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Next Science Ltd (AU:NXS)
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Next Science Ltd (NXS) AI Stock Analysis

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AU

Next Science Ltd

(Sydney:NXS)

Rating:47Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
Next Science Ltd's financial performance is the most significant factor impacting the overall score, driven by persistent losses and negative cash flows. The technical analysis suggests a strong market momentum, but the valuation remains weak due to a negative P/E ratio. The absence of earnings call and corporate events data limits additional insights.

Next Science Ltd (NXS) vs. iShares MSCI Australia ETF (EWA)

Next Science Ltd Business Overview & Revenue Model

Company DescriptionNext Science Ltd (NXS) is a medical technology company focused on the development and commercialization of innovative solutions for the treatment of biofilm-based infections. Operating within the healthcare sector, the company's proprietary technology targets the protective biofilm matrix that shields bacteria, thus enhancing the effectiveness of antibiotics and reducing the recurrence of infections. Next Science's core products include wound care solutions, surgical washes, and sinus rinses, all designed to address a wide range of bacterial infections across various medical fields.
How the Company Makes MoneyNext Science Ltd generates revenue primarily through the sale of its medical products designed to treat and prevent biofilm-based infections. The company's revenue streams include direct sales to healthcare providers, hospitals, and clinics, as well as distribution partnerships with medical supply companies. Additionally, Next Science may engage in licensing agreements or collaborations with pharmaceutical companies to expand the reach of its technology. The company's earnings are significantly influenced by its ability to effectively market its products, navigate regulatory requirements, and establish strategic partnerships that enhance product distribution and adoption within the healthcare industry.

Next Science Ltd Earnings Call Summary

Earnings Call Date:Feb 27, 2025
(Q2-2024)
|
% Change Since: 33.33%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in the Surgical business and improved gross margins, but these were offset by declines in DME and BLASTX sales due to sales force restructuring. The company remains optimistic by reaffirming revenue guidance and implementing strategic changes. However, the establishment of a loan facility indicates caution. Overall, the sentiment leans towards optimism but with notable areas of concern.
Q2-2024 Updates
Positive Updates
Surgical Business Growth
Direct sales of XPERIENCE increased by 72% over the prior period and 25% over the first quarter of 2024.
Improved Gross Margin
The company's gross margin increased to 80% in Q2, up from 69% in the second quarter of 2023, reflecting a continued focus on revenue quality.
Cash Position and Cost Management
Cash receipts for the quarter were USD 6 million, up 11% compared to Q1 2024. Net operating cash outflows decreased to USD 1.3 million from USD 3.7 million in the previous quarter.
Expansion of Payers
Next Science onboarded over 120 payers for the DME business, including private and government payers such as Medicare and Medicaid.
FY '24 Revenue Guidance Reaffirmed
The company reaffirmed its FY '24 revenue guidance of USD 36 million to USD 40 million and expects to be EBITDA and cash flow positive in the second half of FY '24.
Negative Updates
Decline in DME Sales
DME sales were down by 22% over the prior period, attributed to sales force restructuring disruptions.
BLASTX Direct Sales Decline
Direct sales of BLASTX fell by 6% over the same time period, also impacted by the sales restructure.
Need for Loan Facility
A USD 5 million unsecured loan facility was established with Thorney Investment Group as a precautionary measure, indicating potential financial uncertainty.
Company Guidance
During the Q2 2024 earnings call for Next Science, the management team provided guidance, projecting FY '24 revenue between USD 36 million to USD 40 million, and reaffirmed expectations to achieve EBITDA and cash flow positivity in the second half of the fiscal year. The company reported Q2 product sales of USD 5.8 million, marking a 5% increase over the prior period, with direct channel product sales contributing USD 4.4 million, accounting for 76% of the total. Despite a 22% decline in DME sales and a 6% drop in BLASTX direct sales due to a sales force restructuring, the Surgical business saw a 72% increase in direct sales of XPERIENCE. The quarter ended with a gross margin of 80%, surpassing the previous year's 69%, supported by an increase in payers to over 120. Cash receipts rose by 11% from Q1 to USD 6 million, with net operating cash outflows reduced to USD 1.3 million. The company aims to leverage the growing body of clinical evidence and broader healthcare site access to drive future growth.

Next Science Ltd Financial Statement Overview

Summary
Next Science Ltd is experiencing financial difficulties with persistent losses and negative cash flows. Despite modest revenue growth, the company faces severe challenges in profitability and cash flow management. The balance sheet reveals moderate leverage but declining equity.
Income Statement
40
Negative
Next Science Ltd has experienced growth in revenue from 2023 to 2024, with a revenue growth rate of 2.87%. However, the company is facing significant challenges in profitability as indicated by negative EBIT and EBITDA margins. The net profit margin remains negative, highlighting ongoing losses and indicating the company is struggling to cover its operational costs.
Balance Sheet
30
Negative
The balance sheet reveals a strained financial position with a debt-to-equity ratio of 0.72, suggesting moderate leverage but reduced equity base. The return on equity is deeply negative at -307.61%, reflecting substantial losses relative to shareholder equity. The equity ratio stands at 37.37%, indicating a relatively balanced capital structure but a decline from previous years.
Cash Flow
35
Negative
Next Science Ltd's cash flow indicates operational challenges with negative operating and free cash flows. The free cash flow to net income ratio is negative, showing cash outflows persist. There is no positive cash flow growth, implying potential liquidity issues and limited cash generation capability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.82M22.18M16.90M
Gross Profit18.44M16.23M11.90M
EBITDA-9.03M-14.42M-17.02M-13.18M
Net Income-10.59M-24.51M-18.30M-13.27M
Balance Sheet
Total Assets9.21M17.90M18.37M13.67M23.49M
Cash, Cash Equivalents and Short-Term Investments1.67M9.28M7.54M15.24M
Total Debt2.49M961.97K1.80M
Total Liabilities5.77M5.08M6.52M
Stockholders Equity3.44M12.82M11.85M10.73M18.80M
Cash Flow
Free Cash Flow-8.55M-15.94M-17.69M-14.03M
Operating Cash Flow-7.96M-15.06M-17.01M-13.26M
Investing Cash Flow-589.22K-884.50K-686.23K
Financing Cash Flow1.75M20.11M14.78M11.93M

