Nuvo Pharmaceuticals (TSX:MRV) - Share price, News & Analysis

Q: What is the Fair Price of MRV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MRV (CA$0.55) is trading below our estimate of [[fair value]] (CA$15.75)

MRV fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

MRV Stock Overview

Nuvo Pharmaceuticals Inc., doing business as Miravo Healthcare, provides prescription and non-prescription products for pain, allergy, neurology, and dermatology worldwide.

Rewards

Trading at 96.5% below our estimate of its fair value

Risk Analysis

Earnings have declined by 58.6% per year over past 5 years

Does not have a meaningful market cap (CA$6M)

Negative shareholders equity

Volatile share price over the past 3 months

Nuvo Pharmaceuticals Competitors

Harvest One Cannabis

TSXV:HVT

CA$7.6m

Luff Enterprises

CNSX:LUFF

CA$6.5m

Blueberries Medical

CNSX:BBM

CA$5.7m

Pharmadrug

CNSX:PHRX

CA$10.6m

Price History & Performance

Summary of all time highs, changes and price drops for Nuvo Pharmaceuticals
Historical stock prices
Current Share Price	CA$0.55
52 Week High	CA$1.75
52 Week Low	CA$0.55
Beta	1.31
1 Month Change	-29.49%
3 Month Change	-58.02%
1 Year Change	-59.56%
3 Year Change	-32.93%
5 Year Change	-87.21%
Change since IPO	-99.79%

Shareholder Returns

	MRV	CA Pharmaceuticals	CA Market
7D	-20.3%	-0.3%	0.3%
1Y	-59.6%	-70.9%	-4.0%

Return vs Industry: MRV exceeded the Canadian Pharmaceuticals industry which returned -70.9% over the past year.

Return vs Market: MRV underperformed the Canadian Market which returned -4% over the past year.

Price Volatility

Is MRV's price volatile compared to industry and market?
MRV volatility
MRV Average Weekly Movement	16.8%
Pharmaceuticals Industry Average Movement	11.7%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: MRV is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: MRV's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Canadian stocks.

About the Company

Founded	Employees	CEO	Website
1983	100	Jesse Ledger	https://www.miravohealthcare.com

Nuvo Pharmaceuticals Inc., doing business as Miravo Healthcare, provides prescription and non-prescription products for pain, allergy, neurology, and dermatology worldwide. The company operates in three segments: Commercial Business, Production and Service Business, and Licensing and Royalty Business. It offers Blexten, an antihistamine drug for the symptomatic relief of allergic rhinitis and chronic spontaneous urticaria; Cambia, a nonsteroidal anti-inflammatory drug for migraine; Suvexx/Treximet, a migraine medicine; NeoVisc, an injectable viscosupplement for osteoarthritis; and Resultz, FullMarks, and LAUSBUB for head lice infestations.

Nuvo Pharmaceuticals Fundamentals Summary

How do Nuvo Pharmaceuticals's earnings and revenue compare to its market cap?
MRV fundamental statistics
Market Cap	CA$6.26m
Earnings (TTM)	-CA$12.18m
Revenue (TTM)	CA$70.13m

0.1x

P/S Ratio

-0.5x

P/E Ratio

Is MRV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRV income statement (TTM)
Revenue	CA$70.13m
Cost of Revenue	CA$25.89m
Gross Profit	CA$44.23m
Other Expenses	CA$56.42m
Earnings	-CA$12.18m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.07
Gross Margin	63.08%
Net Profit Margin	-17.37%
Debt/Equity Ratio	-1,018.3%

How did MRV perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MRV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRV?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MRV. This is calculated by dividing MRV's market cap by their current preferred multiple.
What is MRV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$6.26m

MRV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	3.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does MRV's PS Ratio compare to its peers?

MRV PS Ratio vs Peers

The above table shows the PS ratio for MRV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	18.2x
HVT Harvest One Cannabis	0.9x	n/a	CA$7.6m
LUFF Luff Enterprises	10.3x	n/a	CA$6.5m
BBM Blueberries Medical	38.5x	n/a	CA$5.7m
PHRX Pharmadrug	23.1x	n/a	CA$10.6m
MRV Nuvo Pharmaceuticals	0.09x	-2.7%	CA$6.3m

Forward PS

Price-To-Sales vs Peers: MRV is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (18.2x).

Price to Earnings Ratio vs Industry

How does MRV's PE Ratio compare vs other companies in the CA Pharmaceuticals Industry?

Price-To-Sales vs Industry: MRV is good value based on its Price-To-Sales Ratio (0.1x) compared to the Canadian Pharmaceuticals industry average (2x)

Price to Sales Ratio vs Fair Ratio

What is MRV's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.09x
Fair PS Ratio	0.8x

Price-To-Sales vs Fair Ratio: MRV is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

Share Price vs Fair Value

What is the Fair Price of MRV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRV (CA$0.55) is trading below our estimate of fair value (CA$15.75)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Nuvo Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-2.7%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MRV's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if MRV's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if MRV's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRV's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: MRV's revenue is forecast to decline over the next 3 years (-2.7% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MRV's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Nuvo Pharmaceuticals performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-58.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MRV is currently unprofitable.

Growing Profit Margin: MRV is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MRV is unprofitable, and losses have increased over the past 5 years at a rate of 58.6% per year.

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

Earnings vs Industry: MRV is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (118.1%).

Return on Equity

High ROE: MRV's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.

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Financial Health

How is Nuvo Pharmaceuticals's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MRV has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MRV has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.

Debt to Equity History and Analysis

Debt Level: MRV has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MRV's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

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: Whilst unprofitable MRV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MRV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.6% per year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if MRV's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MRV has not reported any payouts.

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Management

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

5.6yrs

Average management tenure

CEO

Jesse Ledger

5.58yrs

Tenure

CA$753,546

Compensation

Mr. Jesse F. Ledger has been the Chief Executive Officer of Nuvo Pharmaceuticals Inc. since November 21, 2017 and as its President since November 15, 2016. Mr. Ledger served as Vice President of Business D...

CEO Compensation Analysis

Compensation vs Market: Jesse's total compensation ($USD583.38K) is above average for companies of similar size in the Canadian market ($USD175.18K).

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

Leadership Team

Experienced Management: MRV's management team is seasoned and experienced (5.6 years average tenure).

Board Members

Experienced Board: MRV's board of directors are seasoned and experienced ( 16.8 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: MRV 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31