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Nanosonics Limited (AU:NAN)
ASX:NAN

Nanosonics Limited (NAN) AI Stock Analysis

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AU:NAN

Nanosonics Limited

(Sydney:NAN)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
AU$5.00
▲(15.21% Upside)
Nanosonics Limited's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. However, the high P/E ratio suggests overvaluation, and technical indicators point to a neutral trend, which tempers the overall score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Nanosonics' products, enhancing its market position and supporting long-term financial health.
Recurring Revenue
Growth in recurring revenue from consumables ensures a stable income stream, supporting the company's razor-and-blades business model and financial stability.
Product Innovation
Launching new products with advanced features strengthens Nanosonics' competitive edge and can drive future revenue growth and market expansion.
Negative Factors
Tariff Impact
Tariff impacts can reduce profitability, affecting Nanosonics' ability to maintain its high gross margins and potentially limiting reinvestment capabilities.
Challenges in Japanese Market
Slow growth in Japan limits Nanosonics' expansion in a key market, potentially hindering overall international growth and revenue diversification.
Increased Operating Expenses
Rising operating expenses, driven by R&D and ERP investments, may pressure margins and require careful management to ensure profitability is sustained.

Nanosonics Limited (NAN) vs. iShares MSCI Australia ETF (EWA)

Nanosonics Limited Business Overview & Revenue Model

Company DescriptionNanosonics Limited, together with its subsidiaries, operates as an infection prevention company in Australia and internationally. The company engages in the manufacturing and distribution of the trophon ultrasound probe disinfector, and its associated consumables and accessories; and research, development, and commercialization of infection control and decontamination products and related technologies. It provides trophon2, an ultrasound probe high level disinfection device; trophon EPR, a low temperature high level disinfection solution for intra-cavity ultrasound probes; and Nanosonics AuditPro, an infection control workflow compliance management solution. Nanosonics Limited was incorporated in 2000 and is headquartered in Macquarie Park, Australia.
How the Company Makes MoneyNanosonics generates revenue primarily through the sale of its Trophon devices and related consumables, including disinfectants and accessories required for the operation of the system. The company employs a razor-and-blades model where the initial sale of the Trophon system is complemented by recurring revenue from the ongoing purchase of consumables. Additionally, Nanosonics benefits from strategic partnerships with healthcare providers and distributors to expand its market reach and enhance sales. The adoption of its technology in hospitals and clinics worldwide significantly contributes to its earnings, supported by a growing emphasis on infection control in healthcare settings.

Nanosonics Limited Earnings Call Summary

Earnings Call Date:Aug 25, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
Nanosonics reported strong financial and operational results with significant revenue growth and product launches. Despite challenges like tariff impacts and slow progress in Japan, the company demonstrated robust strategic advancements and sustainability initiatives. The sentiment is slightly positive due to the outweighing impact of highlights over lowlights.
Q4-2025 Updates
Positive Updates
Strong Revenue Growth
Nanosonics achieved a 17% growth in revenue, reaching $198.6 million, which was at the top end of the upgraded guidance provided at the half year.
Increase in Recurring Revenue
Recurring revenue from consumables and services grew 20% to $146.1 million, driven by a 6% growth in cumulative installed base.
Improved Gross Profit Margin
The gross profit margin improved to 78.2%, reflecting strong operational performance.
Profit Before Tax Growth
Profit before tax increased by 72% to $22.3 million, demonstrating significant profitability improvement.
Launch of New Products
Nanosonics launched trophon3 and trophon2 plus, introducing cloud-based traceability and other enhancements.
CORIS FDA Clearance
The company secured FDA de novo clearance for CORIS, paving the way for future commercialization.
Sustainability Achievements
Nanosonics delivered on its commitment to source 100% renewable energy, leading to a 56% reduction in Scope 2 emissions.
Negative Updates
Tariff Impact on Gross Margin
The impact of tariffs is expected to reduce gross margin by approximately $4 million in FY '26, potentially lowering it to between 75% and 77%.
Challenges in Japanese Market
Progress in Japan remains slow despite some encouraging signs, affecting new installed base growth in the APAC region.
Increased Operating Expenses
Operating expenses increased by 10% to $138.7 million, with significant investments in R&D and new ERP systems.
Company Guidance
In the fiscal year 2025, Nanosonics reported a strong financial performance with a 17% increase in revenue, reaching $198.6 million, driven by a 20% growth in recurring revenue from consumables and service, totaling $146.1 million. The company achieved a gross profit margin of 78.2% despite a 10% increase in operating expenses to $138.7 million. The trophon business, with an installed base growth of 6% to 37,000 units, contributed significantly to this performance, with total unit sales of 3,870. Profit before tax surged by 72% to $22.3 million. Nanosonics also made strategic strides in innovation and operations, securing FDA clearance for CORIS, completing next-generation trophon technology, and expanding manufacturing capabilities both in Sydney and Indianapolis. The company achieved sustainability milestones, sourcing 100% renewable energy, and reducing Scope 2 emissions by 56%. Looking ahead, Nanosonics anticipates revenue growth for fiscal year 2026 to be in the range of $215 million to $223 million, driven by continued capital and recurring revenue growth, alongside mitigating tariff impacts through pricing strategies.

