Fundamental Analysis of NOVAN INC(NASDAQ:NOVN) stock

Fundamental Rating

NOVN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 197 industry peers in the Pharmaceuticals industry. NOVN has a bad profitability rating. Also its financial health evaluation is rather negative. NOVN is not overvalued while it is showing excellent growth. This is an interesting combination.

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1. Profitability

1.1 Basic Checks

In the past year NOVN has reported negative net income.

In the past year NOVN has reported a negative cash flow from operations.

NOVN had negative earnings in each of the past 5 years.

In the past 5 years NOVN always reported negative operating cash flow.

1.2 Ratios

The profitability ratios for NOVN are negative, so there is not much use analyzing them.

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROIC	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

NOVN's Gross Margin of 66.06% is fine compared to the rest of the industry. NOVN outperforms 73.24% of its industry peers.

NOVN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	66.06%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

NOVN does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, NOVN has more shares outstanding

NOVN has more shares outstanding than it did 5 years ago.

NOVN has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of -6.93, we must say that NOVN is in the distress zone and has some risk of bankruptcy.

The Altman-Z score of NOVN (-6.93) is worse than 69.95% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-6.93

ROIC/WACCN/A

WACC8.45%

2.3 Liquidity

A Current Ratio of 0.74 indicates that NOVN may have some problems paying its short term obligations.

With a Current ratio value of 0.74, NOVN is not doing good in the industry: 91.08% of the companies in the same industry are doing better.

A Quick Ratio of 0.72 indicates that NOVN may have some problems paying its short term obligations.

The Quick ratio of NOVN (0.72) is worse than 86.85% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.74
Quick Ratio	0.72

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.76% over the past year.

Looking at the last year, NOVN shows a very strong growth in Revenue. The Revenue has grown by 512.74%.

Measured over the past years, NOVN shows a very strong growth in Revenue. The Revenue has been growing by 61.73% on average per year.

EPS 1Y (TTM)21.76%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q23.94%

Revenue 1Y (TTM)512.74%

Revenue growth 3Y69.07%

Revenue growth 5Y61.73%

Revenue growth Q2Q64.21%

3.2 Future

Based on estimates for the next years, NOVN will show a very strong growth in Earnings Per Share. The EPS will grow by 23.25% on average per year.

NOVN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 62.45% yearly.

EPS Next Y78.75%

EPS Next 2Y44.82%

EPS Next 3Y29.1%

EPS Next 5Y23.25%

Revenue Next Year19.34%

Revenue Next 2Y95.98%

Revenue Next 3Y75.61%

Revenue Next 5Y62.45%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

NOVN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Based on the Price/Forward Earnings ratio of 0.58, the valuation of NOVN can be described as very cheap.

Based on the Price/Forward Earnings ratio, NOVN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.

NOVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.24, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	0.58

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

A more expensive valuation may be justified as NOVN's earnings are expected to grow with 29.10% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y44.82%

EPS Next 3Y29.1%

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5. Dividend

5.1 Amount

No dividends for NOVN!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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NOVAN INC

NASDAQ:NOVN (7/25/2023, 7:00:02 PM)

After market: 0.0894 0 (-4.99%)

0.0941

-0.03 (-24.84%)

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences

GICS IndustryPharmaceuticals

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap2.64M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	0.58
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	66.06%
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.31

Health

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	0.74
Quick Ratio	0.72
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)21.76%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y78.75%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)512.74%

Revenue growth 3Y69.07%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

NOVAN INC (NOVN)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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