Nanosonics Limited (NAN) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 841.02K
• Price to Earnings (P/E): 75.6
• Beta (1Y): 0.50
• Revenue Growth: 10.79%
• EPS Growth: 5.20%
• Country: AU
• Employees: 466
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.03
• Shares Outstanding: 303,632,750
• 10 Day Avg. Volume: 912,427
• 30 Day Avg. Volume: 841,017
• PEG Ratio: 0.17
• Price to Book (P/B): 8.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 72.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.04
• Price Target Upside: 21.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: AU$5.00 ▲(21.07%Upside)

Nanosonics Limited receives a solid score driven by its strong financial performance and positive earnings call, both of which highlight robust revenue growth and strategic initiatives. However, the high P/E ratio and technical indicators suggest caution, as they reflect potential overvaluation and bearish momentum.

Nanosonics Limited Business Overview & Revenue Model

Company Description

Nanosonics Limited (NAN) is an Australian-based company specializing in infection prevention solutions in the healthcare sector. The company's flagship product, the trophon® EPR, is a high-level disinfection system used for ultrasound probes, offering a safer and more efficient method of disinfection. Nanosonics is committed to developing innovative technologies that enhance patient safety and protect healthcare workers from infection risks.

How the Company Makes Money

Nanosonics Limited generates revenue primarily through the sale and distribution of its trophon® EPR disinfection systems and related consumables. The company employs a razor-and-blades business model, where initial revenue is earned from selling the trophon® units, and ongoing revenue is derived from consumable items necessary for the system's operation, such as disinfectant cartridges and cleaning wipes. Additionally, Nanosonics benefits from service contracts and maintenance agreements, which provide a steady stream of income over time. The company also engages in partnerships and collaborations with healthcare organizations and equipment distributors to expand its market reach and drive sales growth.

Nanosonics Limited Financial Statement Overview

Summary

Nanosonics Limited exhibits strong financial health with consistent revenue growth and solid balance sheet stability. Despite a decrease in net profitability and ROE, the company displays effective cash management and a robust equity position, mitigating potential financial risks. The medical instruments and supplies industry backdrop supports continued growth prospects, reinforcing the company's favorable financial standing.

Income Statement

Nanosonics Limited has demonstrated a consistent revenue growth trajectory with a 2.42% increase from 2023 to 2024. The Gross Profit Margin improved to 78.09% in 2024, indicating strong cost management. However, the Net Profit Margin decreased to 7.56% from 11.87% in 2023, mainly due to reduced EBIT Margin from 10.74% to 5.31%, reflecting increased operational expenses. Despite the decline in net profitability, the overall performance remains robust due to steady revenue growth.

Balance Sheet

The balance sheet of Nanosonics Limited shows a solid equity position with an Equity Ratio of 76.75% in 2024, indicating low leverage and financial stability. The Debt-to-Equity Ratio is favorable at 0.05, showcasing prudent debt management. ROE decreased to 7.12% from 12.14% in 2023, which suggests a decline in efficiency in generating profits from shareholders' equity. Nevertheless, the strong equity base mitigates potential risks, ensuring a healthy balance sheet.

Cash Flow

Cash flow analysis indicates stable cash generation, with a slight decrease in Operating Cash Flow from 2023 to 2024. The Free Cash Flow remained positive and increased slightly by 2.64% compared to the previous year, highlighting effective cash management. The Operating Cash Flow to Net Income Ratio is 1.76, demonstrating efficient conversion of income to cash. The company maintains strong liquidity, supporting its operational and strategic initiatives.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	183.97M	171.56M	167.51M	119.73M	101.83M	99.38M
Gross Profit	142.44M	133.99M	125.66M	86.15M	74.91M	71.09M
EBITDA	22.39M	21.72M	29.50M	7.86M	15.75M	16.70M
Net Income	16.56M	12.97M	19.88M	3.74M	8.58M	10.14M
Balance Sheet
Total Assets	255.03M	237.34M	226.07M	193.24M	164.57M	148.23M
Cash, Cash Equivalents and Short-Term Investments	144.48M	129.55M	112.16M	94.51M	96.03M	91.78M
Total Debt	9.17M	9.30M	10.72M	11.71M	2.49M	2.61M
Total Liabilities	66.00M	55.14M	62.22M	54.55M	29.01M	24.00M
Stockholders Equity	189.03M	182.20M	163.86M	138.69M	135.57M	124.23M
Cash Flow
Free Cash Flow	27.58M	20.27M	19.74M	-271.00K	5.93M	20.83M
Operating Cash Flow	34.93M	22.78M	23.31M	6.70M	7.32M	22.76M
Investing Cash Flow	-7.21M	-2.36M	-3.54M	-6.90M	-1.38M	-1.94M
Financing Cash Flow	-3.00M	-3.01M	-2.71M	-1.97M	-1.03M	-1.30M

Nanosonics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NAN, the sentiment is Negative. The current price of 4.13 is below the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.50, and above the 200-day MA of 3.88, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 22.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NAN.

