NasdaqGM:MNOV

Stock Analysis Report

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Market Cap

US$179.0m

Last Updated

2021/07/28 02:50 UTC

Data Sources

Company Financials +

Executive Summary

MediciNova, Inc., a biopharmaceutical company, focuses on developing novel and small molecule therapeutics for the treatment of serious diseases with unmet medical needs in the United States. More Details


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MNOV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MNOV's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-4.2%

MNOV

-1.5%

US Biotechs

0.9%

US Market


1 Year Return

-50.4%

MNOV

19.1%

US Biotechs

37.8%

US Market

Return vs Industry: MNOV underperformed the US Biotechs industry which returned 19.1% over the past year.

Return vs Market: MNOV underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

MNOVIndustryMarket
7 Day-4.2%-1.5%0.9%
30 Day-10.9%-1.3%0.3%
90 Day-24.0%0.2%2.1%
1 Year-50.4%-50.4%20.8%19.1%40.0%37.8%
3 Year-61.2%-61.2%23.4%17.4%63.8%53.5%
5 Year-42.7%-42.7%43.7%32.2%124.6%99.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNOV ($3.67) is trading below our estimate of fair value ($113.66)

Significantly Below Fair Value: MNOV is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MNOV is good value based on its PB Ratio (1.9x) compared to the US Biotechs industry average (2.8x).


Future Growth

How is MediciNova forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

51.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MNOV's revenue (63.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: MNOV's revenue (63.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNOV's Return on Equity is forecast to be low in 3 years time (0.2%).


Past Performance

How has MediciNova performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNOV is currently unprofitable.

Growing Profit Margin: MNOV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MNOV is unprofitable, and losses have increased over the past 5 years at a rate of 3.7% per year.

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

Earnings vs Industry: MNOV is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-7.7%).


Return on Equity

High ROE: MNOV has a negative Return on Equity (-12.26%), as it is currently unprofitable.


Financial Health

How is MediciNova's financial position?


Financial Position Analysis

Short Term Liabilities: MNOV's short term assets ($81.5M) exceed its short term liabilities ($1.8M).

Long Term Liabilities: MNOV's short term assets ($81.5M) exceed its long term liabilities ($1.9M).


Debt to Equity History and Analysis

Debt Level: MNOV is debt free.

Reducing Debt: MNOV had no debt 5 years ago.


Balance Sheet


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: MNOV has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MNOV has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is MediciNova current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate MNOV'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 MNOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MNOV'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 MNOV'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?

1.1yrs

Average management tenure


CEO

Yuichi Iwaki (71 yo)

15.83yrs

Tenure

US$2,966,225

Compensation

Dr. Yuichi Iwaki, M.D., Ph.D. served as Acting Principal Financial Officer at MediciNova, Inc. from April 22, 2020 until June 2020. Dr. Iwaki is a Co-Founder of MediciNova Inc. and has been its Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Yuichi's total compensation ($USD2.97M) is above average for companies of similar size in the US market ($USD1.11M).

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


Leadership Team

Experienced Management: MNOV's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: MNOV's board of directors are considered experienced (3.7 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 been diluted in the past year, with total shares outstanding growing by 10.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: MediciNova, Inc.
  • Ticker: MNOV
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$178.981m
  • Shares outstanding: 48.77m
  • Website: https://medicinova.com

Number of Employees


Location

  • MediciNova, Inc.
  • 4275 Executive Square
  • Suite 300
  • La Jolla
  • California
  • 92037
  • United States

Listings


Biography

MediciNova, Inc., a biopharmaceutical company, focuses on developing novel and small molecule therapeutics for the treatment of serious diseases with unmet medical needs in the United States. The company i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 02:50
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.