Analysts rate Newage Inc. (NBEV:NSD) with a Strong Buy rating and a $6 target

STA Research
by: STA Research
Newage Inc.

Based on the Newage stock forecast from 1 analysts, the average analyst NBEV stock price target is USD 6 over the next 12 months. Newage Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of NBEV stock forecast is Slightly Bearish, which is based on 5 positive signals and 8 negative signals. At the last closing, Newage stock price was USD 0.36Newage stock price has changed by +0.15% over the past week, +0.10% over the past month and -79.36% over the last year.

About Newage Inc. (NBEV:NSD):

NewAge, Inc. develops, markets, sells, and distributes healthy products in the United States, Japan, China, and internationally. The company operates in two segments, Direct / Social Selling and Direct Store. It provides health and wellness, energy drink, essential oil and anti-aging skincare, cosmetic, beverage, snacks, water and air filtration, and personal care products, as well as weight management, nutritional supplements. It sells its products directly to customers, as well as through distributors, e-commerce sites, and direct-store-delivery systems. The company was formerly known as New Age Beverages Corporation and changed its name to NewAge, Inc. in July 2020. NewAge, Inc. was incorporated in 2010 and is headquartered in Denver, Colorado.

 

What we like:

Underpriced compared to book value:

Newage stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the NBEV stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow:

NBEV stock had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis:

NBEV stock price is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth:

Newage stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Low market capitalization:

Newage stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for NBEV stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns:

The average income yield of NBEV stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

NBEV stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Negative cashflow:

NBEV stock had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis:

NBEV stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

Newage stock has shown below median earnings growth in the previous 5 years compared to its sector

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.