Polynovo (PNV) AI Stock Analysis

• Market Cap: AU$701.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 53.1
• Beta (1Y): 2.13
• Revenue Growth: 23.31%
• EPS Growth: 151.32%
• Country: AU
• Employees: 282
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 690,843,000
• 10 Day Avg. Volume: 1,478,953
• 30 Day Avg. Volume: 1,476,427
• PEG Ratio: 0.41
• Price to Book (P/B): 9.95
• Price to Sales (P/S): 6.51
• P/FCF Ratio: -76.87
• 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$1.85
• Price Target Upside: 52.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: AU$1.00 ▼(-17.36% Downside)

Polynovo's overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and profitability. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The lack of dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates increasing market demand for Polynovo's products, supporting long-term business expansion and market penetration.

Gross Profit Margin

A high gross profit margin reflects effective cost management and pricing power, which can lead to stronger profitability and competitive advantage.

Balance Sheet Health

Prudent leverage management with a low debt-to-equity ratio enhances financial stability and provides flexibility for future investments.

Negative Factors

Cash Flow Management

Challenges in cash flow management can constrain the company's ability to invest in growth opportunities and meet financial obligations.

Net Profit Margin

A moderate net profit margin suggests there is room for improvement in cost control and operational efficiency to enhance overall profitability.

Cash Generation Ability

Limited cash generation from operations relative to net income indicates potential issues in converting earnings into cash, affecting liquidity.

Polynovo Business Overview & Revenue Model

Company Description

Polynovo (PNV) is a medical technology company focused on developing and commercializing innovative products for the healthcare sector, particularly in the fields of wound care and regenerative medicine. The company specializes in biodegradable polymers and its core products include the NovoSorb polymer technology, which is utilized in various applications such as dermal scaffolds, wound dressings, and advanced tissue regeneration solutions. Polynovo aims to improve patient outcomes through its cutting-edge biomedical products while addressing unmet medical needs in the market.

How the Company Makes Money

Polynovo generates revenue primarily through the sale of its medical products, particularly its NovoSorb line, which is marketed to hospitals, clinics, and healthcare providers. The company adopts a direct sales model and partners with distributors to reach a wider customer base. Key revenue streams include sales of dermal scaffolds for surgical applications, advanced wound care products, and potential licensing agreements for its technology. Additionally, Polynovo may benefit from partnerships with other medical technology firms and healthcare providers, enhancing its market presence and driving growth through collaborative efforts in research, development, and distribution.

Polynovo Financial Statement Overview

Summary

Polynovo shows strong revenue growth and profitability improvements, particularly in gross profit margins. The balance sheet is solid with manageable debt levels and improved return on equity. However, cash flow management remains a concern, with negative free cash flow growth and low cash flow ratios.

Income Statement

Polynovo has demonstrated strong revenue growth with a 10.09% increase in the latest year, indicating a positive trajectory. The gross profit margin is exceptionally high at 95.92%, showcasing efficient cost management. However, the net profit margin, while improved, remains moderate at 10.38%, suggesting room for further profitability enhancement. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.21, indicating prudent leverage management. Return on equity has improved to 15.87%, reflecting enhanced profitability for shareholders. The equity ratio is stable, suggesting a solid capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Polynovo's cash flow performance shows challenges, with a negative free cash flow growth rate of -34.06%, indicating cash flow management issues. The operating cash flow to net income ratio is low at 0.11, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is negative, highlighting a need for improved cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	127.26M	127.24M	103.19M	65.24M	41.44M	29.16M
Gross Profit	76.45M	122.05M	97.71M	19.33M	16.23M	7.83M
EBITDA	10.75M	10.45M	4.59M	-2.71M	658.24K	-3.41M
Net Income	13.21M	13.21M	5.26M	-4.92M	-1.19M	-4.61M
Balance Sheet
Total Assets	127.41M	127.41M	108.72M	92.62M	34.97M	38.34M
Cash, Cash Equivalents and Short-Term Investments	33.59M	33.59M	45.96M	46.90M	6.15M	7.74M
Total Debt	17.14M	17.14M	15.38M	16.04M	10.99M	10.00M
Total Liabilities	44.15M	44.15M	36.60M	27.24M	17.26M	15.99M
Stockholders Equity	83.26M	83.26M	72.12M	65.38M	17.72M	22.35M
Cash Flow
Free Cash Flow	-10.68M	-10.78M	786.00K	-7.46M	-2.55M	-3.82M
Operating Cash Flow	3.25M	3.15M	3.68M	-5.93M	-2.06M	-248.74K
Investing Cash Flow	-13.93M	-13.22M	-1.49M	-1.53M	5.86M	-3.57M
Financing Cash Flow	-2.39M	-2.39M	-3.17M	48.06M	-5.39M	-70.37K

Polynovo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PNV, the sentiment is Negative. The current price of 1.21 is above the 20-day moving average (MA) of 1.16, above the 50-day MA of 1.18, and below the 200-day MA of 1.27, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 25.74 is Positive, neither overbought nor oversold. The STOCH value of 4.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PNV.

Polynovo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOM	55 Neutral	AU$146.18M	-41.88	-7.26%	―	21.65%	81.40%
PNV	54 Neutral	AU$701.21M	53.14	16.49%	―	23.31%	151.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARX	49 Neutral	AU$215.65M	-130.21	-2.01%	―	16.93%	76.47%
CYC	46 Neutral	AU$130.03M	-9.69	-31.98%	―	34.20%	-23.90%
EMV	44 Neutral	AU$164.50M	-15.43	-70.55%	―	―	-257.32%
4DX	44 Neutral	AU$1.81B	-44.71	-44.49%	―	55.91%	22.60%

Polynovo Corporate Events

PolyNovo Delivers Strong 1H26 Growth, Boosts Cash and Capacity as NovoSorb Adoption Accelerates

PolyNovo reported unaudited first-half FY26 group sales of A$68.2 million, a 26% year-on-year increase driven by strong U.S. performance and rapid growth in NovoSorb MTX, while Rest of World sales also rose sharply, offsetting an expected decline in BARDA revenue as a pivotal burn trial concluded. Total revenue including BARDA reached A$70.4 million, cash flow from operations swung to a A$9.5 million inflow, and the new manufacturing facility was completed on time and budget, underpinning future capacity, as the company advances a U.S. pre-market approval submission for full-thickness burns, seeks expanded CMS reimbursement and coding for its products, and navigates evolving U.S. outpatient skin substitute policies while meeting heightened European demand following recent mass-casualty burn events.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.03 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo Appoints New Company Secretary and General Counsel

PolyNovo Limited has appointed Amy Demediuk as Company Secretary and General Counsel, effective February 2026. Ms. Demediuk brings extensive legal and compliance experience from her previous roles at CSL, enhancing PolyNovo’s leadership team as it seeks to continue its growth trajectory. Her appointment is expected to add significant value to the company’s operations and stakeholder engagement.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$1.62 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo Highlights Industry Position at Bell Potter Healthcare Conference

PolyNovo Limited presented at the Bell Potter Healthcare Conference, highlighting its position in the healthcare industry. The company is known for its innovative medical solutions, particularly in the field of advanced wound care. The presentation was intended for general information purposes and emphasized that the information provided is subject to change. PolyNovo disclaimed any liability for the accuracy or completeness of the information, and the presentation did not constitute an offer or recommendation for investment.

The most recent analyst rating on (AU:PNV) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.