OTCPK:NNCS.F

Stock Analysis Report

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Executive Summary

Nanosonics Limited, together with its subsidiaries, engages in the research, development, and commercialization of infection control and decontamination products and related technologies.

Rewards

Earnings are forecast to grow 36.58% per year

Earnings grew by 14.7% over the past year

Risk Analysis

No risks detected for NNCS.F from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NNCS.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

NNCS.F

-1.4%

US Medical Equipment

1.2%

US Market


1 Year Return

19.5%

NNCS.F

14.9%

US Medical Equipment

16.8%

US Market

Return vs Industry: NNCS.F exceeded the US Medical Equipment industry which returned 15.9% over the past year.

Return vs Market: NNCS.F exceeded the US Market which returned 16.4% over the past year.


Shareholder returns

NNCS.FIndustryMarket
7 Day1.6%-1.4%1.2%
30 Day-4.4%7.8%4.9%
90 Day-4.2%11.7%20.0%
1 Year19.5%19.5%15.9%14.9%19.3%16.8%
3 Year125.9%125.9%72.7%68.1%43.7%34.4%
5 Year223.0%223.0%116.8%100.0%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Nanosonics undervalued compared to its fair value and its price relative to the market?

155.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NNCS.F ($4.36) is trading above our estimate of fair value ($4.25)

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


Price To Earnings Ratio

PE vs Industry: NNCS.F is poor value based on its PE Ratio (155.3x) compared to the US Medical Equipment industry average (51.9x).

PE vs Market: NNCS.F is poor value based on its PE Ratio (155.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: NNCS.F is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: NNCS.F is overvalued based on its PB Ratio (16.2x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Nanosonics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NNCS.F's forecast earnings growth (36.6% per year) is above the savings rate (2.2%).

Earnings vs Market: NNCS.F's earnings (36.6% per year) are forecast to grow faster than the US market (23.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NNCS.F's revenue (20.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: NNCS.F's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NNCS.F's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Nanosonics performed over the past 5 years?

32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NNCS.F has high quality earnings.

Growing Profit Margin: NNCS.F's current net profit margins (13.2%) are lower than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: NNCS.F's earnings have grown significantly by 32.2% per year over the past 5 years.

Accelerating Growth: NNCS.F's earnings growth over the past year (14.7%) is below its 5-year average (32.2% per year).

Earnings vs Industry: NNCS.F earnings growth over the past year (14.7%) exceeded the Medical Equipment industry 1.2%.


Return on Equity

High ROE: NNCS.F's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Nanosonics's financial position?


Financial Position Analysis

Short Term Liabilities: NNCS.F's short term assets (A$113.6M) exceed its short term liabilities (A$14.5M).

Long Term Liabilities: NNCS.F's short term assets (A$113.6M) exceed its long term liabilities (A$4.1M).


Debt to Equity History and Analysis

Debt Level: NNCS.F is debt free.

Reducing Debt: NNCS.F has no debt compared to 5 years ago when its debt to equity ratio was 36.6%.

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

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


Balance Sheet


Next Steps

Dividend

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

0.16%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Michael Kavanagh

6.83yrs

Tenure

AU$1,163,884

Compensation

Mr. Michael C. Kavanagh, BSc, MBA (Advanced,) has been the Chief Executive Officer and President of Nanosonics Limited since October 21, 2013 and served as its Managing Director. Mr. Kavanagh served as a S ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD832.95K) is below average for companies of similar size in the US market ($USD4.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Kavanagh
CEO, President6.83yrsAU$1.16m0.34%
A$ 4.6m
McGregor Grant
CFO & Company Secretary9.33yrsAU$567.33k0.20%
A$ 2.7m
Rod Lopez
Chief Operating Officer1.42yrsAU$187.53kno data
Steven Farrugia
Chief Technology Officer2.5yrsAU$515.34kno data
Ken Shaw
Regional President of United States2.92yrsAU$659.22kno data
David Morris
Chief Strategy Officer & Regional President Asia Pacific1.5yrsAU$274.55kno data
Renee Salaberry
Chief Marketing Officer1.58yrsno datano data
Leanne Baxendale
Head of People & Culture3.42yrsno datano data
Vincent Wang
Head of Global Customer Support & Technical Servicesno dataAU$202.22kno data
Keith Koby
Senior Vice President of Sales - North America3.83yrsno datano data
Ronan Wright
Regional President of Europe0.92yrno datano data

2.7yrs

Average Tenure

Experienced Management: NNCS.F's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Kavanagh
CEO, President6.83yrsAU$1.16m0.34%
A$ 4.6m
Ronan Wright
Regional President of Europe0.92yrno datano data
Steven Sargent
Non-Executive Deputy Chairman of the Board & Lead Independent Director2.83yrsAU$100.00k0.036%
A$ 484.0k
Maurie Stang
Non Executive Chairman of the Board13.42yrsAU$170.00k6.3%
A$ 85.7m
Lisa E. McIntyre
Non-Executive Director0.67yrno datano data
David Fisher
Non-Executive Director19.08yrsAU$100.00k0.14%
A$ 1.9m
Geoff Wilson
Non-Executive Director1.08yrsno data0.0066%
A$ 90.0k
Marie McDonald
Independent Non-Executive Director3.83yrsAU$85.00k0.0065%
A$ 88.6k

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: NNCS.F's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Nanosonics Limited
  • Ticker: NNCS.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: AU$1.900b
  • Listing Market Cap: AU$1.360b
  • Shares outstanding: 300.60m
  • Website: https://www.nanosonics.com.au

Number of Employees


Location

  • Nanosonics Limited
  • 14 Mars Road
  • Lane Cove
  • New South Wales
  • 2066
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NANASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMay 2007
OQSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2007
NNCS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2007
NANCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMay 2007

Biography

Nanosonics Limited, together with its subsidiaries, engages in the research, development, and commercialization of infection control and decontamination products and related technologies. The company manuf ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:40
End of Day Share Price2020/08/10 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.