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 Analysis

Exceptional growth potential with adequate 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

Stable Share Price: PNV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

PNV

4.3%

AU Medical Equipment

0.1%

AU Market


1 Year Return

105.3%

PNV

-1.7%

AU Medical Equipment

-22.8%

AU Market

Return vs Industry: PNV exceeded the Australian Medical Equipment industry which returned -1.7% over the past year.

Return vs Market: PNV exceeded the Australian Market which returned -22.8% over the past year.


Shareholder returns

PNVIndustryMarket
7 Day0%4.3%0.1%
30 Day-37.7%-23.9%-28.8%
90 Day-21.2%-27.1%-30.1%
1 Year105.3%105.3%-0.04%-1.7%-19.4%-22.8%
3 Year470.4%470.4%17.8%12.4%-9.5%-21.7%
5 Year2100.0%2100.0%57.1%43.7%2.1%-20.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PNV (A$1.54) is trading below our estimate of fair value (A$5.28)

Significantly Below Fair Value: PNV is trading below fair value by more than 20%.


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

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 (41.5x) compared to the AU Medical Equipment industry average (3.2x).


Next Steps

Future Growth

How is PolyNovo forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

63.0%

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 (1.1%).

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

High Growth Earnings: PNV's is expected to become profitable in the next 3 years.

Revenue vs Market: PNV's revenue (40.3% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: PNV's revenue (40.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PNV's Return on Equity is forecast to be very high in 3 years time (57.1%).


Next Steps

Past Performance

How has PolyNovo performed over the past 5 years?

-14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PNV is currently unprofitable.

Growing Profit Margin: PNV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PNV is unprofitable, and losses have increased over the past 5 years at a rate of -14.6% 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 (14.7%).


Return on Equity

High ROE: PNV has a negative Return on Equity (-15.05%), as it is currently unprofitable.


Next Steps

Financial Health

How is PolyNovo's financial position?


Financial Position Analysis

Short Term Liabilities: PNV's short term assets (A$17.3M) exceed its short term liabilities (A$2.8M).

Long Term Liabilities: PNV's short term assets (A$17.3M) exceed its long term liabilities (A$2.3M).


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: PNV's debt is not covered by short term assets (assets are -3.8988774363255E+16x debt).


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 less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PNV has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

1.3yrs

Average management tenure


CEO

Paul Brennan

5.08s

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 ($USD193.74K) is below average for companies of similar size in the Australian market ($USD1.07M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Brennan
Chief Executive Officer5.08yrsAU$315.87k1.82% A$18.5m
Jan-Marcel Gielen
CFO & Company Secretary1.25yrsAU$259.30kno data
Gordon Fleming
Director of Operationsno datano datano data
Katherine Napier
Marketing & Distributor Managerno datano datano data
Monica Benyk
HR Managerno datano datano data
Tim Moore
Principal Scientistno dataAU$145.12kno data
Edward Graubart
Senior Vice President of Americas0.50yrno datano data

1.3yrs

Average Tenure

Experienced Management: PNV's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robyn Elliott
Non-Executive Director0.42yrno datano data
Bruce Rathie
Non-Executive Independent Director10.08yrsAU$56.78k0.55% A$5.6m
Philip Powell
Non-Executive Director5.83yrsAU$56.78k0.19% A$2.0m
David Williams
Independent Non-Executive Chairman6yrsAU$89.63k2.71% A$27.6m
R. Johnston
Non-Executive Independent Director5.83yrsAU$56.78k0.23% A$2.4m
David McQuillan
Non-Executive Director7.58yrsAU$122.41k0.19% A$1.9m
Leon Hoare
Independent Non-Executive Director4.17yrsAU$56.78k0.20% A$2.1m

5.8yrs

Average Tenure

60yo

Average Age

Experienced Board: PNV's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PNV 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

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$1.018b
  • 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 development and commercialization of medical devices using its NovoSorb technology in the treatment of burns, surgical wounds, and negative pressure wound therapy. It offers BTM (biodegradable temporising matrix), a wound dressing intended for treatment of full-thickness wounds and burns. In addition, Polynovo Limited licensed its NovoSorb to Smith & Nephew for orthopaedic applications. The company was formerly known as Calzada Limited and changed its name to Polynovo Limited in November 2014. Polynovo Limited is based in Port Melbourne, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:32
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.