ASX:NAN

Stock Analysis Report

Executive Summary

Nanosonics Limited, together with its subsidiaries, engages in the research, development, and commercialization of infection control and decontamination products and related technologies.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Nanosonics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.8%

NAN

4.7%

AU Medical Equipment

2.5%

AU Market


1 Year Return

115.7%

NAN

24.8%

AU Medical Equipment

11.1%

AU Market

Return vs Industry: NAN exceeded the Australian Medical Equipment industry which returned 24.8% over the past year.

Return vs Market: NAN exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

NANIndustryMarket
7 Day7.8%4.7%2.5%
30 Day11.1%5.0%0.7%
90 Day32.3%3.2%1.4%
1 Year115.7%115.7%26.9%24.8%17.5%11.1%
3 Year117.7%117.7%47.6%41.1%37.8%19.4%
5 Year594.9%594.9%146.0%126.3%51.7%17.6%

Price Volatility Vs. Market

How volatile is Nanosonics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nanosonics undervalued compared to its fair value and its price relative to the market?

151.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: NAN (A$6.88) is trading above our estimate of fair value (A$3.36)

Significantly Undervalued: NAN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NAN is poor value based on its PE Ratio (151.6x) compared to the Medical Equipment industry average (29.1x).

PE vs Market: NAN is poor value based on its PE Ratio (151.6x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: NAN is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: NAN is overvalued based on its PB Ratio (18.7x) compared to the AU Medical Equipment industry average (4.3x).


Next Steps

  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is Nanosonics forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAN's forecast earnings growth (31.9% per year) is above the savings rate (2.3%).

Earnings vs Market: NAN's earnings (31.9% per year) are forecast to grow faster than the Australian market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NAN's revenue (19.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: NAN's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NAN's Return on Equity is forecast to be low in 3 years time (20%).


Next Steps

Past Performance

How has Nanosonics performed over the past 5 years?

39.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NAN has become profitable over the past 5 years, growing earnings by 39.7% per year.

Accelerating Growth: NAN's earnings growth over the past year (136.5%) exceeds its 5-year average (39.7% per year).

Earnings vs Industry: NAN earnings growth over the past year (136.5%) exceeded the Medical Equipment industry 29.5%.


Return on Equity

High ROE: NAN's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: NAN's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: NAN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nanosonics's financial position?


Financial Position Analysis

Short Term Liabilities: NAN's short term assets (A$108.6M) exceeds its short term liabilities (A$16.0M)

Long Term Liabilities: NAN's short term assets (108.6M) exceeds its long term liabilities (3.5M)


Debt to Equity History and Analysis

Debt Level: NAN is debt free.

Reducing Debt: NAN has no debt compared to 5 years ago when its debt to equity ratio was 39.6%.

Debt Coverage: NAN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NAN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NAN's debt is covered by short term assets.


Next Steps

Dividend

What is Nanosonics's current dividend yield, its reliability and sustainability?

0.031%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.5%markettop25%5.6%industryaverage1.5%forecastin3Years0.03%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NAN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NAN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Nanosonics's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Michael Kavanagh 0

6yrs

Tenure

AU$1,163,884

Compensation

Mr. Michael C. Kavanagh, BSc, MBA (Advanced,) has been the Chief Executive Officer and President of Nanosonics Limited since October 21, 2013 and served as its Managing Director. Mr. Kavanagh served as a S ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD785.77K) is about average for companies of similar size in the Australian market ($USD1.50M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: NAN's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

Experienced Board: NAN's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: NAN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$19,78508 Oct 19
Geoff Wilson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,237
Max PriceAU$6.11
SellAU$28,528,94006 May 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares5,738,122
Max PriceAU$4.97
BuyAU$13,434,63706 May 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares2,776,810
Max PriceAU$4.84
SellAU$182,91030 Apr 19
David Fisher
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares40,000
Max PriceAU$4.57
BuyAU$429,36223 Apr 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares96,178
Max PriceAU$4.47
BuyAU$634,59223 Apr 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares153,745
Max PriceAU$4.13
SellAU$740,60823 Apr 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares195,122
Max PriceAU$3.80
SellAU$5,197,74303 Mar 19
Maurie Stang
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman of the Board
Shares1,250,000
Max PriceAU$4.16
SellAU$1,293,37526 Feb 19
Michael Kavanagh
EntityIndividual
Role
Chief Executive Officer
CEO, President
Shares310,000
Max PriceAU$4.17
BuyAU$41,108,57001 Feb 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares12,937,627
Max PriceAU$3.26
SellAU$3,672,02023 Nov 18
JCP Investment Partners Limited
EntityCompany
Shares1,287,104
Max PriceAU$3.10
SellAU$23,372,29225 Oct 18
JCP Investment Partners Limited
EntityCompany
Shares6,760,164
Max PriceAU$3.46
BuyAU$12,466,36125 Oct 18
JCP Investment Partners Limited
EntityCompany
Shares3,933,414
Max PriceAU$3.17

Ownership Breakdown


Management Team

  • Michael Kavanagh

    CEO, President

    • Tenure: 6yrs
    • Compensation: AU$1.16m
  • David Morris

    Chief Strategy Officer & Regional President Asia Pacific

    • Tenure: 0.7yrs
    • Compensation: AU$274.55k
  • Keith Koby

    Senior Vice President of Sales - North America

    • Tenure: 3yrs
  • McGregor Grant

    CFO & Company Secretary

    • Tenure: 8.5yrs
    • Compensation: AU$567.33k
  • Vincent Wang

    Head of Global Customer Support & Technical Services

    • Tenure: 0yrs
    • Compensation: AU$202.22k
  • Leanne Baxendale

    Head of People & Culture

    • Tenure: 2.6yrs
  • Steven Farrugia

    Chief Technology Officer

    • Tenure: 1.7yrs
    • Compensation: AU$515.34k
  • Ken Shaw

    Regional President of United States

    • Tenure: 2.1yrs
    • Compensation: AU$659.22k
  • Renee Salaberry

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Rod Lopez

    Chief Operating Officer

    • Tenure: 0.6yrs
    • Compensation: AU$187.53k

Board Members

  • Steve Sargent (59yo)

    Non-Executive Deputy Chairman of the Board & Lead Independent Director

    • Tenure: 2yrs
    • Compensation: AU$100.00k
  • Michael Kavanagh

    CEO, President

    • Tenure: 6yrs
    • Compensation: AU$1.16m
  • Maurie Stang

    Non Executive Chairman of the Board

    • Tenure: 12.6yrs
    • Compensation: AU$170.00k
  • David Fisher

    Non-Executive Director

    • Tenure: 18.3yrs
    • Compensation: AU$100.00k
  • Geoff Wilson

    Non-Executive Director

    • Tenure: 0.3yrs
  • Marie McDonald (63yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: AU$85.00k
  • Ronan Wright

    Regional President of Europe

    • Tenure: 0.08yrs

Company Information

Nanosonics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nanosonics Limited
  • Ticker: NAN
  • Exchange: ASX
  • Founded: 2000
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: AU$2.117b
  • Shares outstanding: 300.31m
  • Website: https://www.nanosonics.com.au

Number of Employees


Location

  • Nanosonics Limited
  • 14 Mars Road
  • Lane Cove
  • New South Wales
  • 2066
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NANASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2007
OQSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
NNCS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
NANCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2007

Biography

Nanosonics Limited, together with its subsidiaries, engages in the research, development, and commercialization of infection control and decontamination products and related technologies. The company manuf ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:33
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.