Polynovo (PNV) AI Stock Analysis

• Market Cap: $815.19M
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 137.2
• Beta (1Y): 2.44
• Revenue Growth: 39.19%
• EPS Growth: 273.91%
• Country: AU
• Employees: 282
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 690,843,000
• 10 Day Avg. Volume: 2,005,797
• 30 Day Avg. Volume: 2,054,516
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 12.24
• Enterprise Value/Gross Profit: 19.42
• Enterprise Value/Ebitda: 150.73
• 1Y Price Target: $1.82
• Price Target Upside: 53.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: AU$1.50 ▲(27.12% Upside)

Polynovo Limited's strong financial performance is a key strength, driven by substantial revenue growth and profitability. However, the high P/E ratio indicates overvaluation, which significantly impacts the overall score. Technical indicators show modest momentum, but without strong directional signals. The absence of dividend yield and neutral technical indicators also weigh on the score.

Polynovo Business Overview & Revenue Model

Company Description

PolyNovo Limited develops medical devices in the United States, Australia, New Zealand, the United Kingdom, Ireland, Singapore, and internationally. The company offers NovoSorb Biodegradable Temporising Matrix, which is used in a fully debrided clean surgical wound to physiologically close the wound. It is also developing hernia devices for hernia repair and tissue reinforcement products; NovoSorb Dermal Beta Cell Implant to host pancreatic islets in the skin; and NovoSorb drug elution depots. The company was formerly known as Calzada Limited and changed its name to PolyNovo Limited in November 2014. PolyNovo Limited was incorporated in 1998 and is headquartered in Port Melbourne, Australia.

How the Company Makes Money

PolyNovo makes money primarily through the sale of its NovoSorb technology-based products. The company's revenue model is centered on manufacturing and distributing its proprietary medical devices to hospitals, clinics, and healthcare professionals globally. Key revenue streams include the sale of NovoSorb BTM (Biodegradable Temporizing Matrix), which is used for dermal regeneration in complex wound treatments. PolyNovo also establishes partnerships and distribution agreements with healthcare providers and medical distributors to expand its market reach and enhance product accessibility. Additionally, the company may engage in research collaborations and licensing agreements to further capitalize on its proprietary polymer technology, contributing to its earnings.

Polynovo Financial Statement Overview

Summary

Polynovo Limited exhibits promising financial growth with strong revenue increase and a return to profitability. The company maintains a solid equity position and improved cash flow metrics, although there is room for better operational efficiencies and conversion of net income to cash flow.

Income Statement

Polynovo Limited has shown strong revenue growth with a notable increase from $65.24M in 2023 to $103.19M in 2024. The company turned profitable with a net income of $5.26M in 2024, demonstrating a positive net profit margin. The gross profit margin improved significantly, indicative of better cost management. However, the EBIT and EBITDA margins, although improved, remain relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a solid equity position with a strong equity ratio of approximately 66.36% in 2024, which indicates financial stability. The debt-to-equity ratio decreased over the years, reflecting prudent financial management. However, the return on equity is moderate, suggesting that while the company is financially stable, it could improve its efficiency in generating profits from its equity base.

Cash Flow

Polynovo's cash flow situation has improved, with a positive operating cash flow of $3.68M in 2024 compared to negative figures in previous years. Free cash flow turned positive, indicating better cash management. However, the free cash flow to net income ratio is relatively low, suggesting that the conversion of net income to free cash flow could be enhanced.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	103.19M	65.24M	41.44M	29.16M	22.16M
Gross Profit	97.71M	19.33M	16.23M	7.83M	5.01M
EBITDA	4.05M	-2.71M	658.24K	-3.41M	-3.27M
Net Income	5.26M	-4.92M	-1.19M	-4.61M	-4.19M
Balance Sheet
Total Assets	108.72M	92.62M	34.97M	38.34M	37.86M
Cash, Cash Equivalents and Short-Term Investments	45.96M	46.90M	6.15M	7.74M	11.70M
Total Debt	15.38M	16.04M	10.99M	10.00M	10.03M
Total Liabilities	36.60M	27.24M	17.26M	15.99M	14.04M
Stockholders Equity	72.12M	65.38M	17.72M	22.35M	23.81M
Cash Flow
Free Cash Flow	786.00K	-7.46M	-2.55M	-3.82M	-9.27M
Operating Cash Flow	3.68M	-5.93M	-2.06M	-248.74K	-402.56K
Investing Cash Flow	-1.49M	-1.53M	5.86M	-3.57M	-8.87M
Financing Cash Flow	-3.17M	48.06M	-5.39M	-70.37K	7.03M

