Nanophase Technologies (NANX) AI Stock Analysis

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Nanophase Technologies

(OTC:NANX)

61Neutral

Nanophase Technologies is on a strong financial upswing with impressive income growth and profitability improvements. However, challenges such as high leverage and bearish technical indicators present risks. The stock appears slightly overvalued, but robust earnings call guidance and the Nasdaq uplisting could enhance future growth prospects.

Nanophase Technologies (NANX) vs. S&P 500 (SPY)

Market Cap

$122.52M

Dividend YieldN/A

Average Volume (3M)56.01K

Price to Earnings (P/E)26.9

Beta (1Y)1.86

Revenue Growth40.35%

EPS GrowthN/A

CountryUS

Employees79

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.06

Shares Outstanding70,011,440

10 Day Avg. Volume119,713

30 Day Avg. Volume56,008

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.13

Price to Cash Flow (P/CF)11.70

P/FCF Ratio16.70

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

Nanophase Technologies Business Overview & Revenue Model

Company DescriptionNanophase Technologies Corporation (NANX) is a technology-driven company engaged in the development and commercialization of advanced materials, specifically engineered nanomaterials. Operating in sectors such as personal care, energy storage, and surface finishing, Nanophase provides innovative solutions through its portfolio of products, which include applications in sunscreens, coatings, and polishing materials. The company's proprietary technology platforms enable the creation of materials with novel properties that offer enhanced performance and efficiency.

How the Company Makes MoneyNanophase Technologies makes money by manufacturing and selling nanomaterial products and solutions to various industries, primarily focusing on personal care, coatings, and surface finishing. The company's revenue model is based on product sales, where it provides engineered nanomaterials that enhance the functionality of consumer products, such as UV protection in sunscreens or improved durability in surface coatings. Additionally, Nanophase engages in strategic partnerships and collaborations with other companies to co-develop products and expand its market reach. These partnerships often involve long-term supply agreements or joint development projects, contributing to a stable revenue stream.

Nanophase Technologies Financial Statement Overview

Summary

Nanophase Technologies demonstrates strong revenue growth and improving profitability margins. However, high leverage and negative cash flows highlight financial vulnerabilities that must be addressed to sustain long-term growth.

Income Statement

Positive

Nanophase Technologies shows a positive revenue growth rate of 28.15% from 2023 to 2024 (TTM), indicating a strong upward trajectory in sales. The gross profit margin improved significantly, reaching 29.02% in TTM, compared to 20.98% in 2023, demonstrating enhanced cost efficiency. EBIT and EBITDA margins turned positive at 7.23% and 9.16%, respectively, after previous losses, showcasing improved operational performance. However, the net profit margin at 5.59% indicates room for improvement in overall profitability.

Balance Sheet

Neutral

The debt-to-equity ratio improved to 1.10 in TTM from 11.17 in 2023, showing a better capital structure, though still indicating high leverage. Return on equity (ROE) at 17.61% reflects positive returns for shareholders, up from negative values earlier, but the equity ratio at 31.57% suggests a low proportion of equity in total assets, highlighting potential financial vulnerability.

Cash Flow

Neutral

Despite a challenging cash flow position with negative operating cash flow of -$2.87M and free cash flow of -$3.07M in TTM, there is a slight improvement from the previous year's negative free cash flow of -$3.06M. The operating cash flow to net income ratio is negative due to operational cash outflows, suggesting cash flow management challenges.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
47.79M	37.30M	37.32M	29.48M	17.12M	12.51M
	Gross Profit
13.87M	7.83M	8.36M	8.69M	5.99M	2.62M
	EBIT
3.46M	-3.55M	-2.26M	3.51M	1.49M	-2.80M
	EBITDA
4.38M	-2.80M	-1.69M	3.01M	1.84M	-2.48M
	Net Income Common Stockholders
2.67M	-4.39M	-2.62M	2.32M	493.33K	-3.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.35M	1.72M	2.19M	657.00K	956.75K	1.19M
	Total Assets
6.57M	32.88M	33.56M	28.39M	13.54M	9.37M
	Total Debt
2.06M	21.26M	18.11M	14.75M	7.57M	4.95M
	Net Debt
710.99K	19.54M	15.92M	14.09M	6.62M	3.76M
	Total Liabilities
5.19M	30.98M	27.91M	20.93M	10.81M	7.86M
	Stockholders Equity
1.38M	1.90M	5.65M	7.46M	2.73M	1.51M
Cash Flow		Free Cash Flow
-3.07M	-3.06M	-4.47M	447.00K	-2.94M	-3.52M
	Operating Cash Flow
-2.87M	-2.01M	-1.65M	2.32M	-2.06M	-2.78M
	Investing Cash Flow
-2.16M	-1.05M	-2.82M	-1.87M	-878.00K	-740.00K
	Financing Cash Flow
6.77M	2.59M	6.00M	-747.00K	2.70M	3.37M

Nanophase Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.78

Price Trends

50DMA

2.52

Negative

100DMA

2.56

Negative

200DMA

2.07

Negative

Market Momentum

MACD

-0.04

Positive

RSI

34.56

Neutral

STOCH

45.28

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NANX, the sentiment is Negative. The current price of 1.78 is below the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.52, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.56 is Neutral, neither overbought nor oversold. The STOCH value of 45.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NANX.

