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Nanoco Group plc (GB:NANO)
:NANO
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Nanoco Group plc
(LSE:NANO)
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Rating:44Neutral
Price Target:
11.50p
▲(15.69% Upside)
The overall stock score of 44 reflects significant financial challenges, including a net loss and negative equity, despite strong revenue growth and cash flow management. Technical indicators show bearish trends, and valuation metrics are concerning due to a negative P/E ratio. The earnings call highlighted both opportunities and risks, with restructuring efforts and market potential being positive, but revenue decline and ongoing uncertainties weighing on the outlook.
Nanoco Group plc (NANO) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£18.07M
Dividend YieldN/A
Average Volume (3M)287.03K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-8.06%
EPS Growth-132.47%
CountryUK
Employees47
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding195,543,820
10 Day Avg. Volume384,274
30 Day Avg. Volume287,034
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£11.50Price Target Upside15.69% Upside
Rating ConsensusHold
Number of Analyst Covering0
Nanoco Group plc Business Overview & Revenue Model
Company DescriptionNanoco Group plc (NANO) is a leading developer and manufacturer of next-generation quantum dots and other nanomaterials for applications in various sectors, including displays, lighting, and healthcare. The company specializes in producing cadmium-free quantum dots, which are used to enhance the performance and efficiency of display technologies, as well as in a range of other innovative applications, including solar cells and biomedical imaging.
How the Company Makes MoneyNanoco Group plc generates revenue primarily through the sale of its proprietary quantum dot products and nanomaterials to various industries, including consumer electronics, telecommunications, and healthcare. The company has established partnerships with major players in the display technology sector, which provides significant licensing and royalty income. Additionally, Nanoco may engage in collaborative research and development projects, creating further revenue opportunities through government grants and funding from private sector partners aimed at advancing nanotechnology applications. The company's focus on developing sustainable and environmentally friendly solutions also positions it favorably in a market increasingly concerned with sustainability.
Nanoco Group plc Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Neutral
The call presented a mixed outlook. While there are significant growth opportunities and strategic developments underway, such as market potential and successful restructuring, the company faces challenges in terms of revenue decline, ongoing M&A uncertainties, and a reported loss after tax.Q2-2025 Updates
Positive Updates
Significant Market Potential
The market for quantum dot materials is expected to reach approximately $1 billion in 2029, with substantial revenue generation opportunities in five segments, particularly in flat panel display and short-wave infrared image sensor markets.
Successful Restructuring
The company completed a restructuring that reduced its monthly cash burn by approximately 30%, from EUR0.7 million to EUR0.5 million, enhancing its cash runway and focusing on commercial development.
Positive Customer Engagement
The company has approximately 10 active customer engagements, with potential for joint development agreements, and expects to announce formal contracts in the near future.
Strong IP Position
Nanoco continues to leverage its intellectual property, exploring additional licensing opportunities similar to the process it underwent with Samsung.
Negative Updates
Revenue Decline
Revenue fell by 13% compared to the same period in the prior year due to the cancellation of a contract with a European customer, impacting gross profit and adjusted EBITDA.
Ongoing M&A Process
The M&A process led by CDX is progressing slowly, with investors expressing frustration at the pace and uncertainty about the outcome.
Loss After Tax
The company reported a loss after tax of EUR1.0 million, compared to a profit of EUR1.8 million in the prior year.
