Nova Wellness Group Berhad (KLSE:NOVA) - Share price, News & Analysis

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

NOVA (MYR0.95) is trading above our estimate of [[fair value]] (MYR0.45)

NOVA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

NOVA Stock Overview

Nova Wellness Group Berhad, through its subsidiary, Nova Laboratories Sdn Bhd, engages in the development, production, and sale of nutraceutical and skincare products in Malaysia.

Rewards

Price-To-Earnings ratio (16x) is below the Personal Products industry average (25.4x)

Earnings are forecast to grow 14.3% per year

Earnings grew by 25% over the past year

Risk Analysis

Dividend of 2.11% is not well covered by earnings

Does not have a meaningful market cap (MYR302M)

Nova Wellness Group Berhad Competitors

Sunzen Biotech Berhad

KLSE:SUNZEN

RM163.7m

Rubberex Corporation (M) Berhad

KLSE:RUBEREX

RM402.9m

NTPM Holdings Berhad

KLSE:NTPM

RM488.5m

GeneFerm Biotechnology

TPEX:1796

NT$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Nova Wellness Group Berhad
Historical stock prices
Current Share Price	RM0.95
52 Week High	RM1.07
52 Week Low	RM0.80
Beta	1.08
1 Month Change	13.77%
3 Month Change	6.74%
1 Year Change	16.56%
3 Year Change	123.53%
5 Year Change	n/a
Change since IPO	25.00%

Recent News & Updates

Jul 22

Should You Be Adding Nova Wellness Group Berhad (KLSE:NOVA) To Your Watchlist Today?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

	NOVA	MY Personal Products	MY Market
7D	1.1%	-1.3%	0.2%
1Y	16.6%	-18.3%	-3.5%

Return vs Industry: NOVA exceeded the MY Personal Products industry which returned -18.3% over the past year.

Return vs Market: NOVA exceeded the MY Market which returned -3.5% over the past year.

Price Volatility

Is NOVA's price volatile compared to industry and market?
NOVA volatility
NOVA Average Weekly Movement	4.2%
Personal Products Industry Average Movement	5.0%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.7%
10% least volatile stocks in MY Market	2.7%

Stable Share Price: NOVA is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NOVA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1989	100	Nyie Phang	https://nova.my

Nova Wellness Group Berhad, through its subsidiary, Nova Laboratories Sdn Bhd, engages in the development, production, and sale of nutraceutical and skincare products in Malaysia. The company offers natural supplements, including herbal, vitamin and mineral, and specialty supplements; functional and healthy food products comprising oil powders, smoothies, loaf, vegetable oil blend, sunflower oil, chia seeds, coffee, and oat beta-glucan; skin care products, such as cleansing bars, face and body wash, shampoos and conditioners, feminine intimate wash, herbal essence spray and ointment, body balm, and head wash; calcium tablet, fish oil, vit-c chewable tablet, multivitamins tablets, oral powders, and nutritional drinks for children; and hand sanitizers, face masks, and disinfectant cleaners. It offers its products under the NOVA, ActivMax, SP8, Novavis, Healthy Joy, Sustinex, and NOVTIC brand names.

Nova Wellness Group Berhad Fundamentals Summary

How do Nova Wellness Group Berhad's earnings and revenue compare to its market cap?
NOVA fundamental statistics
Market Cap	RM301.99m
Earnings (TTM)	RM18.86m
Revenue (TTM)	RM49.78m

16.0x

P/E Ratio

6.1x

P/S Ratio

Is NOVA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOVA income statement (TTM)
Revenue	RM49.78m
Cost of Revenue	RM13.78m
Gross Profit	RM36.00m
Other Expenses	RM17.14m
Earnings	RM18.86m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.059
Gross Margin	72.32%
Net Profit Margin	37.89%
Debt/Equity Ratio	0.0%

How did NOVA perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

34%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NOVA. This is calculated by dividing NOVA's market cap by their current preferred multiple.
What is NOVA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM301.99m

NOVA 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	5.6x
Enterprise Value/EBITDA	11.6x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does NOVA's PE Ratio compare to its peers?

