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Novacyt (FR:ALNOV)
:ALNOV
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Novacyt
(ALNOV)
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Rating:44Neutral
Price Target:
€0.43
▲(6.75% Upside)
The score is primarily held back by weak financial performance (ongoing losses and negative cash flow), with only early improvement signals (revenue and free cash flow trending better) providing support. Technicals are mixed and do not yet confirm a sustained uptrend, while valuation remains unattractive due to continued unprofitability and no dividend support.
Positive Factors
Recurring consumable revenue
Novacyt's core revenue model is driven by per-test consumables (PCR/qPCR assay kits and reagents), creating recurring demand and customer stickiness. This structural revenue stream supports predictable mid-term cash flows and makes top-line more durable versus one-off sales.
Recent revenue and FCF improvement
Material year-over-year revenue and free cash flow improvements indicate operational recovery and better cash conversion. If sustained, these trends reduce refinancing risk and provide resources for R&D and commercial expansion, improving the company’s structural financial position.
Low financial leverage
Low leverage and a solid equity ratio provide financial flexibility to fund inventory, tender participation, and product development without immediate refinancing. This balance sheet strength cushions operational volatility and supports strategic investments over the medium term.
Negative Factors
Persistent unprofitability
Sustained net losses and negative operating cash flow erode equity and limit internal funding for growth. Over months this forces reliance on external capital, increasing dilution or financing costs, and constrains the company’s ability to scale commercial operations and R&D sustainably.
Very low gross margin
An exceptionally low gross margin implies structural cost or pricing pressure in core assay lines, limiting operating leverage. Persistently thin margins hamper ability to fund SG&A and innovation from operations, making long-term profitability dependent on meaningful margin improvement.
Eroding balance-sheet base
Declining assets and shareholders' equity signal capital erosion from losses or write-downs. This reduces the company’s buffer against shocks, may constrain borrowing capacity, and increases the probability of future equity raises, affecting strategic optionality over the medium term.
Novacyt (ALNOV) vs. iShares MSCI France ETF (EWQ)
Market Cap
€28.96M
Dividend YieldN/A
Average Volume (3M)141.10K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth5.10%
EPS Growth17.34%
CountryFR
Employees234
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.11
Shares Outstanding70,626,250
10 Day Avg. Volume69,615
30 Day Avg. Volume141,103
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.73
Price to Sales (P/S)1.79
P/FCF Ratio-3.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Novacyt Business Overview & Revenue Model
Company DescriptionNovacyt S.A., together with its subsidiaries, engages in the development, manufacture, contract design, and commercialization of diagnostic products for cancer and infectious diseases in the United Kingdom, rest of Europe, the United States, the Asia Pacific, the Middle East, and Africa. It operates through Primer Design, Lab21 Products, and IT-IS International. The Primer Design segment designs, manufactures, and markets molecular real-time qPCR testing devices and reagents in the areas of infectious diseases. The Lab21 Products segment develops, manufactures, and distributes a range of protein-based infectious disease in-vitro diagnostic device (IVD) products. The IT-IS International segment develops and manufactures PCR devices for the life sciences and food testing industry. It serves hospitals and corporates. The company was incorporated in 2006 and is based in Vélizy-Villacoublay, France.
How the Company Makes MoneyNovacyt generates revenue primarily through the sale of its diagnostic products, including molecular and immunodiagnostic tests. The company has established significant revenue streams from the demand for COVID-19 testing solutions, which have been a major contributor to its earnings during the pandemic. Additionally, Novacyt partners with various healthcare organizations, laboratories, and distributors to expand its market reach and enhance its product offerings. These partnerships often involve collaborative agreements that can lead to additional sales and shared resources. Moreover, the company invests in research and development to innovate and diversify its product portfolio, which aims to address a broader range of diagnostic needs and improve its competitive position in the market.
Novacyt Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, including successful site consolidation and growth in key business segments, alongside significant financial losses and exceptional costs. While strategic initiatives and R&D investments show promise for future growth, the financial challenges and loss after tax weigh heavily on the current outlook.Q4-2024 Updates
Positive Updates
Successful Site Consolidation
Novacyt consolidated their business footprint into a single Center of Excellence in Manchester, achieving GBP 3 million in savings on top of GBP 5 million from initial synergies.
Reproductive Health Growth
Reproductive health segment showed a 26% year-on-year growth, with significant contributions from cystic fibrosis and NIPT products.
Resolution of DHSC Dispute
Successfully resolved the Department of Health and Social Care dispute, resulting in a net cash inflow of over GBP 7 million.
Strong Gross Margin
Achieved an underlying gross margin of 63%, driven by strong sales in the PCR product range.
Reduction in EBITDA Loss
Reduced the EBITDA loss by over 20%, down to GBP 9.1 million.
Strategic Investment in R&D
Reinvested over GBP 2 million into R&D to drive organic growth, with expectations of incremental sales in H2.
Negative Updates
Significant Loss After Tax
Group reported a loss after tax attributable to the owners of just under GBP 42 million.
Impact of DHSC Settlement on OpEx
OpEx costs were inflated by the DHSC dispute settlement, resulting in a high underlying OpEx of GBP 21 million for 2024.
