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NOVONIX Ltd (AU:NVX)
ASX:NVX

NOVONIX Ltd (NVX) AI Stock Analysis

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AU

NOVONIX Ltd

(Sydney:NVX)

Rating:48Neutral
Price Target:
AU$0.50
▲( 6.38% Upside)
NOVONIX Ltd's overall stock score is mainly impacted by its poor financial performance, characterized by declining revenues and persistent losses. Technical analysis provides some short-term positive momentum, but long-term indicators remain bearish. The valuation highlights severe financial distress, with a negative P/E ratio and no dividends.

NOVONIX Ltd (NVX) vs. iShares MSCI Australia ETF (EWA)

NOVONIX Ltd Business Overview & Revenue Model

Company DescriptionNovonix Limited develops and supplies battery materials, equipment, and services to the lithium-ion battery market in North America. It operates through three segments: Graphite Exploration and Mining, Battery Technology, and Battery Materials. The Graphite Exploration and Mining segment explores for graphite in Australia. The Battery Technology segment develops battery cell testing equipment and batteries, and consulting services. The Battery Materials segment develops and manufactures battery anode materials. The company is also involved in the investment and battery testing activities. The company was formerly known as Graphitecorp Limited and changed its name to Novonix Limited in July 2017. Novonix Limited was incorporated in 2012 and is based in Brisbane, Australia.
How the Company Makes MoneyNOVONIX Ltd primarily generates revenue through the production and sale of synthetic graphite anode materials used in lithium-ion batteries. The company serves major battery manufacturers and technology companies, offering high-quality materials that enhance battery efficiency and lifespan. Additionally, NOVONIX's battery testing equipment division provides advanced testing solutions and services that cater to battery manufacturers, automotive companies, and research institutions. The company's strategic partnerships with industry leaders and ongoing investments in research and development further bolster its revenue streams by driving innovation and expanding its market reach.

NOVONIX Ltd Financial Statement Overview

Summary
NOVONIX Ltd is facing financial difficulties characterized by declining revenues, persistent losses, and negative cash flows. The balance sheet shows moderate leverage, but the reduction in equity and assets, along with poor cash flow performance, suggests the company is under financial pressure.
Income Statement
45
Neutral
NOVONIX Ltd has faced significant challenges in its income statement. The company experienced a negative revenue growth rate over the past year, with Total Revenue dropping from $12.13 million to $5.85 million. The Gross Profit Margin improved slightly from 76.77% to 69.75%, but the Net Profit Margin remains negative, showing substantial losses. The absence of EBIT and negative EBITDA further highlight profitability issues.
Balance Sheet
50
Neutral
The balance sheet reveals a moderate position with a Debt-to-Equity Ratio of 0.51, indicating some leverage but not excessively high. Stockholders' Equity decreased, and the Total Assets fell from $263.34 million to $226.10 million. The Equity Ratio is 60.86%, suggesting a reasonable reliance on equity over liabilities. However, the decline in equity and assets raises concerns.
Cash Flow
40
Negative
Cash flow analysis shows negative Free Cash Flow growth, with Free Cash Flow dropping from -$55.42 million to -$70.32 million. Operating Cash Flow is negative and worsening, and both the Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio indicate inefficiencies in cash generation relative to income.
Breakdown
TTMDec 2024Dec 2023Dec 2022Jun 2022Jun 2021
Income StatementTotal Revenue
2.74M5.85M12.13M6.10M5.23M
Gross Profit
1.73M4.08M9.32M-20.63M4.38M-3.28M
EBIT
-46.39M-51.52M-45.47M-39.08M-47.47M-15.98M
EBITDA
-39.54M-66.61M-38.86M-33.28M-43.26M-12.04M
Net Income Common Stockholders
-47.64M-74.82M-46.25M-38.08M-51.86M-18.08M
Balance SheetCash, Cash Equivalents and Short-Term Investments
494.46K42.56M78.63M73.93M142.74M136.66M
Total Assets
9.67M226.10M263.34M189.59M302.98M202.86M
Total Debt
0.0070.42M68.22M31.34M42.31M20.01M
Net Debt
-494.46K27.86M-10.49M-42.58M-100.43M-116.65M
Total Liabilities
175.09K88.51M83.74M38.20M51.85M24.68M
Stockholders Equity
9.50M137.59M183.94M151.39M251.13M178.18M
Cash FlowFree Cash Flow
-24.99M-70.32M-55.42M-29.65M-113.02M-25.66M
Operating Cash Flow
-22.16M-40.42M-36.23M-12.89M-29.23M-6.09M
Investing Cash Flow
-16.49M-18.17M-12.04M-16.10M-106.80M-19.68M
Financing Cash Flow
-1.84M25.21M44.16M180.69M103.77M

