Loading...

Nanosonics

ASX:NAN
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NAN
ASX
A$953M
Market Cap
  1. Home
  2. AU
  3. Healthcare
Company description

Nanosonics Limited, together with its subsidiaries, engages in the research, development, and commercialization of infection control and decontamination products and related technologies. The last earnings update was 92 days ago. More info.


Add to Portfolio Compare Print
NAN Share Price and Events
7 Day Returns
-1.5%
ASX:NAN
-6.1%
AU Medical Equipment
-3.3%
AU Market
1 Year Returns
13.8%
ASX:NAN
-9.2%
AU Medical Equipment
2.5%
AU Market
NAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nanosonics (NAN) -1.5% 2.5% -8.8% 13.8% 101.9% 283.3%
AU Medical Equipment -6.1% -8.3% -17.3% -9.2% 52.8% 135.3%
AU Market -3.3% -3.3% -6.8% 2.5% 40.1% 51.1%
1 Year Return vs Industry and Market
  • NAN outperformed the Medical Equipment industry which returned -9.2% over the past year.
  • NAN outperformed the Market in Australia which returned 2.5% over the past year.
Price Volatility
NAN
Industry
5yr Volatility vs Market

Value

 Is Nanosonics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nanosonics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nanosonics.

ASX:NAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:NAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.8%
Equity Risk Premium S&P Global 7.2%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.572 (1 + (1- 30%) (0.1%))
0.572
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.77% + (0.8 * 7.23%)
8.55%

Discounted Cash Flow Calculation for ASX:NAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nanosonics is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:NAN DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (AUD, Millions) 8.90 14.45 26.35 30.83 35.76
Source Analyst x2 Analyst x2 Analyst x2 Est @ 17%, capped from 30.37% Est @ 16%, capped from 30.37%
Present Value
Discounted (@ 8.55%)
8.20 12.26 20.60 22.20 23.72
Present value of next 5 years cash flows A$86.98
ASX:NAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= A$35.76 × (1 + 2.77%) ÷ (8.55% – 2.77%)
A$635.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= A$635.80 ÷ (1 + 8.55%)5
A$421.77
ASX:NAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= A$86.98 + A$421.77
A$508.75
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$508.75 / 299.78
A$1.7
ASX:NAN Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$1.70
Current discount Discount to share price of A$3.22
= -1 x (A$3.22 - A$1.70) / A$1.70
-89.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Nanosonics is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nanosonics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nanosonics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in AUD A$0.02
ASX:NAN Share Price ** ASX (2018-11-19) in AUD A$3.22
Australia Medical Equipment Industry PE Ratio Median Figure of 8 Publicly-Listed Medical Equipment Companies 21.38x
Australia Market PE Ratio Median Figure of 555 Publicly-Listed Companies 15.66x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nanosonics.

ASX:NAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NAN Share Price ÷ EPS (both in AUD)

= 3.22 ÷ 0.02

167.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nanosonics is overvalued based on earnings compared to the AU Medical Equipment industry average.
  • Nanosonics is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Nanosonics's expected growth come at a high price?
Raw Data
ASX:NAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 167.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
46%per year
Oceania Medical Equipment Industry PEG Ratio Median Figure of 5 Publicly-Listed Medical Equipment Companies 3.46x
Australia Market PEG Ratio Median Figure of 359 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

ASX:NAN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 167.4x ÷ 46%

3.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nanosonics is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Nanosonics's assets?
Raw Data
ASX:NAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in AUD A$0.32
ASX:NAN Share Price * ASX (2018-11-19) in AUD A$3.22
Australia Medical Equipment Industry PB Ratio Median Figure of 27 Publicly-Listed Medical Equipment Companies 2.67x
Australia Market PB Ratio Median Figure of 1,639 Publicly-Listed Companies 1.77x
ASX:NAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NAN Share Price ÷ Book Value per Share (both in AUD)