Nanosonics Limited Financial Statement Overview

Summary
Nanosonics Limited exhibits strong financial health with consistent revenue growth and profitability improvements. The company maintains a solid balance sheet with low leverage, enhancing its financial stability. Cash flow metrics indicate robust cash generation, although there is potential for further optimization in cash conversion.
Income Statement
85
Very Positive
Nanosonics Limited has demonstrated strong revenue growth with an 8.13% increase in the latest year, supported by a robust gross profit margin of 78.25%. The net profit margin improved to 10.39%, indicating enhanced profitability. EBIT and EBITDA margins also show positive trends, reflecting efficient operations. However, a slight decline in EBIT margin compared to previous years suggests room for operational improvements.
Balance Sheet
80
Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.037, indicating minimal leverage and financial risk. The equity ratio stands at 77.06%, showcasing strong equity financing. While the return on equity is not explicitly provided, the overall financial stability is evident from the low debt levels and substantial equity base.
Cash Flow
78
Positive
Nanosonics Limited shows a significant improvement in free cash flow growth at 27.85%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.11 suggests efficient cash conversion. However, the free cash flow to net income ratio of 0.80 indicates that there is room for improvement in converting profits into free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue198.52M198.93M171.56M167.51M119.73M101.83M
Gross Profit155.25M155.66M133.99M125.66M86.15M74.91M
EBITDA26.04M31.82M21.72M29.50M7.86M15.75M
Net Income20.68M20.68M12.97M19.88M3.74M8.58M
Balance Sheet
Total Assets272.48M272.48M237.34M226.07M193.24M164.57M
Cash, Cash Equivalents and Short-Term Investments161.29M161.29M129.55M112.16M94.51M96.03M
Total Debt7.69M7.69M9.30M10.72M11.71M2.49M
Total Liabilities62.57M62.57M55.14M62.22M54.55M29.01M
Stockholders Equity209.91M209.91M182.20M163.86M138.69M135.57M
Cash Flow
Free Cash Flow35.26M35.26M20.27M19.74M-271.00K5.93M
Operating Cash Flow43.98M43.98M22.78M23.31M6.70M7.32M
Investing Cash Flow-8.71M-8.71M-2.36M-3.54M-6.90M-1.38M
Financing Cash Flow-3.30M-3.30M-3.01M-2.71M-1.97M-1.03M

Nanosonics Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.34
Price Trends
50DMA
4.34
Negative
100DMA
4.22
Positive
200DMA
4.31
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
57.73
Neutral
STOCH
55.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NAN, the sentiment is Positive. The current price of 4.34 is above the 20-day moving average (MA) of 4.13, below the 50-day MA of 4.34, and above the 200-day MA of 4.31, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 55.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NAN.