NOVONIX Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.47
Price Trends
50DMA
0.45
Positive
100DMA
0.51
Negative
200DMA
0.60
Negative
Market Momentum
MACD
0.01
Positive
RSI
50.24
Neutral
STOCH
23.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NVX, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.45, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.24 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NVX.

NOVONIX Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$4.39B11.805.20%249.39%3.95%-12.36%
AUNVX
48
Neutral
$308.50M-47.89%-26.89%-60.25%
$127.86M-21.25%
$119.78M-17.81%
$2.08B1,408.33-36.53%7.28%
$3.04B43.31-33.95%4.54%
$140.02M-19.11%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NVX
NOVONIX Ltd
0.47
-0.32
-40.51%
CXOXF
Core Lithium Ltd
0.06
-0.03
-33.33%
SYAXF
Sayona Mining
0.01
-0.02
-66.67%
IPGDF
IGO
2.35
-2.47
-51.24%
MALRF
Mineral Resources Limited
15.50
-34.28
-68.86%
PLLTL
Piedmont Lithium
0.07
-0.08
-53.33%

NOVONIX Ltd Corporate Events

NOVONIX Applauds U.S. Tariffs on Chinese Graphite, Plans Expansion
May 22, 2025

NOVONIX Limited has welcomed the U.S. Department of Commerce’s decision to impose up to 721% tariffs on Chinese synthetic and natural graphite anode material, a move aimed at supporting the U.S. graphite industry and promoting energy independence. This decision, part of a broader investigation into China’s graphite exports, is expected to bolster NOVONIX’s operations, particularly with its plans to expand production capacity in Chattanooga, Tennessee, positioning the company as a significant player in the North American battery materials market.

NOVONIX Ltd Announces Quotation of New Securities on ASX
May 12, 2025

NOVONIX Ltd has announced the quotation of 29,763 fully paid ordinary securities on the Australian Securities Exchange (ASX) under the code NVX, effective May 13, 2025. This move is part of the company’s ongoing efforts to strengthen its financial position and expand its market presence, potentially impacting its operations and stakeholder interests positively.

NOVONIX Ltd Issues Performance Rights to Boost Employee Engagement
May 2, 2025

NOVONIX Ltd has announced the issuance of 3,635,728 performance rights as part of an employee incentive scheme. This move is aimed at aligning the interests of employees with the company’s strategic goals, potentially enhancing productivity and commitment. The issuance of these unquoted securities reflects NOVONIX’s efforts to strengthen its workforce and maintain a competitive edge in the rapidly evolving battery technology market.

NOVONIX Ltd Advances Battery Material Operations and Strengthens Financial Position
Apr 30, 2025

NOVONIX Ltd has made significant strides in its operations, including progressing equipment installation at its Riverside facility to support supply agreements and securing a preliminary ITC trade case ruling for US graphite producers. The company has also entered an exclusive license agreement for graphitization furnaces and received approval for land purchase for a new manufacturing plant. Additionally, NOVONIX has completed a share purchase plan, received substantial reimbursements on the MESC grant, and maintained a strong cash balance, indicating robust financial health and strategic growth initiatives.

NOVONIX Expands Operations with New Facility in Chattanooga
Apr 29, 2025

NOVONIX Limited has finalized a definitive agreement to purchase a 182-acre parcel in the Enterprise South Industrial Park in Chattanooga, Tennessee, for approximately US$5 million. This site will host NOVONIX’s second facility for high-performance synthetic graphite, expected to create 450 to 500 full-time jobs and increase the company’s total production capacity in Chattanooga to over 50,000 tonnes per annum. The acquisition is part of NOVONIX’s expansion strategy, supported by local government endorsements and contingent on a US$754 million loan from the U.S. Department of Energy. Additionally, NOVONIX is enhancing its collaboration with local educational institutions to provide career-focused learning opportunities in the battery industry.