= 3.22 ÷ 0.32

10.22x

* Primary Listing of Nanosonics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nanosonics is overvalued based on assets compared to the AU Medical Equipment industry average.
X
Value checks
We assess Nanosonics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Nanosonics has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Nanosonics expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
46%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nanosonics expected to grow at an attractive rate?
  • Nanosonics's earnings growth is expected to exceed the low risk savings rate of 2.8%.
Growth vs Market Checks
  • Nanosonics's earnings growth is expected to exceed the Australia market average.
  • Nanosonics's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NAN Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 46%
ASX:NAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 23.8%
Australia Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 13%
Australia Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 9.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:NAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NAN Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 168 39 50 2
2021-06-30 131 28 33 4
2020-06-30 104 18 24 4
2019-06-30 78 9 8 4
ASX:NAN Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-06-30 61 9 6
2018-03-31 61 11 6
2017-12-31 61 13 6
2017-09-30 64 15 16
2017-06-30 68 16 26
2017-03-31 65 16 26
2016-12-31 63 16 25
2016-09-30 53 10 13
2016-06-30 43 3 0
2016-03-31 33 -3 -5
2015-12-31 23 -8 -10
2015-09-30 23 -5 -8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nanosonics's earnings are expected to grow significantly at over 20% yearly.
  • Nanosonics's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:NAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Nanosonics Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NAN Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.17 0.19 0.15 2.00
2021-06-30 0.11 0.13 0.08 4.00
2020-06-30 0.08 0.10 0.06 4.00
2019-06-30 0.03 0.03 0.02 4.00
ASX:NAN Past Financials Data
Date (Data in AUD Millions) EPS *
2018-06-30 0.02
2018-03-31 0.02
2017-12-31 0.02
2017-09-30 0.05
2017-06-30 0.09
2017-03-31 0.09
2016-12-31 0.09
2016-09-30 0.04
2016-06-30 0.00
2016-03-31 -0.02
2015-12-31 -0.04
2015-09-30 -0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nanosonics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Nanosonics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nanosonics has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nanosonics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nanosonics's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nanosonics has delivered over 20% year on year earnings growth in the past 5 years.
  • Nanosonics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Nanosonics's 1-year earnings growth is negative, it can't be compared to the AU Medical Equipment industry average.
Earnings and Revenue History
Nanosonics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nanosonics Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NAN Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 60.70 5.75 32.69 9.88
2018-03-31 61.05 6.07 30.97 9.88
2017-12-31 61.40 6.39 30.29 9.88
2017-09-30 64.45 16.27 29.44 9.68
2017-06-30 67.51 26.16 27.55 9.49
2017-03-31 65.42 25.76 26.37 8.89
2016-12-31 63.34 25.35 25.20 8.29
2016-09-30 53.07 12.74 25.28 7.79
2016-06-30 42.80 0.12 25.36 7.30
2016-03-31 33.12 -4.91 24.63 6.60
2015-12-31 23.45 -9.94 23.89 5.90
2015-09-30 22.83 -7.70 21.00 5.40
2015-06-30 22.21 -5.46 18.10 4.90
2015-03-31 24.18 -1.67 16.86 3.74
2014-12-31 26.15 2.12 15.61 2.57
2014-09-30 23.82 -0.25 16.09 1.58
2014-06-30 21.49 -2.61 16.57 0.59
2014-03-31 20.83 -2.91 15.49 0.58
2013-12-31 20.16 -3.22 14.42 0.57
2013-09-30 17.53 -4.50 14.13 0.51
2013-06-30 14.90 -5.77 13.84 0.46
2013-03-31 13.27 -6.73 13.77 0.44
2012-12-31 11.64 -7.70 13.70 0.42
2012-09-30 11.97 -6.19 12.55 0.40
2012-06-30 12.30 -4.68 11.39 0.38
2012-03-31 9.13 -7.19 11.58 0.46
2011-12-31 5.96 -9.70 11.77 0.54

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nanosonics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nanosonics used its assets less efficiently than the AU Medical Equipment industry average last year based on Return on Assets.
  • Nanosonics's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Nanosonics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nanosonics has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nanosonics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nanosonics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nanosonics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nanosonics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nanosonics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 93.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nanosonics Company Filings, last reported 4 months ago.

