NasdaqCM:NOVN

Stock Analysis Report

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Executive Summary

Novan, Inc., a clinical development-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases. More Details


Snowflake Analysis

Adequate balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NOVN is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 22% a week.

Volatility Over Time: NOVN's weekly volatility has decreased from 31% to 22% over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-9.2%

NOVN

-1.1%

US Pharmaceuticals

-2.7%

US Market


1 Year Return

87.9%

NOVN

6.1%

US Pharmaceuticals

21.2%

US Market

Return vs Industry: NOVN exceeded the US Pharmaceuticals industry which returned 9.2% over the past year.

Return vs Market: NOVN exceeded the US Market which returned 24.3% over the past year.


Shareholder returns

NOVNIndustryMarket
7 Day-9.2%-1.1%-2.7%
30 Day62.7%5.3%1.8%
90 Day150.7%16.0%16.4%
1 Year87.9%87.9%9.7%6.1%23.9%21.2%
3 Year-64.3%-64.3%27.2%17.2%43.7%34.2%
5 Yearn/a55.3%36.9%124.3%99.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NOVN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NOVN's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: NOVN 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 NOVN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NOVN is overvalued based on its PB Ratio (22.6x) compared to the US Pharmaceuticals industry average (4.7x).


Next Steps

Future Growth

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

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NOVN's revenue (59% per year) is forecast to grow faster than the US market (10.6% per year).

High Growth Revenue: NOVN's revenue (59% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NOVN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Novan performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOVN is currently unprofitable.

Growing Profit Margin: NOVN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOVN is unprofitable, but has reduced losses over the past 5 years at a rate of 12.5% per year.

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

Earnings vs Industry: NOVN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.8%).


Return on Equity

High ROE: NOVN has a negative Return on Equity (-387.36%), as it is currently unprofitable.


Next Steps

Financial Health

How is Novan's financial position?


Financial Position Analysis

Short Term Liabilities: NOVN's short term assets ($44.8M) exceed its short term liabilities ($8.0M).

Long Term Liabilities: NOVN's short term assets ($44.8M) exceed its long term liabilities ($31.1M).


Debt to Equity History and Analysis

Debt Level: NOVN's debt to equity ratio (268.4%) is considered high.

Reducing Debt: NOVN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


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: NOVN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NOVN has less than a year of cash runway if free cash flow continues to grow at historical rates of 2.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.0yrs

Average management tenure


CEO

Paula Stafford (55 yo)

0.92

Tenure

US$790,725

Compensation

Ms. Paula Brown Stafford serves as Chief Executive Officer at Novan, Inc. since February 2, 2020 and serves as its President since January 2, 2019 and serves as its Chairwoman since July 28, 2020. She serv...


CEO Compensation Analysis

Compensation vs Market: Paula's total compensation ($USD790.73K) is about average for companies of similar size in the US market ($USD992.69K).

Compensation vs Earnings: Paula's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Paula Stafford
President0.92yrUS$790.73k0.057%
$ 104.9k
John Gay
Chief Financial Officer2yrsUS$309.37k0.011%
$ 19.5k
Robert Ingram
Executive Director10yrsUS$111.80k0.12%
$ 220.7k
Andrew Novak
VP of Accounting & Business Operations and Chief Accounting Officer2.75yrsno data0.0047%
$ 8.7k
Carri Geer
Senior VP & CTO2yrsno datano data
Cole Ikkala
Director of Investor Relationsno datano datano data
Stanley Hollenbach
Senior Vice President of Research & Development3.83yrsno datano data
Elizabeth Messersmith
Senior VP & Chief Development Officer2.67yrsno datano data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: NOVN's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paula Stafford
President0.92yrUS$790.73k0.057%
$ 104.9k
Robert Ingram
Executive Director10yrsUS$111.80k0.12%
$ 220.7k
Robert Keegan
Independent Director4.92yrsUS$99.30k0.045%
$ 81.9k
John Palmour
Independent Director11yrsUS$89.30k0.54%
$ 999.0k
Lawrence Eichenfield
Chairman of Advisory Boardno datano datano data
Alan Menter
Member of Advisory Boardno datano datano data
Brian Berman
Member of Advisory Boardno datano datano data
W. Geer
Lead Independent Director3.58yrsUS$118.05k0.011%
$ 20.6k
Machelle Sanders
Independent Director3.33yrsUS$89.05k0.0050%
$ 9.1k
Lisa Beck
Member of Advisory Boardno datano datano data
James Rosso
Member of Advisory Boardno datano datano data
Leon Kircik
Member of Advisory Boardno datano datano data

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: NOVN's board of directors are considered experienced (4.3 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 been substantially diluted in the past year, with total shares outstanding growing by 429.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Novan, Inc.
  • Ticker: NOVN
  • Exchange: NasdaqCM
  • Founded: 2006
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$183.968m
  • Shares outstanding: 141.51m
  • Website: https://www.novan.com

Number of Employees


Location

  • Novan, Inc.
  • 4105 Hopson Road
  • Morrisville
  • North Carolina
  • 27560
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOVNNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2016
6LUDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2016
0A4PLSE (London Stock Exchange)YesCommon StockGBUSDSep 2016

Biography

Novan, Inc., a clinical development-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases. It...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/27 23:17
End of Day Share Price2021/01/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.