Nanosonics Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.29B63.7310.32%15.60%58.74%
72
Outperform
AU$114.11M9.3812.37%3.58%-0.74%16.65%
67
Neutral
AU$164.89M26.9912.35%39.98%-30.04%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
AU$70.02M-5.38-31.98%34.20%-23.90%
49
Neutral
AU$274.30M-78.71-2.01%16.93%76.47%
47
Neutral
AU$119.74M-26.79-4.28%7.38%82.39%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NAN
Nanosonics Limited
4.34
1.33
44.19%
AU:SDI
SDI Limited
0.95
-0.21
-18.10%
AU:AHC
Austco Healthcare Limited
0.39
0.15
59.18%
AU:CYC
Cyclopharm Limited
1.00
-0.65
-39.21%
AU:TRJ
Trajan Group Holdings Ltd
0.65
-0.36
-35.50%
AU:ARX
Aroa Biosurgery Ltd
0.66
0.02
3.13%

Nanosonics Limited Corporate Events

Nanosonics Limited Updates on Daily Buy-Back Program
Dec 5, 2025

Nanosonics Limited has announced a daily update regarding its ongoing on-market buy-back program, with a total of 65,909 ordinary fully paid securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure, potentially enhancing shareholder value and signaling confidence in its financial health.

Nanosonics Limited Updates on Market Buy-Back Program
Dec 4, 2025

Nanosonics Limited has announced an update on its ongoing on-market buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company bought back 98,000 securities on the previous day, adding to a total of 192,000 securities repurchased before that. This buy-back initiative reflects the company’s strategic efforts to manage its capital structure and potentially enhance shareholder value.

Nanosonics Limited Announces Quotation of New Securities
Dec 4, 2025

Nanosonics Limited has announced the application for quotation of 152,842 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme, potentially enhancing employee engagement and aligning their interests with company performance, which could positively impact the company’s operational dynamics and market positioning.

Nanosonics Limited Updates on Market Buy-Back Program
Dec 3, 2025

Nanosonics Limited has announced an update regarding its ongoing on-market buy-back program, with a total of 95,000 ordinary fully paid securities bought back on the previous day, adding to the 97,000 securities bought back before that. This buy-back initiative is part of the company’s efforts to manage its capital structure and potentially enhance shareholder value, reflecting a strategic move that may influence its market positioning and stakeholder interests.

Nanosonics Limited Announces On-Market Buy-Back
Dec 2, 2025

Nanosonics Limited has announced an on-market buy-back of its ordinary fully paid securities, as indicated by the ASX security code NAN. This strategic financial move is likely aimed at optimizing the company’s capital structure and could have implications for shareholder value and market perception.

Nanosonics Limited Initiates Daily On-Market Buy-Back
Dec 2, 2025

Nanosonics Limited has announced a daily on-market buy-back of its ordinary fully paid securities, as part of its capital management strategy. The buy-back will be conducted through Goldman Sachs, indicating a proactive approach to managing its share capital, which may positively influence investor confidence and market perception.

Nanosonics Updates on On-Market Buy-Back Program
Nov 27, 2025

Nanosonics Limited has announced an update regarding its ongoing on-market buy-back program, with a total of 74,835 ordinary fully paid securities bought back on the previous day, contributing to a cumulative total of 425,624 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

Nanosonics Limited Updates on Market Buy-Back Program
Nov 25, 2025

Nanosonics Limited has announced an update regarding its ongoing on-market buy-back program. As of November 26, 2025, the company has repurchased a total of 425,624 ordinary fully paid securities, including 72,199 securities bought back on the previous day. This buy-back initiative is part of Nanosonics’ strategy to optimize its capital structure and potentially enhance shareholder value.

Nanosonics Limited Updates on Share Buy-Back Program
Nov 23, 2025

Nanosonics Limited has announced an update regarding its ongoing share buy-back program. The company reported that it bought back a total of 75,323 ordinary fully paid securities on the previous day, adding to the cumulative total of 74,874 securities bought back prior. This buy-back initiative is part of Nanosonics’ strategy to manage its capital structure effectively, potentially enhancing shareholder value and signaling confidence in the company’s financial health.

