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Polynovo
(Sydney:PNV)
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Rating:69Neutral
Price Target:
AU$1.00
▼(-5.66% Downside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by solid financial execution (growth and sustained profitability with improving balance-sheet strength) and a positive earnings-call outlook (momentum, cash generation, and clear FY27 priorities). Technicals are moderately supportive but not yet aligned with a strong long-term uptrend, while the very high P/E and lack of dividend yield materially constrain the overall score.
Positive Factors
Revenue growth and expanding hospital adoption
Sustained product growth and a widening U.S. hospital footprint indicate increasing clinical adoption and market penetration. A larger installed customer base can support recurring procedure-driven demand and provide a platform for introducing additional NovoSorb products.
Negative Factors
Margin volatility and modest underlying profitability
Although PolyNovo is profitable, the decline in net margin and uneven gross margins indicate that earnings quality and cost structure are not yet consistently established. Persistent volatility could limit operating leverage and make future profit growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and expanding hospital adoption
Sustained product growth and a widening U.S. hospital footprint indicate increasing clinical adoption and market penetration. A larger installed customer base can support recurring procedure-driven demand and provide a platform for introducing additional NovoSorb products.
Read all positive factors
Polynovo (PNV) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$711.57M
Dividend YieldN/A
Average Volume (3M)2.40M
Price to Earnings (P/E)97.2
Beta (1Y)1.67
Revenue Growth12.94%
EPS Growth-44.50%
CountryAU
Employees301
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.01
Shares Outstanding690,843,000
10 Day Avg. Volume2,246,120
30 Day Avg. Volume2,400,768
Financial Highlights & Ratios
PEG Ratio-1.95
Price to Book (P/B)7.01
Price to Sales (P/S)4.42
P/FCF Ratio67.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.15Price Target Upside8.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.01
Revenue Forecast (FY)AU$162.57M
Polynovo Business Overview & Revenue Model
Company Description
PolyNovo Limited designs, manufactures, and sells biodegradable medical devices in Australia, New Zealand, the United States, the United Kingdom, Ireland, Singapore, India, and Hong Kong. The company offers NovoSorb Biodegradable Temporising Matri...
How the Company Makes Money
Polynovo makes money primarily by selling medical devices that incorporate its NovoSorb biodegradable polymer technology, with revenue largely generated from product sales to hospitals and healthcare providers (typically via medical distributors a...
Polynovo Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q4-2026)
| Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call communicates strong commercial momentum across products (notably MTX), significant sales and adjusted EBITDA growth, positive cash generation and strategic investments (new facility, strengthened leadership, clinical evidence). Several manageable near-term headwinds were disclosed: FX volatility, one-off impacts from an R&D lab fire, lumpy large-burn case volumes affecting H2 U.S. growth, reimbursement turbulence for outpatient launches, and timing risks tied to PMA approval and facility transition. Overall the positives (robust growth rates, record months, strong cash flow, substantial MTX adoption and regulatory progress) materially outweigh the challenges, which are largely operational, timing or one-off in nature.Positive Updates
Group Revenue Growth
NovoSorb product sales of $138.4M, up 16.7% YoY (21.3% in constant currency), with dollar sales increasing by $19.7M.
Negative Updates
Second-Half U.S. Growth Variability
H2 FY'26 saw fewer large burn cases presented (large burns are lumpy), contributing to a slower H2 U.S. trajectory despite broadening into other procedures; reliance on variable large-case volume remains a near-term volatility factor.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Revenue Growth
NovoSorb product sales of $138.4M, up 16.7% YoY (21.3% in constant currency), with dollar sales increasing by $19.7M.
Read all positive updates
Company Guidance
The call guided that PolyNovo is entering FY'27 with strong momentum and clear priorities — advancing the PMA (submission planned this calendar year with FDA review ~12 months), sharing the RCT results, launching SynPath into U.S. outpatient, accelerating MTX, increasing innovation velocity and improving operating leverage — after FY'26 NovoSorb product sales of $138.4M (up 16.7% YoY; +21.3% constant currency), U.S. sales $102.1M (+15.6%/+21.1% cc), Rest of World $36.3M (+20.0%/+21.9% cc), MTX sales $12.6M (+89.6%) with MTX $12.2M in the U.S. (+92.7% cc) and MTX now in 6 markets; the U.S. business added ~200 hospital accounts to >880 total and MTX is used in >330 U.S. accounts, supported by 132 U.S. staff (106 sales), while group July sales set a record at >$13M and June was a U.S. record. Financially, adjusted EBITDA was $13.4M (+50.4% after significant items), free cash flow was $9.4M, cash from operations $23.1M, cash on hand $35.4M, FY gross margin 89.0% (H2 89.2%, July ~95%; new facility expected to modestly reduce margin by ~1–1.5% once ramped), CapEx during the year was $13.8M (including $12.4M for the new facility; $1.5M machinery outstanding), R&D guidance ~5% of sales next year, and regional performance highlights included Americas >AUD100M, Australia +33.9%, Ireland +38.3%, Hong Kong +49.9%, Turkey +79% and India +52.8%, with Rest of World now 26.2% of global sales.Polynovo Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 143.71M | 127.24M | 103.19M | 65.24M | 41.44M |