NOVA PE Ratio vs Peers

The above table shows the PE ratio for NOVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	37.7x
SUNZEN Sunzen Biotech Berhad	100x	n/a	RM163.7m
RUBEREX Rubberex Corporation (M) Berhad	4x	n/a	RM402.9m
NTPM NTPM Holdings Berhad	17.3x	11.6%	RM488.5m
1796 GeneFerm Biotechnology	29.5x	n/a	NT$2.0b
NOVA Nova Wellness Group Berhad	16x	14.3%	RM302.0m

Price-To-Earnings vs Peers: NOVA is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (37.7x).

Price to Earnings Ratio vs Industry

How does NOVA's PE Ratio compare vs other companies in the Asian Personal Products Industry?

Price-To-Earnings vs Industry: NOVA is good value based on its Price-To-Earnings Ratio (16x) compared to the Asian Personal Products industry average (25.4x)

Price to Earnings Ratio vs Fair Ratio

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

NOVA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16x
Fair PE Ratio	13.2x

Price-To-Earnings vs Fair Ratio: NOVA is expensive based on its Price-To-Earnings Ratio (16x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

Share Price vs Fair Value

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

Below Fair Value: NOVA (MYR0.95) is trading above our estimate of fair value (MYR0.45)

Significantly Below Fair Value: NOVA is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is Nova Wellness Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

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

14.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVA's forecast earnings growth (14.3% per year) is above the savings rate (3.6%).

Earnings vs Market: NOVA's earnings (14.3% per year) are forecast to grow faster than the MY market (10.5% per year).

High Growth Earnings: NOVA's earnings are forecast to grow, but not significantly.

Revenue vs Market: NOVA's revenue (16.2% per year) is forecast to grow faster than the MY market (5.3% per year).

High Growth Revenue: NOVA's revenue (16.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NOVA's Return on Equity is forecast to be low in 3 years time (18%).

Discover growth companies

Past Performance

How has Nova Wellness Group Berhad performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

13.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOVA has high quality earnings.

Growing Profit Margin: NOVA's current net profit margins (37.9%) are higher than last year (37.8%).

Past Earnings Growth Analysis

Earnings Trend: NOVA's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: NOVA's earnings growth over the past year (25%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: NOVA earnings growth over the past year (25%) exceeded the Personal Products industry -1.4%.

Return on Equity

High ROE: NOVA's Return on Equity (19.2%) is considered low.

Discover strong past performing companies

Financial Health

How is Nova Wellness Group Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOVA's short term assets (MYR60.7M) exceed its short term liabilities (MYR5.9M).

Long Term Liabilities: NOVA's short term assets (MYR60.7M) exceed its long term liabilities (MYR6.5M).

Debt to Equity History and Analysis

Debt Level: NOVA is debt free.

Reducing Debt: NOVA has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

Debt Coverage: NOVA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NOVA has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is Nova Wellness Group Berhad current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NOVA's dividend (2.11%) is higher than the bottom 25% of dividend payers in the MY market (2%).

High Dividend: NOVA's dividend (2.11%) is low compared to the top 25% of dividend payers in the MY market (4.87%).

Stability and Growth of Payments

Stable Dividend: NOVA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NOVA's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.7%), NOVA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (98.4%), NOVA's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure

CEO

Nyie Phang (66 yo)

4.83yrs

Tenure

RM586,320

Compensation

Mr. Nyie Lin Phang serves as Group Managing Director, Chief Research Officer and Director at Nova Wellness Group Berhad since October 31, 2017. Mr. Phang holds Bachelor of Pharmacy from Universiti Sains Ma...

CEO Compensation Analysis

Compensation vs Market: Nyie's total compensation ($USD131.88K) is about average for companies of similar size in the MY market ($USD112.24K).

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

Leadership Team

Experienced Management: NOVA's management team is considered experienced (4.8 years average tenure).

Board Members

Experienced Board: NOVA's board of directors are considered experienced (4.8 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30