NOVONIX Ltd (NVX) AI Stock Analysis

• Market Cap: AU$365.42M
• Dividend Yield: N/A
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: -12.84%
• EPS Growth: -29.62%
• Country: AU
• Employees: 200
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.23
• Shares Outstanding: 840,055,000
• 10 Day Avg. Volume: 3,416,767
• 30 Day Avg. Volume: 6,527,881
• PEG Ratio: -0.42
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 38.61
• P/FCF Ratio: -3.21
• 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: AU$0.83
• Price Target Upside: 10.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.08
• Revenue Forecast (FY): AU$9.70M

• Rating: 45 Neutral
• Price Target: AU$0.45 ▼(-39.60% Downside)

NOVONIX Ltd's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative cash flows. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest significant challenges for the company.

Positive Factors

Strategic Partnerships

Strategic partnerships can lead to joint ventures and collaborative projects, enhancing revenue potential and market reach in the energy sector.

Industry Demand

The increasing demand for electric vehicles and sustainable energy solutions supports long-term growth in NOVONIX's core markets, potentially driving revenue.

Product Offering

Offering high-purity graphite and testing solutions positions NOVONIX well in the battery industry, supporting its role in energy storage advancements.

Negative Factors

Declining Revenues

The significant decline in revenue indicates challenges in maintaining sales growth, which could impact long-term financial stability.

Negative Cash Flows

Worsening negative cash flows suggest inefficiencies in cash generation, potentially limiting the company's ability to invest in growth opportunities.

Profitability Issues

Persistent profitability issues, with negative net profit margins, highlight ongoing financial challenges that could hinder long-term viability.

NOVONIX Ltd Business Overview & Revenue Model

Company Description

Novonix Limited develops and supplies battery materials, equipment, and services to the lithium-ion battery market in North America. It operates through three segments: Graphite Exploration and Mining, Battery Technology, and Battery Materials. The Graphite Exploration and Mining segment explores for graphite in Australia. The Battery Technology segment develops battery cell testing equipment and batteries, and consulting services. The Battery Materials segment develops and manufactures battery anode materials. The company is also involved in the investment and battery testing activities. The company was formerly known as Graphitecorp Limited and changed its name to Novonix Limited in July 2017. Novonix Limited was incorporated in 2012 and is based in Brisbane, Australia.

How the Company Makes Money

NOVONIX generates revenue through multiple channels. Its primary revenue stream comes from the sale of high-purity graphite, which is used in lithium-ion batteries for electric vehicles and renewable energy storage systems. The company also earns income from its battery testing services, providing specialized testing and consulting to battery manufacturers and developers. Additionally, NOVONIX has established strategic partnerships with key players in the energy sector, which can lead to joint ventures and collaborative projects, further enhancing its revenue potential. The growing demand for electric vehicles and sustainable energy solutions significantly contributes to the company's earnings.

NOVONIX Ltd Financial Statement Overview

Summary

NOVONIX Ltd is facing financial difficulties characterized by declining revenues, persistent losses, and negative cash flows. While the balance sheet shows moderate leverage, the reduction in equity and assets, along with poor cash flow performance, suggests the company is under financial pressure. Strategic improvements in revenue generation and cost management are essential for recovery.

Income Statement

NOVONIX Ltd has faced significant challenges in its income statement. The company experienced a negative revenue growth rate over the past year, with Total Revenue dropping from $12.13 million to $5.85 million. The Gross Profit Margin improved slightly from 76.77% to 69.75%, but the Net Profit Margin remains negative, showing substantial losses. The absence of EBIT and negative EBITDA further highlight profitability issues.

Balance Sheet

The balance sheet reveals a moderate position with a Debt-to-Equity Ratio of 0.51, indicating some leverage but not excessively high. Stockholders' Equity decreased, and the Total Assets fell from $263.34 million to $226.10 million. The Equity Ratio is 60.86%, suggesting a reasonable reliance on equity over liabilities. However, the decline in equity and assets raises concerns.

Cash Flow

Cash flow analysis shows negative Free Cash Flow growth, with Free Cash Flow dropping from -$55.42 million to -$70.32 million. Operating Cash Flow is negative and worsening, and both the Operating Cash Flow to Net Income Ratio and Free Cash Flow to Net Income Ratio indicate inefficiencies in cash generation relative to income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.85M	8.05M	3.69M	6.10M	5.23M
Gross Profit	4.08M	5.24M	-20.63M	4.38M	-3.28M
EBITDA	-66.61M	-38.86M	-33.28M	-46.18M	-12.04M
Net Income	-74.82M	-46.25M	-38.08M	-51.86M	-13.45M
Balance Sheet
Total Assets	226.10M	263.34M	189.59M	302.98M	202.86M
Cash, Cash Equivalents and Short-Term Investments	42.56M	78.63M	73.93M	142.74M	136.66M
Total Debt	70.42M	132.83M	40.37M	41.41M	10.27M
Total Liabilities	88.51M	83.74M	51.37M	51.85M	24.68M
Stockholders Equity	137.59M	183.94M	151.39M	251.13M	178.18M
Cash Flow
Free Cash Flow	-70.32M	-55.42M	-29.65M	-113.02M	-25.66M
Operating Cash Flow	-40.42M	-36.23M	-12.89M	-29.23M	-6.09M
Investing Cash Flow	-18.17M	-11.74M	-16.10M	-106.80M	-19.68M
Financing Cash Flow	25.21M	29.31M	-531.57K	180.69M	103.77M

NOVONIX Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NVX, the sentiment is Negative. The current price of 0.75 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.56, and above the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 23.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NVX.

