Newegg Commerce Inc. Common Shares (NEGG)

FairStock Score: 31/100 — RISKY

Key Financials

AI Analysis

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

As a Buffett-and-Graham-style investor, I want a durable business, consistent earning power, a conservative balance sheet, and a price below intrinsic value. Newegg is an online electronics retailer, selling computers, gaming gear, and accessories. It operates in a brutally competitive field with little pricing power. At the close on 2026-10-13, the price was $11.13 and the market cap was $837.4M. FairStock’s calculations show a P/E of 24.73, P/B of 1.36, ROE of 6.54%, and ROCE of only 1.07%. That ROCE is far below what I want. Revenue growth is -8.06%, and the Lynch classification is SLOW GROWER—Shrinking, with profit down 16.0% a year over two years. Free cash flow is negative: -$72.4M trailing, a -8.7% FCF yield. The latest quarter’s net margin of 0.69% leaves almost no cushion. The balance sheet is not heavily leveraged at D/E 0.31, and Altman Z is 2.53, in a gray zone. But the Graham Number is $9.09, so at $11.13 the margin of safety is -22.44%. EV/EBITDA of 51.76 is rich. The PEG of 0.11 looks cheap only because the supplied profit-growth figure of 231.04% is measured against a weak base. In fiscal year 2012, the year ended 2012-12-31, revenue was $21.4M and net income was $3.2M—old filings that describe a much smaller historical business and offer little insight into today’s scale. Overall, this is a low-margin, cash-burning retailer priced for a turnaround. I would need evidence of durable positive free cash flow and better returns on capital before calling it a value opportunity.

In plain English: Newegg sells electronics online, including computers, gaming gear, and accessories. The business looks weak right now: sales are shrinking, it is using more cash than it brings in, and profits are very thin. At the latest price, the stock looks expensive compared with those weak numbers, not cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2012 10-Q (period ended 2012-09-30) · fiscal Q2 2012 10-Q (period ended 2012-06-30) · fiscal Q1 2012 10-Q (period ended 2012-03-31) · fiscal Q3 2011 10-Q (period ended 2011-09-30) · FY2012 10-K (period ended 2012-12-31) · FY2011 10-K (period ended 2011-12-31) · FY2010 10-K (period ended 2010-12-31)

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