ASX:PNV

Stock Analysis Report

Executive Summary

Polynovo Limited, a medical device company, designs, develops, and manufactures dermal regeneration solutions in the United States, Australia, New Zealand, and internationally.

Snowflake

Fundamentals

Exceptional growth potential with flawless balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-6.3%

PNV

1.4%

AU Medical Equipment

0.4%

AU Market


1 Year Return

300.0%

PNV

26.5%

AU Medical Equipment

9.8%

AU Market

Return vs Industry: PNV exceeded the Australian Medical Equipment industry which returned 26.5% over the past year.

Return vs Market: PNV exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

PNVIndustryMarket
7 Day-6.3%1.4%0.4%
30 Day5.3%1.3%-1.1%
90 Day45.9%1.7%-0.6%
1 Year300.0%300.0%28.6%26.5%16.1%9.8%
3 Year627.3%627.3%47.6%41.1%36.1%17.9%
5 Year2453.2%2453.2%142.9%123.2%49.4%15.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

60.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate PNV's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate PNV's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PNV is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: PNV is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PNV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PNV is overvalued based on its PB Ratio (60.8x) compared to the AU Medical Equipment industry average (4.7x).


Next Steps

Future Growth

How is PolyNovo forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

99.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PNV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: PNV is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: PNV's loss is forecast to worsen by 0% next year.

Revenue vs Market: PNV's revenue (40.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PNV's revenue (40.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PNV's Return on Equity is forecast to be high in 3 years time (35.3%)


Next Steps

Past Performance

How has PolyNovo performed over the past 5 years?

-17.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PNV is unprofitable, and losses have increased over the past 5 years at a rate of -17.4% per year.

Accelerating Growth: Unable to compare PNV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PNV is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (29.5%).


Return on Equity

High ROE: PNV has a negative Return on Equity (-12.22%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PNV is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PNV is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PolyNovo's financial position?


Financial Position Analysis

Short Term Liabilities: PNV's short term assets (A$19.9M) exceeds its short term liabilities (A$2.1M)

Long Term Liabilities: PNV's short term assets (19.9M) exceeds its long term liabilities (65.0K)


Debt to Equity History and Analysis

Debt Level: PNV is debt free.

Reducing Debt: PNV has not had any debt for past 5 years.


Balance Sheet

Inventory Level: PNV has a high level of physical assets or inventory.

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PNV has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PNV has sufficient cash runway for 1.714348 years if free cash flow continues to reduce at historical rates of -30.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate PNV'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 PNV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PNV'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 PNV'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 PolyNovo's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Paul Brennan 0

4.7yrs

Tenure

AU$315,871

Compensation

Mr. Paul Brennan, MBA, BSc (Nursing), RN, RM has been the Chief Executive Officer of Polynovo Limited since February 13, 2015. Mr. Brennan has been the Marketing Director Australia and New Zealand and Sale ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD216.25K) is about average for companies of similar size in the Australian market ($USD992.67K).

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


Management Age and Tenure

0.6yrs

Average Tenure

Experienced Management: PNV's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

62yo

Average Age

Experienced Board: PNV's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$29,40111 Mar 19
Bruce Rathie
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares39,597
Max PriceAU$0.74
BuyAU$58,20308 Mar 19
David Williams
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares79,188
Max PriceAU$0.73
BuyAU$40,13230 Nov 18
David Williams
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares68,660
Max PriceAU$0.58

Ownership Breakdown


Management Team

  • David Smith

    Manufacturing Manager

    • Tenure: 0yrs
    • Compensation: AU$168.95k
  • Tim Moore

    Principal Scientist

    • Tenure: 0yrs
    • Compensation: AU$145.12k
  • Paul Brennan

    Chief Executive Officer

    • Tenure: 4.7yrs
    • Compensation: AU$315.87k
  • Ed Graubart

    Senior Vice President of Americas

    • Tenure: 0.08yrs
  • Jan-Marcel Gielen

    CFO & Company Secretary

    • Tenure: 0.8yrs
    • Compensation: AU$259.30k
  • Ashok Srinivasan

    Chief Operating Officer

    • Tenure: 0.4yrs
    • Compensation: AU$183.27k
  • Monica Benyk

    HR Manager

    • Tenure: 0yrs

Board Members

  • Bruce Rathie (64yo)

    Non-Executive Independent Director

    • Tenure: 9.7yrs
    • Compensation: AU$56.78k
  • Philip Powell (62yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$56.78k
  • David Williams (55yo)

    Independent Non-Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: AU$89.63k
  • R. Johnston

    Non-Executive Independent Director

    • Tenure: 5.4yrs
    • Compensation: AU$56.78k
  • David McQuillan

    Non-Executive Director

    • Tenure: 7.2yrs
    • Compensation: AU$122.41k
  • Leon Hoare

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: AU$56.78k

Company Information

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


Key Information

  • Name: PolyNovo Limited
  • Ticker: PNV
  • Exchange: ASX
  • Founded:
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: AU$1.587b
  • Shares outstanding: 661.09m
  • Website: https://www.polynovo.com.au

Number of Employees


Location

  • PolyNovo Limited
  • 320 Lorimer Street
  • Unit 2
  • Port Melbourne
  • Victoria
  • 3207
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CALZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1998
PNVASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 1998
PNVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 1998
PNVCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 1998
MFJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1998

Biography

Polynovo Limited, a medical device company, designs, develops, and manufactures dermal regeneration solutions in the United States, Australia, New Zealand, and internationally. The company focuses on the d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:31
End of Day Share Price2019/10/18 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.