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Novonesis (NVZMY)
OTHER OTC:NVZMY
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Novonesis
(OTC:NVZMY)
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Rating:63Neutral
Price Target:
$68.00
▲(7.24% Upside)
Novonesis's overall stock score is driven by strong operational efficiency and positive earnings call sentiment, highlighting growth in emerging markets and innovative product launches. However, the high P/E ratio indicates overvaluation, and technical indicators suggest cautious optimism. The decline in revenue and free cash flow growth remains a concern.
Positive Factors
Emerging Markets Growth
Strong growth in emerging markets indicates Novonesis's ability to capture new opportunities and expand its market presence, supporting long-term revenue growth.
Innovative Product Launches
The launch of new products enhances Novonesis's competitive edge and diversifies its offerings, which can drive sustained growth and market leadership.
EBITDA Margin Improvement
Improved EBITDA margins reflect operational efficiency and cost management, which can enhance profitability and provide financial stability.
Negative Factors
Revenue Decline
A decline in revenue growth poses a risk to Novonesis's future profitability and market competitiveness, necessitating strategic adjustments.
Free Cash Flow Decline
Decreasing free cash flow limits Novonesis's ability to invest in growth opportunities and may strain financial flexibility over time.
Beverage Segment Decline
The decline in the Beverage segment highlights challenges in maintaining market share, which could affect overall revenue and growth prospects.
Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.51B
Dividend Yield1.51%
Average Volume (3M)1.56K
Price to Earnings (P/E)90.7
Beta (1Y)0.20
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10,582
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.47
Shares Outstanding414,555,050
10 Day Avg. Volume2,114
30 Day Avg. Volume1,559
Financial Highlights & Ratios
PEG Ratio-15.01
Price to Book (P/B)10.13
Price to Sales (P/S)29.52
P/FCF Ratio171.45
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit5.10
Enterprise Value/Ebitda9.34
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Novonesis Business Overview & Revenue Model
Company DescriptionNovonesis (NVZMY) is a technology-driven company specializing in innovative solutions for the healthcare and life sciences sectors. The company focuses on developing advanced biotechnology products and services aimed at improving patient outcomes and enhancing operational efficiencies within medical institutions. Novonesis is known for its cutting-edge research and development in drug delivery systems, diagnostic tools, and personalized medicine, positioning itself as a leader in the biopharmaceutical landscape.
How the Company Makes MoneyNovonesis generates revenue through multiple streams, primarily by selling its proprietary biotechnology products and services to healthcare providers, research institutions, and pharmaceutical companies. Key revenue streams include direct sales of its advanced drug delivery systems and diagnostic tools, as well as licensing agreements for its patented technologies. Additionally, Novonesis may enter into strategic partnerships with larger pharmaceutical companies for collaborative research and development projects, which can provide significant financial backing and shared revenue opportunities. The company's focus on personalized medicine also opens up avenues for reimbursement from healthcare payers, further enhancing its revenue potential.
Novonesis Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong organic growth, particularly in emerging markets, and a robust pipeline of innovative products. However, challenges such as currency headwinds, the impact of exiting certain countries, and declines in the Beverage segment were noted.Q3-2025 Updates
Positive Updates
Strong Organic Sales Growth
Novonesis delivered organic sales growth of 8% in the first 9 months of 2025, with the third quarter growing by 6%. Growth was broad-based and mainly volume-driven.
Emerging Markets Performance
Emerging markets experienced a 12% growth, driven by increased local presence and tailored solutions, significantly outgrowing developed markets.
Adjusted EBITDA Margin Improvement
The adjusted EBITDA margin for the first 9 months was 37.3%, an increase of 1.3 percentage points compared to last year, despite significant currency headwinds.
Innovative Product Launches
Novonesis launched 19 new Biosolutions in 2025, including high-performance solutions for various industries, contributing significantly to growth.
Cash Flow and Earnings Growth
Free cash flow before acquisitions increased by 16% to EUR 668 million, and diluted adjusted earnings per share increased by 20%.
Negative Updates
Negative Impact from Country Exits
The exit from certain countries negatively impacted organic sales growth by around 1 percentage point in the first 9 months and by 2 percentage points in the third quarter.
Currency Headwinds
Currency fluctuations provided a 3 percentage point headwind in sales and impacted the adjusted EBITDA margin by around 1 percentage point.
Beverage Segment Decline
The Beverage segment declined, impacted mainly by lower end market volumes, despite efforts to drive better penetration and launch next-generation solutions.
