LSE:NANO

Stock Analysis Report

Executive Summary

Nanoco Group plc, together with its subsidiaries, engages in the research, development, manufacture, and licensing of cadmium and heavy-metal-free quantum dots (CFQD), and semiconductor nanomaterials for use in various commercial applications.

Snowflake

Fundamentals

Excellent balance sheet with concerning outlook.

Risks

  • Nanoco Group has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.3%

LSE:NANO

4.0%

GB Semiconductor

1.4%

GB Market


1 Year Return

-65.4%

LSE:NANO

-45.0%

GB Semiconductor

-5.7%

GB Market

NANO underperformed the Semiconductor industry which returned -44.9% over the past year.

NANO underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -4.8% over the past year.


Share holder returns

NANOIndustryMarket
7 Day11.3%4.0%1.4%
30 Day-1.2%-8.7%-4.8%
90 Day-68.0%-24.8%-1.9%
1 Year-65.4%-65.4%-42.6%-45.0%-1.3%-5.7%
3 Year-81.4%-81.4%-0.2%-5.0%17.6%3.6%
5 Year-86.8%-86.8%-25.6%-29.4%24.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.57x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Nanoco Group to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Nanoco Group to establish if it is available at substantial discount.


Price Based on Earnings

Nanoco Group is loss making, we can't compare its value to the Europe Semiconductor industry average.

Nanoco Group is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Nanoco Group is overvalued based on assets compared to the GB Semiconductor industry average.


Next Steps

Future Growth

How is Nanoco Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nanoco Group's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Nanoco Group is not considered high growth as it is expected to be loss making for the next 1-3 years.

Nanoco Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Unable to compare Nanoco Group's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Nanoco Group's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Nanoco Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Nanoco Group performed over the past 5 years?

3.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nanoco Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

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

Unable to compare Nanoco Group's 1-year growth to the Europe Semiconductor industry average as it is not currently profitable.


Return on Equity

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


Return on Capital Employed

It is difficult to establish if Nanoco Group 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 Nanoco Group's financial position?


Financial Position Analysis

Nanoco Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Nanoco Group's level of debt (4.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.9% vs 4.1% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 23.1x 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.

Nanoco Group has sufficient cash runway for 2.1 years based on current free cash flow.

Nanoco Group has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -37% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

No need to calculate the sustainability of Nanoco Group's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.


Next Steps

Management

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

0.7yrs

Average board tenure


CEO

Michael Edelman 0

0.0yrs

Tenure

UK£312,000

Compensation

Dr. Michael A. Edelman serves as the Chief Executive Officer of Nanoco Group Plc. Dr. Edelman joined Nanoco in 2004, led the initial fund-raising and spun Nanoco out of the University of Manchester. He ser ...


CEO Compensation Analysis

Michael's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

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


Board Age and Tenure

0.7yrs

Average Tenure

59yo

Average Age

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


Insider Trading

More shares have been bought than sold by Nanoco Group individual insiders in the past 3 months.


Recent Insider Transactions

SellUK£8,50026 Jun 19
Christopher G. Richards
EntityIndividual
Role
Co-Chairman of the Board
Non-Executive Chairman
Shares63,909
Max PriceUK£0.13
BuyUK£25,16626 Jun 19
Michael Edelman
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares198,000
Max PriceUK£0.13
BuyUK£24,85326 Jun 19
Nigel Pickett
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares189,425
Max PriceUK£0.13
BuyUK£49,73926 Jun 19
Brian Tenner
EntityIndividual
Role
Member of the Board of Directors
COO, CFO
Shares379,689
Max PriceUK£0.13
BuyUK£46,55026 Jun 19
Christopher G. Richards
EntityIndividual
Role
Co-Chairman of the Board
Non-Executive Chairman
Shares350,000
Max PriceUK£0.13
BuyUK£15,08426 Jun 19
Alison Fielding
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares119,261
Max PriceUK£0.13
SellUK£42,65207 Jun 19
Christopher G. Richards
EntityIndividual
Role
Co-Chairman of the Board
Non-Executive Chairman
Shares110,497
Max PriceUK£0.39
BuyUK£42,76207 Jun 19
Christopher G. Richards
EntityIndividual
Role
Co-Chairman of the Board
Non-Executive Chairman
Shares110,497
Max PriceUK£0.39
SellUK£914,01203 May 19
Michael Edelman
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares2,000,000
Max PriceUK£0.50
SellUK£112,95302 May 19
Nigel Pickett
EntityIndividual
Role
Member of the Board of Directors
Co-Founder
Shares227,653
Max PriceUK£0.50
BuyUK£20,00115 Nov 18
Alison Fielding
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares47,759
Max PriceUK£0.42
BuyUK£14,98717 Oct 18
Alison Fielding
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares43,566
Max PriceUK£0.34
BuyUK£50,73416 Oct 18
Brian Tenner
EntityIndividual
Role
Member of the Board of Directors
COO, CFO
Shares158,543
Max PriceUK£0.32

Ownership Breakdown


Management Team

  • David Yao

    Senior Vice President of Global Sales

    • Tenure: 2.1yrs
  • Brian Tenner (50yo)

    COO, CFO

    • Tenure: 1.0yrs
  • Nigel Pickett

    Co-Founder

    • Tenure: 10.3yrs
    • Compensation: UK£182.00k
  • Paul O'Brien

    Founder and Scientific Advisor

    • Tenure: 0.0yrs
  • Michael Edelman

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£312.00k
  • Caroline Watson

    Investor Relations Manager

    • Tenure: 0.0yrs

Board Members

  • Chris Batterham (64yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
  • Ali Fielding (54yo)

    Senior Independent Director

    • Tenure: 0.3yrs
    • Compensation: UK£35.00k
  • Chris Richards (65yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: UK£75.00k
  • Brian Tenner (50yo)

    COO, CFO

    • Tenure: 1.0yrs
  • Nigel Pickett

    Co-Founder

    • Tenure: 10.3yrs
    • Compensation: UK£182.00k
  • Michael Edelman

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: UK£312.00k

Company Information

Nanoco Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nanoco Group plc
  • Ticker: NANO
  • Exchange: LSE
  • Founded: 2001
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: UK£37.209m
  • Shares outstanding: 286.22m
  • Website: https://www.nanocotechnologies.com

Number of Employees


Location

  • Nanoco Group plc
  • 46 Grafton Street
  • Manchester
  • Greater Manchester
  • M13 9NT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NANOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2005
GXGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2005
NNOC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2005
NANOLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2005

Biography

Nanoco Group plc, together with its subsidiaries, engages in the research, development, manufacture, and licensing of cadmium and heavy-metal-free quantum dots (CFQD), and semiconductor nanomaterials for u ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 20:33
End of Day Share Price2019/08/22 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


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.