Market Cap
US$12.7m
Last Updated
2020/02/17 01:25 UTC
Data Sources
Company Financials +
Executive Summary
Novan, Inc., a clinical-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Snowflake Analysis
Limited growth with worrying balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.6%
NOVN
-1.9%
US Pharmaceuticals
1.5%
US Market
1 Year Return
-59.7%
NOVN
6.7%
US Pharmaceuticals
20.1%
US Market
Return vs Industry: NOVN underperformed the US Pharmaceuticals industry which returned 6.7% over the past year.
Return vs Market: NOVN underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| NOVN | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | -1.9% | 1.5% |
| 30 Day | -25.8% | -2.8% | 1.4% |
| 90 Day | -75.9% | 8.1% | 8.7% |
| 1 Year | -59.7%-59.7% | 9.4%6.7% | 22.7%20.1% |
| 3 Year | -91.6%-91.6% | 28.6%19.4% | 50.1%40.5% |
| 5 Year | n/a | 24.6%11.8% | 73.1%54.1% |
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
2 weeks ago | Simply Wall St
Do Insiders Own Lots Of Shares In Novan, Inc. (NASDAQ:NOVN)?1 month ago | Simply Wall St
Investors Who Bought Novan (NASDAQ:NOVN) Shares Three Years Ago Are Now Down 97%2 months ago | Simply Wall St
One Thing To Remember About The Novan, Inc. (NASDAQ:NOVN) Share PriceValuation
Is Novan undervalued compared to its fair value and its price relative to the market?
In this section, we usually try to help investors determine whether Novan is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Novan 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
- Take a look at our analysis of NOVN’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.
- Explore potentially undervalued companies in the Pharmaceuticals & Biotech industry.
Future Growth
How is Novan forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
11.6%
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 (54.8% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NOVN's revenue (54.8% 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?
6.5%
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 6.5% 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 (2.4%).
Return on Equity
High ROE: NOVN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Novan's financial position?
Financial Position Analysis
Short Term Liabilities: NOVN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: NOVN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: NOVN has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: NOVN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Inventory Level: NOVN has a high level of physical assets or inventory.
Debt Coverage by Assets: NOVN 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.
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 reduce at historical rates of -4.9% each year
Next Steps
Dividend
What is Novan's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NOVN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NOVN's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
1.8yrs
Average management tenure
CEO
Paula Stafford (54yo)
US$454,934
Compensation
Ms. Paula Brown Stafford serves as Chief Executive Officer at Novan, Inc. since February 2, 2020. Ms. Stafford served as President and Chief Operating Officer at Novan, Inc. since January 2, 2019 until Feb ...
CEO Compensation Analysis
Compensation vs Market: Paula's total compensation ($USD454.93K) is about average for companies of similar size in the US market ($USD521.92K).
Compensation vs Earnings: Paula's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 4yrs | US$108.69k | 0.64% $80.6k | |
| CEO & Director | 0yrs | US$454.93k | 0.30% $38.3k | |
| VP of Finance | 1.1yrs | no data | 0.056% $7.1k | |
| VP of Accounting & Business Operations and Chief Accounting Officer | 1.8yrs | no data | 0.025% $3.2k | |
| Senior VP & CTO | 1.1yrs | no data | no data | |
| Director of Investor Relations | 0yrs | no data | no data | |
| Senior Vice President of Research & Development | 2.9yrs | no data | no data | |
| Senior VP & Chief Development Officer | 1.8yrs | no data | no data | |
| Consultant | 2.1yrs | no data | no data |
1.8yrs
Average Tenure
59yo
Average Age
Experienced Management: NOVN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 4yrs | US$108.69k | 0.64% $80.6k | |
| CEO & Director | 0yrs | US$454.93k | 0.30% $38.3k | |
| Independent Director | 4yrs | US$99.88k | 0.24% $29.9k | |
| Independent Director | 10.1yrs | US$89.88k | 2.13% $270.0k | |
| Chairman of Advisory Board | 0yrs | no data | no data | |
| Member of Advisory Board | 0yrs | no data | no data | |
| Lead Independent Director | 2.7yrs | US$118.63k | 0.059% $7.5k | |
| Independent Director | 2.4yrs | US$88.86k | no data | |
| Member of Advisory Board | 0yrs | no data | no data | |
| Member of Advisory Board | 0yrs | no data | no data |
3.3yrs
Average Tenure
61yo
Average Age
Experienced Board: NOVN'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 been diluted in the past year, with total shares outstanding growing by 12.1%.
Top Shareholders
Company Information
Novan, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Novan, Inc.
- Ticker: NOVN
- Exchange: NasdaqGM
- Founded: 2006
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$12.690m
- Shares outstanding: 26.72m
- Website: https://www.novan.com
Number of Employees
Location
- Novan, Inc.
- 4105 Hopson Road
- Morrisville
- North Carolina
- 27560
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NOVN | NasdaqGM (Nasdaq Global Market) | Yes | Common Stock | US | USD | Sep 2016 |
| 6LU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2016 |
Biography
Novan, Inc., a clinical-stage biotechnology company, focuses on the development and commercialization of nitric oxide-based therapies to treat dermatological and oncovirus-mediated diseases. Its clinical stage product candidates include SB204, a topical monotherapy that is in Phase III pivotal clinical trials for the treatment of acne vulgaris; and SB206, a topical antiviral gel, which is in Phase III pivotal trials for the treatment of patients with external genital warts, and Phase II clinical trial for the treatment of molluscum contagiosum. The company’s clinical stage product candidates comprise SB208, a topical antifungal gel that is in Phase II proof-of-concept trial for the treatment of athlete’s foot and fungal nail infections; and SB414, a topical cream, which is in Phase Ib trial for the treatment of inflammatory skin diseases, such as psoriasis and atopic dermatitis. It has a license agreement with Sato Pharmaceutical Co., Ltd.; and a strategic alliance with Orion Corporation. Novan, Inc. was founded in 2006 and is headquartered in Morrisville, North Carolina.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 01:25 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.