Newegg Commerce Inc Stock price
Is Newegg Commerce Inc a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
As a Free StocksGuide user, you can view scores for all 9,109 stocks worldwide.
StocksGuide Premium
StocksGuide Unlimited
Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $238.26m | Revenue (TTM) = $2.07b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $158.23m | Revenue (TTM) = $2.07b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 SBC | in % Revenue
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to revenue.
🧮 How is it calculated?
SBC as % of Revenue = (SBC ÷ Revenue) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of revenue shows how heavily a company relies on equity-based compensation and how significant this form of compensation is relative to the size of the business.
🧮 Calculation
🎯 What does this mean for investors?
- A lower figure is generally positive: Stock-based compensation is relatively small compared with the company's revenue.
- A high figure can indicate greater reliance on stock-based compensation and a higher potential risk of dilution. However, it is also important to consider whether the company offsets dilution through share buybacks.
- The trend over time should also be considered. A high but declining percentage presents a different picture from a persistently high or increasing percentage.
- A single-digit SBC-to-revenue ratio is not unusual among many growth-oriented and technology companies.
📘 SBC as % of FCF
📈 What is it?
SBC (Stock-Based Compensation) refers to equity-based compensation granted by a company to its employees and executives. The percentage shows SBC relative to free cash flow (FCF).
🧮 How is it calculated?
SBC as % of FCF = (SBC ÷ Free Cash Flow) × 100
🏛️ Why is it important?
Stock-based compensation is a real cost factor for shareholders. It can increase the number of shares outstanding and therefore dilute existing shareholders. The percentage of free cash flow shows how significant SBC is relative to the cash generated by the company. Since SBC is non-cash compensation, it is typically not deducted as a cash outflow when calculating FCF.
🧮 Calculation
🎯 What does this mean for investors?
- A lower value is generally favorable. Stock-based compensation is relatively small compared with the company's cash generation.
- A high value means that SBC represents a significant portion of the company's reported free cash flow, even though SBC itself is non-cash.
- The higher the value, the more significant SBC can be as an economic cost to shareholders, particularly when it results in share dilution.
📘 SBC Growth 1Y
📈 What is it?
SBC Growth 1Y shows how much a company's stock-based compensation has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
SBC Growth shows whether stock-based compensation is becoming more or less significant for shareholders. If SBC increases significantly, it can lead to greater shareholder dilution over time. At the same time, SBC is a non-cash expense that reduces earnings on the income statement but is added back in the cash flow statement.
🧮 Calculation
🎯 What does this mean for investors?
- A high positive value is generally negative, as rising SBC can increase the burden on shareholders, particularly through potential dilution.
- What matters is whether the development of SBC is sustainable over the long term. Some level of SBC is common among many growth and technology companies.
📘 Share Count Growth 1Y
📈 What is it?
Share Count Growth 1Y shows how much the number of shares outstanding has increased or decreased over a one-year period.
🧮 How is it calculated?
🏛️ Why is it important?
The number of shares determines how many shares the company's earnings and assets are distributed across. If the share count decreases, existing shareholders' relative ownership increases. If it increases, existing shareholders are diluted. The metric therefore makes dilution and share buybacks directly visible.
🧮 Calculation
🎯 What does this mean for investors?
- A negative value is generally positive, as the number of shares outstanding is decreasing.
- A positive value indicates dilution of existing shareholders.
- A declining share count is not automatically positive: It also matters at what price the shares are repurchased and how the buybacks are financed.
📘 Shareholder Yield
📈 What is it?
Shareholder Yield measures how much capital a company returns to shareholders or uses to reduce debt relative to its market capitalization. It goes beyond dividend yield by also including share buybacks and debt reduction.
🧮 How is it calculated?
🏛️ Why is it important?
Dividend yield only tells part of the story. Companies can also return capital through share buybacks, while reducing debt can strengthen the balance sheet. Shareholder Yield combines all three components into one metric, giving investors a broader view of how a company uses its capital.
🧮 Calculation
🎯 What does this mean for investors?
- A higher Shareholder Yield generally indicates more capital being returned to shareholders or used to reduce debt.
- The mix matters: dividends, buybacks, and debt reduction can affect shareholders in different ways.
- Share buybacks are most beneficial when shares are repurchased at attractive valuations.
- Investors should also consider whether dividends, buybacks, and debt reduction are sustainable over time.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🧮 Calculation
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Newegg Commerce Inc Stock Analysis
Analyst Opinions
7 Analysts have issued a Newegg Commerce Inc forecast:
Analyst Opinions
7 Analysts have issued a Newegg Commerce Inc forecast:
Newegg Commerce Inc Events
Past Events
|
SEP
30
Special Call - Newegg Commerce, Inc.
