Newton Golf Company Inc. Common Stock (NWTG)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

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

I approach Newton Golf as a Graham-style asset and earnings exercise, not a story. The company is small: 38 employees, a $4.7 million market cap at the 2026-10-13 close of $0.86, selling golf putting instruments, shafts, grips, and custom fitting. The filed record shows real top-line movement: revenue rose from $3.4 million in FY2024 to $8.1 million in FY2025, and FairStock reports revenue growth of 112.42% and profit growth of 71.30%. But the bottom line remains deeply negative: FY2025 net loss was $6.0 million, or $1.63 per diluted share; fiscal Q1 2026 lost $2.7 million on $991,000 of revenue; and fiscal Q2 2026, the quarter ended 2026-06-30, lost $2.3 million on $1.3 million of revenue, a -173.1% net margin. Trailing free cash flow is -$5.6 million, a -119.0% FCF yield against the $4.7 million market cap. That is not a margin of safety; it is a cash furnace. The balance sheet shows low D/E of 0.09, but FairStock calculations show ROE of -2023.16%, ROCE of -114.08%, and Altman Z of -20.86, signaling severe financial weakness. P/B is 5.45 and P/E is -0.44, so price is not supported by assets or earnings. The Lynch screen finds no category because the company has lost money in each of the last four years. There may be a niche brand and custom-fitting angle, but I see no durable moat yet. Growth from a tiny base is possible, but until revenue covers costs and cash flow turns positive, this remains speculative. I would watch losses, cash burn, and share count, not the narrative.

In plain English: Newton Golf Company makes golf clubs, shafts, grips, and custom fitting products. The business is still losing money and burning cash: sales grew from $3.4 million in FY2024 to $8.1 million in FY2025, but it lost $6.0 million in FY2025 and $2.3 million in fiscal Q2 2026. At $0.86, the stock looks expensive compared with current profits and the value of its assets, though it is a tiny company whose future depends on becoming profitable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · 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) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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