NasdaqCM:NVCN

Stock Analysis Report

Executive Summary

Neovasc Inc., a specialty medical device company, develops, manufactures, and markets medical devices worldwide.

Snowflake

Fundamentals

Limited growth with imperfect balance sheet.

Risks

  • Neovasc has significant price volatility in the past 3 months.
  • Neovasc is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.9%

NasdaqCM:NVCN

1.5%

US Medical Equipment

0.8%

US Market


1 Year Return

-84.8%

NasdaqCM:NVCN

9.7%

US Medical Equipment

1.9%

US Market

NVCN underperformed the Medical Equipment industry which returned 9.6% over the past year.

NVCN underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

NVCNIndustryMarket
7 Day7.9%1.5%0.8%
30 Day35.5%0.7%3.4%
90 Day-25.8%2.4%2.1%
1 Year-84.8%-84.8%10.6%9.7%4.2%1.9%
3 Year-99.2%-99.2%70.2%65.0%46.7%37.2%
5 Year-99.9%-99.9%136.0%109.1%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Neovasc is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Neovasc has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Neovasc expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-57.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

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

Neovasc's revenue growth is expected to exceed the United States of America market average.

Unable to compare Neovasc's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Neovasc'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 Neovasc will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Neovasc performed over the past 5 years?

-22.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare Neovasc's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Neovasc has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

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


Return on Capital Employed

It is difficult to establish if Neovasc 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 Neovasc's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Neovasc has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Neovasc's debt level has increased considering it has negative shareholder equity.


Balance Sheet

Low level of unsold assets.

Neovasc has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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.

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

Neovasc has less than a year of cash runway if free cash flow continues to grow at historical rates of 14.9% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Neovasc 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 Neovasc's salary, the management and board of directors tenure and is there insider trading?

12.7yrs

Average board tenure


CEO

Fred Colen (66yo)

1.7yrs

Tenure

US$1,418,901

Compensation

Mr. Fredericus A. Colen, also known as Fred, has been President and Chief Executive Officer at Neovasc Inc. since January 22, 2018 and its Director since June 4, 2019. Mr. Colen has contributed to many sig ...


CEO Compensation Analysis

Fred's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Fred to compare compensation growth.


Board Age and Tenure

12.7yrs

Average Tenure

57yo

Average Age

The average tenure for the Neovasc board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$37,97405 Mar 19
Fredericus Colen
EntityIndividual
Role
Chief Executive Officer
President
Shares11,111.1
Max PriceUS$3.42

Ownership Breakdown


Management Team

  • Fred Colen (66yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$1.42m
  • Chris Clark (47yo)

    CFO & Corporate Secretary

    • Tenure: 12.4yrs
    • Compensation: US$854.73k

Board Members

  • Jane Hsiao (72yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$195.58k
  • Fred Colen (66yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$1.42m
  • Paul Geyer (55yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$205.58k
  • Doug Janzen (50yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$198.99k
  • Alexei Marko (50yo)

    Advisor & Director

    • Tenure: 16.3yrs
    • Compensation: US$3.01m
  • Steve Rubin (59yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$205.58k

Company Information

Neovasc Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neovasc Inc.
  • Ticker: NVCN
  • Exchange: NasdaqCM
  • Founded: 2000
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: CA$40.473m
  • Listing Market Cap: CA$30.532m
  • Shares outstanding: 7.48m
  • Website: https://www.neovasc.com

Number of Employees


Location

  • Neovasc Inc.
  • 13562 Maycrest Way
  • Suite 5138
  • Richmond
  • British Columbia
  • V6V 2J7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVCNTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2001
G5Z3DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2001
NVCNNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDMay 2001

Biography

Neovasc Inc., a specialty medical device company, develops, manufactures, and markets medical devices worldwide. Its products include the Tiara technology for the transcatheter treatment of mitral valve di ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:03
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.