Nova Lifestyle (NVFY) AI Stock Analysis

• Market Cap: $13.66M
• Dividend Yield: N/A
• Average Volume (3M): 48.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -12.63%
• EPS Growth: 61.30%
• Country: US
• Employees: 27
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 13,708,822
• 10 Day Avg. Volume: 41,316
• 30 Day Avg. Volume: 48,019
• PEG Ratio: -0.07
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.64
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 3.62
• Enterprise Value/Ebitda: -0.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

Nova Lifestyle's stock score reflects significant financial challenges, with declining revenues and a weak balance sheet being major concerns. Although technical indicators suggest some short-term upward momentum, the lack of profitability and negative valuation metrics weigh heavily on the stock's attractiveness. Without strategic improvements, the financial and operational issues overshadow the technical analysis.

Nova Lifestyle Business Overview & Revenue Model

Company Description

Nova LifeStyle, Inc., through its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. The company offers upholstered, wood, and metal-based furniture pieces for the living, dining, and bedrooms, as well as home offices. Its products include sofas, chairs, dining and coffee tables, beds, entertainment consoles, cabinets, and cupboards. The company also provides physiotherapeutic jade mats for use in therapy clinic, hospitality, and real estate projects. It distributes its products under the Diamond Sofa brand directly, as well as through internet sales and online marketing campaigns, and participation in exhibitions and trade shows primarily to furniture distributors and retailers. The company was formerly known as Stevens Resources, Inc. Nova LifeStyle, Inc. was founded in 2003 and is headquartered in Commerce, California.

How the Company Makes Money

Nova 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 is experiencing significant financial difficulties. With declining revenues, persistent losses, and a weakened balance sheet, the company's financial health is compromised. The absence of debt is positive, but negative cash flows and lack of equity indicate severe operational and financial challenges.

Income Statement

Nova Lifestyle has experienced declining revenues and persistent losses over recent years. The gross profit margin has improved in the latest year but remains weak compared to industry standards. The company has consistently reported negative EBIT and EBITDA margins, indicating ongoing operational challenges. Revenue growth has been negative, exacerbating financial pressures.

Balance Sheet

The balance sheet reveals significant weaknesses, with liabilities surpassing assets in the latest year, resulting in negative stockholders' equity. The absence of debt is positive, but the lack of equity highlights financial instability. The company's equity ratio has deteriorated, indicating a weak financial foundation.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, reflecting insufficient cash generation to support operations. Although the company has reduced capital expenditures, free cash flow remains negative. The operating cash flow to net income ratio reflects operating weaknesses, but financing activities have provided some cash inflows.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.95M	9.69M	11.09M	12.74M	12.81M	11.35M
	Gross Profit
4.44M	4.25M	4.17M	-7.78M	-10.32M	-19.89M
	EBIT
-4.07M	-5.36M	-6.42M	-16.22M	-19.80M	-26.30M
	EBITDA
-3.85M	-4.84M	-5.61M	-15.65M	-3.01M	-25.56M
	Net Income Common Stockholders
-4.44M	-5.56M	-7.72M	-17.08M	-19.96M	-25.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	161.90K	369.14K	1.37M	6.28M	8.74M
	Total Assets
0.00	9.92M	6.24M	11.53M	29.53M	46.48M
	Total Debt
1.54M	2.12M	2.11M	2.86M	3.46M	2.58M
	Net Debt
1.54M	1.95M	1.74M	1.48M	-2.82M	-6.16M
	Total Liabilities
5.15M	6.79M	5.74M	4.92M	6.09M	5.55M
	Stockholders Equity
6.77M	3.12M	496.35K	6.61M	23.44M	40.93M
Cash Flow		Free Cash Flow
-1.51M	-1.41M	-1.58M	-5.38M	-4.94M	-2.44M
	Operating Cash Flow
-1.49M	-1.39M	-1.58M	-5.37M	-4.78M	-2.08M
	Investing Cash Flow
-14.12K	-14.12K	18.64K	-8.77K	-154.82K	672.76K
	Financing Cash Flow
1.26M	1.18M	0.00	0.00	2.76M	466.10K

Nova Lifestyle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.11
• 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 NVFY, the sentiment is Positive. The current price of 1.11 is below the 20-day moving average (MA) of 1.18, above the 50-day MA of 0.95, and above the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 22.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVFY.

Nova Lifestyle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRWS	67 Neutral	$32.12M	13.12	4.76%	10.16%	-0.07%	-49.06%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
FGI	57 Neutral	$6.84M	―	-6.21%	―	11.13%	-325.57%
ATER	48 Neutral	$12.25M	―	-35.33%	―	-26.36%	82.23%
NVFY	42 Neutral	$13.66M	―	-131.84%	―	-12.63%	61.30%
EFOI		$11.22M	―	-47.20%	―	―	―
NCL	42 Neutral	$130.79M	―	-298.04%	―	47.13%	-49.61%

Nova Lifestyle Corporate Events

Nova Lifestyle Appoints Xiaohua Lu as New CEO

On April 21, 2025, Nova LifeStyle, Inc. announced the resignation of Ms. Thanh H. Lam from her roles as CEO and President, though she will continue as a director and Chairperson of the Board. The resignation was not due to any disagreements with the company. The Board appointed Mr. Xiaohua Lu as the new CEO, who brings experience from his previous roles at Drem Consulting Pte Ltd and Promiseland Financial Advisory Pte Ltd. Mr. Lu’s appointment includes a one-year employment agreement with an annual compensation of $80,000.

Spark’s Take on NVFY Stock

According to Spark, TipRanks’ AI Analyst, NVFY is a Neutral.

Nova Lifestyle’s stock score reflects significant financial challenges, with declining revenues and a weak balance sheet being major concerns. Although technical indicators suggest some short-term upward momentum, the lack of profitability and negative valuation metrics weigh heavily on the stock’s attractiveness. Without strategic improvements, the financial and operational issues overshadow the technical analysis.

To see Spark’s full report on NVFY stock, click here.