Nocopi Technologies (NNUP) AI Stock Analysis

• Market Cap: $19.37M
• Dividend Yield: N/A
• Average Volume (3M): 706.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -1.43%
• EPS Growth: 86.81%
• Country: US
• Employees: 7
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.25
• Shares Outstanding: 10,814,843
• 10 Day Avg. Volume: 1,264
• 30 Day Avg. Volume: 706
• PEG Ratio: -0.10
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 8.30
• P/FCF Ratio: 30.07
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ―

Nocopi Technologies faces significant challenges with declining revenue and profitability despite its strong equity position and improved cash flow management. The technical analysis indicates a neutral to slightly bearish outlook, and the negative P/E ratio reflects valuation difficulties. The overall score reflects these financial and market challenges.

Positive Factors

Strong Equity Position

A robust equity position with minimal debt enhances financial stability, providing a solid foundation for potential growth and resilience against market fluctuations.

Improved Cash Flow Management

Positive cash flow indicates effective cash management, which is crucial for sustaining operations and funding future investments without relying on external financing.

Dual Revenue Model

A dual revenue model diversifies income streams, reducing dependency on a single source and enhancing long-term revenue stability through product sales and licensing.

Negative Factors

Declining Revenue

A declining revenue trend poses risks to business sustainability, potentially impacting the company's ability to invest in growth and maintain competitive positioning.

Profitability Challenges

Ongoing profitability issues can hinder long-term viability, limiting the company's ability to reinvest in operations and adapt to market changes effectively.

Gross Profit Margin Decline

A declining gross profit margin suggests rising costs or pricing pressures, which can erode competitive advantage and reduce financial flexibility over time.

Nocopi Technologies Business Overview & Revenue Model

Company Description

Nocopi Technologies, Inc. develops and markets specialty reactive inks for applications in the educational and toy product markets, and technologies for document and product authentication. The company offers specialty inks for coloring books, activity kits, play sheets, single use place mats, greeting cards, board games, promotional products, or other paper-based applications; and anti-counterfeiting and anti-diversion technologies and products for various applications in the authentication of documents having intrinsic value, such as merchandise receipts, checks, travellers' checks, gift certificates, and event tickets, as well as product labelling and packaging services. It also licenses its patented reactive ink technologies for the entertainment and toy, and document and product authentication markets. The company operates in North America, South America, Asia, and Australia. Nocopi Technologies, Inc. was founded in 1983 and is headquartered in King of Prussia, Pennsylvania.

How the Company Makes Money

Nocopi Technologies generates revenue through the sale of its proprietary ink technologies and through licensing agreements. The company's inks are used in security applications to prevent counterfeiting and unauthorized distribution of branded products. Additionally, Nocopi licenses its technology to other companies, allowing them to incorporate these specialized inks into their production processes. This dual revenue model, consisting of direct product sales and licensing fees, forms the backbone of Nocopi's income, supported by strategic partnerships with manufacturers and distributors who integrate the company's technology into their offerings.

Nocopi Technologies Financial Statement Overview

Summary

Nocopi Technologies exhibits financial stability through a strong equity position and improved cash flow management but faces significant challenges with declining revenue and profitability.

Income Statement

Nocopi Technologies has seen a significant decline in revenue from $4.63M in 2022 to $2.12M in 2024, indicating a negative growth trend. The gross profit margin has decreased over time, and the company has struggled with profitability, recording negative EBIT and net income in recent years. Such performance suggests challenges in maintaining operational efficiency and profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.0026 in 2024, indicating low leverage risk. The company's equity ratio is robust at 97.97%, showcasing financial stability. Despite these strengths, the declining revenue and profitability could pose risks to long-term sustainability.

Cash Flow

Cash flow analysis reveals an improvement in operating cash flow, reaching $594,800 in 2024 from a negative position in 2023. The free cash flow also turned positive in 2024, indicating better cash management. However, the historical volatility in cash flow and negative net income suggest potential sustainability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82M	2.12M	2.08M	4.63M	1.95M	2.66M
Gross Profit	966.80K	1.10M	1.10M	3.90M	1.21M	1.53M
EBITDA	-344.70K	-2.56M	-1.50M	2.08M	76.40K	500.50K
Net Income	-454.10K	-2.68M	-1.44M	1.81M	49.40K	508.40K
Balance Sheet
Total Assets	14.10M	13.92M	14.00M	9.62M	3.79M	3.87M
Cash, Cash Equivalents and Short-Term Investments	11.50M	10.84M	10.25M	5.34M	1.85M	1.36M
Total Debt	187.40K	35.20K	17.60K	68.30K	115.80K	160.30K
Total Liabilities	173.90K	281.60K	1.62M	799.00K	284.00K	420.10K
Stockholders Equity	13.67M	13.64M	12.38M	8.82M	3.51M	3.45M
Cash Flow
Free Cash Flow	556.70K	584.90K	-47.80K	-8.90K	481.10K	663.80K
Operating Cash Flow	556.70K	594.80K	-19.30K	-8.10K	512.70K	702.40K
Investing Cash Flow	0.00	7.98M	-3.63M	-800.00	-31.60K	-38.60K
Financing Cash Flow	0.00	0.00	5.00M	3.50M	2.80K	11.00K

Nocopi Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.79
• 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 NNUP, the sentiment is Positive. The current price of 1.79 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.57, and above the 200-day MA of 1.57, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 69.00 is Neutral, neither overbought nor oversold. The STOCH value of 56.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NNUP.

Nocopi Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FSI	61 Neutral	$78.31M	42.43	5.08%	―	0.18%	-54.25%
NTIC	57 Neutral	$88.66M	-277.15	0.02%	1.33%	-0.97%	-99.67%
NNUP	53 Neutral	$19.37M	-42.24	-3.81%	―	-1.43%	86.81%
SNES	49 Neutral	$10.84M	-0.57	-77.79%	―	39.37%	69.81%
LOOP	48 Neutral	$55.59M	-20.50	―	―	11013.00%	39.85%