NovaBay Pharma (NBY) AI Stock Analysis

• Market Cap: $3.90M
• Dividend Yield: N/A
• Average Volume (3M): 37.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -49.76%
• EPS Growth: 96.81%
• Country: US
• Employees: 13
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): N/A
• Shares Outstanding: 5,816,204
• 10 Day Avg. Volume: 48,123
• 30 Day Avg. Volume: 37,334
• PEG Ratio: 0.01
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.79
• Enterprise Value/Market Cap: -0.88
• Enterprise Value/Revenue: -0.09
• Enterprise Value/Gross Profit: -0.74
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $0.50
• Price Target Upside: -21.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $0.50 ▼(-21.88%Downside)

The overall stock score for NovaBay Pharma is primarily impacted by significant financial difficulties, including declining revenues, negative profit margins, and liquidity issues. Technical analysis shows some positive momentum, but caution is advised due to high RSI and Stochastic indicators. The valuation remains unattractive with a negative P/E ratio. The absence of earnings call data and corporate events leaves these areas unconsidered in the final score.

Positive Factors

Asset Sale

NovaBay accepted an increased offer of $11.5 million for its Avenova assets, which may benefit the company's financial position.

Business Strategy

The sale of DERMAdoctor should reduce its cash burn and allows it to focus on pursuing newer and stronger growth opportunities that are better aligned with its core eyecare business.

Negative Factors

Financial Performance

Net loss was $1.6 million or EPS of $(1.37) compared with our estimates of $(1.28) and consensus of $(1.23).

Investor Uncertainty

The company did not provide 2024 guidance, which creates uncertainty for investors.

Revenue Performance

Revenue was $2.4 million compared with our estimates of $2.8 million and consensus of $3.2 million.

NovaBay Pharma Business Overview & Revenue Model

Company Description

NovaBay Pharmaceuticals, Inc. (NBY) is a biopharmaceutical company focused on the development and commercialization of innovative healthcare products. Based in the United States, the company primarily operates in the medical and healthcare sectors, providing anti-infective products and treatments. NovaBay's core product is Avenova, an eyelid and lash hygiene product designed to manage conditions like blepharitis, dry eye, and meibomian gland dysfunction.

How the Company Makes Money

NovaBay Pharmaceuticals generates revenue primarily through the sale of its flagship product, Avenova, which is distributed via retail and direct-to-consumer channels. The company also earns income by collaborating with distributors and partners to expand the market reach of its products. Additionally, NovaBay may engage in licensing agreements or strategic partnerships that provide upfront payments, milestone payments, and royalties, contributing to its financial performance. The company's revenue is significantly influenced by its ability to effectively market and distribute Avenova and any new products it may develop or acquire in the future.

NovaBay Pharma Financial Statement Overview

Summary

NovaBay Pharma is facing significant financial challenges, with declining revenues, negative profit margins, and a deteriorating balance sheet. The cash flow situation is concerning, with negative free cash flow and limited financing activities, suggesting liquidity issues. The company needs to address its operational inefficiencies and explore financing options to stabilize its financial position.

Income Statement

NovaBay Pharma has experienced a decline in revenue from $14.73M in 2023 to $9.75M in 2024, indicating a negative revenue growth rate. The company shows a negative gross profit margin and net profit margin due to consistent net losses, with a net income of -$8.61M in 2024. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

NovaBay Pharma's balance sheet reveals financial instability with negative stockholders' equity in 2024, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity. A low equity ratio reflects poor asset financing and potential financial distress.

Cash Flow

The cash flow statement shows a negative free cash flow of -$5.19M in 2024, with no growth compared to 2023. Operating cash flow is negative, exceeding net income, indicating challenges in generating cash from operations. The company has also seen no significant financing activities, limiting its ability to raise funds.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.78M	10.46M	14.40M	8.42M	9.93M
Gross Profit	6.48M	6.08M	7.78M	5.64M	5.96M
EBITDA	-5.92M	-4.80M	-7.20M	-8.74M	-6.38M
Net Income	-7.22M	-9.64M	-16.27M	-6.56M	-11.04M
Balance Sheet
Total Assets	3.42M	9.03M	16.40M	23.98M	15.24M
Cash, Cash Equivalents and Short-Term Investments	430.00K	3.13M	5.36M	7.50M	11.95M
Total Debt	1.67M	2.74M	2.04M	551.00K	503.00K
Total Liabilities	3.55M	5.72M	5.84M	13.81M	2.92M
Stockholders Equity	-129.00K	3.31M	10.55M	10.17M	12.32M
Cash Flow
Free Cash Flow	-5.19M	-4.15M	-6.77M	-9.24M	-4.75M
Operating Cash Flow	-5.18M	-4.13M	-6.65M	-9.19M	-4.72M
Investing Cash Flow	1.06M	-19.00K	-112.00K	-12.04M	-26.00K
Financing Cash Flow	1.50M	1.91M	4.63M	16.79M	9.76M

NovaBay Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBY, the sentiment is Positive. The current price of 0.64 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.60, and above the 200-day MA of 0.62, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 44.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NBY.

NovaBay Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XYLO	52 Neutral	$4.07M	―	-28.99%	―	-67.77%	66.19%
Sector *	46 Neutral	C$197.76M	-3.38	-23.14%	2.64%	20.75%	-0.36%
NBY	45 Neutral	$3.90M	―	-235.50%	―	-49.76%	96.81%
RDHL	41 Neutral	$4.38M	―	1155.92%	―	―	―
MBIO	31 Underperform	$10.46M	―	270.52%	―	―	85.97%

NovaBay Pharma Corporate Events

NovaBay Pharma’s Strategic Shift and Liquidation Plans

NovaBay Pharmaceuticals completed the sale of its Avenova eyecare business to PRN Physician Recommended Nutriceuticals, LLC on January 17, 2025, for $11.5 million. The sale, which represented nearly all of NovaBay’s revenue-generating assets, marks a significant shift in the company’s operations, as it plans to use the proceeds for the liquidation and dissolution of the company, pending stockholder approval of Proposal Two. Despite stockholder approval of the asset sale, the company’s liquidation proposal did not receive enough votes during the reconvened meeting on January 16, 2025, leading to the adjournment of the meeting until January 30, 2025, to allow further voting on the proposal.