Novonesis (NVZMY) AI Stock Analysis

Compare

70 Followers

Top Page

Novonesis

(OTC:NVZMY)

Rating:74Outperform

Price Target:

$73.00

▲( 3.90% Upside)

Novonesis demonstrates a strong financial performance with stable profit margins and effective cash flow management, despite a slight downturn in revenue and free cash flow in 2024. Technical analysis indicates positive momentum, but the high P/E ratio suggests potential overvaluation. The company's strategic initiatives and strong earnings outlook provide a solid foundation for future growth. Overall, the stock scores well, but investors should be mindful of the high valuation and increased leverage.

Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$32.77B

Dividend Yield0.77%

Average Volume (3M)161.00

Price to Earnings (P/E)97.1

Beta (1Y)0.37

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees10,582

SectorBasic Materials

Sector Strength64

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.47

Shares Outstanding414,555,050

10 Day Avg. Volume485

30 Day Avg. Volume161

Financial Highlights & Ratios

PEG Ratio-0.71

Price to Book (P/B)2.54

Price to Sales (P/S)0.00

P/FCF Ratio7.75

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Novonesis Business Overview & Revenue Model

Company DescriptionNovonesis (NVZMY) is a technology-driven company specializing in the development of advanced software solutions and services for the healthcare sector. The company focuses on creating innovative digital platforms and applications that enhance clinical efficiency, improve patient care, and streamline operational processes within healthcare institutions.

How the Company Makes MoneyNovonesis generates revenue through a diverse range of streams primarily centered around its software solutions. The company offers subscription-based access to its proprietary healthcare platforms, which provide hospitals and clinics with tools for electronic health records management, patient engagement, and data analytics. Additionally, Novonesis collaborates with healthcare providers and pharmaceutical companies, offering customized software development services and consultancy. Key partnerships with major healthcare networks and technology firms further bolster its revenue by expanding its market reach and facilitating the integration of its solutions into existing healthcare systems.

Novonesis Financial Statement Overview

Summary

Novonesis presents a financially stable position with strong profit margins and efficient cash flow management. While revenue and free cash flow faced a downturn in 2024, the company's management of costs and equity position suggest resilience in the face of industry challenges. However, the increased leverage warrants careful monitoring to maintain financial health.

Income Statement

Positive

Novonesis has shown robust revenue growth over the years, with significant improvements in gross profit margin and net profit margin. Although there was a notable drop in revenue from 2023 to 2024, the margins remained relatively stable, indicating effective cost management. The EBIT and EBITDA margins have been consistently strong, supporting profitability.

Balance Sheet

Positive

The company maintains a solid equity position with a high equity ratio, suggesting financial stability. However, the debt-to-equity ratio increased in 2024, indicating higher leverage, which could pose risks if not managed properly. Return on equity remains strong, reflecting effective use of shareholder funds.

Cash Flow

Positive

Novonesis has demonstrated strong operating cash flow generation, consistently exceeding net income, which is a positive indicator of cash-generating efficiency. The free cash flow growth has been impressive over the years, although it saw a decline in 2024, which could impact future flexibility.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
9.91B	3.83B	17.90B	17.55B	14.95B	14.01B
	Gross Profit
4.50B	1.81B	9.72B	9.58B	8.62B	7.85B
	EBIT
1.20B	659.00M	3.98B	4.63B	4.01B	3.65B
	EBITDA
1.84B	659.00M	5.47B	6.12B	5.20B	4.85B
	Net Income Common Stockholders
666.22M	305.80M	3.02B	3.68B	3.15B	2.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
256.50M	284.00M	1.16B	1.12B	1.04B	1.30B
	Total Assets
15.06B	15.20B	28.39B	27.98B	24.77B	20.51B
	Total Debt
1.70B	1.80B	7.73B	411.00M	482.00M	3.78B
	Net Debt
1.45B	1.52B	6.62B	-630.00M	-481.00M	2.60B
	Total Liabilities
3.83B	4.02B	14.04B	13.76B	12.56B	9.27B
	Stockholders Equity
11.23B	11.18B	13.98B	13.84B	11.83B	11.23B
Cash Flow		Free Cash Flow
1.80B	660.10M	2.10B	1.12B	2.82B	3.42B
	Operating Cash Flow
2.57B	1.02B	4.15B	4.01B	4.06B	4.36B
	Investing Cash Flow
-387.85M	-199.70M	-2.13B	-2.67B	-2.75B	-1.52B
	Financing Cash Flow
-1.82B	-703.20M	-1.89B	-1.25B	-1.59B	-2.31B