| Gross Profit | 46.99M | 122.05M | 97.71M | 19.33M | 16.23M |
| EBITDA | 13.92M | 10.45M | 4.59M | -2.71M | 658.24K |
| Net Income | 7.34M | 13.21M | 5.26M | -4.92M | -1.19M |
Balance Sheet | |||||
| Total Assets | 132.47M | 127.41M | 108.72M | 92.62M | 34.97M |
| Cash, Cash Equivalents and Short-Term Investments | 35.47M | 33.59M | 45.96M | 46.90M | 6.15M |
| Total Debt | 17.61M | 17.14M | 15.38M | 16.04M | 10.99M |
| Total Liabilities | 41.77M | 44.15M | 36.60M | 27.24M | 17.26M |
| Stockholders Equity | 90.70M | 83.26M | 72.12M | 65.38M | 17.72M |
Cash Flow | |||||
| Free Cash Flow | 9.45M | -10.78M | 786.00K | -7.46M | -2.55M |
| Operating Cash Flow | 23.25M | 3.15M | 3.68M | -5.93M | -2.06M |
| Investing Cash Flow | -13.80M | -13.22M | -1.49M | -1.53M | 5.86M |
| Financing Cash Flow | -5.25M | -2.39M | -3.17M | 48.06M | -5.39M |
Polynovo Technical Analysis
Positive
1.06
Price Trends
0.97
Positive
1.01
Positive
1.03
Negative
Market Momentum
0.02
Positive
55.67
Neutral
35.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PNV, the sentiment is Positive. The current price of 1.06 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.97, and above the 200-day MA of 1.03, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 35.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:PNV.
Polynovo Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$711.57M | 97.17 | 8.45% | ― | 12.94% | -44.50% | |
69 Neutral | AU$9.34B | 63.44 | 8.01% | 2.97% | -0.90% | -62.14% | |
63 Neutral | AU$191.98M | 30.49 | 7.55% | ― | 19.23% | ― | |
52 Neutral | AU$38.46M | -8.88 | -28.79% | 185.34% | 19.13% | 58.47% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | AU$210.93M | -2.07 | -169.40% | ― | 3420.67% | 27.04% | |
40 Underperform | AU$16.55M | -1.54 | -188.06% | ― | 15.58% | 37.17% |
* Healthcare Sector Average
AU:PNV
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Polynovo Corporate Events
PolyNovo issues FY26 results presentation with extensive risk and liability warnings
Aug 25, 2026
PolyNovo has released a presentation outlining its FY26 results, accompanied by extensive disclaimers clarifying that the material is for general informational purposes only. The company emphasises that the document is not investment advice, nor a...
PolyNovo boosts FY26 sales and cash flow as NovoSorb platform and manufacturing scale up
Aug 25, 2026
PolyNovo reported FY26 total revenue of $150.0 million, up 16.1%, with commercial sales rising 16.7% to $138.4 million and particularly strong growth in APAC. EBITDA improved to $12.1 million and free cash flow reached $9.4 million, while NPAT fel...
JPMorgan Group Ceases to Be Substantial Holder in Polynovo
Aug 23, 2026
Global banking group JPMorgan Chase Co. and several subsidiaries have disclosed that they have ceased to be a substantial holder in Polynovo Ltd, following changes in their relevant interests in the company’s ordinary shares. The move refle...
PolyNovo to Live Stream FY26 Results as Global Wound Care Platform Expands
Aug 17, 2026
PolyNovo announced that it will live stream its FY26 results presentation on 26 August at 10.30 am AEST, requiring shareholders to register in advance via a dedicated webcast link. The company will facilitate engagement by allowing shareholders to...
JPMorgan Group Ceases to Be Substantial Holder in PolyNovo
Jul 23, 2026
JPMorgan Chase Co. and its affiliates have notified PolyNovo that they have ceased to be a substantial holder in the company as of 21 July 2026, following a series of changes in relevant interests tied to securities lending and principal trading ...
PolyNovo lifts FY26 revenue, boosts cash flow as wound-care portfolio expands
Jul 22, 2026
PolyNovo reported FY26 group revenue of $150 million, up 16.1% year on year, with commercial sales rising 16.7% and U.S. sales growing 15.6%. NovoSorb BTM revenue increased 12.3% and NovoSorb MTX almost doubled, while strong operating and free cas...
JPMorgan ceases substantial holding in Polynovo
Jun 23, 2026
JPMorgan Chase Co. and its affiliates have notified Polynovo Ltd that they have ceased to be a substantial holder in the company as of 19 June 2026. The change reflects adjustments in securities on loan and principal trading activities by JPMorga...
State Street group exits substantial holder position in Polynovo
Jun 5, 2026
State Street Corporation and several of its asset management and trustee subsidiaries have lodged a notice that they have ceased to be substantial shareholders in Polynovo Limited. The filing, made under Australian Corporations Act disclosure rule...
PolyNovo Strengthens U.S. Burn Trial PMA Bid, Pushes Filing to Late 2026
May 29, 2026
PolyNovo has finalised the Clinical Study Report for its BARDA-funded U.S. pivotal randomised controlled trial of NovoSorb BTM in full thickness burns, clearing a key hurdle toward a Premarket Approval application. In parallel, the company has upd...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.