ASX:NAN

Stock Analysis Report

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Market Cap

AU$1.6b

Last Updated

2021/08/05 15:46 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: NAN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NAN's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

NAN

0.4%

AU Medical Equipment

1.1%

AU Market


1 Year Return

-16.5%

NAN

17.5%

AU Medical Equipment

26.8%

AU Market

Return vs Industry: NAN underperformed the Australian Medical Equipment industry which returned 17.5% over the past year.

Return vs Market: NAN underperformed the Australian Market which returned 26.8% over the past year.


Shareholder returns

NANIndustryMarket
7 Day-0.8%0.4%1.1%
30 Day2.9%2.1%3.4%
90 Day-3.8%3.8%5.7%
1 Year-16.5%-16.5%18.4%17.5%31.5%26.8%
3 Year56.8%56.8%35.0%29.2%35.1%18.7%
5 Year84.9%84.9%58.1%48.0%67.5%35.0%

Long-Term 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?

269.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NAN (A$5.27) is trading above our estimate of fair value (A$3.77)

Significantly Below Fair Value: 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 (269x) compared to the Australian Medical Equipment industry average (19.1x).

PE vs Market: NAN is poor value based on its PE Ratio (269x) compared to the Australian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: NAN is poor value based on its PEG Ratio (7.6x)


Price to Book Ratio

PB vs Industry: NAN is overvalued based on its PB Ratio (12.2x) compared to the AU Medical Equipment industry average (4.9x).


Future Growth

How is Nanosonics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAN's forecast earnings growth (35.5% per year) is above the savings rate (1.9%).

Earnings vs Market: NAN's earnings (35.5% per year) are forecast to grow faster than the Australian market (13.2% per year).

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

Revenue vs Market: NAN's revenue (15.3% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: NAN's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAN's Return on Equity is forecast to be low in 3 years time (15.6%).


Past Performance

How has Nanosonics performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAN has high quality earnings.

Growing Profit Margin: NAN's current net profit margins (6.2%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: NAN has become profitable over the past 5 years, growing earnings by 6.6% per year.

Accelerating Growth: NAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NAN had negative earnings growth (-51.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (31.7%).


Return on Equity

High ROE: NAN's Return on Equity (4.5%) is considered low.


Financial Health

How is Nanosonics's financial position?


Financial Position Analysis

Short Term Liabilities: NAN's short term assets (A$126.6M) exceed its short term liabilities (A$14.6M).

Long Term Liabilities: NAN's short term assets (A$126.6M) exceed its long term liabilities (A$5.4M).


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 20.6%.

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


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Michael Kavanagh

7.83yrs

Tenure

AU$1,393,943

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 ($USD1.03M) is about average for companies of similar size in the Australian market ($USD845.23K).

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


Leadership Team

Experienced Management: NAN's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: NAN's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.589b
  • Shares outstanding: 301.47m
  • Website: https://www.nanosonics.com.au

Number of Employees


Location

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

Listings


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 Analysis2021/08/05 15:46
End of Day Share Price2021/08/05 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.