CNSX:NOVA

Stock Analysis Report

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Executive Summary

Nova Mentis Life Science Corp. intends to produce medical marijuana in Canada. More Details


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Nova Mentis Life Science's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NOVA is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 21% a week.

Volatility Over Time: NOVA's weekly volatility has decreased from 28% to 21% over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

15.6%

NOVA

9.2%

CA Pharmaceuticals

2.8%

CA Market


1 Year Return

30.0%

NOVA

14.8%

CA Pharmaceuticals

-0.3%

CA Market

Return vs Industry: NOVA exceeded the Canadian Pharmaceuticals industry which returned 13.1% over the past year.

Return vs Market: NOVA exceeded the Canadian Market which returned -0.5% over the past year.


Shareholder returns

NOVAIndustryMarket
7 Day15.6%9.2%2.8%
30 Day40.5%30.1%10.0%
90 Day62.5%29.9%5.7%
1 Year30.0%30.0%14.8%14.8%3.3%-0.3%
3 Year-75.9%-75.9%-31.8%-32.9%12.2%1.3%
5 Year85.7%85.7%268.2%265.3%49.1%26.2%

Long-Term Price Volatility Vs. Market

How volatile is Nova Mentis Life Science's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nova Mentis Life Science undervalued compared to its fair value and its price relative to the market?

2.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NOVA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NOVA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NOVA is unprofitable, so we can't compare its PE Ratio to the CA Pharmaceuticals industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NOVA is overvalued based on its PB Ratio (2.2x) compared to the CA Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Nova Mentis Life Science forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

60.5%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nova Mentis Life Science has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nova Mentis Life Science performed over the past 5 years?

-18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOVA is currently unprofitable.

Growing Profit Margin: NOVA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOVA is unprofitable, and losses have increased over the past 5 years at a rate of 18.8% per year.

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

Earnings vs Industry: NOVA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-45%).


Return on Equity

High ROE: NOVA has a negative Return on Equity (-101.09%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nova Mentis Life Science's financial position?


Financial Position Analysis

Short Term Liabilities: NOVA's short term assets (CA$1.4M) exceed its short term liabilities (CA$262.0K).

Long Term Liabilities: NOVA has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: NOVA is debt free.

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


Balance Sheet


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: NOVA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NOVA has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 14.6% each year.


Next Steps

Dividend

What is Nova Mentis Life Science current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if NOVA'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 NOVA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Will Rascan

8.5yrs

Tenure

CA$170,000

Compensation

Mr. William Rascan, also known as Will, has been the Chief Executive Officer of Nova Mentis Life Science Corp. (formerly known as Liberty Leaf Holdings Ltd.). (formerly known as Weststar Resources Corp.) s...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD166.12K).

Compensation vs Earnings: Will's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Rascan
CEO, President & Director8.5yrsCA$170.00k1.47%
CA$ 197.2k
Jamie Robinson
Chief Financial Officer3.42yrsCA$33.50kno data
Jacqueline McConnell
COO & Director0.17yrno datano data
Kelly Pladson
Corporate Administratorno datano datano data
Aylia Mohammadi
President & Chief Scientific Officer of Nova Mentis Biotech Corp.no datano data9.01%
CA$ 1.2m

3.4yrs

Average Tenure

Experienced Management: NOVA's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Rascan
CEO, President & Director8.5yrsCA$170.00k1.47%
CA$ 197.2k
Jacqueline McConnell
COO & Director0.17yrno datano data
Steven Feldman
Independent Director8.5yrsCA$56.50k0.32%
CA$ 43.4k
Robert W. Laurie
Advisory Board Chair3.25yrsno datano data
Mary Fitzpatrick
Member of Advisory Board3.08yrsno datano data
Barinder Rasode
Member of Advisory Board2.75yrsno datano data
Jamie Pearson
Member of Advisory Board2.5yrsno datano data

3.1yrs

Average Tenure

Experienced Board: NOVA's board of directors are considered experienced (3.1 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 been substantially diluted in the past year, with total shares outstanding growing by 89.5%.


Top Shareholders

Company Information

Nova Mentis Life Science Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nova Mentis Life Science Corp.
  • Ticker: NOVA
  • Exchange: CNSX
  • Founded: 2004
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$13.394m
  • Shares outstanding: 60.88m
  • Website: https://www.novamentis.ca

Location

  • Nova Mentis Life Science Corp.
  • 700-838 West Hasting Street
  • Vancouver
  • British Columbia
  • V6C 0A6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HN3QDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2006
LIBF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2006
NOVACNSX (Canadian National Stock Exchange)YesCommon SharesCACADSep 2006

Biography

Nova Mentis Life Science Corp. intends to produce medical marijuana in Canada. The company was formerly known as Liberty Leaf Holdings Ltd. and changed its name to Nova Mentis Life Science Corp. in June 20...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:27
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.