Nanoco Group plc (NANO) AI Stock Analysis

• Market Cap: £9.83M
• Dividend Yield: N/A
• Average Volume (3M): 404.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -3.25%
• EPS Growth: -172.09%
• Country: UK
• Employees: 47
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): >-0.01
• Shares Outstanding: 195,543,820
• 10 Day Avg. Volume: 424,468
• 30 Day Avg. Volume: 404,433
• PEG Ratio: -0.07
• Price to Book (P/B): -1.34
• Price to Sales (P/S): 3.44
• P/FCF Ratio: -5.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): <0.01
• Revenue Forecast (FY): £7.60M

• Rating: 44 Neutral
• Price Target: 5.00 p ▼(-38.42% Downside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is weighed down primarily by weak financial performance (losses, weak operating cash flow, and negative equity) and bearish technicals (price below key moving averages with negative MACD). The earnings call provides partial offset via reduced cash burn, a solid cash position, and JDA progress, but valuation remains challenged due to negative earnings.

Positive Factors

High gross margins

A 91.84% gross margin indicates durable product-level pricing power and low variable costs versus revenue. That margin cushions R&D and SG&A spend, improves scalability as volumes rise, and provides a structural lever to move toward profitability if commercial traction accelerates.

Image sensor market leadership

Focused leadership in indium arsenide quantum dot tech and multiple joint development agreements create a structural competitive advantage in the growing image sensor market. Existing JDAs and scalable manufacturing capacity (up to 700m sensors p.a.) provide a durable route to commercial scale and licensing or supply revenues.

Improved cash runway

A ~30% reduction in cash burn plus a GBP 14m year-end cash balance and low monthly cash cost (~GBP 0.5m) materially extend runway. This structural improvement lowers near-term dilution risk and gives management time to execute JDAs, build orders, and pursue breakeven without immediate financing pressure.

Negative Factors

Negative equity / weak balance sheet

Negative shareholders' equity signals structural solvency weakness and constrains financial flexibility. It raises the likelihood of future recapitalization, dilutive equity raises, or covenant challenges, making it harder to bid for large contracts or finance scale-up without worsening shareholder dilution.

Deteriorating operating cash flow

Material decline in operating cash flow and a negative OCF-to-net-income ratio indicate the core business is not yet cash-generative. Reliance on non-operational cash sources risks underfunding R&D and manufacturing scale-up, creating a persistent liquidity constraint that can impede strategic execution.

Losses and strategic uncertainty

Declining revenue, a reported GBP 2.2m loss after tax and protracted strategic review with CDX create lasting execution risk. Combined with commoditized flat-panel markets, this uncertainty complicates pathway to sustainable growth and may delay value-creating transactions or force unfavorable restructuring choices.

Nanoco Group plc Business Overview & Revenue Model

Company Description

Nanoco Group plc, together with its subsidiaries, engages in the research, development, manufacture, and licensing of novel nanomaterials for use in various commercial applications. The company offers CFQD quantum dots which are fluorescent semiconductor nanoparticles for OLED and µLED colour conversion, QD-EL, and security tagging applications; CFQD fine color films; HEATWAVE quantum dots for use in the sensor industry applications; and VIVODOTS nanoparticles for medical and veterinary applications. It has operations in the United Kingdom, rest of Europe, Asia, and the United States. The company was formerly known as Evolutec Group plc and changed its name to Nanoco Group plc in April 2009. Nanoco Group plc was founded in 2001 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Nanoco Group plc generates revenue through the sale of its nanomaterials, primarily quantum dots, to manufacturers in the display and lighting industries. The company has established key partnerships with major players in these sectors, enabling it to supply its products for use in consumer electronics like televisions and monitors. Additionally, Nanoco engages in research and development collaborations that can lead to licensing agreements and contract manufacturing services, which contribute to its revenue streams. The focus on environmentally friendly, cadmium-free quantum dots positions Nanoco advantageously as regulatory standards evolve, further enhancing its market opportunities.

Nanoco Group plc Financial Statement Overview

Summary

Financials are weak overall: negative profitability (net margin -28.84%, EBIT margin -11.56%) and deteriorating operating cash flow, while the balance sheet is stressed with negative equity. A strong gross margin (91.84%) and slight revenue growth provide some support but do not offset solvency and cash-flow concerns.

Income Statement

Nanoco Group plc has shown a slight revenue growth of 3.42% in the latest year, but profitability remains a concern with a negative net profit margin of -28.84% and an EBIT margin of -11.56%. The gross profit margin is strong at 91.84%, indicating efficient cost management at the production level. However, the overall negative margins suggest challenges in operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The equity ratio is not calculable due to negative equity, highlighting a need for financial restructuring to improve balance sheet health.