16 days ago
|
StocksGuide Free
Newegg Commerce Inc — Special Call - Newegg Commerce, Inc.
1. Management Discussion
All right, everybody. Welcome back to B2B Events by Newegg Business. I'm Ivan McClain, your B2B Marketing Manager here at Newegg Business. And we have a great episode for you today. Today, we're going to be featuring WD Red and the drive behind AI NAS. But before we get there, we're going to go through a little bit of house cleaning. I'm going to explain the ON24 interactive webinar portal that you see there and how you can interact with us today. And then also, I'm going to give you a little bit of information on Newegg Business. But first, for your interactive webinar screen here, I'm going to highlight some things and explain it to you.
First, we have great people from WD. We got Brad Warbiany on the back end, answering all your questions throughout the entire webinar. So go ahead and ask us a question at any time. He'll have your answers for you just as soon as he can. B. So here is our Request A Quote. So if you're really liking what you're seeing and want to put in a quote, we'll get that over to our account executives here at Newegg Business right away. Just go ahead in that Request A Quote here in this box.
Then you have our Media Player. This is where you see our wonderful faces for the whole event. And this is a fun one. This is the Reactions button, give us thumbs up, thumbs down, hearts, clappy things. Let us know how we're doing throughout the whole presentation. We love to see that, and it really helps us know that we're doing a good job. So hit that -- hit those little likes and whatnots as many times as you like.
Then if you want to get in contact with me, myself, I'm your point of contact here at Newegg Business, or Marc or Brad at Western Digital, you can see the Speaker Bio box and all of our contact information there. Then if you're liking what you're seeing, please feel free to refer a colleague, a friend, a family member, anything like that at any time. Even if they can't join us right now, it's okay because an hour after the presentation, this episode will go into our on-demand format in our B2B Events library, and you can always see past and current events there.
Then you have your slide window. Obviously, this is where you'll see your slides and your presentation information. Then this is a really great one, your Related Content box. These have great links for you today. You can shop WD Red where you have some amazing bundles and promo codes just for the next couple days. You can sign up for a Newegg Business account. You can register for our next webinar with ASRock Rack AI Center or you can watch previous episodes from B2B Events. We've been doing this about 3 years now. We have a lot of great episodes in there.
And then -- so here at Newegg Business, you get the same great things that you love about Newegg, but with the tools and service built for how business buys. And I'm going to go through a couple things here. I'm sure you saw our little commercial. But the great thing about Newegg Business, you can get a real person on the phone. It's not going to be an AI chatbot, you can send us an e-mail. If you can't find it on the website, give us a call. We'll help you source it because we have one of the widest sourcing networks out there.
Then also, we do volume discounts. So if you're buying in bulk on select items, we can get you a better deal for the more you buy. Buy more, save more. And then if you have that really unique custom quote, contact us, call us, give us an e-mail, let us know, and we'll get you a quote as soon as possible, as soon as 24 hours in some cases.
Then we have our great partner at Credit Key, who also helps you with net terms and other payment options. Feel free to go there for an instant approval. Then we have our own in-house net 30 terms for those PO purchases. So feel free, we can apply for that at any time with the Newegg Business account. And then also, we cover tax-free purchasing. We'll give you that tax-free, just submit your documents, we'll turn off the tax, and we'll go from there for all you VARs and MSPs out there and resellers.
Then for all the agencies, government, education, enterprise, if you need that control over your purchasing, we have -- we can integrate you into our e-procurement punchout or e-procurement platform such as Ariba, Coupa, Jaggaer, Workday, all of those we can integrate for you as well. And the great thing, we have a brand-new VAR Partner Program. So this is for VARs and MSPs. You get a lot of special features. You can go to our brand-new website, neweggbusiness.com. And in the search header links, you can find our VAR Partner Program. This is brand new from Newegg Business. Check it out. You have a lot of great features that will help those VARs and MSPs, and how we can help further service you.
Then for all of you here that stay within for at least 30 minutes of the webinar, you will be entered in to win $100 Newegg Business gift card. So make sure you stay tuned, make sure you answer to the poll questions. And also the last but not least here on the features of the way to interact is our survey bar. Make sure you fill this out before you leave. This is very important. You don't have to answer it right away, but feel free to answer it before you leave because this helps us make better content and makes this show better for you.
So with all of that out of the way, we have Marc Tanguay, the Technical Product Marketing Manager from Western Digital. Marc, why don't you say hi?
