Northann Corp. Common Stock (NCL)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business that earns more than it spends. Northann sells vinyl flooring online through dotfloor.com and several brands, with only 63 employees, so it is small and asset-light. There is no clear durable competitive advantage in online vinyl flooring. But the record is troubling. In fiscal 2022 it reported revenue of $21.0 million and net income of $929,059. In fiscal 2023 revenue fell to $14.0 million and net loss was $7.1 million. In fiscal 2024 revenue recovered to $15.3 million, yet net loss was still $4.4 million. More recently, in fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $3.5 million and net loss was $8.8 million. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $5.0 million and net loss was $2.9 million, a -58.35% net margin. FairStock's calculations show trailing free cash flow of -$7.0 million and a free cash flow yield of -7785.8% at the 2026-08-28 close. Return on equity is -106.78%, return on capital employed is -31.01%, and debt-to-equity is 0.31. The Piotroski score is 2/9 and Altman Z-score is -1.08, signs of financial stress. The stock's market cap is only $90,231, with P/B of 0.01, so the price looks almost free against book value. But book value can vanish if losses persist. FairStock classifies it as a TURNAROUND — loss in the latest year after earlier profits. Turnarounds can pay, but only if the business stops burning cash. Here the evidence is not yet convincing.

In plain English: Northann sells vinyl flooring online under several brands, mainly in North America and Europe. The business is very small and has been losing money, with recent losses and cash outflow. The stock price is extremely low compared with its accounting value, but that does not make it a safe bargain while the company is unprofitable.

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Data as of 2026-08-28 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31) · FY2022 10-K (period ended 2022-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer