Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $120.26M
• Dividend Yield: N/A
• Average Volume (3M): 156.99K
• 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: 74
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 19,396,400
• 10 Day Avg. Volume: 388,204
• 30 Day Avg. Volume: 156,985
• PEG Ratio: -0.44
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.39
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.38
• Enterprise Value/Ebitda: -0.34
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Newegg Commerce's overall stock score of 44 reflects significant financial challenges, including declining revenue and persistent losses, which are major concerns. While technical analysis indicates some short-term positive momentum, caution is warranted due to mixed signals and longer-term downward pressures. Valuation remains difficult to assess meaningfully given the absence of profitability metrics. Improvements in financial performance and cash management are crucial for a more favorable outlook.

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video, home audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; Xbox, Playstation, legacy gaming, and gaming titles; and home networking, commercial networking, server and components, and smart home products. It also provides display and printing, office technology furniture, office supplies, and mailing and inventory supplies; software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products; car electronics, marine and aviation, motorcycles and ATV, performance parts, tools and equipment, and wheels and tires; home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, pet supplies, and generators; and fitness, sports, and health and beauty supplies. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

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 is grappling with declining revenue and continuous losses, posing significant challenges to profitability. Despite slight improvements in leverage, the company's high liabilities relative to assets and ongoing negative cash flow indicate considerable financial risk. Enhancing cash management and operational efficiency is crucial for future stability.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.39B	1.24B	1.50B	1.72B	2.38B	2.11B
	Gross Profit
145.62M	120.78M	167.56M	216.63M	325.98M	273.63M
	EBIT
-66.45M	-51.55M	-71.08M	-49.54M	33.51M	33.03M
	EBITDA
-45.60M	-32.95M	-45.69M	-31.62M	49.55M	38.93M
	Net Income Common Stockholders
-54.61M	-43.33M	-58.99M	-57.43M	36.26M	30.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.68M	99.74M	106.47M	122.56M	99.99M	156.63M
	Total Assets
378.43M	407.32M	499.05M	542.10M	626.58M	557.47M
	Total Debt
21.94M	73.00M	90.56M	96.83M	107.23M	56.38M
	Net Debt
-27.74M	-26.75M	-11.95M	-25.73M	7.24M	-100.25M
	Total Liabilities
263.80M	301.23M	369.65M	386.87M	444.30M	429.97M
	Stockholders Equity
114.63M	106.09M	129.39M	155.22M	182.28M	127.50M
Cash Flow		Free Cash Flow
3.20M	-4.44M	-34.10M	11.29M	-67.13M	78.36M
	Operating Cash Flow
7.92M	-821.00K	-3.84M	20.48M	-53.29M	84.51M
	Investing Cash Flow
9.90M	2.44M	-14.25M	-3.77M	-13.84M	-5.24M
	Financing Cash Flow
-15.57M	-6.05M	1.56M	1.55M	12.74M	-1.73M

Newegg Commerce Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Neutral. The current price of 6.2 is above the 20-day moving average (MA) of 4.39, above the 50-day MA of 5.02, and below the 200-day MA of 10.41, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 69.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	78 Outperform	$33.11B	17.17	36.48%	1.53%	2.04%	-15.61%
CHWY	75 Outperform	$17.27B	46.44	101.78%	―	6.40%	891.13%
CPNG	74 Outperform	$49.46B	196.96	6.06%	―	20.88%	-80.08%
LQDT	74 Outperform	$765.22M	31.07	14.01%	―	35.78%	23.49%
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%
ETSY	60 Neutral	$4.90B	33.40	-39.97%	―	2.18%	-32.87%
NEGG	44 Neutral	$120.26M	―	-45.59%	―	―	―