Yes. Hi, everyone. Good morning, and thanks, Ivan, for having us on today. Again, I'm Marc from WD and Product Marketing Manager for the full portfolio of WD hard drives, everything from our cloud data center hard drives with Ultrastar to WD Red for NAS products. And also, I'm a former NAS product manager. So it's been exciting to see everything that's been happening on -- with AI on your NAS, helping you to bring intelligence out of your local documents and information. So really excited to talk to everyone about that today.
Awesome, Marc. We're really excited to have you here today. And so we're going to kick this off with our first poll question. All right. What is driving demand for enterprise NAS storage? A, reduced focus on data security; B, growth of private AI and LLMs; C, smaller AI training data sets; D, lower AI storage requirements; or E, RAM costing $1 million.
All right. We're going to wait for 50% of you to answer before we're going to go on. And Marc, so why don't you tell us a little bit about yourself? We've been really excited to have you here with WD today.
Yes. So what we'll do is we'll talk a little bit about -- give an overview of what we're going to cover today. And so most of us are familiar with using your AI of choice to help you be more productive, to really help you create content and documents at work, everything from that to helping you find a reservation at a local restaurant to take your business client out to.
So, so much of the focus is really on cloud AI and what the AI services are doing. Not a lot of discussion about what you can do locally with your own documents and content. And so we're really going to start off with the differences between your cloud AI and then your NAS AI. We'll talk about everything that's happening from a market dynamic standpoint at hyperscale, and then we'll bring it down to NAS scale on your local desktop, and then wrap up with why WD Red drives are really ideal for your AI workloads.
Awesome, Marc. It looks like 50% of you have answered the question, and here's the results. It looks like 0% said A, 81% said B, 0% said C, 6% said D, and 12% of you said E. So the correct answer to that one was A, actually. So you guys got to get a little better on your answering your questions. All right. Go ahead, Marc. Kick us off into your first section.
All right. Thanks. So apologies in advance here, but we have to start with a legal disclaimer. WD being a public company, I may make forward-looking statements that involve risk or uncertainty. So short version here, don't make any investment decisions based on what I present to you today without doing your own independent research. So if you virtually sign yourself away here, we can go ahead and just jump right into the presentation. Thanks for that legal notice.
All right. Let's kick it off today. Again, the topic is about local AI NAS, but let's first start at a higher level and just kind of compare a little bit about differences between cloud AI and local AI, and really just give a quick overview on the differences. So cloud AI, whether you're using Claude or ChatGPT or Copilot or Gemini, it's really all about creating and understanding. It's pulling from a source of information that's really the entire web and documents that have been created before. It's going through things like text files and chat forums on the website to really build out its learning language and its LLM models.
What it's not doing is sourcing and going through all of your personal content. And that's really the primary difference on local AI. So when I said personal, that can be your own personal stuff or, of course, your work content. But it's not sourcing and indexing through -- so cloud AI services don't know things about your customers or your business challenges, whereas local AI is working through your team's content, your information. And you own all of that information. So at a very high level, that's the difference between cloud AI services and local AI services that are running on NAS. We're going to dive a little bit deeper into both.
And let's start off with -- at the hyperscale, the scale-out side, and we'll take a look at AI data centers and also cloud data centers. And so if we started, a better poll question might have been, how many of you use WD hard drives today, on a daily basis, to start off with. It would have been interesting, might have had a lot of you answer no, I don't really work with WD hard drives. I might have used them in a NAS system that I have or when I was building a gaming rig for personal use years ago.
But what you might not realize is that every interaction you have, whether it's creating a document through Office Online or if it's on your phone, every interaction that you have, whether you're chatting with a message, creating an e-mail, taking a photo, drafting documents, making your schedules with your calendars, tasks, notes, watching streaming videos, replaying this webinar, for example, that all is sourced on a hard drive in a cloud data center today.
And there's a good chance it's living on a WD hard drive as well. So whether you knew it or not, chances are you're interacting with a hard disk drive for your storage multiple times per hour, if not greater than that. So HDDs are really the capacity backbone of everything digital today and all the operations that are happening in the cloud. And behind the scenes, chances are it's stored on perpetuity on a hard disk drive.
Now let's take a look at the AI data pipeline and the workflows in the AI data center. So again, this is at hyperscale. And the reason we're going to walk you through this is that you can -- we can then take -- when we take it a step down, down to the desktop level, you'll kind of understand the differences of what's happening in the AI data center versus what's happening on your local AI NAS.
And so if we start off with -- there are really 2 main forms of AI that are -- or 2 workflows that are happening today. And one of them is the creation of what we call the data lake. And so that's really the foundation for all the information that AI is acting on when you type in a prompt and AI is looking back at the information that's in its data lake. And that can be billions of parameters now in the models.
But that information started, as we said at the top of the presentation, started from just general purpose information, all the information in the Internet and chat forums in text form, so books and information. All that was brought in on to hard disk drives. It was cleaned and prepared. It's made ready to move up closer towards the point of compute. We all hear about GPUs and how rare and expensive they are. And then at the point of compute, which happens at #3 for both training and then as we move into step 4, which is for inference, which is predicting information and generative and creating information.
There are a lot of expensive components in this step for cloud AI models. You're not going to see those same expenses. It's all included in the NAS model that you're going to work with Newegg for. So that's another big difference as well. All of that output and content and information, whether it's training models or it's inference information that comes out in the form of documents or answers, it's going to be returned and stored back on hard disk drives.
So this whole loop is compounding and generating information. That same model is going to occur at the local level as well. So we'll address it when we get there, but it kind of changes the way that you need to think about your NAS storage, how much storage capacity do I actually need? So we'll talk more about that when we get down into that section of the presentation.
Just to show a quick example of how content is created and how much information is actually created in the cloud AI system, I -- just for this presentation, I created a prompt that said, create a 15-second full HD video with 3 short scenes, that you'll see here. This was my entire prompt. This was the output. We'll go ahead and show the video, Ivan.
Here we go.
[Presentation]
Awesome.
Now we're not sure why she put the package right back on the shelf. Maybe it's because you change your order and you're going for a higher capacity. But that was the output. You don't need to really know the numbers here on this slide, a lot of different numbers going on. But the key takeaways here, this is all about compounding and creating more data.
So the final output, that video file was 15 megabytes for that short 15-second video clip. To get to that 15 meg file, we created almost 2 gigabytes of data. So about 125x the actual output of the file size was used in just the creation of that information. So that's really what's driving all of that -- the storage demand inside of the AI data center. It will be less impactful. You won't need as much storage at the local AI NAS level. Your -- certainly, your output from the cloud side would be this 15 meg file.
But you'll see, as we go through the presentation here, we'll talk about how the AI running on the NAS will create its own learning model that will continue to grow. It will create its own documents and file sizes. It doesn't have the GPU horsepower to create a video like we did here. You're still going to be doing that with your cloud AI.
So again, in summary, it's not just either/or, you're not going to use your NAS AI to replace your cloud AI. You're going to continue to use your cloud AI. But there are so many benefits coming from the local NAS AI on your own data and your own information that it's going to help you become even more productive. So you're going to use both systems together. And with that, let's move to a poll question.
All right, everyone, your next poll question. How does WD see the role of NAS evolving with private AI and local LLMs? A, less relevant than cloud storage; B, secure local platforms for AI data; C, replace an external drive; or D, use only for backup. All right, we're going to wait for 50% of you before we move forward.
All right, Marc, so it sounds like AI is really evolving to where you have a lot of local storage and you're also working in the cloud. What else can you touch on that?
Yes. And again, I think the main point is, again, it's not one replacing the other. It's just using the -- adding on local AI on your NAS to really increase your team work productivity. And we're -- it's a great lead-in and transition into what we're just going to talk about next upcoming, which is what can you do with your local NAS for AI? And what are some of the advantages? So we'll get to that in just a second here.
All right. It looks like 50% of you have answered. And 6% said less relevant, 90% said secure local platform, 3% said replace external drives. And the answer on that one was B, you all got it right for that one. Good job, everybody. And Marc, kick us off to the next section.
Okay. So now we've covered the cloud and the hyperscale range and what's happening with AI. Now let's dive down to the desktop to the edge, what we call local NAS AI data storage. And just as we showed with the prior slide with the cloud that all the interactions that you had from your phone, from your computer with your documents going into the cloud and touching a hard drive, it's really the same storage process for your local NAS. Quite a bit of difference in your local NAS in that you have control of your own documents.
And -- but anything that you create and capture, whether you're working on an Office Online system, Google Docs and those things, you can create your documents, have them stored in that cloud. You can also have a replica copy of your documents made and stored on your local business NAS. And that's where you can really start to see the productivity and the gains in the information from having a local AI-enabled NAS operate.
And we'll talk about how local AI NAS can also really help increase team productivity with storing and sharing files. But the whole NAS products, years ago, it was really just a backup target or it was a simple file share, and it's really becoming much more a productivity tool than it had been in the past.
So the idea here is that you store your information and the AI running on your NAS is doing the work in the background for you. You don't need to initiate something. You don't need to go back in and refile your documents. It's really tremendous in the way that it's automated. It's really like having an agent specifically built for file management, file indexing as well. And it will -- you'll see -- when you use an AI NAS, you can see that how quickly it's responding, and it's responding with information that's just pertinent to your content.
Because unlike the large language model that's operating in the cloud AI, this is really learning from your documents and your information, so your team. So it's going to be able to better understand your customers, your unique business challenges, the type of work output that you create, whether they're quotations or invoices. And so a lot of information, but it's designed so that the AI running on the NAS is going to be, really, the air traffic controller kind of going through and indexing and sorting that information and making it available for the AI to act on.
So now let's kind of take a look at some of the differences between local AI and cloud AI. And again, it's not a choice. It's not either/or. It's really both. But when you get to running your local AI, there are some distinct advantages as opposed to your cloud AI services. So first, your data remains on site. There are always questions when you're using a cloud AI service about do I actually own that document? Is the company taking that document and making it available in its AI? So will my information be used for the public? Will that company be selling my information or feeding the ads based on the documents that I've put up into the cloud? So none of those things are going to happen on your local AI.
There's also no recurring costs. So no monthly, no yearly, no per token cost, no token limits as well as what you're operating on your local NAS. You're only bound by time and storage capacity. The local AI will operate even when the network is offline. So all the intelligence and processing is happening on the device itself. It's not as powerful as the NVIDIA GPUs, of course. So it's not able to create videos like the one that I showed earlier today.
But again, you don't have the cost, and it is its own local processing system unto itself. There are lower latency for your local data without Internet delays and disruptions. And really, a key piece here is greater control and privacy of your own information. So if you have information that can be specific, whether it's health care information or customer or client information as well that you don't want to share with the public cloud, you can safely store that on your local NAS.
So now let's get into some of the productivity features that you can realize from running local AI on your NAS. So the first thing is it's really what we call a private knowledge assistant. So across all of your documents, whether they're document files, text files, PDFs, your notes, business files, you can get really quick summaries and faster answers running on local AI NAS again, because when you talk about your cloud service, unless your company is paying subscriptions to just your business storage, the cloud AI is not going to have the full content library, the full file system of the documents that your team has been creating.
Your local AI NAS, if you're using that as even as a second storage point in addition to your cloud storage, it will operate on everything that you're creating, every invoice, every communication. So it can really have a full knowledge about your particular business and how it runs and operates. It's going to improve over time, of course. I'm not certain about the time to training to really where it gets to be ultimately productive. But the more content that you have stored, the more you're using, certainly, the results are better.
It was able to search across all files for things like context as well. So you might prompt your local AI NAS, find the [ Peterson ] file or which is customer A, customer B. And it will have indexed and really through all of the content and information that you have in your documents and in your photos as well. So we'll do what we call smart media management if your business is like photos or videos or you use photos or videos for your product content as well for your marketing efforts. It can go ahead intelligently go ahead and tag that information. So if you're searching information for a product that was 4 or 5 years ago, you can easily pull up that information just through things like contextual cues, not just text only.
It can do a great job with summaries of information that's been created as well. So you can use it to help draft. And you can also use it to help pull information that you can then feed into your cloud AI as well if you're comfortable doing that. So again, it can be, like, it can really refine and help your AI searches using your cloud system as well as your local NAS one.
Video intelligence. So many of you in your personal homes have Ring cameras as well. And we've seen a lot of intelligent video services through companies like Ring that tell you that is an Amazon delivery driver is delivering a package to your front doorstep. Well, your small office or business, you can also use your NAS for video surveillance purposes as well. And the video systems there are really becoming quite sophisticated to where we do object detection and recognition. So people, packages, vehicles and things like that can be detected inside of many of the NAS vendors' VMS systems now.
And this is really the biggest one for me personally. If you look at my desktop, I have all the files that I've been working on for that week or that month. And then at some point, over the weekend, I'll go back in and have to literally drag and drop every single file into its right folder. So I have to think about the document, think about my folder tree structure.
And what you can see now from a lot of these AI NAS systems is they can do that automatically. So you can just store your document into a root inbox. And what it will do is the AI on the NAS will go ahead and index and classify. It will take out its metadata tags and tag that file with that information. And then the great thing is here, we've seen a lot of advancements in actually refiling and reindexing that information, putting it into a folder structure either by client or by department, like marketing or finance, and it can actually intelligently file -- reorganize all of your files for you. So really looking forward to taking advantage of that. That one would save me hours a month. Let's move on to a poll question.
All right. What capacity planning consideration is most important for AI NAS deployments over the next 3 to 5 years? A, plan only for current needs; B, use historical growth estimates only; C, account for future AI data growth; or D, upgrade storage every year.
Marc, I, too, all my files at work, at home, it is a nightmare trying to find anything through Windows search. And having an AI go into all my files, remove duplicates, categorize everything, tag everything, so I can just be like, hey, I need this and it find what I need instead of going through all those search trees and Windows Explorer, in and out of drives, in and out of folders, where did I put that? This sounds like a huge time saver, especially if you have data coming in from all different angles and all different types.
Yes, that's right, Ivan. And then just look, when you're asking everybody on every team has someone who, like me, keeps all their files on the desktop. And then when I'm not available, someone is looking for that file, where is that? Did Marc put it in the right place? Well, if I could just let my NAS do that for me, that would save me a lot of trouble. So looking forward to that.
All right. So it looks like 50% of you have answered. And the results are, wow, 90% of you said C, and C is the correct answer. Good job, everybody. All right, Marc, take us on to the next section.
All right. So next, we're going to move into WD Red, and here's a video to introduce us.
[Presentation]
All right. So WD Red is our hard drive family that's really meant specifically for NAS, network attached storage systems. We'll talk about some of the features and why it's built for that. But I really want to start off with the idea that WD Red Pro specifically is really the right drive to power all of your AI NAS-enabled data storage. So it's going to have the capacity up to 20 terabytes to be able to store all the content that you're creating, whether you're creating it in cloud AI or it's being generated and created on your local AI, on your NAS, you're going to want to build in higher capacity than you did in the past.
How much capacity that is, that's -- in the past, what you would do, you would go to a RAID calculator, put in your RAID type, put in an estimate for how much content you have, and it would give you an overprovisioning, extra buffer space of 10% or 15%, sometimes 20%. Sometimes that would even be a question in your RAID calculator, how much extra storage space? Well, AI now kind of creates a situation where you don't know how much storage space you're actually going to need, how much content that you're going to be creating additionally. So it really has to do with your business, with your workload.
But WD Red Pro will have that high-capacity space available. So it gives you enough overhead that as your AI usage continues to grow, you can have enough capacity. It also gives you enough performance. And that's something that we didn't really talk about at the local AI NAS level yet. At the cloud level, we talked about moving storage up to DRAM and running on the GPU, so it's instantaneous. Well, on your NAS, you don't have that expense of having those higher performance capacity products. But you also need high performance of the hard disk drive where all of your documents are going to live perpetually.
So our WD Red Pro operates at enterprise class, 7,200 RPM, so it gives you the performance. So it's capacity, performance and then also reliability. It's built with the same standards that the hyperscalers demand. So it's engineered and designed for 24/7 workloads. It has the same reliability ratings as the hard drives that are running in the data centers today. So again, WD Red Pro is really the ideal drive for your AI-driven workloads.
Now that said, we have 2 products in the family, WD Red Pro and WD Red Plus. Both of them are designed for 24/7 round-the-clock operation. All of them are RAID tested and approved for your RAID level. Both of them have a high workload rating. We'll go through the differences in a moment. But workload is the amount of data that's being written to the drive and actually being read from the drive. When you're going through AI operations, it's also doing a lot of writing or reading and then rewriting of that information.
So just like in the video example that was happening in the cloud data center, it's the final output might just be some text in a file or document, but the creation of that document, it's sorting through all of your files. So it's creating a big pool of information of data that's being temporarily stored on your drive running locally.
So you want a high workload rating for reads and writes. The drives are energy efficient as well. So even though they're operating around the clock 24/7, they won't use a lot of electricity and power when in times where you're not constantly reading and writing to the drive. And the most important thing is it really designed to be reliable and dependable. We've been shipping WD Red hard drives for more than a dozen years. It's really known throughout the industry as being the standard for NAS hard drives for reliability, performance and capacity too.
So what makes the difference between these drives and the drives that are in the data center? On the Red Pro product specifically, it's enterprise class, and it's a drive literally that's coming off the manufacturing line with the same hardware components for the drives that are operating in the data center today. We put a different label on the drive that's WD Red Pro, but that's not all. Red Pro also has its own firmware that's really meant specifically just for network attached storage, just for NAS. We call it NASware.
And what that NASware does, it tunes the performance. It changes the cache buffers really meant for mixed workloads. So when you think about network attached storage, there might be different peak times for operation. It might be 9 to 5, it might be overnight. So we'll have different caching policies based on workloads, and we learn from the way that the NAS system is being used and operated.
Mixed workloads also means different file structures, file types as well. So it might be things like large videos or small text files as well. So different workloads based on different file structures, different file types, but meant to be a balance of reads and writes.
We also have a feature called TLER, which is for rapid RAID rebuild and also has some features that avoid RAID rebuild at all by restructuring data and moving away from trying to rewrite to bad sectors that might be on a drive. So TLER is very important for keeping your RAID healthy and up and running and operational. And then as we mentioned, energy management too in off-hours, the drives will not be pulling their peak wattage. So now let's go into a question.
All right. Let's see if you've all been paying attention to that last slide. Why is TLER important for RAID environments? A, TLER increases availability drive capacity; B, prevents unnecessary RAID drive drops; C, compresses stored data; D, rebuilds RAID arrays automatically.
All right, Marc. So as we go forward and let about 50% answer before we go forward, what else can you say about the RAID -- sorry, the WD Red Pro drives that really set them apart from your other competitors?
Yes. And on -- with WD Red Pro specifically, it's really -- in the past, you might have looked at it as just higher capacity, but it truly is enterprise grade, as I was mentioning, it starts off on the manufacturing line, the same drive that ends up being Ultrastar. So it's the same media and read/write heads and motors. It's written to the same specs and reliability.
And you better believe that the top hyperscalers demand the best, most reliable product. WD Red Pro is exactly that. It's the same hardware with a firmware that's really purpose-built and tuned for RAID system performance as well. Another thing that we hadn't mentioned yet that's upcoming, you can also install WD Red Pro into unlimited amount of drive bays. So if you have a 12-bay or have expansion units going out to dozens of drives, Red Pro is really built to work in that RAID environment.
Awesome. So it sounds like you're getting enterprise-class drives at your fingertips.
Yes. That's right. It truly is an enterprise-class drive that's really meant for desktop use in the NAS.
Awesome. Looks like 50% of you had answered and let's see what your results are. And it looks like 55% of you got that one right. TLER prevents unnecessary RAID drive drops. All right, Marc, on to the next.
All right. So we'll give you a quick overview here of the product lineup. So as I mentioned, we have 2 product lineups, WD Red Pro and Red Plus. Red Plus is our more entry-level product. It's really meant for home office, for maybe independent power users or small-business use. It scales in capacity from 2 to 12 terabytes. It's meant for NAS systems up to 8 bays. So you are limited in that way.
The workload rating here, and we'll keep this number in mind as we talk about WD Red Pro in a minute, 180 terabytes per year workload. Again, that's information being written to or read from the disk. And then 1 million hours of mean time between failure. 3-year limited warranty as well. So again, think of Red Plus really for that home office personal use drive for Red Plus, but it is a little more cost effective as well.
Now on to Red Pro, which again is the drive that we're really recommending for AI NAS. The first thing you'll notice, scales higher to capacity, up to 20 terabytes. And you'll see it's appropriate for NAS systems with unlimited amounts of bays, so beyond 8 to 12 or multiple dozens with expansion units. It is really architected to support up to 550 instead of 180 terabytes per year workload. And has high reliability, so up to 2.5 million hours mean time between failure.
Additionally, it's faster performance, and this is really the key for your local AI NAS. So 7,200 RPM, so fast performance, you're going to have faster read/write speeds as well. And a nice piece here is that it comes with a 5-year limited warranty, so increasing that warranty period from 3 up to 5 years. So really ideal for creative professionals, for medium to large businesses and now for NAS AI workloads. And finally, just a quick side-by-side comparison between Red Plus and Red Pro products. So with that, let's go to our last poll.
All right. Time for second to last poll question. How does WD Red differ from standard NAS drives when supporting AI-powered NAS workloads? Uses 5,400 RPM spindle speeds; WD Red Pro is purpose-built for 24/7 high-intensity multiuser AI NAS environments featuring a 550-terabyte year workload rating, TLER for RAID optimization, up to 2.5 hours of MTBF and capacities up to 20 terabytes along with innovations custom developed for hyperscale, B; C, standard NAS drives share identical workloads and ratings; or D, designed exclusively for home media servers and does not support RAID. Wow, that was a big one. Anyway...
I will mention, I think the question here says 26 terabyte. During the presentation, I said 20 terabytes. So both are true, actually. So currently, it lists up to 26 terabytes because all of our hyperscalers in the data center are buying all of our higher-capacity drives. Mostly what you'll see in Red Pro is available up to 20 terabytes. You'll still see maybe at Newegg some 22s, 24s and 26s. But if you see them, you might want to jump on that because the 20 terabyte will be the highest regularly available capacity, I think, moving forward here.
Okay. So you're basically setting consumer expectation. And it does look like we have 26s and 24s at the link in the shop now. We do have some promo codes in there for some drives, and we have some great bundles with UGREEN NAS systems. So get in there, check those out, everybody.
And it looks like 50% of you answered. And 100% of you got the correct answer. I don't know how it happened. That's never happened ever before. We got a smart audience here today. They've been listening. They've been doing their thing. All right, Marc, take us on to the next.
All right. So my last slide here. So Ivan just mentioned UGREEN. They're one of the partners that, WD, we work very closely with from an engineering standpoint, business relationship. So we work closely with UGREEN, QNAP, with Synology as well as others. We're broadly compatible with most of the NAS products that are available in the market today. We do -- with UGREEN and QNAP, we do some things above and beyond here in our offices in Irvine, California. We operate what we call our NAS reliability and test lab.
And we have products from UGREEN and QNAP and some from Synology too, running 24/7, just we're understanding how their file systems and operating systems work. We're learning how their AI products are using additional storage space and how it may impact caching and things like that for data movement. So again, really close relationships with them. When we come out with new products, we always seed units for UGREEN, QNAP and Synology in advance as well so they can get started on their compatibility list.
But one thing that we'd recommend is work with your team at Newegg. They can help you and work through recommendations for both capacity and then also for compatibility. The NAS vendors produce what we call the AVL or approved vendor list. So you might also want to check with your NAS vendor of choice and see that WD Red and Red Pro specifically is on their approved vendor list. But yes, definitely work with the team at Newegg, from WD. We work so closely with the team at Newegg. So if their team has any questions, they'll contact Brad or myself or the account team. So we're always in communication, working to help solve your issues.
All right. It looks like we have our last poll question. When should organizations consider moving to WD Red Pro? A, after a drive reaches capacity; B, when workload outage -- or outgrows traditional storage; C, after ending backup operations; D, before moving fully to the cloud.
Now Marc, we really appreciate you and the WD Red team being here today and giving us all this great information, giving us some great promo deals and also availability bundle packages. How would you like to wrap up today's event?
Yes. I'd just like to thank everybody for joining on today. I mean we covered a lot of topics, going from the cloud AI at hyperscale and how AI is moving there and placing demand on storage, HDD storage specifically. We talked about how you'll continue to use your cloud AI, but how you can add on your local NAS AI to really help increase your team, your work productivity through things like intelligent document sorting, indexing, filing, things that are just really great time producers. And then we also talked about how WD Red Pros, especially, is just that ideal hard drive to cover capacity with the right reliability and the right performance to do your AI -- local AI functions as that continues to grow and advance.
But I'd like to thank everybody and appreciate -- and also to you, Ivan, thanks for having us on today. We really appreciate the relationship that WD has with Newegg, and look forward to continued working with us as we continue to grow Red Pro, its use and specifically for AI NAS uses at the edge.
Awesome, Marc. We really appreciate you having you today. Thank you again. And everyone out there, remember, if you stayed 30 minutes for this presentation, you're entered into the $100 gift card raffle. Then also make sure to grab our contact information real quick, fill out that survey, click the links, register for our next webinar with ASRock AI Center, get your Newegg Business account. And also for all you VARs and MSPs out there, we have a new partner program, check that out on our brand-new Newegg Business website, www.neweggbusiness.com, and we'd like to thank everyone for being here. We'll see you at the next one. Bye.
Thank you. Bye.
Financial data from Newegg Commerce Inc
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 2,071 2,071 |
31%
31%
100%
|
|
| - Direct Costs | 1,819 1,819 |
29%
29%
88%
|
|
| Gross Profit | 252 252 |
47%
47%
12%
|
|
| - Selling and Administrative Expenses | 253 253 |
11%
11%
12%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 5.05 5.05 |
111%
111%
0%
|
|
| - Depreciation and Amortization | 5.80 5.80 |
38%
38%
0%
|
|
| EBIT (Operating Income) EBIT | -0.75 -0.75 |
99%
99%
0%
|
|
| Net Profit | 5.15 5.15 |
111%
111%
0%
|
|
In millions USD.
Don't miss a Thing! We will send you all news about Newegg Commerce Inc directly to your mailbox free of charge.
If you wish, we will send you an e-mail every morning with news on stocks of your portfolios.
Newegg Commerce Inc Stock News
Company Profile
Newegg Commerce, Inc. is an e-commerce company. It offers direct sales and an online marketplace platform for IT computer components, consumer electronics, entertainment, smart home and gaming products. The firm also provides third-party logistics services globally. The company is headquartered in City of Industry, CA.
StocksGuide Premium
| Head office | Virgin Islands, British |
| CEO | Mr. Chow |
| Employees | 714 |
| Founded | 2003 |
| Website | www.newegg.com |


