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Nature Wood Group Limited Sponsored ADR (NWGL)
NASDAQ:NWGL
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Nature Wood Group Limited Sponsored ADR (NWGL) AI Stock Analysis

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NWGL

Nature Wood Group Limited Sponsored ADR

(NASDAQ:NWGL)

Rating:34Underperform
Price Target:
Nature Wood Group Limited faces severe financial instability, marked by declining revenues, high leverage, and negative cash flows. Technical analysis underscores weak momentum, while the recent earnings call does not provide encouraging information. The absence of valuation metrics further complicates any positive investment outlook.

Nature Wood Group Limited Sponsored ADR (NWGL) vs. SPDR S&P 500 ETF (SPY)

Nature Wood Group Limited Sponsored ADR Business Overview & Revenue Model

Company DescriptionNature Wood Group Limited, an integrated forestry company, engages in up-stream forest management and harvesting, and down-stream wood-processing and distribution activities. The company offers a range of products, including logs, decking and flooring products, sawn timber, recycled and synthesized charcoal, machine-made charcoal, and essential oils. It also provides IT and business consultancy services. The company serves importers, retailers, and processors through its sales network in Europe, South Asia, South America, North America, and China. Nature Wood Group Limited was formerly known as China Nature Wood Industry Group Limited and changed its name to Nature Wood Group Limited in September 2022. The company was incorporated in 2011 and is headquartered in Macau. Nature Wood Group Limited operates as a subsidiary of Easy Bliss Limited.
How the Company Makes MoneyNature Wood Group Limited generates revenue primarily through the sale of its timber and wood products. The company engages in the cultivation, harvesting, and processing of wood, which is then sold to a diverse customer base, including construction companies, furniture manufacturers, and paper producers. The company may also enter into strategic partnerships with other businesses for distribution or joint ventures to enhance its market reach. Additionally, Nature Wood Group Limited might leverage its expertise in sustainable forestry management to offer consulting services or license its practices to other forestry operations. Key factors contributing to its earnings include its ability to maintain sustainable forestry practices, manage costs effectively, and meet the demand for wood products across different industries.

Nature Wood Group Limited Sponsored ADR Financial Statement Overview

Summary
Nature Wood Group Limited Sponsored ADR is facing considerable financial difficulties across all aspects. The consistent revenue decline, negative profitability, and high leverage pose significant risks. While there is a slight improvement in equity, cash flow issues and high debt levels require strategic financial management to enhance future stability.
Income Statement
25
Negative
The income statement reveals significant challenges, with deteriorating revenue and negative profitability metrics. Gross profit and net income have significantly declined, leading to negative EBIT and EBITDA margins. The company faces substantial revenue contraction, indicated by a steep revenue decline of 32.1% from 2022 to 2023.
Balance Sheet
30
Negative
The balance sheet shows high leverage, with a debt-to-equity ratio that is concerning due to negative equity in 2022 and a substantial stockholders' equity decrease. Although improved to positive equity in 2023, the equity ratio remains weak. Liabilities outpace assets, indicating potential risk in financial stability.
Cash Flow
20
Very Negative
Cash flow analysis highlights a negative trend, with a significant decline in operating and free cash flow. The operating cash flow turned negative, and free cash flow worsened, reflecting potential liquidity challenges. The ratios of cash flows to net income indicate inefficiency and financial stress.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.54M25.46M55.34M47.68M37.50M
Gross Profit5.26M2.39M19.92M16.41M10.04M
EBITDA-6.52M-8.45M8.74M5.90M1.73M
Net Income-8.73M-11.93M4.78M1.33M-1.18M
Balance Sheet
Total Assets40.81M54.32M68.05M64.20M60.66M
Cash, Cash Equivalents and Short-Term Investments2.96M3.98M5.08M3.55M3.55M
Total Debt25.51M25.98M42.31M43.23M25.33M
Total Liabilities31.70M36.14M55.56M56.17M53.79M
Stockholders Equity9.11M18.18M12.49M8.03M6.87M
Cash Flow
Free Cash Flow1.56M-1.41M4.35M711.92K-5.69M
Operating Cash Flow2.32M-239.23K5.87M3.25M-2.60M
Investing Cash Flow-704.80K-1.15M-1.43M-2.48M-3.14M
Financing Cash Flow-2.04M-286.82K-2.54M395.17K5.88M

Nature Wood Group Limited Sponsored ADR Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.05
Price Trends
50DMA
1.42
Negative
100DMA
1.42
Negative
200DMA
1.39
Negative
Market Momentum
MACD
-0.12
Negative
RSI
45.84
Neutral
STOCH
57.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWGL, the sentiment is Negative. The current price of 1.05 is above the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.42, and below the 200-day MA of 1.39, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWGL.

Nature Wood Group Limited Sponsored ADR Risk Analysis

Nature Wood Group Limited Sponsored ADR disclosed 55 risk factors in its most recent earnings report. Nature Wood Group Limited Sponsored ADR 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

Nature Wood Group Limited Sponsored ADR Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$6.33B17.3011.33%1.30%-6.06%-24.97%
63
Neutral
$501.32M33.74-8.15%-15.03%-233.06%
60
Neutral
$413.57M4.60-66.90%5.28%-7.46%-36.14%
55
Neutral
$3.63M-6.06%8.49%12.41%
54
Neutral
$264.81M-17.96%7.58%-1.37%60.42%
44
Neutral
C$979.23M-6.82-13.73%1.76%17.37%-32.84%
34
Underperform
$17.38M-65.63%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NWGL
Nature Wood Group Limited Sponsored ADR
1.05
-0.80
-43.24%
CLW
Clearwater Paper
30.84
-25.04
-44.81%
MERC
Mercer International
3.96
-3.46
-46.63%
ITP
IT Tech Packaging
0.21
-0.03
-12.50%
MATV
Mativ Holdings
7.57
-10.18
-57.35%
UFPI
UFP Industries
104.84
-20.70
-16.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 14, 2024