Decline in Instrument Sales
Ranger technology saw a flattening of instrument sales, though consumables increased by 13%.
Material Impacts from Exceptional Costs
Incurred exceptional costs totaling around GBP 21 million from goodwill impairment and DHSC dispute-related expenses.
Company Guidance
In the investor call, Novacyt provided guidance on several key metrics related to its operational and financial performance. The company successfully reduced its operating expenses (OpEx) from GBP 27 million to GBP 21 million, achieving GBP 3 million in additional savings from site consolidation and GBP 5 million from initial synergies. The gross profit for Fiscal Year 2024 was reported at GBP 32.1 million, with an underlying gross margin of 63%, meeting the company’s target of exceeding 60%. EBITDA loss was reduced by over 20% to GBP 9.1 million. Revenue has tripled over three years to GBP 19.6 million, driven by the Yourgene acquisition and strong growth in reproductive health, which saw a 26% increase year-on-year. The company also reported a net cash inflow of over GBP 7 million after resolving a dispute with DHSC, leading to a cash balance of GBP 30.5 million. Novacyt plans to invest GBP 2 million into R&D to drive organic growth, with the aim to self-fund the pathway to profitability.Novacyt Financial Statement Overview
Summary
Weak profitability and cash generation: persistent net losses, very low gross margin, and negative operating/free cash flow. Offsetting factors include low leverage (debt-to-equity ~0.25) and signs of stabilization with strong 2023→2024 revenue growth (+69.5%) and improved free cash flow (+57.1%).Income Statement
The income statement reveals significant challenges, with declining revenues over the years and consistent net losses. Gross profit margin is exceptionally low, indicating high cost relative to revenue. The net profit margin is negative, highlighting unprofitability. However, there was a revenue growth of 69.5% from 2023 to 2024, which is a positive development.35
Negative
Balance Sheet
The balance sheet shows a decrease in total assets and stockholders' equity over the years, which is concerning. However, the company has managed to keep its debt levels relatively low. The debt-to-equity ratio remains low at 0.25, indicating manageable leverage levels. Despite a declining equity position, the company maintains a decent equity ratio of 67.8%.50
Neutral
Cash Flow
Cash flow analysis indicates negative free cash flow in recent years, reflecting cash consumption rather than generation. The operating cash flow is negative, suggesting operational inefficiencies. However, there is an improvement in free cash flow from 2023 to 2024, with a growth rate of 57.1%, indicating some progress.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.45M | 19.63M | 11.58M | 21.04M | 95.78M | 277.20M |
| Gross Profit | -7.45M | 32.07M | 3.73M | 5.75M | 29.68M | 211.13M |
| EBITDA | -22.27M | -34.31M | -18.24M | -11.68M | -4.20M | 168.24M |
| Net Income | -28.92M | -41.76M | -28.29M | -22.20M | -9.73M | 132.42M |
Balance Sheet | ||||||
| Total Assets | 99.40M | 70.63M | 133.81M | 140.90M | 183.70M | 234.28M |
| Cash, Cash Equivalents and Short-Term Investments | 32.95M | 30.46M | 44.06M | 86.98M | 101.75M | 91.77M |
| Total Debt | 13.14M | 11.88M | 13.70M | 872.00K | 1.87M | 2.38M |
| Total Liabilities | 28.99M | 22.75M | 46.57M | 25.68M | 41.88M | 83.57M |
| Stockholders Equity | 70.41M | 47.88M | 87.24M | 115.22M | 141.81M | 150.71M |
Cash Flow | ||||||
| Free Cash Flow | -14.75M | -11.01M | -25.66M | -14.14M | 11.59M | 101.80M |
| Operating Cash Flow | -14.19M | -9.15M | -24.99M | -13.73M | 15.69M | 102.98M |
| Investing Cash Flow | -8.04M | -1.88M | -13.94M | -577.00K | -5.03M | -7.96M |
| Financing Cash Flow | -2.15M | -1.84M | -3.97M | -516.00K | -599.00K | -5.04M |
Novacyt Technical Analysis
Negative
0.40
Price Trends
0.42
Negative
0.44
Negative
0.46
Negative
Market Momentum
>-0.01
Negative
48.95
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALNOV, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALNOV.
Novacyt Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | €239.13M | 101.88 | 1.32% | ― | 12.47% | -65.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | €25.26M | -6.75 | -16.42% | ― | 138.92% | 11.14% | |
47 Neutral | €151.89M | -3.55 | ― | ― | 6.75% | 15.48% | |
44 Neutral | €28.96M | -0.80 | -49.48% | ― | 5.10% | 17.34% |
* Healthcare Sector Average
FR:ALNOV
Novacyt
0.41
-0.21
-34.29%
FR:ALERS
Eurobio-Scientific SA
23.90
-2.05
-7.90%
FR:ALDMS
Diagnostic Medical Systems
1.38
0.61
79.22%
FR:ALIKO
Ikonisys SA
1.60
0.08
5.26%
FR:ALEMG
Euromedis Groupe SA
4.10
-0.13
-3.07%
FR:ALMDT
Median Technologies
4.14
0.07
1.72%
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.