ASX:NAN Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 94.30 0.95 69.43
2018-03-31 94.30 0.95 69.43
2017-12-31 90.49 1.15 66.51
2017-09-30 90.49 1.15 66.51
2017-06-30 87.25 1.35 62.99
2017-03-31 87.25 1.35 62.99
2016-12-31 81.01 1.54 56.87
2016-09-30 81.01 1.54 56.87
2016-06-30 56.66 1.74 48.84
2016-03-31 56.66 1.74 48.84
2015-12-31 42.47 10.93 42.63
2015-09-30 42.47 10.93 42.63
2015-06-30 44.68 8.71 45.72
2015-03-31 44.68 8.71 45.72
2014-12-31 22.09 8.19 23.53
2014-09-30 22.09 8.19 23.53
2014-06-30 20.44 8.12 21.23
2014-03-31 20.44 8.12 21.23
2013-12-31 19.22 7.85 21.65
2013-09-30 19.22 7.85 21.65
2013-06-30 21.71 7.57 24.06
2013-03-31 21.71 7.57 24.06
2012-12-31 20.76 7.08 25.77
2012-09-30 20.76 7.08 25.77
2012-06-30 26.00 7.06 29.31
2012-03-31 26.00 7.06 29.31
2011-12-31 11.54 0.04 9.17
  • Nanosonics's level of debt (1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (34.9% vs 1% today).
  • Debt is well covered by operating cash flow (952.3%, greater than 20% of total debt).
  • Nanosonics earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Nanosonics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nanosonics has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Nanosonics dividends. Estimated to be 0% next year.
If you bought A$2,000 of Nanosonics shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Nanosonics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Nanosonics's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:NAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Oceania Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 420 Stocks 4.6%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:NAN Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.00 1.00
2021-06-30 0.00 2.00
2020-06-30 0.00 2.00
2019-06-30 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Nanosonics has not reported any payouts.
  • Unable to verify if Nanosonics's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Nanosonics's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Nanosonics has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Nanosonics's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Nanosonics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nanosonics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nanosonics has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Kavanagh
COMPENSATION A$1,119,151
TENURE AS CEO 5.1 years
CEO Bio

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 Senior Vice President of Global Marketing at Cochlear Limited. Mr. Kavanagh joined Cochlear in 2003. Has more than 20 years experience in the healthcare industry working in senior sales and marketing positions both locally and internationally within the pharmaceutical industry. He has been an Executive Director of Nanosonics Ltd since October 2013 and previously served as its Non-executive Director from July 2012 to October 2013. He holds a BSc (UCD Ireland) and an MBA advanced (Queensland).

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year.
  • Michael's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Nanosonics management team in years:

2.1
Average Tenure
  • The tenure for the Nanosonics management team is about average.
Management Team

Michael Kavanagh

TITLE
CEO, President
COMPENSATION
A$1M
TENURE
5.1 yrs

McGregor Grant

TITLE
CFO & Company Secretary
COMPENSATION
A$590K
TENURE
7.6 yrs

Gerard Putt

TITLE
Chief Operations Officer
COMPENSATION
A$484K
TENURE
6.8 yrs

Steven Farrugia

TITLE
Chief Technology Officer
COMPENSATION
A$422K
TENURE
0.8 yrs

Leanne Baxendale

TITLE
Head of People & Culture
TENURE
1.7 yrs

Vincent Wang

TITLE
Head of Global Customer Support & Technical Services
COMPENSATION
A$202K

Ruth Cremin

TITLE
Head of Quality & Regulatory Affairs

Keith Koby

TITLE
Senior Vice President of Sales - North America
TENURE
2.1 yrs

Ken Shaw

TITLE
Regional President of United States
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Nanosonics board of directors in years:

7.5
Average Tenure
62
Average Age
  • The tenure for the Nanosonics board of directors is about average.
Board of Directors

Maurie Stang

TITLE
Non Executive Chairman of the Board
COMPENSATION
A$170K
TENURE
11.7 yrs

Michael Kavanagh

TITLE
CEO, President
COMPENSATION
A$1M
TENURE
6.3 yrs

Steve Sargent

TITLE
Non-Executive Deputy Chairman of the Board & Lead Independent Director
COMPENSATION
A$100K
AGE
58
TENURE
1.1 yrs

