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 limited growth.

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

-3.2%

NANO

4.0%

GB Semiconductor

2.0%

GB Market


1 Year Return

-68.9%

NANO

-30.6%

GB Semiconductor

3.3%

GB Market

Return vs Industry: NANO underperformed the UK Semiconductor industry which returned -30.6% over the past year.

Return vs Market: NANO underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

NANOIndustryMarket
7 Day-3.2%4.0%2.0%
30 Day-13.1%6.4%-1.0%
90 Day-15.5%3.1%-1.7%
1 Year-68.9%-68.9%-27.3%-30.6%8.3%3.3%
3 Year-78.9%-78.9%10.6%3.8%19.0%4.5%
5 Year-90.8%-90.8%-15.1%-19.2%38.4%8.4%

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?

2.97x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate NANO's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate NANO's fair value to establish if it is undervalued.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: NANO is overvalued based on its PB Ratio (3x) compared to the GB Semiconductor industry average (1.2x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: NANO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NANO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NANO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NANO's revenue (20.1% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: NANO's revenue (20.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


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

Earnings Trend: NANO is unprofitable, but has reduced losses over the past 5 years at a rate of 3.5% per year.

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

Earnings vs Industry: NANO is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-3%).


Return on Equity

High ROE: NANO has a negative Return on Equity (-42.06%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NANO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NANO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Nanoco Group's financial position?


Financial Position Analysis

Short Term Liabilities: NANO's short term assets (£9.7M) exceeds its short term liabilities (£2.3M)

Long Term Liabilities: NANO's short term assets (9.7M) exceeds its long term liabilities (5.1M)


Debt to Equity History and Analysis

Debt Level: NANO's debt to equity ratio (4.1%) is considered satisfactory

Reducing Debt: NANO's debt to equity ratio has increased from 0.9% to 4.1% over the past 5 years.


Balance Sheet

Inventory Level: NANO has a high level of physical assets or inventory.

Debt Coverage by Assets: NANO's debt is covered by short term assets (assets are 23.123800x 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: NANO has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NANO has sufficient cash runway for 1.186290 years if free cash flow continues to grow at historical rates of 37% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

High Dividend: Unable to evaluate NANO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NANO's dividends per share have been stable in the past.

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


Next Steps

Management

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

0.8yrs

Average board tenure


CEO

Michael Edelman 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

Compensation vs. Market: Michael's total compensation ($USD395.72K) is about average for companies of similar size in the UK market ($USD317.09K).

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


Board Age and Tenure

0.8yrs

Average Tenure

59yo

Average Age

Experienced Board: NANO's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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£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
BuyUK£49,73926 Jun 19
Brian Tenner
EntityIndividual
Role
Member of the Board of Directors
COO, CFO
Shares379,689
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£25,16626 Jun 19
Michael Edelman
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares198,000
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: 2.3yrs
  • Brian Tenner (50yo)

    COO, CFO

    • Tenure: 1.2yrs
  • Nigel Pickett

    Co-Founder

    • Tenure: 10.5yrs
    • Compensation: UK£182.00k
  • Paul O'Brien

    Founder and Scientific Advisor

    • Tenure: 0yrs
  • Michael Edelman

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: UK£312.00k
  • Caroline Watson

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Chris Batterham (64yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
  • Ali Fielding (54yo)

    Senior Independent Director

    • Tenure: 0.5yrs
    • Compensation: UK£35.00k
  • Chris Richards (65yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£75.00k
  • Brian Tenner (50yo)

    COO, CFO

    • Tenure: 1.2yrs
  • Nigel Pickett

    Co-Founder

    • Tenure: 10.5yrs
    • Compensation: UK£182.00k
  • Michael Edelman

    CEO & Executive Director

    • Tenure: 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£30.483m
  • 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 Analysis2019/10/13 20:32
End of Day Share Price2019/10/11 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.

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