the home furnishings sector, offering a range of products including sofas, dining tables, and other home decor items under various brand names. Nova Lifestyle markets its products globally, focusing on delivering stylish and comfortable furniture solutions to meet the diverse needs of its customers.

How the Company Makes MoneyNova Lifestyle makes money by designing, manufacturing, and selling furniture products both through direct sales to retailers and via e-commerce platforms. The company's key revenue streams include wholesale distribution to furniture retailers, online sales through its own website and other e-commerce channels, and partnerships with global furniture distributors. These partnerships and its own sales channels allow Nova Lifestyle to reach a wide customer base, ranging from individual consumers to large-scale furniture retailers. The company also focuses on innovation and brand development to enhance its market presence and drive sales.

Nova Lifestyle Financial Statement Overview

Summary

Nova Lifestyle faces significant financial challenges across all verticals. The company exhibits declining revenues and continuous net losses, alongside a weakened balance sheet with negative equity. Cash flows are also under pressure, highlighting liquidity concerns. The financial health of the company is precarious, requiring strategic interventions to stabilize operations and improve profitability.

Income Statement

Negative

Nova Lifestyle's income statement reveals significant challenges, with declining revenues and consistent net losses. The TTM period shows a negative net profit margin of -92.06%, reflecting poor profitability. Revenue decreased 10.2% year-over-year, indicating a negative growth trajectory. The gross profit margin improved slightly to 44.11% in the TTM, but EBIT and EBITDA margins remain deeply negative, suggesting operational inefficiencies.

Balance Sheet

Negative

The balance sheet shows a concerning financial position with negative stockholders' equity of -$895,909 in the TTM, reflecting potential insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, while the equity ratio is also negative at -17.71%, highlighting a weak capital structure. Total assets have fallen significantly, further stressing financial stability.

Cash Flow

Negative

Cash flow analysis shows a declining trend in free cash flow, with a TTM free cash flow of -$1,790,997 and an operating cash flow to net income ratio of 0.46. Despite reduced capital expenditures, the company struggles to generate positive cash flows, indicating liquidity issues and limited financial flexibility.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
9.96M	11.09M	12.74M	12.81M	11.35M	21.98M
	Gross Profit
4.39M	4.17M	-7.78M	-10.32M	-19.89M	1.29M
	EBIT
-8.20M	-6.42M	-16.22M	-19.80M	-26.30M	-5.80M
	EBITDA
-7.81M	-5.61M	-15.65M	-3.01M	-25.56M	-5.29M
	Net Income Common Stockholders
-9.17M	-7.72M	-17.08M	-19.96M	-25.75M	-6.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.87K	369.14K	1.37M	6.28M	8.74M	7.42M
	Total Assets
5.87K	6.24M	11.53M	29.53M	46.48M	71.56M
	Total Debt
0.00	2.11M	2.86M	3.46M	2.58M	2.69M
	Net Debt
-5.87K	1.74M	1.48M	-2.82M	-6.16M	-4.73M
	Total Liabilities
1.50K	5.74M	4.92M	6.09M	5.55M	5.51M
	Stockholders Equity
4.37K	496.35K	6.61M	23.44M	40.93M	66.05M
Cash Flow		Free Cash Flow
-1.79M	-1.58M	-5.38M	-4.94M	-2.44M	14.86M
	Operating Cash Flow
-4.23M	-1.58M	-5.37M	-4.78M	-2.08M	14.89M
	Investing Cash Flow
2.46M	18.64K	-8.77K	-154.82K	672.76K	-25.90K
	Financing Cash Flow
960.00K	0.00	0.00	2.76M	466.10K	-6.86M

Nova Lifestyle Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.60

Price Trends

50DMA

0.59

Positive

100DMA

0.59

Positive

200DMA

1.01

Negative

Market Momentum

MACD

0.04

Negative

RSI

59.20

Neutral

STOCH

79.14

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVFY, the sentiment is Negative. The current price of 0.6 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.59, and below the 200-day MA of 1.01, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.20 is Neutral, neither overbought nor oversold. The STOCH value of 79.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVFY.

Nova Lifestyle Risk Analysis

Nova Lifestyle disclosed 34 risk factors in its most recent earnings report. Nova Lifestyle reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Nova Lifestyle Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	73 Outperform	$1.54B	12.80	12.40%	2.25%	1.81%	8.09%
WSM	66 Neutral	$17.50B	16.12	53.91%	1.60%	-0.50%	24.11%
Sector *	59 Neutral	$11.20B	10.09	-1.41%	3.96%	1.31%	-16.95%
HNI	52 Neutral	$1.98B	14.68	17.42%	3.13%	3.80%	182.70%
RH	48 Neutral	$2.73B	40.40	-38.18%	―	5.01%	-35.45%
HOFT	47 Neutral	$98.11M	―	-4.47%	10.04%	-16.67%	-24.91%
NVFY	40 Underperform	$7.93M	―	-307.29%	―	-12.63%	61.30%

* Consumer Cyclical Sector Average

Performance Comparison

NVFY

Nova Lifestyle

0.60

-2.23

-78.80%

HNI

42.22

-0.51

-1.19%

HOFT

Hooker Furniture

9.16

-11.58

-55.83%

LZB

La-Z-Boy Incorporated

37.33

2.04

5.78%

WSM

Williams-Sonoma

141.68

-10.19

-6.71%

145.66

-130.60

-47.27%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.