Market Cap
US$184.0m
Last Updated
2021/01/27 23:17 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Shareholders have been substantially diluted in the past year
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| NOVN | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.2% | -1.1% | -2.7% |
| 30 Day | 62.7% | 5.3% | 1.8% |
| 90 Day | 150.7% | 16.0% | 16.4% |
| 1 Year | 87.9%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 Year | n/a | 55.3%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
8 months ago | Simply Wall St
Those Who Purchased Novan (NASDAQ:NOVN) Shares Three Years Ago Have A 93% Loss To Show For It9 months ago | Simply Wall St
Insider Buying: Joseph Moglia Just Spent US$430k On Novan, Inc. (NASDAQ:NOVN) Shares11 months ago | Simply Wall St
Earnings Release: Here's Why Analysts Cut Their Novan, Inc. Price Target To US$1.50Valuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.92yr | US$790.73k | 0.057% $ 104.9k | |
| Chief Financial Officer | 2yrs | US$309.37k | 0.011% $ 19.5k | |
| Executive Director | 10yrs | US$111.80k | 0.12% $ 220.7k | |
| VP of Accounting & Business Operations and Chief Accounting Officer | 2.75yrs | no data | 0.0047% $ 8.7k | |
| Senior VP & CTO | 2yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Senior Vice President of Research & Development | 3.83yrs | no data | no data | |
| Senior VP & Chief Development Officer | 2.67yrs | no data | no data |
2.0yrs
Average Tenure
55yo
Average Age
Experienced Management: NOVN's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.92yr | US$790.73k | 0.057% $ 104.9k | |
| Executive Director | 10yrs | US$111.80k | 0.12% $ 220.7k | |
| Independent Director | 4.92yrs | US$99.30k | 0.045% $ 81.9k | |
| Independent Director | 11yrs | US$89.30k | 0.54% $ 999.0k | |
| Chairman of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no data | |
| Lead Independent Director | 3.58yrs | US$118.05k | 0.011% $ 20.6k | |
| Independent Director | 3.33yrs | US$89.05k | 0.0050% $ 9.1k | |
| Member of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no data | |
| Member of Advisory Board | no data | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NOVN | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Sep 2016 |
| 6LU | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2016 |
| 0A4P | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/27 23:17 |
| End of Day Share Price | 2021/01/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.