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Novatti Group Ltd. (AU:NOV)
ASX:NOV

Novatti Group (NOV) AI Stock Analysis

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AU

Novatti Group

(Sydney:NOV)

Rating:41Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
The stock score is primarily impacted by Novatti Group's poor financial performance, marked by persistent losses and negative equity. Technical analysis provides a slight offset with mixed signals, while valuation remains challenging due to negative earnings and no dividend yield.

Novatti Group (NOV) vs. iShares MSCI Australia ETF (EWA)

Novatti Group Business Overview & Revenue Model

Company DescriptionNovatti Group Ltd. (NOV) is a leading digital payments company based in Australia, specializing in innovative financial technology solutions. The company operates across various sectors, including payment processing, transactional services, and financial technology development. Novatti's core products and services include mobile payments, digital wallets, and remittance services, catering to businesses and consumers seeking efficient and secure financial transaction solutions.
How the Company Makes MoneyNovatti Group Ltd. generates revenue through multiple streams primarily focused on its digital payments and financial technology services. The company earns income by facilitating payment processing services for businesses, charging transaction fees for domestic and international money transfers, and offering digital wallet solutions. Additionally, Novatti partners with various financial institutions and telecommunication companies to expand its service offerings, thereby enhancing its market reach and revenue potential. The company also licenses its financial technology platforms to other businesses, creating another significant revenue source. Strategic collaborations and a diverse range of financial products contribute to Novatti's earnings growth.

Novatti Group Financial Statement Overview

Summary
Novatti Group Ltd. faces significant financial challenges. Despite a 10.04% revenue growth, the company experiences consistent losses, negative equity, and poor cash flow performance. Cash reserves provide temporary relief, but long-term viability requires improved operational efficiency.
Income Statement
30
Negative
Novatti Group's income statement indicates a challenging financial position, with consistent negative gross profit and net income over the years. The gross profit margin is nonexistent due to negative gross profit, and the net profit margin is deeply negative, reflecting consistent losses. The revenue growth rate is the only positive aspect, showing a growth of 10.04% from 2023 to 2024. Despite revenue growth, profitability remains a significant issue, with negative EBIT and EBITDA margins indicating operational inefficiencies.
Balance Sheet
25
Negative
The balance sheet shows concerning financial stability, with negative stockholders' equity in 2024 indicating insolvency risks. The debt-to-equity ratio is irrelevant due to negative equity, and the equity ratio is negative, suggesting a higher proportion of liabilities relative to assets. The return on equity is also negative, consistent with the company's ongoing losses. The company holds substantial cash reserves, which may provide some operational buffer.
Cash Flow
40
Negative
Cash flow analysis highlights operational challenges, with negative operating cash flow in 2024 indicating insufficient cash generation from core activities. Free cash flow is also negative, but the operating cash flow to net income ratio suggests some efficiency in converting revenue into cash compared to net losses. Financing activities have supported cash flow, yet the reliance on external funding could pose long-term sustainability risks.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
47.70M42.90M38.98M32.55M16.48M11.00M
Gross Profit
-2.26M-7.92M-14.49M-16.95M-5.87M-4.27M
EBIT
-10.21M-16.14M-25.53M-22.16M-9.69M-6.50M
EBITDA
-5.72M-13.85M-22.67M-14.05M-8.87M-8.66M
Net Income Common Stockholders
-8.89M-20.16M-26.31M-16.63M-11.81M-10.96M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.25M98.61M110.66M58.50M47.82M20.61M
Total Assets
101.26M123.86M145.63M111.00M63.79M32.84M
Total Debt
2.80M3.42M12.35M2.40M7.13M8.12M
Net Debt
-3.45M-1.79M-98.31M-56.10M-40.69M-11.93M
Total Liabilities
99.51M123.62M130.16M74.35M54.89M33.33M
Stockholders Equity
1.00M-4.57M12.61M36.64M6.93M-485.56K
Cash FlowFree Cash Flow
-14.72M-13.44M1.00M-13.51M-6.06M-2.43M
Operating Cash Flow
-14.63M-13.43M1.39M-13.03M-5.64M-1.24M
Investing Cash Flow
-2.15M8.73M-1.96M-26.68M-2.64M-1.53M
Financing Cash Flow
12.71M-3.40M12.91M36.59M14.59M3.74M

Novatti Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.52
Neutral
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NOV, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NOV.