David Fisher

TITLE
Non-Executive Director
COMPENSATION
A$100K
TENURE
17.3 yrs

Richard Anthony England

TITLE
Non-Executive Director
COMPENSATION
A$100K
AGE
68
TENURE
8.8 yrs

Marie McDonald

TITLE
Non-Executive Director
COMPENSATION
A$85K
AGE
62
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • Nanosonics insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
25. Oct 18 Sell JCP Investment Partners Limited Company 23. Jun 18 23. Oct 18 -6,760,164 A$3.46 A$-23,372,292
25. Oct 18 Buy JCP Investment Partners Limited Company 23. Jun 18 23. Oct 18 3,933,414 A$3.17 A$12,466,361
03. Oct 18 Sell JCP Investment Partners Limited Company 26. Sep 18 01. Oct 18 -669,800 A$3.63 A$-2,401,332
27. Sep 18 Buy JCP Investment Partners Limited Company 21. Sep 18 25. Sep 18 1,133,914 A$3.11 A$3,527,807
25. Sep 18 Sell JCP Investment Partners Limited Company 16. Aug 18 20. Sep 18 -1,193,400 A$3.82 A$-4,431,619
25. Sep 18 Buy JCP Investment Partners Limited Company 16. Aug 18 20. Sep 18 1,266,700 A$3.52 A$4,233,035
13. Sep 18 Sell David Fisher Individual 13. Sep 18 13. Sep 18 -50,000 A$3.27 A$-163,259
27. Aug 18 Sell Maurie Stang Individual 24. Aug 18 24. Aug 18 -43,640 A$3.68 A$-160,756
17. Aug 18 Sell JCP Investment Partners Limited Company 03. Aug 18 15. Aug 18 -3,175,391 A$3.45 A$-10,631,309
06. Aug 18 Sell JCP Investment Partners Limited Company 13. Jun 18 02. Aug 18 -3,455,784 A$3.30 A$-5,921,873
14. Jun 18 Sell JCP Investment Partners Limited Company 25. May 18 12. Jun 18 -3,322,200 A$3.11 A$-10,136,535
14. Jun 18 Buy JCP Investment Partners Limited Company 25. May 18 12. Jun 18 190,131 A$2.66 A$504,871
28. May 18 Sell JCP Investment Partners Limited Company 25. Jul 17 24. May 18 -3,877,044 A$2.65 A$-10,286,232
28. May 18 Buy JCP Investment Partners Limited Company 25. Jul 17 24. May 18 5,448,707 A$2.62 A$14,267,558
17. May 18 Sell Maurie Stang Individual 10. May 18 10. May 18 -14,544 A$2.58 A$-37,526
04. May 18 Buy Macquarie Investment Management Australia Limited Company 01. May 18 01. May 18 3,842 A$2.48 A$9,528
04. May 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 01. May 18 01. May 18 -39 A$2.45 A$-96
04. May 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 01. May 18 01. May 18 39 A$2.45 A$96
04. May 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 01. May 18 01. May 18 11,463 A$2.45 A$27,986
03. May 18 Sell Macquarie Investment Management Australia Limited Company 05. Apr 18 05. Apr 18 -47,621 A$2.58 A$0
03. May 18 Buy Macquarie Investment Management Australia Limited Company 03. Apr 18 30. Apr 18 76,228 A$2.58 A$0
03. May 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 19. Apr 18 30. Apr 18 -15,498 A$2.46 A$0
03. May 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 19. Apr 18 30. Apr 18 15,498 A$2.46 A$0
03. May 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 29. Mar 18 30. Apr 18 -8,147,910 A$2.59 A$0
03. May 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 29. Mar 18 30. Apr 18 8,191,735 A$2.59 A$0
30. Apr 18 Sell FMR LLC Company 11. Apr 18 24. Apr 18 -930,767 A$2.46 A$-2,293,830
30. Apr 18 Buy FMR LLC Company 30. Jan 18 26. Apr 18 4,768,896 A$2.87 A$13,686,730
11. Apr 18 Buy Steven Sargent Individual 11. Apr 18 11. Apr 18 20,000 A$2.43 A$48,600
04. Apr 18 Buy Macquarie Investment Management Australia Limited Company 27. Mar 18 28. Mar 18 29,996 A$2.66 A$79,069
04. Apr 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 27. Mar 18 28. Mar 18 -21,448 A$2.67 A$-56,880
04. Apr 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 27. Mar 18 27. Mar 18 11,928 A$2.64 A$31,490
29. Mar 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 04. Dec 17 21. Mar 18 -31,082 A$2.99 A$0
29. Mar 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 04. Dec 17 21. Mar 18 31,082 A$2.99 A$0
29. Mar 18 Sell Macquarie Group, Ltd., Banking & Securities Investments Company 27. Nov 17 26. Mar 18 -8,770,664 A$2.98 A$0
29. Mar 18 Buy Macquarie Group, Ltd., Banking & Securities Investments Company 28. Nov 17 26. Mar 18 8,472,667 A$2.98 A$0
29. Mar 18 Sell Macquarie Investment Management Australia Limited Company 04. Dec 17 16. Mar 18 -47,115 A$2.97 A$0
29. Mar 18 Buy Macquarie Investment Management Australia Limited Company 27. Nov 17 26. Mar 18 345,336 A$2.98 A$0
21. Mar 18 Sell Richard Anthony England Individual 19. Mar 18 19. Mar 18 -30,000 A$2.63 A$-78,774
12. Mar 18 Sell Maurie Stang Individual 05. Mar 18 05. Mar 18 -2,345,000 A$2.75 A$-6,448,748
12. Mar 18 Sell Bernard Stang Individual 07. Mar 16 08. Mar 18 -3,150,000 A$3.27 A$-8,469,701
12. Mar 18 Buy Bernard Stang Individual 07. Feb 17 28. Nov 17 237,500 A$2.81 A$605,416
06. Mar 18 Sell Richard Anthony England Individual 02. Mar 18 02. Mar 18 -35,301 A$2.61 A$-92,169
31. Jan 18 Sell FMR LLC Company 07. Nov 17 15. Dec 17 -52,873 A$3.12 A$-164,823
31. Jan 18 Buy FMR LLC Company 21. Sep 17 29. Jan 18 3,091,745 A$3.01 A$9,306,154
24. Nov 17 Sell Michael Kavanagh Individual 22. Nov 17 22. Nov 17 -1,655,363 A$0.76 A$-1,259,877
X
Management checks
We assess Nanosonics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nanosonics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
Loading...
Simply Wall St News