Nanosonics Appoints New Regional President for North America
Nov 12, 2025

Nanosonics Limited has appointed William Haydon as the Regional President for North America, effective December 1, 2025, following the retirement of Ken Shaw. Haydon’s extensive experience in the medical device and healthcare technology sectors, particularly in infection prevention and endoscope reprocessing, aligns with Nanosonics’ strategic priorities as it prepares to commercialize its CORIS® platform, marking a significant step in its growth strategy.

UBS Group AG Ceases to be Substantial Shareholder in Nanosonics Limited
Nov 5, 2025

UBS Group AG and its related bodies corporate have ceased to be substantial shareholders of Nanosonics Limited as of November 3, 2025. This change in shareholding could impact the company’s shareholder structure and influence its market perception, potentially affecting investor confidence and the company’s strategic decisions.

Nanosonics Limited Successfully Concludes 2025 AGM with All Resolutions Carried
Nov 5, 2025

Nanosonics Limited held its 2025 Annual General Meeting where all proposed resolutions were successfully carried. The meeting also marked the departure of Dr. Lisa McIntyre from the Board, as previously announced. This outcome reflects strong shareholder support and continuity in the company’s strategic direction, potentially reinforcing its market position and stakeholder confidence.

Nanosonics Announces $20 Million Share Buy-Back Program
Nov 5, 2025

Nanosonics Limited has announced a $20 million on-market share buy-back program for FY26, reflecting its strong financial position and confidence in long-term growth. This initiative is part of the company’s capital management strategy, supported by its cash reserves and history of predictable cash flows, and aims to deliver long-term value to shareholders while maintaining a strong balance sheet and investing in future growth opportunities.

Nanosonics Limited Announces Quotation of New Securities
Oct 30, 2025

Nanosonics Limited has announced the application for quotation of 189,870 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move, involving securities issued under an employee incentive scheme, is part of the company’s strategic efforts to enhance its market presence and operational capabilities.

Nanosonics Limited Announces Quotation of New Securities
Oct 27, 2025

Nanosonics Limited has announced the application for the quotation of 53,069 ordinary fully paid securities on the ASX. These securities are issued under an employee incentive scheme, reflecting the company’s ongoing efforts to incentivize and retain talent, which may enhance its operational capabilities and market position.

Nanosonics Limited Announces Hybrid 2025 AGM to Boost Shareholder Engagement
Oct 3, 2025

Nanosonics Limited has announced its 2025 Annual General Meeting (AGM), which will be held as a hybrid event, allowing shareholders to participate either in person or online. This approach aims to increase accessibility and engagement, enabling shareholders to ask questions and vote in real time, reflecting the company’s commitment to transparency and stakeholder involvement.

Nanosonics Director Adjusts Equity Holdings
Sep 26, 2025

Nanosonics Limited announced a change in the director’s interest, specifically regarding Mr. Michael Kavanagh’s holdings. The change involved the exercise of performance and service rights under the Nanosonics Omnibus Equity Plan, resulting in the acquisition of 109,685 ordinary shares. This adjustment in the director’s holdings reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting investor confidence and market perception.

Nanosonics Limited Issues New Securities Under Employee Incentive Scheme
Sep 26, 2025

Nanosonics Limited has announced the issuance of 289,148 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme, indicating the company’s commitment to rewarding and retaining its workforce, potentially strengthening its market position and operational capabilities.

Nanosonics Director Increases Stake in Strategic Move
Sep 22, 2025

Nanosonics Limited announced a change in the director’s interest, with Gerard Dalbosco acquiring an additional 12,558 ordinary shares, increasing his total to 40,000 shares. This transaction, valued at approximately $51,231.58, reflects a strategic move in the company’s governance, potentially impacting shareholder confidence and market perception.

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.Date of analysis: Nov 28, 2025