Next Science Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.14
Price Trends
50DMA
0.09
Positive
100DMA
0.10
Positive
200DMA
0.12
Positive
Market Momentum
MACD
0.02
Negative
RSI
71.03
Negative
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NXS, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.09, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NXS.

Next Science Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUVIT
58
Neutral
AU$45.03M20.004.85%5.76%-79.76%
AUAGH
53
Neutral
AU$24.68M-218.38%-14.30%29.69%
52
Neutral
$7.36B-0.07-63.77%2.36%16.35%0.03%
AUNXS
47
Neutral
AU$40.97M-130.18%3.37%47.32%
AUIDT
46
Neutral
AU$40.03M-19.31%72.25%43.66%
AUMVP
41
Neutral
AU$73.79M-45.40%13.61%-55.12%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NXS
Next Science Ltd
0.14
-0.13
-47.17%
AU:MVP
Medical Developments International Limited
0.66
0.20
43.48%
AU:AGH
Althea Group Holdings Ltd.
0.03
<0.01
50.00%
AU:IDT
IDT Australia Limited
0.10
-0.03
-23.08%
AU:VIT
Cronos Australia Ltd.
0.07
-0.03
-30.00%

Next Science Ltd Corporate Events

Next Science Ltd Updates Director’s Shareholding
Jul 14, 2025

Next Science Limited announced a change in the director’s interest, with Managing Director Harry Thomas Hall, IV acquiring 465,131 ordinary fully paid shares as part of an equity settlement. This change reflects the issuance of new shares in settlement of tranche 2 of the Sign-On Rights, approved by shareholders at the company’s 2024 AGM, indicating a strategic move to align executive interests with company performance.

The most recent analyst rating on (AU:NXS) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on Next Science Ltd stock, see the AU:NXS Stock Forecast page.

Next Science Ltd Issues Shares to CEO as Part of Compensation Package
Jul 14, 2025

Next Science Ltd has issued 465,131 ordinary shares to its Managing Director and CEO, I.V. Hall, as part of the settlement for tranche 2 of the Sign-On Rights. This issuance was conducted without disclosure to investors under the Corporations Act, and the company confirms compliance with relevant legal provisions, indicating a transparent and regulated approach to executive compensation.

The most recent analyst rating on (AU:NXS) stock is a Buy with a A$0.40 price target. To see the full list of analyst forecasts on Next Science Ltd stock, see the AU:NXS Stock Forecast page.

Next Science Limited Announces Successful 2025 AGM Results
May 9, 2025

Next Science Limited announced that all resolutions were passed at its 2025 Annual General Meeting, as determined by a poll. This successful meeting outcome reflects positively on the company’s governance and may reinforce stakeholder confidence, potentially impacting its market positioning favorably.

Next Science Reports Operational Milestones and Strategic Growth in 2024
May 9, 2025

Next Science Limited held its 2025 Annual General Meeting, where the Chair and CEO highlighted significant operational improvements and strategic advancements made in 2024. The company reduced its cash burn by US$7 million, improved margins, and achieved cash flow positivity for two non-consecutive months. With a US$5 million loan facility secured, Next Science is well-positioned for future growth. Clinical research published in 2024 demonstrated the effectiveness of its products, BLASTX and XPERIENCE, in reducing infections and inflammation, contributing to lower healthcare costs. The company also continued its large-scale study on periprosthetic joint infections, enrolling 1,220 patients by the end of 2024. Despite a decline in the Durable Medical Equipment channel, Next Science achieved record revenue of US$22.8 million, driven by strong direct and partner sales.

Next Science’s Derivative Complaint Dismissed Amid Ongoing Litigation
May 4, 2025

Next Science Limited announced that a derivative complaint filed by Michael Morello in Florida’s Duval County Court has been dismissed due to lack of standing. However, the litigation initiated by Next Science LLC against Mr. Morello and other former employees for breach of post-employment restraints is still ongoing, indicating continued legal proceedings that may impact the company’s operations and stakeholder interests.

Next Science Ltd Announces Cessation of Securities
May 2, 2025

Next Science Ltd announced the cessation of 250,000 securities due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could influence investor perceptions, although the specific implications for stakeholders were not detailed in the release.

Next Science Reports Q1 FY25 Sales Decline Amid FDA Compliance Efforts
Apr 23, 2025

Next Science Limited reported a slight decline in product sales for the first quarter of FY25, with total sales of US$5.3 million, a 3% decrease from the prior corresponding period. Despite a significant increase in direct sales of XPERIENCE and BLASTX products, the overall sales were impacted by a decline in Durable Medical Equipment (DME) sales. The company maintained a strong gross margin of 84%, attributed to a favorable product mix. Additionally, Next Science addressed an FDA Warning Letter, ensuring that their products remain safe and effective for their intended uses, and continued to focus on achieving a positive cash flow position.

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: Jul 03, 2025