With A 6.1% Return On Equity, Is Nanosonics Limited (ASX:NAN) A Quality Stock?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.061. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What You Must Know About Nanosonics Limited's (ASX:NAN) Major Investors

In this analysis, my focus will be on developing a perspective on Nanosonics Limited’s (ASX:NAN) latest ownership structure, a less discussed, but important factor. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Therefore, it is beneficial for us to examine NAN's ownership structure in more detail.

Simply Wall St -

What Do Nanosonics Limited (ASX:NAN) Insiders Know That You Don't?

some insider buying over the past three months, with insiders investing in. … Generally, insiders buying more shares in their own firm sends a bullish signal. … A research published in The MIT Press (1998) concluded that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

Should Nanosonics Limited's (ASX:NAN) Recent Earnings Decline Worry You?

After reading Nanosonics Limited's (ASX:NAN) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. … NAN's trailing twelve-month earnings (from 31 December 2017) of AU$6.39m has

Simply Wall St -

Should You Buy Nanosonics Limited (ASX:NAN) Based On These Aspects?

Attractive stocks have exceptional fundamentals. … In the case of Nanosonics Limited (ASX:NAN), there's … financial health as well as

Simply Wall St -

Should You Be Tempted To Sell Nanosonics Limited (ASX:NAN) At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for NAN Price per share = A$2.51 Earnings per share = A$0.021 ∴ Price-Earnings Ratio = A$2.51 ÷ A$0.021 = 117.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … Since NAN's P/E of 117.3x is higher than its industry peers (43.6x), it means that investors are paying more than they should for each dollar of NAN's earnings. … In this case, NAN’s P/E would be higher since investors would also reward NAN’s higher growth with a higher price.

