Novonesis (NVZMY) AI Stock Analysis

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Novonesis

(OTC:NVZMY)

Rating:62Neutral

Price Target:

$69.00

▲(8.49% Upside)

Novonesis's overall score is driven by strong financial performance and positive earnings call insights, tempered by technical analysis indicating bearish trends and a high P/E ratio suggesting overvaluation. The company's strategic initiatives and robust sales growth are positive, but currency impacts and market softness present risks.

Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$29.60B

Dividend Yield1.44%

Average Volume (3M)3.63K

Price to Earnings (P/E)88.0

Beta (1Y)0.29

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees10,582

SectorBasic Materials

Sector Strength73

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.42

Shares Outstanding414,555,050

10 Day Avg. Volume6,315

30 Day Avg. Volume3,629

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.24

Enterprise Value/Revenue3.71

Enterprise Value/Gross Profit8.17

Enterprise Value/Ebitda20.00

Forecast

1Y Price Target

$69.00

Price Target Upside8.49% Upside

Rating ConsensusHold

Number of Analyst Covering1

Novonesis Business Overview & Revenue Model

Company DescriptionNovonesis (NVZMY) is a technology-driven company specializing in advanced digital solutions tailored for the healthcare sector. The company focuses on providing innovative software and data analytics services that enhance patient care, streamline healthcare operations, and improve clinical outcomes. Its core products include electronic health record (EHR) systems, telehealth platforms, and predictive analytics tools, which are designed to support healthcare providers in delivering efficient and effective services.

How the Company Makes MoneyNovonesis generates revenue primarily through a subscription-based model for its software services, which includes monthly or annual fees for access to its EHR systems and analytics tools. Additionally, the company earns income from consulting services, offering implementation and training for healthcare organizations integrating their solutions. Key revenue streams also include partnerships with healthcare institutions and payers that may involve joint ventures or revenue-sharing agreements. Furthermore, Novonesis benefits from government contracts and grants aimed at enhancing digital health initiatives, which contribute to its financial stability.

Novonesis Earnings Call Summary

Earnings Call Date:Aug 21, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a solid performance in the first half of 2025 with strong organic sales growth and improved EBITDA margins. However, challenges such as currency headwinds and softness in the Beverages segment present some concerns. The company's positive outlook and strategic plans for future growth contribute to a balanced sentiment.

Q2-2025 Updates

Positive Updates

Strong Organic Sales Growth

Novonesis achieved a 9% organic sales growth in the first half of 2025, with a volume increase of 8% and a pricing contribution of 1%. Emerging markets showed a particularly strong growth of 12%.

Adjusted EBITDA Margin Improvement

The adjusted EBITDA margin increased by 2.1 percentage points to 37.4% for the first half of the year despite weaker currencies.

Food & Health Biosolutions Performance

The division delivered a 10% organic sales growth in the first half of the year with an adjusted EBITDA margin increase of 2.1 percentage points.

Household Care Growth

Household Care achieved 8% organic sales growth in the first half of 2025, driven mainly by volume growth and solid performance in emerging markets.

2025 Outlook Upgraded

The company upgraded its full-year organic sales growth guidance to 6% to 8%, up from the previous 5% to 8%.

Negative Updates

Currency Headwinds Impact

Currency fluctuations provided a significant negative impact on euro sales in Q2, reducing the reported growth to 4% despite an 8% organic growth.

Softness in Beverage Segment

The Beverages segment experienced softness due to lower end-market volumes.

Exit from Russia and Belarus

The exit from Russia and Belarus is expected to impact the second half of the year, affecting full-year organic sales growth in Food & Beverages by around 3 percentage points.

Operational Cash Flow Decrease

Operating cash flow decreased by EUR 114.2 million compared to last year, partly due to a one-off payment received in the previous year.

Company Guidance

During the Novonesis Conference Call on August 21, 2025, the company provided guidance for the full year, forecasting organic sales growth of 6% to 8%, revised from a previous range of 5% to 8%. This guidance was based on strong first-half performance, which included 9% organic sales growth, with volumes up by 8% and prices up by 1%. Emerging markets exhibited robust growth at 12%, while developed markets grew by 8%. The adjusted EBITDA margin for the first half was 37.4%, bolstered by a 2.1 percentage point increase compared to the previous year, despite adverse currency impacts. The company's strategic initiatives also included the successful integration of the Feed Enzymes Alliance acquisition and achieving a 100% run rate in cost synergies one year ahead of schedule. The company maintained its expected adjusted EBITDA margin of 37% to 38% for the year.

