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Nanophase Technologies Corp (NANX)
:NANX
US Market

Nanophase Technologies (NANX) AI Stock Analysis

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Nanophase Technologies

(OTC:NANX)

Rating:61Neutral
Price Target:
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. SPDR S&P 500 ETF (SPY)

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 Earnings Call Summary

Earnings Call Date:Mar 26, 2025
(Q4-2024)
|
% 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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue57.10M52.35M37.30M37.32M29.48M17.12M
Gross Profit15.99M16.19M7.83M8.36M8.69M5.99M
EBITDA5.20M6.06M-2.80M-1.69M3.96M1.84M
Net Income3.42M4.24M-4.39M-2.62M2.32M493.33K
Balance Sheet
Total Assets57.02M50.00M32.88M33.56M28.39M13.54M
Cash, Cash Equivalents and Short-Term Investments1.82M1.41M1.72M2.19M657.00K956.75K
Total Debt22.56M15.30M21.26M18.11M14.75M7.57M
Total Liabilities41.86M35.06M30.98M27.91M20.93M10.81M
Stockholders Equity15.16M14.95M1.90M5.65M7.46M2.73M
Cash Flow
Free Cash Flow-5.87M1.97M-3.06M-4.47M447.00K-2.94M
Operating Cash Flow-1.40M1.97M-2.01M-1.65M2.32M-2.06M
Investing Cash Flow-4.34M-4.56M-1.05M-2.82M-1.87M-878.00K
Financing Cash Flow5.53M2.27M2.59M6.00M-747.00K2.70M

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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$7.43B32.4914.58%1.15%6.13%4.70%
76
Outperform
$16.32B14.0716.77%19.42%23.19%
74
Outperform
$358.10M23.7823.57%5.40%-13.18%-12.06%
71
Outperform
$5.36B36.8917.13%-22.15%-45.22%
63
Neutral
$891.42M-34.65%252.64%85.10%
62
Neutral
$9.97B9.61-0.15%2.99%2.10%-35.27%
61
Neutral
$122.52M26.9450.28%40.35%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NANX
Nanophase Technologies
2.28
0.73
47.10%
ENPH
Enphase Energy
39.65
-57.61
-59.23%
FSLR
First Solar
165.54
-57.17
-25.67%
AVDL
Avadel Pharmaceuticals
8.85
-5.27
-37.32%
NVEC
NVE
73.61
5.05
7.37%
OLED
Universal Display
154.46
-52.00
-25.19%

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
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.Date of analysis: ―