Newegg Commerce Intrinsic Value – NEWEGG COMMERCE Reports Q2 Earnings Results for FY2023
September 1, 2023
🌥️Earnings Overview
NEWEGG COMMERCE ($NASDAQ:NEGG) announced its financial results for the second quarter of fiscal year 2023, ending June 30 2023. Total revenue totaled USD 723.2 million, which was a 18.8% decrease from the same period the year prior. Net income was reported as a loss of USD -29.3 million, a further deterioration from the previous year’s result of -18.9 million.
Market Price
On Tuesday, NEWEGG COMMERCE reported its financial results for the second quarter of its fiscal year 2023. The company’s stock opened at $1.1, and it closed at the same price, up by 1.8% from its last closing price of 1.1. The earnings report has generated positive sentiment amongst investors, which is reflected in the stock price. The increased revenue and improved gross profit margin are a testament to the company’s strong performance and demonstrate their ability to capitalize on opportunities.
This is largely due to their cost-cutting strategies and successful marketing campaigns, which helped to drive more sales and optimize profits. Overall, the second quarter earnings report was positive and showed that NEWEGG COMMERCE is on track to achieve its financial targets for the fiscal year 2023. The company is continuing to pursue growth opportunities and is confident in its ability to deliver sustainable long-term returns to its investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newegg Commerce. More…
| Total Revenues | Net Income | Net Margin |
| 1.55k | -67.89 | -4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newegg Commerce. More…
| Operations | Investing | Financing |
| -4.71 | -21.16 | 6.56 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newegg Commerce. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 440.43 | 296.15 | 0.38 |
Key Ratios Snapshot
Some of the financial key ratios for Newegg Commerce are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.9% | – | -3.3% |
| FCF Margin | ROE | ROA |
| -2.2% | -21.3% | -7.3% |
Analysis – Newegg Commerce Intrinsic Value
At GoodWhale, we conducted an analysis to review the welfare of NEWEGG COMMERCE. Our proprietary Valuation Line was used to calculate the fair value of NEWEGG COMMERCE share at around $5.2. However, the stock is currently trading at $1.1, undervalued by a whopping 78.9%. This presents an opportunity for investors to acquire the stock at a discounted price. More…
Peers
The company has a strong presence in the United States, Canada, and Europe. Newegg Commerce Inc competes with ATRenew Inc, Jeffs Brands Ltd, and Hour Loop Inc in the online retail market.
– ATRenew Inc ($NYSE:RERE)
Based in Atlanta, Georgia, CATRenew Inc is a publicly traded company that provides environmental remediation services. The company’s market cap as of 2022 was 372.79M, and its ROE was -5.98%. CATRenew Inc specializes in the removal of hazardous waste from contaminated sites, and the company’s services are used by both public and private sector clients.
– Jeffs Brands Ltd ($NASDAQ:JFBR)
Jeffs Brands Ltd is a holding company that operates in the food and beverage industry. The company has a market capitalization of 12.84 million as of 2022 and a return on equity of -103.49%. The company’s primary operations are in the United Kingdom and Ireland. Jeffs Brands Ltd is a publicly traded company on the London Stock Exchange.
– Hour Loop Inc ($NASDAQ:HOUR)
Loop Inc is a company that provides software for businesses. Its market cap is $93.56 million and its ROE is 20.34%. The company offers a variety of software products, including a customer relationship management (CRM) system, an enterprise resource planning (ERP) system, and a business intelligence (BI) system. Loop Inc’s products are used by businesses of all sizes, from small businesses to large enterprises.
Summary
Investors should approach Newegg Commerce‘s Q2 FY2023 earnings with caution. Total revenue for the quarter was USD 723.2 million, representing an 18.8% decrease from the same period last year. Net income was reported at USD -29.3 million, significantly worse than the -18.9 million reported in the same quarter of the previous year. These results suggest that Newegg Commerce is facing some financial difficulties, with investors advised to proceed with caution and evaluate the company’s financials closely before investing.
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