Simply Wall St -

Nanosonics Limited (ASX:NAN): Is Now A Good Time To Buy?

Nanosonics Limited (ASX:NAN) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of A$2.59 is based on unrealistic expectations. … This indicates an estimated earnings growth rate of 52.27% per year, on average, which signals a market-beating outlook in the upcoming years. … The stock is trading at a lofty price-to-earnings (PE) ratio of 121.06x, telling us that Nanosonics is overvalued based on current earnings compared to the medical equipment industry average of 42.48x , and overvalued compared to the AU market average ratio of 17.3x.

Simply Wall St -

Nanosonics Limited (ASX:NAN): What Can We Expect From Future Profit Margins?

Margin Calculation for NAN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 6.39 Million ÷ 61.40 Million = 10.40% Nanosonics's margin has expanded in the past five years, due to 50.02% in average net income growth outstripping average revenue growth of 34.21%, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Understanding what could be driving Nanosonics's future earnings It is expected that margins will continue to expand, with 25.05% in expected annual revenue growth and annual net income growth forecasted at 51.24%. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth.

Simply Wall St -

Best ASX Growth Stocks

Profit growth, coupled with top-line expansion, is a positive indication. … OSP is expected to deliver a buoyant earnings growth over the next couple of years of 49.55%, bolstered by a significant revenue which is expected to more than double. … Profit growth, coupled with top-line expansion, is a positive indication.

Simply Wall St -

Why Nanosonics Limited (ASX:NAN) Delivered An Inferior ROE Compared To The Industry

View our latest analysis for Nanosonics Breaking down Return on Equity Return on Equity (ROE) is a measure of Nanosonics’s profit relative to its shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity ASX:NAN Last Perf Apr 5th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management. … Although, its appropriate level of leverage means investors can be more confident in the sustainability of Nanosonics’s return with a possible increase should the company decide to increase its debt levels.

Simply Wall St -

Company Info

Map
Description

Nanosonics Limited, together with its subsidiaries, engages in the research, development, and commercialization of infection control and decontamination products and related technologies. The company manufactures and distributes the trophon EPR ultrasound probe disinfector for use in the treatment of healthcare acquired infections. It also provides trophon2, an ultrasound probe high level disinfection device. In addition, the company offers trophon EPR and trophon2 consumables and accessories, including NanoNebulant cartridges; chemical indicators; trophon printers, logbooks, connect products, and clean ultrasound probe covers; trophon wall mounts, carts, printer wall mounts, printer cart mounts, and curved probe positioners; trophon AcuTrace operator cards and medical instrument tags; trophon printer USB cables and label rolls; trophon AcuTrace PLUS activation cards; and cleaning and drying wipes. It operates in Australia, North America, Europe, and the Asia Pacific. The company was incorporated in 2000 and is headquartered in Lane Cove, Australia.

Details
Name: Nanosonics Limited
NAN
Exchange: ASX
Founded: 2000
A$953,308,308
299,782,487
Website: http://www.nanosonics.com.au
Address: Nanosonics Limited
14 Mars Road,
Lane Cove,
New South Wales, 2066,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NAN Ordinary Shares Australian Securities Exchange AU AUD 17. May 2007
OTCPK NNCS.F Ordinary Shares Pink Sheets LLC US USD 17. May 2007
DB OQS Ordinary Shares Deutsche Boerse AG DE EUR 17. May 2007
CHIA NAN Ordinary Shares Chi-X Australia AU AUD 17. May 2007
Number of employees
Current staff
Staff numbers
225
Nanosonics employees.
Industry
Health Care Supplies
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/19 08:02
End of day share price update: 2018/11/19 00:00
Last estimates confirmation: 2018/10/28
Last earnings filing: 2018/08/19
Last earnings reported: 2018/06/30
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.