OTCPK:NOVC

Stock Analysis Report

Executive Summary

Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services primarily to Community Service Boards in Georgia.

Snowflake

Fundamentals

Slightly overvalued with questionable track record.

Risks

  • Novation Companies has significant price volatility in the past 3 months.
  • Novation Companies is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

NOVC

-0.7%

US Healthcare

-0.5%

US Market


1 Year Return

74.4%

NOVC

-9.3%

US Healthcare

0.9%

US Market

NOVC outperformed the Healthcare industry which returned -9.2% over the past year.

NOVC outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

NOVCIndustryMarket
7 Day0%-0.7%-0.5%
30 Day-2.0%1.6%4.8%
90 Day108.5%-0.6%2.3%
1 Year74.4%74.4%-7.9%-9.3%3.1%0.9%
3 Year-4.3%-4.3%29.5%24.3%45.5%36.0%
5 Year-81.5%-81.5%65.6%55.8%62.5%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.25x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Novation Companies to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Novation Companies to establish if it is available at substantial discount.


Price Based on Earnings

Novation Companies is good value based on earnings compared to the US Healthcare industry average.

Novation Companies is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Novation Companies has negative assets, we can't compare the value of its assets to the US Healthcare industry average.


Next Steps

Future Growth

How is Novation Companies expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.1%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Novation Companies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of NOVC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Novation Companies's filings and announcements here.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has Novation Companies performed over the past 5 years?

51.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Novation Companies has delivered over 20% year on year earnings growth in the past 5 years.

Novation Companies has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Novation Companies has become profitable in the last year making it difficult to compare the US Healthcare industry average.


Return on Equity

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


Return on Assets

Novation Companies used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Novation Companies 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 Novation Companies's financial position?


Financial Position Analysis

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

Novation Companies's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

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

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

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Novation Companies's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

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


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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

1.5yrs

Average board tenure


CEO

Dave Pointer (49yo)

1.5yrs

Tenure

US$155,294

Compensation

Mr. David W. Pointer, also known as Dave, CFA, has been the Managing Partner of V.I. Capital Management, LLC, a registered investment advisory firm that he founded, since January 2008. Mr. Pointer serves a ...


CEO Compensation Analysis

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

Insufficient data for Dave to compare compensation growth.


Board Age and Tenure

1.5yrs

Average Tenure

50yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$17,33817 Dec 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares902,861
Max PriceUS$0.02
SellUS$8,08212 Dec 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares360,796
Max PriceUS$0.023
SellUS$4,91907 Dec 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares133,000
Max PriceUS$0.039
SellUS$4,78804 Dec 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares133,000
Max PriceUS$0.036
SellUS$1,25403 Dec 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares38,000
Max PriceUS$0.033
SellUS$6,36928 Nov 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares162,900
Max PriceUS$0.039
SellUS$9,04726 Nov 18
Howard Amster
EntityIndividual
Role
Member of the Board of Directors
Director
Shares277,332
Max PriceUS$0.035

Ownership Breakdown


Management Team

  • Dave Pointer (49yo)

    CEO & Chairman

    • Tenure: 1.5yrs
    • Compensation: US$155.29k
  • Carolyn Campbell (48yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
    • Compensation: US$187.76k

Board Members

  • Barry Igdaloff (64yo)

    Lead Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$86.88k
  • Howard Amster (71yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$50.00k
  • Dave Pointer (49yo)

    CEO & Chairman

    • Tenure: 1.5yrs
    • Compensation: US$155.29k
  • Lee Keddie (50yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$47.50k
  • Tim Eriksen (50yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$43.75k

Company Information

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


Key Information

  • Name: Novation Companies, Inc.
  • Ticker: NOVC
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$5.405m
  • Shares outstanding: 110.30m
  • Website: https://novationcompanies.com

Number of Employees


Location

  • Novation Companies, Inc.
  • 9229 Ward Parkway
  • Suite 340
  • Kansas City
  • Missouri
  • 64114
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOVCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1997

Biography

Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services primarily to Community Service Boards in Georgia. It also owns a p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 23:39
End of Day Share Price2019/09/23 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.