Novonesis Financial Statement Overview

Summary

Novonesis shows strong profitability and a solid balance sheet with efficient operations. However, modest revenue growth and inconsistent cash flow growth suggest limited expansion potential.

Income Statement

Positive

Novonesis has demonstrated robust profitability with a strong gross profit margin and consistent net profit margin over the years. However, the revenue growth rate has been modest, indicating a stable but not rapidly expanding business. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

Positive

The company's balance sheet is solid with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is satisfactory, showcasing effective use of equity capital. However, the equity ratio suggests a high reliance on equity financing, which may limit leverage benefits.

Cash Flow

Positive

Novonesis exhibits stable cash flow generation with a positive free cash flow trend. The operating cash flow to net income ratio is strong, indicating good cash conversion. However, the free cash flow growth rate has been inconsistent, which could pose challenges for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.91B	3.83B	17.90B	17.55B	14.95B	14.01B
Gross Profit	4.50B	1.81B	9.72B	9.58B	8.62B	7.85B
EBITDA	1.84B	659.00M	5.47B	6.12B	5.20B	4.85B
Net Income	666.22M	305.80M	3.02B	3.68B	3.15B	2.83B
Balance Sheet
Total Assets	15.06B	15.20B	28.39B	27.98B	24.77B	20.51B
Cash, Cash Equivalents and Short-Term Investments	256.50M	284.00M	1.12B	1.12B	1.04B	1.30B
Total Debt	1.70B	1.80B	7.73B	411.00M	482.00M	3.78B
Total Liabilities	3.83B	4.02B	14.04B	13.76B	12.56B	9.27B
Stockholders Equity	11.23B	11.18B	13.98B	13.84B	11.83B	11.23B
Cash Flow
Free Cash Flow	1.80B	660.10M	2.10B	1.12B	2.82B	3.42B
Operating Cash Flow	2.57B	1.02B	4.15B	4.01B	4.06B	4.36B
Investing Cash Flow	-387.85M	-199.70M	-2.13B	-2.67B	-2.75B	-1.52B
Financing Cash Flow	-1.82B	-703.20M	-1.89B	-1.25B	-1.59B	-2.31B

Novonesis Technical Analysis

Technical Analysis Sentiment

Negative

Last Price63.60

Price Trends

50DMA

68.01

Negative

100DMA

67.64

Negative

200DMA

62.57

Positive

Market Momentum

MACD

-1.41

Negative

RSI

43.25

Neutral

STOCH

55.54

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVZMY, the sentiment is Negative. The current price of 63.6 is below the 20-day moving average (MA) of 64.48, below the 50-day MA of 68.01, and above the 200-day MA of 62.57, indicating a neutral trend. The MACD of -1.41 indicates Negative momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of 55.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVZMY.

Novonesis Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	78 Outperform	$16.08B	23.42	25.42%	1.63%	0.51%	17.21%
DD	67 Neutral	$32.21B	40.24	0.31%	2.09%	4.55%	-130.25%
PPG	67 Neutral	$25.10B	19.72	16.88%	2.47%	-10.59%	-7.79%
NVZMY	62 Neutral	$29.60B	87.99	21.63%	1.44%	―	―
Sector *	61 Neutral	$10.26B	6.13	0.71%	2.93%	3.45%	-36.02%
LYB	61 Neutral	$18.12B	73.92	1.08%	9.62%	-14.12%	-89.22%
IFF	50 Neutral	$17.30B	83.39	-2.74%	2.37%	-0.07%	83.36%

* Basic Materials Sector Average

Performance Comparison

NVZMY

Novonesis

63.60

-4.36

-6.42%

IFF

International Flavors & Fragrances

67.51

-34.13

-33.58%

LYB

LyondellBasell

56.35

-31.85

-36.11%

PPG

PPG Industries

111.23

-13.67

-10.94%

RPM

RPM International

125.31

11.81

10.41%

DuPont de Nemours

76.92

-3.51

-4.36%

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: Aug 21, 2025