Polynovo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1.18 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.21, and below the 200-day MA of 1.58, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 15.01 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
Sector *	62 Neutral	€1.85B	21.43	10.06%	2.08%	7.83%	13.92%
PNV	59 Neutral	$815.19M	137.21	8.30%	―	39.19%	273.91%
SOMNF	―	$99.92M	―	-15.86%	―	―	―
ARX	63 Neutral	AU$217.37M	―	-4.06%	―	20.36%	64.81%
4DX	52 Neutral	AU$246.74M	―	-52.37%	―	471.29%	-4.58%
EMV	46 Neutral	AU$145.81M	―	-58.61%	―	―	-74.88%
CYC	44 Neutral	AU$114.47M	―	-35.20%	―	4.68%	-155.42%

Polynovo Corporate Events

PolyNovo Reports Strong Financial Growth in FY25

PolyNovo Limited has reported a significant increase in cash holdings and operational cash flow for FY25, with a notable rise in group sales by 28.9% compared to the previous year. The company anticipates continued profit momentum into FY26, driven by strong sales growth in the U.S. and other international markets, alongside strategic investments in new manufacturing and R&D facilities.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.85 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo’s NovoSorb BTM Achieves Breakthrough in Islet Cell Transplant

PolyNovo announced a special briefing featuring Professor Toby Coates, who successfully used PolyNovo’s NovoSorb BTM in a groundbreaking islet cell transplant for a Type 1 diabetic patient. This development highlights NovoSorb’s versatility and potential to enter new markets, reinforcing PolyNovo’s innovative position in the medical technology industry.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo’s NovoSorb Expands into Islet Cell Transplant Market

PolyNovo announced a special briefing hosted by Bell Potter featuring Professor Toby Coates, who successfully used PolyNovo’s NovoSorb in a pancreatic islet transplant for a long-term Type 1 diabetic. This marks a new market entry for NovoSorb, showcasing its versatility and potential impact on the medical field, particularly in islet cell transplantation.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

Polynovo Announces Changes in Shareholder Structure

Polynovo Limited has announced a significant change in its shareholder structure, with various entities, including State Street Bank and Trust Company and its subsidiaries, becoming substantial holders. This development indicates a shift in the company’s ownership dynamics, potentially impacting its strategic decisions and market positioning. The involvement of major financial institutions as substantial holders could influence Polynovo’s future operations and stakeholder engagements.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo Releases May 2025 Investor Update Webcast Recording

PolyNovo has released a recording of its May 2025 Investor Update Webcast for shareholders and interested parties who missed the live event. This announcement underscores PolyNovo’s commitment to transparency and stakeholder engagement, potentially strengthening its market position and investor relations.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo’s NovoSorb BTM Shows Breakthrough Results in Type 1 Diabetes Cell Therapy

PolyNovo announced positive results from a ‘first in human’ study using its NovoSorb BTM technology for cell therapies in treating Type 1 diabetes. The study, presented by Professor Toby Coates, demonstrated the survival and function of human pancreatic islets transplanted into a new site within the skin, offering a promising alternative to the current standard of care. This breakthrough suggests significant potential for NovoSorb in the cell therapy market, potentially creating a new business segment for PolyNovo. The company is in discussions to accelerate research and development in this space, which is projected to reach USD $34 billion by 2034.

The most recent analyst rating on (AU:PNV) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Polynovo stock, see the AU:PNV Stock Forecast page.

PolyNovo Secures TGA Clearance for NovoSorb MTX in Australia

PolyNovo Limited has achieved a significant commercial milestone with the Therapeutic Goods Administration (TGA) clearance of its NovoSorb MTX (4 mm and 6 mm) products in Australia. This clearance allows the products to be marketed and sold, providing healthcare professionals with versatile options for managing soft tissue defects. The NovoSorb MTX is designed to support natural wound healing, particularly for highly exudative wounds or those with uneven wound beds, and addresses clinician demand for products without a sealing membrane. This development enhances PolyNovo’s industry positioning by expanding its product offerings and meeting the needs of plastic surgeons and other healthcare providers.

PolyNovo Highlights Strategic Focus at Macquarie Australia Conference

PolyNovo Limited’s presentation at the Macquarie Australia Conference highlights the company’s ongoing commitment to innovation in wound care technology. While the presentation includes forward-looking statements subject to change, it underscores the company’s strategic focus on expanding its market presence and enhancing its product offerings, which could have significant implications for its stakeholders.