Novatti Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.08-7.46%2.99%7.37%-8.21%
AUWHK
46
Neutral
AU$9.64M
16.26%62.58%
AUQFE
41
Neutral
AU$16.54M-37.01%32.38%69.11%
AUNOV
41
Neutral
$12.50M-1494.40%17.53%58.35%
AUNET
36
Underperform
AU$11.64M-347.17%-5.53%-50.00%
AUPIL
21
Underperform
AU$4.55M-1051.45%205.01%-28.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NOV
Novatti Group
0.02
-0.02
-43.90%
AU:NET
NetLinkz Ltd.
0.01
0.00
0.00%
AU:QFE
QuickFee Ltd.
0.05
-0.02
-28.57%
AU:PIL
Peppermint Innovation Limited
0.01
0.00
0.00%
AU:WHK
WhiteHawk Ltd.
0.01
0.00
0.00%

Novatti Group Corporate Events

Novatti Group Expands Market Presence with New Securities Quotation
May 29, 2025

Novatti Group Limited has announced the quotation of 74,957 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of May 29, 2025. This move is part of the company’s strategy to enhance its market presence and provide more liquidity options for its stakeholders, potentially strengthening its position in the financial technology sector.

Novatti Group Announces CFO Resignation and Interim Appointment
May 12, 2025

Novatti Group Limited announced the resignation of its Chief Financial Officer, Ms. Dharsh Mendez, and the interim appointment of Mr. Hayden Vowell. With extensive experience in high-growth technology sectors, Mr. Vowell is expected to contribute significantly to Novatti’s growth strategy, as evidenced by their recent 18% year-on-year revenue increase in Q3 FY25.

Novatti Group Announces Resignation of Joint Company Secretary
May 8, 2025

Novatti Group Limited announced the resignation of Mr. Ian Hoson as Joint Company Secretary, effective May 8, 2025. Mr. Steven Stamboultgis will continue as the sole Company Secretary, maintaining communication responsibilities with the ASX. This change in leadership may impact the company’s administrative operations but ensures continuity in compliance and communication with the stock exchange.

Novatti Group Announces Quotation of New Securities on ASX
May 2, 2025

Novatti Group Limited has announced the application for the quotation of 308,062 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to enhance its financial standing and operational capabilities, potentially impacting its market position and offering new opportunities for stakeholders.

Novatti Group Releases March Quarter FY25 Activities Update
Apr 30, 2025

Novatti Group Limited has released its March Quarter FY25 activities update, highlighting its operational progress and strategic initiatives. The update provides insights into the company’s performance and market positioning, emphasizing its commitment to growth and adaptation in the competitive fintech landscape.

Novatti Group Achieves Positive Cash EBITDA and Record Revenue in Q3 FY25
Apr 30, 2025

Novatti Group Limited announced a significant milestone in its turnaround strategy by achieving a positive cash EBITDA of $100k for Q3 FY25. The company reported record quarterly revenue of $13.4 million, an 18% year-over-year increase, and improved margins in its core Payments AU/NZ business. The brand refresh has begun generating new inbound leads, and the company is focusing on securing larger commercial opportunities to drive growth.

Novatti Group Expands Market Presence with New Securities Quotation
Apr 10, 2025

Novatti Group Ltd. announced the quotation of 1,014,456 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of April 10, 2025. This move is part of the company’s efforts to strengthen its market presence and provide more opportunities for stakeholders by expanding its financial capabilities through the issuance of new securities.

Novatti Group Ltd. Announces Quotation of New Securities on ASX
Apr 4, 2025

Novatti Group Ltd. announced the quotation of 877,297 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of April 4, 2025. This move is part of the company’s strategy to enhance its market presence and provide liquidity to its stakeholders, potentially impacting its operational capabilities and industry positioning positively.

Novatti Group Announces Cessation of Securities
Apr 1, 2025

Novatti Group Limited announced the cessation of certain securities due to unmet conditions, affecting a total of 8,522,727 options. This development may impact the company’s financial structuring and stakeholder interests, as the lapse of these options reflects on the company’s ability to meet certain operational or financial milestones.

Novatti Group Expands Shareholder Options with New Issuance
Apr 1, 2025

Novatti Group Limited has issued 14,465,950 listed options to acquire fully paid ordinary shares, set to expire on December 31, 2027, with an exercise price of $0.064 each. This strategic move, executed without a prospectus, highlights Novatti’s compliance with relevant legal provisions and indicates a potential expansion in its shareholder base, which could enhance its market positioning and operational capabilities.

Novatti Group Ltd. Announces New Securities Quotation
Apr 1, 2025

Novatti Group Ltd. has announced the application for quotation of new securities, specifically options expiring on December 31, 2027. These options are being offered as compensation for corporate advisory services provided during the 2024 calendar year, indicating a strategic move to strengthen its financial position and reward service providers.

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.