NOVONIX Ltd Announces Director’s Acquisition of Share Rights
Apr 29, 2025

NOVONIX Ltd has announced a change in the director’s interest, with Anthony Bellas acquiring 120,594 share rights, valued at approximately $53,664. This change reflects the company’s ongoing efforts to align its leadership’s interests with its strategic goals, potentially impacting its market positioning and stakeholder confidence.

NOVONIX Ltd Announces Director’s Acquisition of Share Rights
Apr 29, 2025

NOVONIX Ltd announced a change in the director’s interest, with Jean Oelwang acquiring 120,594 share rights, valued at approximately $53,664 based on the closing share price on April 28, 2025. This change reflects a strategic move in the company’s governance, potentially impacting its market positioning and signaling confidence in its future prospects.

NOVONIX Director’s Interest Notice Update
Apr 29, 2025

NOVONIX Ltd has announced a change in the director’s interest notice, specifically regarding Sharan Burrow. The director has acquired 120,594 share rights, valued at approximately $53,664 based on the closing share price on April 28, 2025. This change reflects an increase in the director’s holdings, which may impact the company’s governance and stakeholder confidence.

NOVONIX Ltd Announces Director’s Share Rights Acquisition
Apr 29, 2025

NOVONIX Ltd has announced a change in the director’s interest notice, specifically regarding Ron Edmonds, who has acquired 241,188 share rights. This change reflects an estimated value of $107,329 based on the closing share price on April 28, 2025. The update could potentially impact the company’s governance and investor perception, as it indicates confidence in the company’s future performance and strategic direction.

NOVONIX Ltd Announces Director’s Share Rights Acquisition
Apr 29, 2025

NOVONIX Ltd announced a change in the director’s interest, with Robert Natter acquiring 120,594 share rights directly, valued at approximately $53,664. This change reflects the company’s ongoing commitment to aligning its leadership’s interests with its strategic goals, potentially impacting its market positioning and stakeholder confidence.

NOVONIX Ltd Issues Over One Million Unquoted Share Rights
Apr 28, 2025

NOVONIX Ltd announced the issuance of 1,008,567 unquoted share rights, marking a strategic move to bolster its equity base. This development is significant for the company’s financial structuring and could enhance its market positioning by potentially attracting more investors and stakeholders interested in the growing battery materials sector.

NOVONIX Appoints Michael O’Kronley as New CEO to Drive Growth
Apr 28, 2025

NOVONIX Limited has announced the appointment of Michael O’Kronley as its new Chief Executive Officer, effective May 19, 2025. Mr. O’Kronley, who brings over 30 years of experience in the automotive and lithium-ion battery sectors, is expected to lead the company into its next growth phase, focusing on onshoring the graphite supply chain in North America. His appointment follows the interim leadership of Mr. Robert Long, who will return to his role as Chief Financial Officer. This leadership change is seen as a strategic move to strengthen NOVONIX’s position in the battery technology industry and enhance its operational capabilities.

NOVONIX Ltd Issues Performance Rights to Boost Employee Incentives
Apr 23, 2025

NOVONIX Ltd has announced the issuance of 7,758,413 unquoted performance rights as part of its employee incentive scheme. This move is indicative of the company’s strategy to align employee interests with corporate goals, potentially enhancing productivity and commitment. The issuance of these securities reflects NOVONIX’s ongoing efforts to strengthen its operational framework and maintain a competitive edge in the rapidly evolving battery technology industry.

NOVONIX Ltd Expands Market Presence with New Securities Quotation
Mar 31, 2025

NOVONIX Ltd has announced the quotation of 15,414 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of March 31, 2025. This move is part of the company’s strategy to enhance its market presence and provide additional liquidity for its stakeholders, reflecting its ongoing commitment to growth and expansion in the competitive battery technology industry.

NOVONIX Director Reduces Shareholding by 500,000 Shares
Mar 14, 2025

NOVONIX Ltd announced a change in the director’s interest, with Nicholas Liveris disposing of 500,000 ordinary shares through an on-market trade, reducing his holding to 894,681 shares. This transaction, valued at $221,780, reflects a significant shift in the director’s investment, potentially impacting the company’s stock market perception and investor confidence.

