Newegg Commerce, Inc. Fundamental Analysis
Newegg Commerce, Inc. (NEGG) shows weak financial fundamentals with a PE ratio of 60.64, profit margin of 0.39%, and ROE of 3.58%. The company generates $1.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEGG's fundamental strength across five key dimensions:
Efficiency Score
WeakNEGG struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEGG shows balanced valuation metrics.
Growth Score
WeakNEGG faces weak or negative growth trends.
Financial Health Score
ExcellentNEGG maintains a strong and stable balance sheet.
Profitability Score
WeakNEGG struggles to sustain strong margins.
Key Financial Metrics
Is NEGG Expensive or Cheap?
P/E Ratio
NEGG trades at 60.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NEGG's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Newegg Commerce, Inc. at 1.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.78 times EBITDA. This signals the market has high growth expectations.
How Well Does NEGG Make Money?
Net Profit Margin
For every $100 in sales, Newegg Commerce, Inc. keeps $0.39 as profit after all expenses.
Operating Margin
Core operations generate 0.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.58 in profit for every $100 of shareholder equity.
ROA
Newegg Commerce, Inc. generates $1.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Newegg Commerce, Inc. generates limited operating cash flow of $-77.49M, signaling weaker underlying cash strength.
Free Cash Flow
Newegg Commerce, Inc. generates weak or negative free cash flow of $-80.22M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.82 in free cash annually.
FCF Yield
NEGG converts -27.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How NEGG Stacks Against Its Sector Peers
| Metric | NEGG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.64 | 25.41 | Worse (Expensive) |
| ROE | 3.58% | 866.00% | Weak |
| Net Margin | 0.39% | -3094.00% (disorted) | Weak |
| Debt/Equity | 0.33 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 2.44 | Neutral |
| ROA | 1.44% | 288.00% | Weak |
NEGG outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Newegg Commerce, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary