DB:GC3

Stock Analysis Report

Executive Summary

Novonix Limited advanced develops and supplies battery materials, equipment, and services to the lithium-ion battery market in North America.

Snowflake

Fundamentals

Slightly overvalued with limited growth.

Risks

  • Novonix has significant price volatility in the past 3 months.
  • Novonix's last earnings update was 190 days ago.
  • Novonix is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.6%

GC3

1.8%

DE Electronic

0.1%

DE Market


1 Year Return

-23.1%

GC3

-20.0%

DE Electronic

-4.5%

DE Market

GC3 underperformed the Electronic industry which returned -20% over the past year.

GC3 underperformed the Market in Germany which returned -4.5% over the past year.


Share holder returns

GC3IndustryMarket
7 Day-5.6%1.8%0.1%
30 Day-19.0%17.9%6.2%
90 Day14.1%-6.4%1.4%
1 Year-23.1%-23.1%-19.2%-20.0%-1.5%-4.5%
3 Yearn/a47.3%43.9%16.5%6.5%
5 Yearn/a111.7%100.9%33.8%15.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Novonix's share price is below the future cash flow value, and at a moderate discount (> 20%).

Novonix's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Novonix is loss making, we can't compare its value to the DE Electronic industry average.

Novonix is loss making, we can't compare the value of its earnings to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Novonix, we can't assess if its growth is good value.


Price Based on Value of Assets

Novonix is good value based on assets compared to the DE Electronic industry average.


Next Steps

Future Growth

How is Novonix expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

52.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Novonix's revenue is expected to grow significantly at over 20% yearly.

Unable to determine if Novonix is high growth as no earnings estimate data is available.

Novonix's revenue growth is expected to exceed the Germany market average.

Unable to compare Novonix's earnings growth to the Germany market average as no estimate data is available.

Unable to compare Novonix's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Novonix is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Novonix performed over the past 5 years?

-71.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Novonix does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Novonix's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Novonix's 1-year growth to the DE Electronic industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Novonix has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Novonix has efficiently used its assets last year compared to the DE Electronic industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Novonix improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Novonix's financial position?


Financial Position Analysis

Novonix's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Novonix's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Novonix's level of debt (24.1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Novonix's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x 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.

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

Novonix has less than a year of cash runway if free cash flow continues to grow at historical rates of 52.5% each year.


Next Steps

Dividend

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

11.96%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Novonix's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Novonix's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Novonix has not reported any payouts.

Unable to verify if Novonix's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Novonix has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Phil St Baker (51yo)

4yrs

Tenure

AU$685,796

Compensation

Mr. Philip Matthew St Baker, also known as Phil, BEng, MAICD has been the Managing Director, Chief Executive Officer and Executive Director at Graphitecorp Limited (now NOVONIX Limited) since August 31, 20 ...


CEO Compensation Analysis

Phil's remuneration is higher than average for companies of similar size in Germany.

Phil's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

The tenure for the Novonix management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Novonix board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$707,39223 Jun 19
Anthony Bellas
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,750,000
Max PriceAU$0.26

Ownership Breakdown


Management Team

  • Greg Baynton (50yo)

    Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$116.57k
  • Phil St Baker (51yo)

    MD & Director

    • Tenure: 4yrs
    • Compensation: AU$685.80k
  • Suzanne Yeates

    CFO & Company Secretary

    • Tenure: 0yrs
  • Chris Burns

    Chief Executive Officer of NOVONIX BTS

    • Tenure: 2.3yrs
    • Compensation: AU$1.22m
  • David Stevens

    Group Chief Technology Officer

    • Tenure: 1.6yrs
    • Compensation: AU$1.21m

Board Members

  • Andrew Liveris (64yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$646.29k
  • Greg Baynton (50yo)

    Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$116.57k
  • Robert Natter

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: AU$589.15k
  • Tony Bellas (65yo)

    Chairman

    • Tenure: 4.1yrs
    • Compensation: AU$151.22k
  • Phil St Baker (51yo)

    MD & Director

    • Tenure: 4yrs
    • Compensation: AU$685.80k
  • Rob Cooper

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$58.57k
  • Dean Price

    Alternate Director

    • Tenure: 2.9yrs

Company Information

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


Key Information

  • Name: Novonix Limited
  • Ticker: GC3
  • Exchange: DB
  • Founded: 2012
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: AU$58.943m
  • Listing Market Cap: AU$36.272m
  • Shares outstanding: 128.14m
  • Website: https://www.novonixgroup.com

Location

  • Novonix Limited
  • 144 Edward Street
  • Level 12
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVXASX (Australian Securities Exchange)YesCommon StockAUAUDDec 2015
GC3DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2015

Biography

Novonix Limited advanced develops and supplies battery materials, equipment, and services to the lithium-ion battery market in North America. The company operates through three segments: Graphite Explorati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 22:07
End of Day Share Price2019/09/20 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.