NOVONIX Ltd Announces Quotation of New Securities on ASX
Mar 14, 2025

NOVONIX Ltd has announced the quotation of 6,347 fully paid ordinary securities on the ASX, effective March 14, 2025. This move is part of the company’s strategy to enhance its market presence and operational capabilities, potentially impacting its stakeholders by increasing liquidity and investor interest.

NOVONIX Expands with New Manufacturing Facility in Chattanooga
Mar 13, 2025

NOVONIX Limited has received unanimous approval from the City of Chattanooga and Hamilton County to purchase a 182-acre parcel of land for its second mass production plant, Enterprise South, in Chattanooga, Tennessee. This facility is expected to reach full production capacity by 2028, creating 500 jobs and increasing the company’s total production capacity to over 50,000 tonnes per annum. The expansion aligns with NOVONIX’s strategic growth plans and commitment to local workforce development, further solidifying its presence in the battery materials industry. The company has also secured significant financial support from the U.S. Department of Energy and has binding agreements with major companies like Panasonic Energy, Stellantis, and PowerCo, highlighting its strong market positioning and future growth potential.

NOVONIX Director Adjusts Shareholding Structure
Mar 3, 2025

NOVONIX Ltd has announced a change in the director’s interest, with Anthony Bellas acquiring 109,749 ordinary shares directly, replacing an equivalent number of share rights. This change reflects a strategic move in the company’s executive shareholding structure, potentially impacting investor perceptions and stakeholder confidence in the company’s governance and future direction.

NOVONIX Director Increases Shareholding
Mar 3, 2025

NOVONIX Ltd has announced a change in the director’s interest, specifically for Jean Oelwang, who has converted 109,749 share rights into ordinary shares. This change increases Oelwang’s total holdings to 188,914 ordinary shares, reflecting a strategic adjustment in the director’s investment portfolio.

NOVONIX Director’s Share Rights Conversion
Mar 3, 2025

NOVONIX Ltd announced a change in the director’s interest, with Sharan Burrow converting 84,145 share rights into ordinary shares. This transaction reflects the vesting of share rights, valued at approximately $35,341, indicating a strategic alignment with the company’s equity structure and potentially impacting shareholder value.

NOVONIX Director Increases Stake Through Share Rights Conversion
Mar 3, 2025

NOVONIX Ltd has announced a change in the director’s interest, with Ron Edmonds converting 109,749 share rights into ordinary shares, increasing his total holdings to 175,154 ordinary shares. This change reflects the vesting of share rights and indicates a strategic alignment of the director’s interests with the company’s long-term growth objectives, potentially impacting shareholder confidence and market perception.

NOVONIX Ltd Announces Director’s Interest Update
Mar 3, 2025

NOVONIX Ltd announced a change in the director’s interest, specifically involving Robert Natter. The change involves the conversion of 109,749 share rights into ordinary shares, increasing his direct holding to 988,025 ordinary shares. This move reflects the company’s ongoing efforts to align its leadership’s interests with shareholder value, potentially impacting investor confidence and market perception positively.

NOVONIX Limited Announces 2025 AGM with Hybrid Format
Mar 3, 2025

NOVONIX Limited has announced its Annual General Meeting (AGM) for 2025, which will be conducted as a hybrid event, allowing shareholders to participate both online and in person. The agenda includes reviewing financial statements, considering the remuneration report, and voting on the election and re-election of directors. Additionally, shareholders will vote on the issuance of share rights to certain directors, which could impact the company’s governance and compensation structure.

NOVONIX Ltd Announces Quotation of New Securities on ASX
Mar 3, 2025

NOVONIX Ltd has announced the quotation of 3,070 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of March 3, 2025. This move is part of the company’s strategy to enhance its market presence and provide more liquidity to its shareholders, potentially strengthening its position in the competitive battery materials industry.

NOVONIX Ltd Upholds Governance Excellence in 2024 Statement
Feb 28, 2025

NOVONIX Ltd has released its Corporate Governance Statement for the year ended 31 December 2024, emphasizing its commitment to governance best practices. The statement outlines the company’s adherence to the ASX Corporate Governance Principles, detailing policies on board management, director appointments, and diversity objectives. This governance framework is designed to support the company’s strategic objectives and enhance shareholder value, with a focus on transparency and accountability.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.