Nanoco Group plc (NANO) AI Stock Analysis

• Market Cap: £20.44M
• Dividend Yield: N/A
• Average Volume (3M): 763.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -8.06%
• EPS Growth: -132.47%
• Country: UK
• Employees: 47
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): >-0.01
• Shares Outstanding: 194,608,030
• 10 Day Avg. Volume: 253,618
• 30 Day Avg. Volume: 763,365
• PEG Ratio: 0.02
• Price to Book (P/B): -1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.77
• 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

• Rating: 45 Neutral
• Price Target: 13.00p ▲(18.18%Upside)

Nanoco Group plc faces significant challenges, particularly financial instability due to net losses and negative equity. Despite strong revenue growth and efficient cash flow management, profitability issues and bearish technical indicators weigh heavily on the stock. Positive corporate events and earnings call insights provide some optimism, but the company's ability to secure contracts and improve profitability is crucial for future performance.

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 primarily through the sale of its quantum dot materials and related technologies. The company's revenue model includes direct sales to manufacturers and licensing agreements with industrial partners who incorporate Nanoco's materials into their own products. Significant partnerships with major electronics and display manufacturers are a key factor contributing to the company's earnings, as these collaborations drive the adoption of its quantum dot technology in consumer electronics. Additionally, Nanoco may earn income from research and development contracts and government grants aimed at advancing nanomaterial technologies.

Nanoco Group plc Financial Statement Overview

Summary

Nanoco Group plc exhibits strong revenue growth and excellent gross profit margins, but 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.

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.

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.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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
	EBIT
-642.00K	1.71M	14.99M	-4.50M	-4.86M	-5.85M
	EBITDA
113.00K	3.58M	15.94M	-3.82M	-3.88M	-4.16M
	Net Income Common Stockholders
-4.05M	-1.25M	11.09M	-4.70M	-4.39M	-5.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.48M	20.29M	8.21M	6.76M	3.81M	5.17M
	Total Assets
25.15M	30.66M	50.77M	10.89M	9.23M	11.86M
	Total Debt
1.61M	1.91M	6.43M	3.56M	1.08M	1.58M
	Net Debt
-13.87M	-18.38M	-1.77M	-3.20M	-2.73M	-3.59M
	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

• Technical Analysis Sentiment: Neutral
• Last Price: 11.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NANO, the sentiment is Neutral. The current price of 11 is below the 20-day moving average (MA) of 12.47, above the 50-day MA of 9.68, and below the 200-day MA of 11.27, indicating a neutral trend. The MACD of 0.53 indicates Positive momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 14.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NANO.

Nanoco Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%
NANO	45 Neutral	£20.44M	―	-5780.00%	―	-8.06%	-132.47%
OXINF		$1.41B	21.09	14.23%	1.09%	―	―
IQE		£102.96M	―	-25.13%	―	―	―
KBT	57 Neutral	£40.84M	74.79	-8.92%	―	-46.97%	―
CRTA	51 Neutral	£40.24M	―	-102.60%	―	11.59%	75.79%
GST	44 Neutral	£28.14M	―	-9.27%	―	―	―

Nanoco Group plc Corporate Events

Nanoco Group Expands Asian Partnerships with New Joint Development Agreement

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.

Nanoco Group Initiates Patent Lawsuit Against LG Electronics

Nanoco Group plc has initiated a patent infringement lawsuit against LG Electronics, alleging unauthorized use of its patented quantum dot technology in LG’s television products. The company seeks a permanent injunction and monetary damages, although the exact amount is yet to be determined. Nanoco has engaged the law firm Caldwell, Cassady and Curry, known for their successful litigation against Samsung, to represent them. While litigation carries risks, Nanoco’s board believes the potential benefits justify the action, aiming to protect its intellectual property and ensure shareholder value.

Nanoco Group Secures High Court Approval for Capital Reduction

Nanoco Group plc announced the High Court of Justice in England and Wales has confirmed the company’s Capital Reduction, which was previously approved by 81.2% of shareholders. This move aims to create distributable reserves, enhancing the company’s financial flexibility and potentially benefiting stakeholders by supporting future growth and investment opportunities.

Nanoco Group Reports Steady Progress and Strategic Growth Amid Interim Results

Nanoco Group plc has reported its unaudited interim results for the half-year ending January 31, 2025, highlighting steady progress in commercial opportunities and strategic growth. The company has appointed new leadership, expanded its commercial pipeline, and is in advanced discussions with significant Asian chemical companies to further develop quantum dot materials for various applications. Despite a decrease in revenue due to a canceled contract, Nanoco anticipates exceeding market expectations for the full year, driven by new business development and strategic cost reductions. The company is also exploring strategic options for its trading business through CDX Advisors LLC, with potential investor proposals expected in the summer.

Nanoco Group to Release Half Year Results in April 2025

Nanoco Group plc has announced that it will release its Half Year Results for the period ended 31 January 2025 on 15 April 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress. The release of these results is expected to impact Nanoco’s positioning in the market, particularly within the electronics industry, where its cadmium-free quantum dots are a notable innovation.