Novonesis Technical Analysis

Technical Analysis Sentiment

Positive

Last Price70.26

Price Trends

50DMA

62.41

Positive

100DMA

59.71

Positive

200DMA

61.59

Positive

Market Momentum

MACD

2.14

Negative

RSI

72.02

Negative

STOCH

96.76

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVZMY, the sentiment is Positive. The current price of 70.26 is above the 20-day moving average (MA) of 66.58, above the 50-day MA of 62.41, and above the 200-day MA of 61.59, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 72.02 is Negative, neither overbought nor oversold. The STOCH value of 96.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVZMY.

Novonesis Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVZMY	74 Outperform	$32.77B	97.13	21.63%	0.77%	―	―
RPM	71 Outperform	$14.45B	22.53	25.53%	1.77%	-0.61%	15.06%
EMN	69 Neutral	$9.39B	10.36	16.16%	4.03%	2.78%	1.50%
LYB	66 Neutral	$18.04B	17.36	7.19%	9.52%	-6.53%	-50.08%
DD	64 Neutral	$28.31B	40.24	0.06%	2.28%	4.51%	-121.68%
PPG	63 Neutral	$25.24B	18.84	18.47%	2.42%	-7.67%	-0.58%
Sector *	50 Neutral	$1.99B	-1.06	-21.34%	3.71%	2.03%	-30.65%

* Basic Materials Sector Average

Performance Comparison

NVZMY

Novonesis

70.20

9.24

15.16%

EMN

Eastman Chemical

80.54

-16.85

-17.30%

LYB

LyondellBasell

56.13

-36.74

-39.56%

PPG

PPG Industries

110.08

-16.55

-13.07%

RPM

RPM International

111.92

3.82

3.53%

DuPont de Nemours

67.65

-12.91

-16.03%

Novonesis Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 8.33%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong start to 2025 with robust organic sales growth and profitability improvements, despite challenges from market exits and currency headwinds. The company's diversified portfolio and strategic acquisitions position it well for future growth.

Q1-2025 Updates

Positive Updates

Strong Organic Sales Growth

Novonesis achieved an 11% organic sales growth in Q1 2025, with 15% growth in emerging markets and 9% in developed markets.

Adjusted EBITDA Margin Improvement

The adjusted EBITDA margin increased to 38.3%, a 3.1% rise compared to the previous year, driven by strong sales growth and cost synergies.

Successful Product Launches

Six new biosolutions were launched, primarily in household care and food, with expectations for further launches in the coming quarters.

Strategic Acquisition

The acquisition of dsm-firmenich’s part of the Feed Enzyme Alliance is expected to close in Q2 2025, enhancing Novonesis's position in animal biosolutions.

Strong Performance in Human Health

Human health delivered 13% organic sales growth, driven by dietary supplements and advanced protein solutions in North America and Europe.

Negative Updates

Impact of Russian and Belarusian Market Exit

Novonesis expects a 1 percentage point negative effect on organic sales growth from exiting Russia and Belarus.

Challenges in Agricultural Segment

Growth in the agricultural sector was impacted by timing issues, particularly affecting animal biosolutions.

Currency Headwinds

Recent currency fluctuations are expected to impact the adjusted EBITDA margin, although the company maintains its guidance.

Company Guidance

During the Novonesis conference call for the first quarter of 2025, the company reported an 11% organic sales growth, with a 10% growth in volume and a 1% increase in pricing. Emerging markets exhibited a robust 15% growth, while developed markets grew by 9%. The company launched six new biosolutions, contributing to the sales growth. The adjusted EBITDA margin for the quarter was 38.3%, a 3.1 percentage point increase from the previous year. Novonesis maintained its full-year guidance, expecting 5% to 8% organic sales growth, accounting for a 1 percentage point negative impact from exiting Russia and Belarus. The adjusted EBITDA margin is anticipated to remain between 37% and 38%, despite currency headwinds. The company's diversified portfolio, strong customer focus, and innovation capabilities were highlighted as key drivers for sustained growth and margin expansion in 2025.

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.