Company Guidance
During the Novonesis conference call for the first nine months of 2025, the company provided updated guidance and performance metrics. The firm delivered an organic sales growth of 8%, with the third quarter achieving a 6% increase, primarily driven by volume, as pricing contributed around 1%. Emerging markets showed robust growth at 12%, while developed markets grew by 6%. The adjusted EBITDA margin improved to 37.3%, up by 1.3 percentage points from the previous year, despite significant currency headwinds. For the entire year, Novonesis revised its organic sales growth expectation to 7% to 8%, anticipating mid-single-digit growth in the fourth quarter. The adjusted EBITDA margin is projected to be at the lower end of the 37% to 38% range. The company's strategic investments in emerging markets and its recent acquisition of the Feed Enzyme Alliance were highlighted as significant growth drivers.Novonesis Financial Statement Overview
Summary
Novonesis demonstrates strong operational efficiency with healthy profit margins and a stable balance sheet characterized by low leverage. However, the significant decline in revenue and free cash flow growth presents challenges. The company needs to address these growth issues to maintain its financial health and support future expansion.Income Statement
Novonesis has experienced a significant decline in revenue growth with a TTM decrease of 36.53%. Despite this, the company maintains a healthy gross profit margin of 51.81% and a net profit margin of 13.24%. The EBIT and EBITDA margins are also robust at 19.26% and 28.34%, respectively, indicating strong operational efficiency. However, the declining revenue trend poses a risk to future profitability.65
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively low at 0.29, suggesting a conservative leverage strategy. Return on equity is modest at 5.63%, reflecting moderate profitability relative to shareholder equity. The equity ratio stands at 65.89%, indicating a strong equity base relative to total assets. Overall, the balance sheet reflects financial stability with low leverage risk.72
Positive
Cash Flow
Novonesis shows a decline in free cash flow growth by 39.23% TTM, which is concerning. The operating cash flow to net income ratio is 0.49, indicating that a significant portion of net income is supported by operating cash flow. The free cash flow to net income ratio is 0.76, suggesting that free cash flow generation is still relatively strong despite the decline. Cash flow management needs improvement to support long-term growth.58
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.48B | 3.83B | 17.90B | 17.55B | 14.95B | 14.01B |
| Gross Profit | 6.23B | 1.81B | 9.72B | 9.58B | 8.62B | 7.85B |
| EBITDA | 3.40B | 8.07B | 5.47B | 6.12B | 5.40B | 4.82B |
| Net Income | 1.59B | 305.80M | 3.02B | 3.68B | 3.15B | 2.83B |
Balance Sheet | ||||||
| Total Assets | 16.36B | 15.20B | 28.39B | 27.98B | 24.77B | 20.51B |
| Cash, Cash Equivalents and Short-Term Investments | 310.49M | 284.00M | 1.12B | 1.12B | 1.04B | 1.30B |
| Total Debt | 3.12B | 1.80B | 7.73B | 411.00M | 482.00M | 3.78B |
| Total Liabilities | 5.58B | 4.02B | 14.04B | 13.76B | 12.56B | 9.27B |
| Stockholders Equity | 10.78B | 11.18B | 13.98B | 13.84B | 11.83B | 11.23B |
Cash Flow | ||||||
| Free Cash Flow | 936.61M | 660.10M | 2.10B | 1.12B | 2.82B | 3.42B |
| Operating Cash Flow | 1.38B | 1.02B | 4.15B | 4.01B | 4.06B | 4.36B |
| Investing Cash Flow | -1.94B | -199.70M | -2.13B | -2.67B | -2.75B | -1.52B |
| Financing Cash Flow | 579.50M | -703.20M | -1.89B | -1.25B | -1.59B | -2.31B |
Novonesis Technical Analysis
Positive
63.41
Price Trends
63.15
Positive
62.64
Positive
64.95
Negative
Market Momentum
0.72
Negative
56.49
Neutral
83.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVZMY, the sentiment is Positive. The current price of 63.41 is below the 20-day moving average (MA) of 64.08, above the 50-day MA of 63.15, and below the 200-day MA of 64.95, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 83.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVZMY.
Novonesis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.39B | 21.64 | 22.72% | 1.96% | 3.09% | 12.25% | |
67 Neutral | $24.70B | 19.65 | 16.31% | 2.71% | -12.98% | -11.34% | |
63 Neutral | $30.51B | 90.68 | 21.63% | 1.51% | ― | ― | |
62 Neutral | $18.18B | -23.26 | -0.46% | 1.74% | 2.42% | -196.54% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $18.14B | -44.27 | -2.84% | 2.41% | -3.01% | 82.30% | |
52 Neutral | $16.38B | -13.54 | -10.44% | 12.78% | -19.65% | -157.13% |
* Basic Materials Sector Average
NVZMY
Novonesis
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16.29%
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DD
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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.