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Sonoma Pharmaceuticals

Nasdaq:SNOA
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SNOA
Nasdaq
$18M
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Sonoma Pharmaceuticals, Inc., a specialty pharmaceutical company, develops and markets solutions for the treatment of dermatological conditions and advanced tissue care in the United States, Latin America, Europe, and internationally. The last earnings update was 147 days ago. More info.


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3 Month History
SNOA
Industry
5yr Volatility vs Market

SNOA Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Sonoma Pharmaceuticals. This is due to cash flow or dividend data being unavailable. The share price is $3.865.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sonoma Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sonoma Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Sonoma Pharmaceuticals is loss making, we can't compare it's value to the US Pharmaceuticals industry average.
  • Sonoma Pharmaceuticals is loss making, we can't compare the value of its earnings to the US market.
Price based on expected Growth
Does Sonoma Pharmaceuticals's expected growth come at a high price?
  • Sonoma Pharmaceuticals is loss making, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Sonoma Pharmaceuticals's assets?
  • Sonoma Pharmaceuticals is good value based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Sonoma Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Sonoma Pharmaceuticals has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (24.57%).

    Full details on the Value part of the Simply Wall St company analysis model.

SNOA Future Performance

 How is Sonoma Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

  • Sonoma Pharmaceuticals is covered by less than 3 analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
61.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sonoma Pharmaceuticals expected to grow at an attractive rate?
  • Sonoma Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 4.5%.
Growth vs Market Checks
  • Sonoma Pharmaceuticals's earnings growth is expected to exceed the US market average.
  • Sonoma Pharmaceuticals's revenue growth is expected to exceed the US market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Sonoma Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Sonoma Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sonoma Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sonoma Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the US market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the US market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sonoma Pharmaceuticals has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SNOA Past Performance

  How has Sonoma Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sonoma Pharmaceuticals's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sonoma Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Sonoma Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Sonoma Pharmaceuticals's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
Sonoma Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Sonoma Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Sonoma Pharmaceuticals has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Sonoma Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Sonoma Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sonoma Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SNOA Health

 How is Sonoma Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sonoma Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sonoma Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sonoma Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sonoma Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 42.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Sonoma Pharmaceuticals's level of debt (2.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (49.8% vs 2.6% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we analyse their runway based on operating expenses, which includes recurring G&A and R&D. Analysis based on the most recent financials.

  • Sonoma Pharmaceuticals's cash level is insufficient to cover its current level of operating expenses for the upcoming year.
  • Sonoma Pharmaceuticals's cash level is insufficient to cover its operating expenses for the upcoming year, if it continues to grow at historical rates of 8.8% each year.
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Financial health checks
We assess Sonoma Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sonoma Pharmaceuticals has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SNOA Dividends

 What is Sonoma Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sonoma Pharmaceuticals dividends.
If you bought $2,000 of Sonoma Pharmaceuticals shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sonoma Pharmaceuticals's dividend against the low risk savings benchmark as the company has not reported any payouts.
  • Unable to evaluate Sonoma Pharmaceuticals's dividend against the market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Unable to perform a dividend volatility check as Sonoma Pharmaceuticals has not reported any payouts.
  • Unable to verify if Sonoma Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sonoma Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sonoma Pharmaceuticals 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.
X
Income/ dividend checks
We assess Sonoma Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Sonoma Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Sonoma Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SNOA Management

 What is the CEO of Sonoma Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Schutz, image provided by Google.
Jim Schutz
COMPENSATION $634,648
AGE 54
TENURE AS CEO 5.3 years
CEO Bio

Mr. James Schutz, also known as Jim, has been the Chief Executive Officer and President of Oculus Innovative Sciences, Inc. since February 4, 2013. Mr. Schutz served as Vice President of Corporate Development and General Counsel of Oculus Innovative Sciences, Inc. since August 2003 and its Corporate Secretary since June 2006. Mr. Schutz served as Chief Operating Officer of Oculus Innovative Sciences, Inc. From August 2001 to August 2003, Mr. Schutz served as Corporate Secretary and General Counsel at Jomed Inc., (formerly EndoSonic Corp.) an international medical device company. From 1999 to July 2001, he served as in-house counsel at Urban Media Communications Corporation, an Internet/telecom company based in Palo Alto, California. He has been a Director of Oculus Innovative Sciences, Inc. since May 2004. Mr. Schutz graduated from the University of California, San Diego with an B.A. in economics and obtained his law degree from the University of San Francisco School of Law.

CEO Compensation
  • Jim's compensation has increased whilst company is loss making.
  • Jim's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Sonoma Pharmaceuticals management team in years:

12.8
Average Tenure
57
Average Age
  • The average tenure for the Sonoma Pharmaceuticals management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Schutz

TITLE
President
COMPENSATION
$635K
AGE
54
TENURE
5.3 yrs

Bob Miller

TITLE
CFO, COO & Corporate Secretary
COMPENSATION
$647K
AGE
75
TENURE
13.9 yrs

Bruce Thornton

TITLE
Executive Vice President of International Operations & Sales
COMPENSATION
$417K
AGE
53
TENURE
12.9 yrs

Robert Northey

TITLE
Director of Research & Development
COMPENSATION
$355K
AGE
60
TENURE
12.8 yrs

Marc Umscheid

TITLE
Chief Strategy & Marketing Officer
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Sonoma Pharmaceuticals board of directors in years:

4.3
Average Tenure
69
Average Age
  • The tenure for the Sonoma Pharmaceuticals board of directors is about average.
Board of Directors

Jim Schutz

TITLE
President
COMPENSATION
$635K
AGE
54
TENURE
14 yrs

Sharon Surrey-Barbari

TITLE
Independent Director
COMPENSATION
$93K
AGE
63
TENURE
4.2 yrs

Jerry McLaughlin

TITLE
Lead Independent Director
COMPENSATION
$104K
AGE
69
TENURE
4.2 yrs

Jay Birnbaum

TITLE
Independent Director
COMPENSATION
$80K
AGE
72
TENURE
11.1 yrs

Russ Harrison

TITLE
Independent Director
COMPENSATION
$100K
AGE
72
TENURE
4.3 yrs
Recent Insider Trading
  • More shares have been bought than sold by Sonoma Pharmaceuticals insiders in the past 3 months, but not in substantial volumes.
Who owns this company?
X
Management checks
We assess Sonoma Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sonoma Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SNOA News

External News
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Simply Wall St News

Who Owns Most Of Sonoma Pharmaceuticals Inc (NASDAQ:SNOA)?

Insider Ownership Insiders form another group of important ownership types as they manage the company's operations and decide the best use of capital. … With 5.78% ownership, SNOA insiders is an important ownership type. … This is a positive sign for potential investors as these firms play an important role in aligning company policy with shareholder returns.Next Steps: SNOA's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

Does Sonoma Pharmaceuticals Inc's (NASDAQ:SNOA) -32.83% Earnings Drop Reflect A Longer Term Trend?

The two benchmarks I used were Sonoma Pharmaceuticals's average earnings over the past couple of years, and its industry performance. … NasdaqCM:SNOA Income Statement Apr 24th 18 We can further evaluate Sonoma Pharmaceuticals's loss by looking at what the industry has been experiencing over the past few years. … Inspecting growth from a sector-level, the US pharmaceuticals industry has been growing its average earnings by double-digit 11.92% over the past twelve months, and a less exciting 9.86% over the previous five years.

Simply Wall St -

What You Must Know About Sonoma Pharmaceuticals Inc's (NASDAQ:SNOA) Financial Strength

Over the past year, SNOA has ramped up its debt from US$114.00K to US$410.00K – this includes both the current and long-term debt. … NasdaqCM:SNOA Historical Debt Apr 10th 18 Can SNOA service its debt comfortably? … SNOA is not taking on too much debt commitment, which may be constraining for future growth.

Simply Wall St -

Loss-Making Sonoma Pharmaceuticals Inc (NASDAQ:SNOA) Expected To Breakeven

See our latest analysis for Sonoma Pharmaceuticals According to the industry analysts covering SNOA, breakeven is near. … Therefore, SNOA is expected to breakeven roughly 4 years from now. … For a more comprehensive look at SNOA, take a look at SNOA’s company page on Simply Wall St.

Simply Wall St -

Is It Time To Buy Sonoma Pharmaceuticals Inc (NASDAQ:SNOA)?

Sonoma Pharmaceuticals Inc (NASDAQ:SNOA), a pharmaceuticals company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqCM. … The stock’s ratio of 1.28x is currently trading slightly below its industry peers’ ratio of 2.59x, which means if you buy Sonoma Pharmaceuticals today, you’d be paying a relatively reasonable price for it. … And if you believe Sonoma Pharmaceuticals should be trading in this range, then there isn’t much room for the share price grow beyond what it’s currently trading.

Simply Wall St -

Flavor Of The Month: Sonoma Pharmaceuticals And More

SNOA ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. … USNA ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. … Moreover, the 27.18% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities.

Simply Wall St -

What You Must Know About Sonoma Pharmaceuticals Inc's (NASDAQ:SNOA) Financial Strength

How does SNOA’s operating cash flow stack up against its debt? … However, its small level of operating cash flow means calculating cash-to-debt wouldn't be too useful, though these low levels of cash means that operational efficiency is worth a look. … This indicates room for improvement as its cash flow covers less than a quarter of its borrowings, which means its operating efficiency could be better.

Simply Wall St -

Is It The Right Time To Buy Sonoma Pharmaceuticals Inc (SNOA)?

Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at SNOA future expectations. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. … Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy SNOA.

Simply Wall St -

SNOA Company Info

Map
Description

Sonoma Pharmaceuticals, Inc., a specialty pharmaceutical company, develops and markets solutions for the treatment of dermatological conditions and advanced tissue care in the United States, Latin America, Europe, and internationally. The company offers Microcyn line of products that are based on electrically charged oxychlorine small molecules designed to target a range of pathogens, such as viruses, fungi, and spores, as well as bacteria, including antibiotic-resistant strains. Its products also include Celacyn, a prescription hypochlorous acid based scar management gel; Ceramax Skin Barrier Cream to manage dry itchy skin, minor skin irritations, rashes, and inflammation; Mondoxyne, a prescription oral tetracycline antibiotic for the treatment of various bacterial infections; Alevicyn, a prescription hypochlorous acid based atopic dermatitis product line to reduce itch and pain associated with various dermatoses; and SebuDerm, a prescription topical gel for the management of burning, itching, and scaling in seborrhea and seborrheic dermatitis. The company’s Microcyn medical devices are used for cleaning, debridement, lubricating, moistening, and dressing of acute and chronic wounds in tissue care management. It also operates a microbiology contract testing laboratory that offers consulting and laboratory services to medical companies that design and manufacture biomedical devices and drugs. Sonoma Pharmaceuticals, Inc. sells its products directly to end users, as well as to distributors; and through in-house sales force and call center to hospitals, physicians, nurses, and other healthcare practitioners. The company was formerly known as Oculus Innovative Sciences, Inc. and changed its name to Sonoma Pharmaceuticals, Inc. in December 2016. Sonoma Pharmaceuticals, Inc. was incorporated in 1999 and is headquartered in Petaluma, California.

Details
Name: Sonoma Pharmaceuticals, Inc.
SNOA
Exchange: NasdaqCM
Founded: 1999
$18,332,336
4,743,166
Website: http://www.sonomapharma.com
Address: Sonoma Pharmaceuticals, Inc.
1129 North McDowell Boulevard,
Petaluma,
California, 94954,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM SNOA Common Stock Nasdaq Capital Market US USD 25. Jan 2007
DB A2DHV2 Common Stock Deutsche Boerse AG DE EUR 25. Jan 2007
Number of employees
Current staff
Staff numbers
75
Sonoma Pharmaceuticals employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/05/27 10:07
End of day share price update: 2018/05/25 00:00
Last estimates confirmation: 2018/04/03
Last earnings update: 2017/12/31
Last annual earnings update: 2017/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.