NEGG Stock Overview
Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America.
Newegg Commerce Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$3.95|
|52 Week High||US$22.20|
|52 Week Low||US$3.15|
|1 Month Change||10.03%|
|3 Month Change||-13.00%|
|1 Year Change||-76.16%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-70.17%|
Recent News & Updates
Newegg: Revenue Growth Supported By GMV Growth
We determined that the company's revenue growth decline in 2018 and 2019 was mainly driven by its decline in active customers during the period from 4 mln to 3.2 mln. We believe this is attributable to factors including the tax crackdown on customers, credit card data breaches, and counterfeit goods which may affect future growth. However, we still projected the company's revenue growth at a 3-year forward average of 16.5% driven by rising AOV and as the company's NPS score improved. Newegg Commerce, Inc (NEGG) is a US e-commerce company that focuses on electronics. The company operates both B2B and B2C platforms. We analyzed the company as its revenue growth had declined by 24.2% from FY2018 to FY2019 to identify the reasons for this decline and determined if these factors could impact its future revenue growth. Revenue Recovering From 2019 Low Newegg 2017 2018 2019 2020 2021 Total visits ('mln') 263.3 261.6 262.20 382.20 305.10 Growth % -0.6% 0.2% 45.8% -20.2% Number of active customers ('mln') 4 3.9 3.2 4.7 3.5 Growth % -2.5% -17.9% 46.9% -25.5% Gross Merchandise Value (GMV) ($ bln) 2.5 2.4 1.9 2.7 3 Growth % -4.0% -20.8% 42.1% 11.1% GMV per active customer 625.00 615.38 593.75 574.47 857.14 Growth % -1.5% -3.5% -3.2% 49.2% Average Order Value ($) 286 299 310 301 442 Growth % 4.5% 3.7% -2.9% 46.8% Take Rate 86.32% 84.27% 80.73% 78.33% 79.21% Growth % -2.4% -4.2% -3.0% 1.1% Conversion rate 3.4% 3.2% 2.4% 2.4% 2.3% Revenue ($ mln) 2,158 2,022 1,534 2,115 2,376 Growth % -6.3% -24.2% 37.9% 12.4% Source: Newegg, Khaveen Investments We analyzed the company's customers based on the total visits, number of active customers, average order value and conversion rate to identify the reason for the revenue decline from 2018 to 2019. Based on the table above, the company's revenue and GMV had positive growth in the past two years (2020 and 2021) which was an improvement compared to its negative growth in 2018 and 2019. GMV is calculated from the total number of active customers & GMV per active customer. Moreover, the company's total visits grew in the past 5 years which is in contrast to its active customers which declined, indicating that the company is not able to capture visits and convert them to sales. This is also witnessed by its decreasing conversion rate from 3.4% in 2017 to 2.3% in 2021. Furthermore, in 2021, we believe that the revenue growth was mainly driven by the increase in AOV (46.8%) which drove the growth in GMV per active customer at 49.2%. Thus, based on our analysis, all metrics showed an increase from 2018 to 2019 except for the number of active customers and GMV. Hence, we believe that the reason for its revenue decline is due to the decline in its active customers resulting in its GMV decreasing. Long-term Revenue Growth Supported by AOV Growth Based on our point above, we determined the company revenue growth in 2018 and 2019 was affected driven by the decline in active customers. We examined the potential factors to explain the decline in active customers. Below are the events we believe that had contributed to the decline in active customers in 2018 and 2019: Tax Bills: In March 2018, Newegg customers in Connecticut were affected by the tax crackdown. Newegg had shared the past purchase records of its customers with the Department of Revenue Services ('DRS') which went after customers on the sales tax issue. Credit Card Hacking: In September 2018, for one month period, Newegg had a data breach involving customers' credit card info. Some customers' info may have been stolen and Newegg responded to the issue by sending emails to its customers. Counterfeited Goods: In April 2019, a study by the Government Accountability Office found that 40% of commonly counterfeited products were fake on websites including Amazon (AMZN), Sears, Walmart (WMT), eBay (EBAY) and Newegg We believe that all these events cumulatively affected consumer trust and affect the growth of Newegg's active customers in 2018 and 2019. However, we believe that the tax issue would not continue to affect the company's revenue growth as it was only in one state and is a one-off event. That said, we believe there could still be counterfeit goods reportedly sold on Newegg hence this may affect the company's future revenue and we could not find any measures Newegg had implemented to prevent future security breaches. Hence, we believe that these two events may happen again in the future and affect Newegg's revenue growth.
|NEGG||US Online Retail||US Market|
Return vs Industry: NEGG underperformed the US Online Retail industry which returned -25.2% over the past year.