Cash Flow

Cash flow analysis shows a significant decline in operating cash flow, with a negative operating cash flow to net income ratio of -0.59. Despite a positive free cash flow to net income ratio of 1.08, the overall cash flow situation is weak, indicating potential liquidity challenges.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	7.62M	7.87M	5.62M	2.47M	2.09M
Gross Profit	7.00M	6.66M	4.77M	1.09M	757.00K
EBITDA	483.00K	3.58M	15.94M	-3.82M	-3.88M
Net Income	-2.20M	-1.25M	11.09M	-4.70M	-4.39M
Balance Sheet
Total Assets	21.23M	30.66M	50.77M	10.89M	9.23M
Cash, Cash Equivalents and Short-Term Investments	14.00M	20.29M	8.21M	6.76M	3.81M
Total Debt	1.30M	1.91M	6.43M	4.09M	4.17M
Total Liabilities	40.73M	47.67M	34.35M	6.41M	6.18M
Stockholders Equity	-19.51M	-17.01M	16.41M	4.48M	3.05M
Cash Flow
Free Cash Flow	-5.24M	49.88M	-28.22M	-1.90M	-3.75M
Operating Cash Flow	-4.87M	51.48M	-27.84M	-1.78M	-3.36M
Investing Cash Flow	358.00K	-816.00K	34.18M	-82.00K	-344.00K
Financing Cash Flow	-1.74M	-38.92M	-5.08M	4.79M	2.32M

Nanoco Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 8.12 is above the 20-day moving average (MA) of 5.67, above the 50-day MA of 6.72, and below the 200-day MA of 9.81, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMK	73 Outperform	£67.15M	3.57	7.39%	―	36.61%	―
CML	66 Neutral	£36.53M	5.88	2.28%	3.67%	-21.33%	-11.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IQE	51 Neutral	£186.74M	-0.96	-37.55%	―	-24.75%	-110.79%
CYAN	46 Neutral	£31.02M	-2.04	-34.14%	―	-13.95%	4.29%
NANO	44 Neutral	£9.83M	-11.93	11.53%	―	-3.25%	-172.09%
WPHO	39 Underperform	£32.28M	-21.06	-17.36%	―	-14.81%	-1362.50%

Nanoco Group plc Corporate Events

Nanoco Adds Apple as Co-Party in Ongoing Shoei Litigation

Nanoco Group has moved to add Apple as a named co-party in ongoing litigation initiated by Shoei Chemical and Shoei Electronic Materials in the U.S. District Court for the Eastern District of Virginia. The company emphasised that including Apple does not change the materiality or potential value of the claim, framing the step as a procedural response to positions taken by Shoei and signalling that it will keep shareholders informed as the case progresses.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £5.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Nanoco Abandons Sale Talks, Tightens Costs and Reshapes Board to Pursue Standalone Growth

Nanoco Group has ended its formal process to seek a buyer for its trading business after extensive but ultimately inconclusive talks with multiple potential acquirers, opting instead to pursue greater value through focused investment in its existing high-potential business lines and a sharp reduction in operating costs to £300,000–£400,000 per month. The decision follows progress in its core operations, including a new joint development agreement with a second Asian chemical customer and an extension of its first such partnership, as well as the receipt of litigation proceeds from LG Electronics and the launch of fresh IP infringement proceedings against Shoei Chemical and Shoei Electronic Materials, while triggering a broad governance reshuffle that will see CEO Dmitry Shashkov depart, Chairman Jalal Bagherli assume an executive role, CFO Liam Gray become interim CEO, and the non-executive board slimmed down to lower costs as the group focuses on capital preservation and shareholder value.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Nanoco Receives $4.5m Litigation Settlement from LG Electronics

Nanoco Group has received $4.5 million in litigation settlement proceeds from LG Electronics Inc. and LG Electronics U.S.A., Inc., following a previously agreed gross settlement of $5 million. The 10% difference has been withheld at source to meet applicable tax liabilities, while the full gross amount will be recognised as revenue in Nanoco’s current financial year, providing a direct boost to its reported top line and financial position.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Nanoco AGM Sees Most Resolutions Passed but Key Governance Items Face Investor Pushback

Nanoco Group plc reported the voting outcomes of its Annual General Meeting, confirming that 13 of the 15 proposed resolutions were approved by shareholders, while two special resolutions failed to reach the 75% approval threshold required. Several resolutions, including numbers 4, 5, 7, 10, 11, 12 and 13, attracted less than 80% support, largely due to opposition from a single investor holding around 4.3% of the company’s issued share capital but accounting for nearly a quarter of votes cast amid relatively low turnout of roughly 17.6% of total voting rights. The board acknowledged this concentrated dissent and, in line with the UK Corporate Governance Code, has committed to consult with the relevant shareholders to better understand their concerns and to provide an update within six months, signalling continued engagement on governance matters despite the overall approval of most AGM business.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £8.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.

Nanoco Launches Patent Infringement Counterclaims Against Shoei Over Quantum Dot Technology

Nanoco Group plc has filed an answer and counterclaims in the US District Court for the Eastern District of Virginia against Shoei Chemical Inc. and Shoei Electronic Materials, Inc., alleging infringement of several of its US patents covering quantum dot technology. The move follows Shoei’s earlier declaratory judgment action seeking a ruling of non-infringement after it acquired most of the assets of rival quantum dot maker Nanosys in 2023, and targets a supplier embedded in the global technology supply chain. Nanoco, represented by Dallas-based IP firm Caldwell, Cassady and Curry, is funding the case from existing cash reserves and expects the trial to be heard in 2026, positioning the litigation as part of its broader strategy to defend and monetise its intellectual property following successful actions against Samsung and LG, while cautioning shareholders about the inherent risks and uncertain financial outcomes of the lawsuit.

The most recent analyst rating on (GB:NANO) stock is a Hold with a £11.50 price target. To see the full list of analyst forecasts on Nanoco Group plc stock, see the GB:NANO Stock Forecast page.