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Novacyt (FR:ALNOV)
:ALNOV
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Novacyt
(OTC:ALNOV)
Rating:49Neutral
Price Target:
€0.50
▲(6.38% Upside)
Novacyt (ALNOV) vs. iShares MSCI France ETF (EWQ)
Market Cap
$34.61M
Dividend YieldN/A
Average Volume (3M)168.74K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth73.54%
EPS Growth-51.39%
CountryFR
Employees234
SectorHealthcare
Sector Strength41
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.41
Shares Outstanding70,626,250
10 Day Avg. Volume315,710
30 Day Avg. Volume168,736
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.58
Enterprise Value/Revenue1.65
Enterprise Value/Gross Profit20.45
Enterprise Value/Ebitda-3.07
Forecast
1Y Price Target
$0.50Price Target Upside7.24% Upside
Rating ConsensusHold
Number of Analyst Covering1
Novacyt Business Overview & Revenue Model
Company DescriptionNovacyt (ALNOV) is a global diagnostics company focused on developing, manufacturing, and distributing innovative diagnostic products. The company operates primarily in the healthcare and biotechnology sectors, with a strong emphasis on molecular diagnostic testing. Novacyt's core products include a range of in vitro diagnostic tests, particularly those related to infectious diseases, including their widely recognized COVID-19 testing solutions.
How the Company Makes MoneyNovacyt generates revenue through the sale of its diagnostic products and services, primarily in the molecular diagnostics market. The company's key revenue streams include the sale of in vitro diagnostic tests and reagents, particularly those used for the detection of infectious diseases. Novacyt capitalized on its proprietary technology to develop COVID-19 testing solutions, which significantly boosted its revenues during the pandemic. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Additionally, Novacyt may receive revenue through licensing agreements and other strategic alliances within the diagnostics and biotechnology sectors.
Novacyt Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q4-2024)
| % Change Since: 6.58%|
Next Earnings Date:Sep 25, 2025
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
Novacyt faces significant financial challenges with consistent losses, declining revenues, and negative cash flows. Despite low debt levels, equity has been eroding. Recent revenue growth and improved free cash flows are positive signs, but operational efficiency and revenue growth need improvement.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.63M | 11.58M | 21.04M | 95.78M | 277.20M |
| Gross Profit | 32.07M | 3.73M | 5.75M | 29.68M | 211.13M |
| EBITDA | -34.31M | -18.24M | -11.68M | -4.20M | 174.97M |
| Net Income | -41.76M | -28.29M | -22.20M | -9.73M | 132.42M |
Balance Sheet | |||||
| Total Assets | 70.63M | 133.81M | 140.90M | 183.70M | 234.28M |
| Cash, Cash Equivalents and Short-Term Investments | 30.46M | 44.06M | 86.98M | 101.75M | 91.77M |
| Total Debt | 11.88M | 13.70M | 872.00K | 1.87M | 2.38M |
| Total Liabilities | 22.75M | 46.57M | 25.68M | 41.88M | 83.57M |
| Stockholders Equity | 47.88M | 87.24M | 115.22M | 141.81M | 150.71M |
Cash Flow | |||||
| Free Cash Flow | -11.01M | -25.66M | -14.14M | 11.59M | 101.80M |
| Operating Cash Flow | -9.15M | -24.99M | -13.73M | 15.69M | 102.98M |
| Investing Cash Flow | -1.88M | -13.94M | -577.00K | -5.03M | -7.96M |
| Financing Cash Flow | -1.84M | -3.97M | -516.00K | -599.00K | -5.04M |
Novacyt Technical Analysis
Neutral
0.47
Price Trends
0.48
Negative
0.49
Negative
0.55
Negative
Market Momentum
>-0.01
Negative
50.86
Neutral
61.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ALNOV, the sentiment is Neutral. The current price of 0.47 is above the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.48, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:ALNOV.
Novacyt Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Performance Comparison
FR:ALNOV
Novacyt
0.47
-0.93
-66.21%
FR:ALERS
Eurobio-Scientific SA
25.45
0.80
3.25%
FR:ALMDT
Median Technologies
2.72
-3.79
-58.23%
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.