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Newtopia (TSE:NEWU)
:NEWU
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Newtopia
(NEWU)
42Neutral
Newtopia (NEWU) vs. S&P 500 (SPY)
Market Cap
C$866.33K
Dividend YieldN/A
Average Volume (3M)379.37K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth-36.40%
EPS Growth-21.88%
CountryCA
Employees100
SectorTechnology
Sector Strength80
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding173,265,300
10 Day Avg. Volume117,000
30 Day Avg. Volume379,367
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-0.07
Price to Sales (P/S)0.00
P/FCF Ratio-0.72
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
Newtopia Business Overview & Revenue Model
Company DescriptionNewtopia (NEWU) is a company operating in the health and wellness sector, focusing on personalized health improvement programs. It offers innovative solutions designed to enhance the health and well-being of individuals through tailored lifestyle interventions. The company's core services include digital health coaching, genetic testing, and personalized wellness plans aimed at preventing chronic diseases and improving overall health outcomes.
How the Company Makes MoneyNewtopia 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.25
Negative
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.20
Very Negative
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.30
Negative
| 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 | EBIT |
| -1.90M | -2.59M | -6.96M | -7.46M | -6.87M | -7.74M | EBITDA |
| -3.15M | -1.76M | -7.02M | -7.15M | -7.08M | -7.09M | Net Income Common Stockholders |
| -7.26M | -6.60M | -7.70M | -7.65M | -7.73M | -10.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.43M | 387.34K | 345.95K | 811.58K | 4.67M | 2.39M | Total Assets |
| 3.68M | 2.33M | 5.94M | 5.51M | 7.90M | 5.63M | Total Debt |
| 12.51M | 9.88M | 8.85M | 5.18M | 883.09K | 5.03M | Net Debt |
| 11.08M | 9.49M | 8.50M | 4.37M | -3.79M | 2.65M | Total Liabilities |
| 16.13M | 11.75M | 11.48M | 7.35M | 3.70M | 16.84M | Stockholders Equity |
| -12.44M | -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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$440.41M | ― | -3.70% | 3.88% | -12.01% | -698.83% | |
62 Neutral | C$1.03B | 30.45 | -3.53% | ― | 17.19% | -191.01% | |
60 Neutral | $11.62B | 10.48 | -7.27% | 2.93% | 7.46% | -10.64% | |
60 Neutral | C$152.92M | ― | -23.05% | ― | -3.73% | 32.70% | |
42 Neutral | C$866.33K | ― | 56.02% | ― | -36.40% | -21.88% |
* Technology Sector Average
Performance Comparison
TSE:NEWU
Newtopia
0.01
-0.04
-80.00%
TSE:HLS
HLS Therapeutics Inc
4.80
0.90
23.08%
TSE:NEO
Neo Performance Materials Inc
10.53
3.83
57.16%
TSE:WELL
WELL Health Technologies Corp
4.19
0.35
9.11%
Newtopia Earnings Call Summary
Earnings Call Date:Nov 27, 2024
(Q3-2024)
| % Change Since: -75.00%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted promising strategic partnerships and key client renewals, indicating strong potential for growth and profitability in the future. However, the company faced significant revenue declines and an EBITDA loss this quarter. Despite these challenges, the operational efficiencies and high engagement rates suggest a positive outlook.Q3-2024 Updates
Positive Updates
New Strategic Partnership in Supplemental Insurance
Newtopia has entered a strategic partnership with a supplemental insurance payvider to offer their habit change platform to thousands of U.S. workers as a fully covered benefit starting in 2025. This partnership has the potential to significantly accelerate participant acquisition and reach profitability in 2025.
Renewed and Expanded Key Client Contracts
Newtopia secured key client renewals and expanded contracts, including with Fortune 500 and Fortune 10 companies. Notably, a long-time Fortune 10 partner continues to exceed expectations with 72% engagement and 30% of the population achieving clinically significant weight loss.
Operational Efficiency Improvements
Selling, general and administrative expenses improved by 16% year-over-year, and technology and development expenses improved by 18% year-over-year. These improvements are attributed to reduced marketing activities and streamlined operations.
High Engagement and Clinical Outcomes
Newtopia's programs achieved high engagement rates and clinically significant weight loss outcomes, with some clients exceeding enrollment targets by over 45% and maintaining high engagement rates.
Negative Updates
Revenue Decline
Q3 2024 revenue totaled $1.0 million compared to $2.4 million in the prior year period, driven by the loss of a client and structural incentive changes at an existing client.
EBITDA Loss
EBITDA totaled a loss of $987,000, driven by top line headwinds, compared to a gain of $21,000 in the prior year.
Company Guidance
During the Q3 2024 earnings call for Newtopia Inc., key guidance was shared highlighting the company's strategic focus and financial metrics. Newtopia reported a revenue of $1.0 million for Q3 2024, down from $2.4 million in the prior year, primarily due to the loss of a client and structural changes at another existing client. Despite this, the company maintained a gross profit of $0.3 million, equating to 34% of revenue. The company is targeting profitability in 2025, supported by a new strategic partnership with a U.S. payvider to make its habit change platform available to workers at no out-of-pocket cost. Additionally, Newtopia achieved significant client engagement, with one Fortune 10 partner reaching 72% engagement and 30% of their population achieving a clinically significant weight loss. Newtopia aims to leverage these successes to drive growth through strategic partnerships and innovations in health AI, further improving outcomes and reducing costs for its clients.Newtopia Corporate Events
Newtopia Targets Growth Amid Financial Results
Nov 27, 2024
Newtopia Inc. has announced its third-quarter 2024 financial results, highlighting a revenue of $1.0 million and a 16% reduction in operating expenses. The company is focusing on strategic partnerships and innovations, including collaborations with GLP-1 drug sponsors and health AI platforms, to enhance its growth and profitability by 2025.
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.