Nanophase Technologies Risk Analysis

Nanophase Technologies disclosed 27 risk factors in its most recent earnings report. Nanophase Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Nanophase Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (47)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	75 Outperform	$13.10B	10.48	17.62%	―	26.75%	55.24%
OLED	75 Outperform	$5.13B	23.25	14.46%	1.46%	12.36%	9.70%
NVEC	71 Outperform	$269.58M	18.00	23.13%	7.18%	-27.68%	-30.47%
ENPH	68 Neutral	$6.50B	70.29	11.30%	―	-41.92%	-76.24%
NANX	61 Neutral	$122.52M	26.94	50.28%	―	40.35%	―
Sector *	47 Neutral	$2.49B	-2.97	-22.79%	3.51%	4.13%	-28.98%
AVDL	42 Neutral	$688.97M	―	-60.44%	―	504.79%	74.24%

* Basic Materials Sector Average

Performance Comparison

NANX

Nanophase Technologies

1.76

0.83

89.25%

ENPH

Enphase Energy

51.89

-60.58

-53.86%

FSLR

First Solar

125.93

-50.03

-28.43%

AVDL

Avadel Pharmaceuticals

7.68

-9.32

-54.82%

NVEC

NVE

56.99

-20.98

-26.91%

OLED

Universal Display

112.72

-45.39

-28.71%

Nanophase Technologies Earnings Call Summary

Earnings Call Date: Mar 26, 2025 | % Change Since: -39.25% | Next Earnings Date: Apr 29, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant growth in revenue and net profit, improved margins, and prestigious awards, indicating strong operational and strategic achievements. However, seasonal weakness, inventory challenges, and economic uncertainties pose potential risks. The company plans to continue growth and efficiency improvements, with an optimistic outlook for 2025.

Highlights

Record Revenue and Growth

Fourth quarter revenue reached $12.6 million, a 57% increase year-over-year. Full-year revenue was $52.3 million, representing more than a 40% increase, exceeding base guidance expectations.

Improvement in Financial Performance

Record net profit and positive operating cash flow achieved in 2024. Net income for the full year was $4.2 million, a significant improvement from a net loss of $4.4 million in 2023.

Gross Margin Expansion

Fourth quarter gross margin expanded to 22% from 6% year-over-year. Full-year gross margin increased to 31% from 21% in the previous year.

Prestigious Awards and Recognition

Olay Face Milk SPF 50 plus featuring Solesence Clear Technology won the Best Prestige Finished Formula category at the 2025 Cosmetics and Toiletries Alle Award.

Expansion and Operational Initiatives

Expanded batch-making capabilities and production throughput; launched over two dozen new SKUs; received two new patents related to antioxidant and skin-soothing technologies.

Strategic Partnerships and Uplisting Plans

Strong relationships with major brands like BASF; planning to pursue uplisting to NASDAQ in 2025, enhancing growth opportunities and visibility.

Lowlights

Seasonal Weakness Impact

Fourth quarter net loss narrowed to $600,000 from a $2.1 million net loss in the prior year period, reflecting typical seasonal weakness.

Gross Margin Concerns

While gross margin expanded, the Q4 margin of 22% was viewed as disappointing, with expectations to improve in 2025.

Inventory and Supply Chain Challenges

Increased inventory levels to address demand and potential tariffs, leading to higher working capital requirements and occasional obsolescence issues.

Economic and Tariff Uncertainties

Potential impact of tariffs and anti-American sentiment in Canada on future orders and pricing, creating an uncertain economic environment.

Company Guidance

During the Solesence Fourth Quarter 2024 Conference Call, CEO Jess Jankowski provided robust guidance for the upcoming fiscal year, highlighting several key metrics. The company reported a significant 57% year-over-year increase in fourth-quarter revenue, reaching $12.6 million, and a 40% increase in full-year revenue to $52.3 million. Gross margins improved markedly, with a rise to 22% in the fourth quarter from 6% the previous year and an increase to 31% for the full year from 21% in the prior year. While the fourth quarter traditionally represents the weakest seasonal period, Solesence narrowed its net loss to $600,000 from $2.1 million year-over-year and achieved a full-year net income of $4.2 million, a sharp improvement from a $4.4 million loss in 2023. The company anticipates continued growth in 2025, driven by strong demand from brand partners, with expectations of delivering record revenues in the first quarter and ongoing operational efficiencies. Looking forward, Solesence plans to uplist to the NASDAQ market, contingent on eligibility, and is actively seeking a dedicated CFO to bolster its leadership team.

Nanophase Technologies Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy

Nanophase Technologies’ Solésence Uplists to Nasdaq

Positive

Apr 7, 2025

On April 7, 2025, Solésence, Inc. announced its approval to uplist to the Nasdaq Capital Market, with trading set to begin on April 8 under the ticker ‘SLSN’. This strategic move from the OTCQB is expected to increase the company’s visibility within the investment community, broaden its shareholder base, and provide resources for scaling and increasing profitability, thereby delivering greater value to stakeholders.

Spark’s Take on NANX Stock

According to Spark, TipRanks’ AI Analyst, NANX is a Neutral.

Nanophase Technologies shows strong financial improvements and optimistic future guidance, contributing positively to its outlook. However, technical indicators highlight bearish trends, and valuation suggests the stock might be slightly overvalued. The earnings call provides a strong outlook, but risks such as high leverage and economic uncertainties need careful consideration.

To see Spark’s full report on NANX stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.