Return vs Market: NEGG underperformed the US Market which returned -9% over the past year.
|NEGG Average Weekly Movement||13.7%|
|Online Retail Industry Average Movement||12.4%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||17.0%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: NEGG is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.
Volatility Over Time: NEGG's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
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.
Newegg Commerce Fundamentals Summary
|NEGG fundamental statistics|
Is NEGG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NEGG income statement (TTM)|
|Cost of Revenue||US$2.05b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.098|
|Net Profit Margin||1.53%|
How did NEGG perform over the long term?See historical performance and comparison
Is NEGG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for NEGG?
Other financial metrics that can be useful for relative valuation.
|What is NEGG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does NEGG's PE Ratio compare to its peers?
|NEGG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
QRTE.A Qurate Retail
RVLV Revolve Group
SEAT Vivid Seats
NEGG Newegg Commerce
Price-To-Earnings vs Peers: NEGG is expensive based on its Price-To-Earnings Ratio (40.3x) compared to the peer average (29.5x).
Price to Earnings Ratio vs Industry
How does NEGG's PE Ratio compare vs other companies in the US Online Retail Industry?
Price-To-Earnings vs Industry: NEGG is expensive based on its Price-To-Earnings Ratio (40.3x) compared to the US Online Retail industry average (20.2x)
Price to Earnings Ratio vs Fair Ratio
What is NEGG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||40.3x|
|Fair PE Ratio||n/a|
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NEGG's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of NEGG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: Insufficient data to calculate NEGG's fair value for valuation analysis.
Significantly Below Fair Value: Insufficient data to calculate NEGG's fair value for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
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How is Newegg Commerce forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted Retail industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Newegg Commerce has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
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- Check out Newegg Commerce's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
How has Newegg Commerce performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NEGG has high quality earnings.
Growing Profit Margin: NEGG's current net profit margins (1.5%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: NEGG's earnings have grown significantly by 87.3% per year over the past 5 years.
Accelerating Growth: NEGG's earnings growth over the past year (19.2%) is below its 5-year average (87.3% per year).
Earnings vs Industry: NEGG earnings growth over the past year (19.2%) exceeded the Online Retail industry -37.5%.
Return on Equity
High ROE: NEGG's Return on Equity (19.9%) is considered low.
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How is Newegg Commerce's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: NEGG's short term assets ($439.0M) exceed its short term liabilities ($356.3M).
Long Term Liabilities: NEGG's short term assets ($439.0M) exceed its long term liabilities ($88.0M).
Debt to Equity History and Analysis
Debt Level: NEGG has more cash than its total debt.
Reducing Debt: Insufficient data to determine if NEGG's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: NEGG's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: NEGG earns more interest than it pays, so coverage of interest payments is not a concern.
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What is Newegg Commerce current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NEGG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NEGG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NEGG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NEGG's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as NEGG has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Anthony Chow (57 yo)
Mr. Anthony K. Chow is the Chief Executive Officer and Director of Newegg Commerce, Inc. He serves as Director at Shenzhen Investment Control East China Sea Investment Co., Ltd. (formerly known as TopoScen...
Experienced Board: NEGG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Newegg Commerce, Inc.'s employee growth, exchange listings and data sources
- Name: Newegg Commerce, Inc.
- Ticker: NEGG
- Exchange: NasdaqCM
- Founded: 2001
- Industry: Internet and Direct Marketing Retail
- Sector: Retail
- Implied Market Cap: US$1.460b
- Shares outstanding: 369.72m
- Website: https://www.newegg.com
Number of Employees
- Newegg Commerce, Inc.
- 17560 Rowland Street
- City Of Industry
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/18 00:00|
|End of Day Share Price||2022/08/18 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.