NOVONIX Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGI	66 Neutral	AU$93.64M	27.38	12.33%	0.83%	24.67%	96.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VEE	57 Neutral	AU$195.61M	60.36	5.66%	1.32%	-14.88%	-56.89%
NVX	45 Neutral	AU$365.42M	―	-45.24%	―	-12.84%	-29.62%
LIS	40 Underperform	AU$96.03M	-14.85	-16.49%	―	―	-40.28%

NOVONIX Ltd Corporate Events

NOVONIX Announces Issuance of Performance Rights

NOVONIX Limited has announced the issuance of 489,818 performance rights under an employee incentive scheme. These unquoted securities are not intended to be listed on the ASX, reflecting the company’s strategy to incentivize its workforce and potentially align employee interests with corporate goals.

NOVONIX Ltd Strengthens Market Position with Key Developments and Strategic Funding

NOVONIX Ltd has achieved significant milestones, including delivering its first mass production sample of synthetic graphite and completing the installation of mass production equipment for Panasonic. The company has also been selected for a grant from Natural Resources Canada and has been advancing its patented cathode technology. Additionally, NOVONIX has secured substantial funding through convertible debentures with Yorkville Advisors, completed strategic sales, and made key executive appointments, positioning itself strongly in the battery materials market.

NOVONIX Achieves Major Milestone in Synthetic Graphite Production

NOVONIX Limited has achieved a significant operational milestone by delivering its first mass production, commercial-grade sample of synthetic graphite for industrial applications to a major North American carbon processor. This accomplishment demonstrates the capability of NOVONIX’s proprietary continuous graphitization furnace technology to produce industrial-grade products at scale. The Riverside facility is set to become the first large-scale production site for high-performance synthetic graphite in North America, with mass production starting next year for Panasonic. The company plans to expand its production capacity with a second plant in Chattanooga, aiming for a total capacity of over 50,000 tonnes per year, which will enhance its market positioning and meet growing customer demand.

NOVONIX Ltd Announces Quotation of New Securities on ASX

NOVONIX Ltd has announced the quotation of 3,552,225 fully paid ordinary securities on the Australian Securities Exchange (ASX), effective from September 25, 2025. This move is part of the company’s efforts to enhance its market presence and provide liquidity to its stakeholders, potentially impacting its financial standing and market positioning positively.

NOVONIX Sells Mt Dromedary Project to Focus on Synthetic Graphite Expansion

NOVONIX Ltd announced the sale of its Mt Dromedary Natural Graphite Project to focus on synthetic graphite production, a key component in lithium-ion batteries. This strategic move aligns with their expansion plans in Chattanooga, Tennessee, where they aim to establish a domestic supply chain for synthetic graphite, enhancing their market position in North America. The sale is expected to streamline operations and support the company’s goal of becoming a leading supplier of synthetic graphite for the battery, defense, and industrial sectors.

NOVONIX Ltd Director Alters Shareholding in Strategic Move

NOVONIX Ltd has announced a change in the director’s interest, specifically involving Nicholas Liveris, who has disposed of 100,000 ordinary shares through an on-market trade. This transaction, valued at $46,000, reduces his holding to 494,681 ordinary shares while maintaining 164,409 share rights. Such changes in shareholding can influence investor perceptions and reflect strategic financial decisions by company executives.

NOVONIX Ltd Announces Quotation of New Securities on ASX

NOVONIX Ltd has announced the quotation of 60,413 ordinary fully paid securities on the Australian Securities Exchange (ASX), effective from September 24, 2025. This move is part of the company’s ongoing efforts to enhance its market presence and provide value to its stakeholders by leveraging opportunities in the energy storage sector.

NOVONIX Secures Funding Through Convertible Debentures

NOVONIX Ltd has announced the issuance of its second and additional tranches of convertible debentures, following shareholder approval. This move is part of a funding agreement with Yorkville Advisors Global, LP, aimed at raising up to US$57 million to support the company’s operations and strategic initiatives. The issuance allows for the conversion of these debentures into ordinary shares, which can be sold to retail investors, potentially enhancing the company’s liquidity and market presence. The funding is expected to bolster NOVONIX’s financial position and support its growth in the competitive battery materials industry.

NOVONIX Ltd Issues 75.5 Million Unquoted Convertible Debentures

NOVONIX Ltd announced the issuance of 75,500,000 unquoted convertible debentures as part of previously disclosed transactions. This strategic move is expected to enhance the company’s financial flexibility, potentially impacting its operational capabilities and market positioning in the competitive battery materials industry.

NOVONIX Secures Shareholder Approval for Financial Resolutions at EGM

NOVONIX Limited announced the results of its Extraordinary General Meeting, where all resolutions were passed by poll. The meeting included the ratification and approval of various tranches of convertible debentures and interest equity shares, indicating strong shareholder support for the company’s financial strategies. This outcome reinforces NOVONIX’s strategic positioning in the battery technology sector, potentially enhancing its operational capabilities and market influence.