Newtopia (NEWU) AI Stock Analysis

• Market Cap: C$866.33K
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 2.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 100
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): N/A
• Shares Outstanding: 173,265,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.05
• Price to Book (P/B): -1.34
• Price to Sales (P/S): 1.29
• P/FCF Ratio: -5.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ―

Newtopia's overall stock score reflects significant financial challenges, including negative profitability and high leverage, which severely impact the score. However, strategic partnerships and client engagement provide some optimism for future growth. The lack of positive technical indicators and valuation metrics further weigh down the score.

Positive Factors

High Client Engagement

High client engagement and positive health outcomes underscore the effectiveness of Newtopia's programs, strengthening client relationships and supporting retention, which are vital for sustained revenue growth and market differentiation.

Operational Efficiency

Improvements in operational efficiency, demonstrated by reduced expenses, indicate better cost management. This positions Newtopia to enhance profitability and sustain margins, crucial for long-term financial health and competitiveness.

Strategic Partnerships

The strategic partnership with a supplemental insurance payvider is expected to significantly boost participant acquisition and drive profitability by 2025, enhancing Newtopia's market reach and competitive positioning in the health and wellness sector.

Negative Factors

Negative Cash Flow

Negative cash flow trends suggest Newtopia is not generating sufficient cash from operations, increasing reliance on external funding. This could constrain liquidity and operational flexibility, impacting future growth and sustainability.

High Leverage

High leverage and negative equity indicate financial instability, posing risks to Newtopia's solvency and limiting its ability to invest in growth opportunities, which could impact long-term viability.

Revenue Decline

The significant revenue decline highlights challenges in client retention and market demand, which could hinder Newtopia's growth prospects and financial stability if not addressed through strategic initiatives.

Newtopia Business Overview & Revenue Model

Company Description

Newtopia Inc., a health technology company, delivers disease prevention solutions. It offers a personalized habit change platform that focuses on physical and mental health risk reduction. The company was incorporated in 2008 and is headquartered in Toronto, Canada.

How the Company Makes Money

Newtopia makes money primarily through subscription-based revenue models, where clients, including individuals and employers, pay for access to its personalized health improvement programs. The company partners with employers and health insurers who offer Newtopia's services as part of their employee wellness and health benefits packages. Revenue is generated from program subscriptions, which may be billed on a monthly or annual basis, depending on client agreements. Additionally, Newtopia may receive fees for genetic testing services and other personalized wellness offerings that are integrated into their programs. These partnerships with employers and insurers are significant contributors to Newtopia's earnings, as they provide a steady stream of clients seeking to improve health outcomes and reduce healthcare costs.

Newtopia Financial Statement Overview

Summary

Newtopia is facing significant financial challenges with negative profitability, high leverage, and poor cash flow management. The company needs strategic restructuring to improve its financial health, focusing on reducing debt, enhancing operational efficiency, and stabilizing revenue streams.

Income Statement

Newtopia's income statement reveals a challenging financial position, characterized by negative EBIT and EBITDA margins, and a declining revenue trend. Gross profit margins have been positive, but significant net losses have been sustained, indicating operational inefficiencies or high costs relative to revenue. Revenue has significantly decreased from prior periods, highlighting potential issues with sales or market demand.

Balance Sheet

The balance sheet shows high leverage, with a substantial negative stockholders' equity and a very high debt-to-equity ratio, indicating financial instability and potential insolvency risk. The equity ratio is negative, signifying that liabilities exceed assets, which is a concerning indicator of financial health. The company needs to address its capital structure to improve financial stability.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, suggesting the company is not generating enough cash from its operations to cover its expenses and investments. There is a negative trend in free cash flow growth, and the company relies on external financing to support operations, posing a risk to future liquidity if financing becomes constrained.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	6.71M	9.78M	11.17M	10.46M	11.42M	6.11M
Gross Profit	3.35M	5.28M	6.03M	5.07M	5.50M	1.97M
EBITDA	-3.15M	-1.76M	-7.02M	-7.15M	-7.08M	-7.09M
Net Income	-7.26M	-6.60M	-7.70M	-7.65M	-7.73M	-10.14M
Balance Sheet
Total Assets	664.83K	2.33M	5.94M	5.51M	7.90M	5.63M
Cash, Cash Equivalents and Short-Term Investments	10.20K	387.34K	345.95K	811.58K	4.67M	2.39M
Total Debt	10.80M	9.88M	8.85M	5.18M	883.09K	12.45M
Total Liabilities	13.62M	11.75M	11.48M	7.35M	3.70M	16.84M
Stockholders Equity	-12.95M	-9.42M	-5.53M	-1.84M	4.20M	-11.21M
Cash Flow
Free Cash Flow	-1.21M	-2.27M	-6.90M	-8.10M	-4.88M	-5.70M
Operating Cash Flow	-1.21M	-2.27M	-5.92M	-5.95M	-4.79M	-5.53M
Investing Cash Flow	0.00	-2.55K	-989.17K	-2.15M	-92.78K	-163.39K
Financing Cash Flow	644.41K	2.31M	6.44M	4.23M	7.17M	6.65M

Newtopia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHS	53 Neutral	C$14.18M	-3.73	―	―	16.04%	-455.38%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AIDR	48 Neutral	C$62.88M	-4.24	-207.53%	―	―	7.04%
NDAT	46 Neutral	C$1.03M	-3.38	-40.64%	―	-100.00%	65.85%
UDOC	44 Neutral	C$12.09M	-2.43	―	―	―	48.94%
NEWU	42 Neutral	C$866.33K	-0.23	―	―	―	―
DMED	33 Underperform	C$7.64M	-4.83	―	―	―	-67.11%