Nanosonics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHC	76 Outperform	AU$111.04M	11.17	23.38%	―	63.10%	290.00%
NAN	73 Outperform	$1.25B	75.64	9.23%	―	10.79%	5.20%
SDI	71 Outperform	AU$99.85M	9.46	11.40%	3.57%	0.82%	31.36%
ARX	54 Neutral	AU$193.22M	―	-4.06%	―	15.90%	8.52%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%
TRJ	45 Neutral	AU$111.24M	―	-24.66%	―	0.70%	-1600.91%
CYC	39 Underperform	AU$103.36M	―	-35.20%	―	4.68%	-155.42%

Nanosonics Limited Corporate Events

UBS Group AG Ceases to be Substantial Shareholder in Nanosonics Limited

UBS Group AG and its related bodies corporate have ceased to be substantial shareholders in Nanosonics Limited as of June 24, 2025. This change in shareholding may impact Nanosonics’ market perception and stakeholder confidence, as substantial shareholders often play a crucial role in influencing company strategy and investor sentiment.

The most recent analyst rating on (AU:NAN) stock is a Sell with a A$4.00 price target. To see the full list of analyst forecasts on Nanosonics Limited stock, see the AU:NAN Stock Forecast page.

UBS Group AG Acquires Substantial Stake in Nanosonics Limited

UBS Group AG and its related bodies have become a substantial holder in Nanosonics Limited, with a 5.09% voting power through various branches and asset management entities. This development indicates a significant investment interest from a major financial institution, potentially impacting Nanosonics’ market positioning and stakeholder dynamics.

The most recent analyst rating on (AU:NAN) stock is a Hold with a A$2.75 price target. To see the full list of analyst forecasts on Nanosonics Limited stock, see the AU:NAN Stock Forecast page.

Pinnacle Investment Acquires Substantial Stake in Nanosonics

Pinnacle Investment Management Group Limited has become a substantial holder in Nanosonics Limited as of June 13, 2025, acquiring a 5.21% voting power through 15,812,969 ordinary fully paid shares. This acquisition signifies a notable investment in Nanosonics, potentially impacting its market positioning and signaling confidence in its future prospects.

The most recent analyst rating on (AU:NAN) stock is a Sell with a A$4.00 price target. To see the full list of analyst forecasts on Nanosonics Limited stock, see the AU:NAN Stock Forecast page.

Nanosonics Announces Quotation of New Securities on ASX

Nanosonics Limited has announced the application for quotation of 33,295 ordinary fully paid securities on the Australian Securities Exchange (ASX). These securities are issued under an employee incentive scheme and are not subject to transfer restrictions, indicating a strategic move to enhance employee engagement and potentially improve company performance.

The most recent analyst rating on (AU:NAN) stock is a Sell with a A$4.00 price target. To see the full list of analyst forecasts on Nanosonics Limited stock, see the AU:NAN Stock Forecast page.

Nanosonics Addresses ASX Query on Unusual Trading Activity

Nanosonics Limited responded to a query from the Australian Securities Exchange (ASX) regarding unusual trading activity in its securities. The company stated that it is not aware of any undisclosed information that could explain the recent price and volume changes and confirmed compliance with ASX Listing Rules, particularly Rule 3.1, which pertains to continuous disclosure obligations.

The most recent analyst rating on (AU:NAN) stock is a Sell with a A$4.00 price target. To see the full list of analyst forecasts on Nanosonics Limited stock, see the AU:NAN Stock Forecast page.

Nanosonics CEO Adjusts Shareholdings to Address Tax Obligations

Nanosonics Limited announced a change in the director’s interest, with CEO Michael Kavanagh selling 100,000 ordinary shares to cover a tax liability from exercising company securities. Despite the sale, Kavanagh retains a significant holding of 1,256,723 shares and 1,569,840 rights, indicating continued confidence in the company’s prospects.