Company Guidance
In the recent Nanoco Group PLC investor presentation, the company provided several updates on its strategic and operational progress, focusing on its financial performance and market outlook. During the first half of fiscal year 2025, Nanoco highlighted a revenue decrease of 13% compared to the previous year, largely due to the cancellation of a contract with a European customer, which impacted adjusted EBITDA, reducing it from EUR0.7 million to EUR0.5 million. Despite this, the company successfully reduced its cash burn rate by approximately 30% through restructuring efforts, lowering monthly cash costs from GBP0.7 million to GBP0.5 million. Nanoco ended the period with EUR15.5 million in cash and no external debt, with expectations to outperform market forecasts by achieving a full-year revenue of GBP6.9 million, up from the initial GBP6.6 million forecast. The company also emphasized its continued investment in business development, establishing a global team and completing the build-out of a fully operational device lab. With engagement in multiple markets, including flat panel displays and short-wave infrared image sensors, Nanoco anticipates robust growth, driven by a projected quantum dot market expansion to approximately $1 billion by 2029.Nanoco Group plc Financial Statement Overview
Summary
Nanoco Group plc shows strong revenue growth and excellent gross profit margins. However, the shift to a net loss and negative equity position signals underlying challenges. While cash flow management is commendable, the negative equity raises concerns about financial stability. The company must address profitability and balance sheet issues to ensure long-term sustainability.Income Statement
The company has demonstrated significant revenue growth from 2023 to 2024, with a revenue increase of approximately 40.1%. However, despite the revenue growth, the company has moved from a net profit in 2023 to a net loss in 2024, resulting in a negative net profit margin. The gross profit margin is strong at 84.6%, indicating efficient production or service delivery. Nonetheless, the transition to a net loss and the negative EBIT margin of 21.7% highlight profitability challenges.45
Neutral
Balance Sheet
The balance sheet reflects financial instability, as indicated by the negative stockholders' equity of -£17 million in 2024. This, coupled with a total debt of £1.9 million, raises concerns about the company's leverage and stability. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative. These factors suggest financial distress, potentially posing risks to creditors and stakeholders.30
Negative
Cash Flow
The cash flow statement shows a robust operating cash flow in 2024, significantly improving from previous years and resulting in a highly positive free cash flow. This indicates strong cash generation capabilities despite the net loss. The free cash flow to net income ratio is favorable, suggesting efficient cash management. However, the sustainability of this cash flow remains uncertain given the net loss scenario.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.37M | 7.87M | 5.62M | 2.47M | 2.09M | 3.86M |
| Gross Profit | 5.85M | 6.66M | 4.77M | 1.09M | 757.00K | 1.78M |
| EBITDA | 113.00K | 3.58M | 15.94M | -3.82M | -3.88M | -4.16M |
| Net Income | -4.05M | -1.25M | 11.09M | -4.70M | -4.39M | -5.08M |
Balance Sheet | ||||||
| Total Assets | 25.15M | 30.66M | 50.77M | 10.89M | 9.23M | 11.86M |
| Cash, Cash Equivalents and Short-Term Investments | 15.48M | 20.29M | 8.21M | 6.76M | 3.81M | 5.17M |
| Total Debt | 1.61M | 1.91M | 6.43M | 3.56M | 1.08M | 1.58M |
| Total Liabilities | 43.76M | 47.67M | 34.35M | 6.41M | 6.18M | 4.83M |
| Stockholders Equity | -18.61M | -17.01M | 16.41M | 4.48M | 3.05M | 7.03M |
Cash Flow | ||||||
| Free Cash Flow | -3.96M | 49.88M | -28.22M | -1.90M | -3.75M | -4.24M |
| Operating Cash Flow | -3.33M | 51.48M | -27.84M | -1.78M | -3.36M | -3.53M |
| Investing Cash Flow | -752.00K | -816.00K | 34.18M | -82.00K | -344.00K | -704.00K |
| Financing Cash Flow | -39.93M | -38.92M | -5.08M | 4.79M | 2.32M | 2.40M |
Nanoco Group plc Technical Analysis
Negative
9.94
Price Trends
12.40
Negative
12.02
Negative
11.14
Negative
Market Momentum
-0.66
Positive
18.27
Positive
13.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NANO, the sentiment is Negative. The current price of 9.94 is below the 20-day moving average (MA) of 10.95, below the 50-day MA of 12.40, and below the 200-day MA of 11.14, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 18.27 is Positive, neither overbought nor oversold. The STOCH value of 13.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NANO.
Nanoco Group plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | 1.09B | 42.47 | 6.91% | 1.17% | 6.42% | -48.89% | |
51 Neutral | 24.76M | -1.69 | -141.12% | ― | 1.65% | 29.02% | |
47 Neutral | 76.18M | -1.53 | -28.47% | ― | -24.75% | -110.79% | |
44 Neutral | £18.07M | ― | -5780.00% | ― | -8.06% | -132.47% | |
44 Neutral | 18.02M | -9.06 | ― | ― | 88.59% | -60.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
GB:NANO
Nanoco Group plc
9.90
-2.30
-18.85%
OXINF
Oxford Instruments
25.92
-1.65
-5.98%
GB:IQE
IQE plc
7.78
-8.94
-53.47%
GB:CRTA
Wandisco
19.60
-6.88
-25.98%
GB:GST
GSTechnologies
0.72
-0.04
-5.26%
Nanoco Group plc Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Nanoco Group Expands Asian Partnerships with New Joint Development Agreement
Positive
Apr 28, 2025
Nanoco Group plc has entered a Joint Development Agreement with a second Asian chemical customer to optimize lead-free nanomaterials for electronics. This agreement is expected to boost the company’s revenue in FY25 and FY26 and strengthen its position in the consumer electronics market, particularly in quantum dot-enabled silicon sensors.
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.