Novonesis (NVZMY)
OTHER OTC:NVZMY
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Novonesis
(OTC:NVZMY)
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Rating:57Neutral
Price Target:
$58.00
▼(-8.53% Downside)
Action:ReiteratedDate:03/07/26
The score is anchored by mixed financials: strong historical quality but materially weaker and inconsistent recent reported results. Technically, the stock is in a clear downtrend, while valuation is demanding (high P/E) with only modest yield support. Offsetting these risks, the latest earnings call guidance and commentary were notably positive, pointing to continued margin strength and mid-single-digit organic growth despite identified headwinds.
Positive Factors
R&D and Product Pipeline
Large, well-funded R&D program and strong IP protection create a durable product pipeline. High recent launch contribution (25% of sales) and AI-accelerated discovery shorten time-to-market, supporting sustainable organic growth, pricing power and differentiation over the medium term.
Negative Factors
Recent Revenue Decline and Profitability Volatility
Material revenue contraction and inconsistent margins across 2024–2025 reduce visibility into sustainable growth and earnings quality. Such structural variability makes forecasting returns harder, raises the bar for management to demonstrate durable recovery, and increases sensitivity to execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
R&D and Product Pipeline
Large, well-funded R&D program and strong IP protection create a durable product pipeline. High recent launch contribution (25% of sales) and AI-accelerated discovery shorten time-to-market, supporting sustainable organic growth, pricing power and differentiation over the medium term.
Read all positive factors
Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.27B
Dividend Yield1.51%
Average Volume (3M)1.56K
Price to Earnings (P/E)287.4
Beta (1Y)0.20
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10,582
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.53
Shares Outstanding414,555,050
10 Day Avg. Volume2,114
30 Day Avg. Volume1,559
Financial Highlights & Ratios
PEG Ratio12.64
Price to Book (P/B)15.45
Price to Sales (P/S)40.34
P/FCF Ratio223.41
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue4.22
Enterprise Value/Gross Profit8.08
Enterprise Value/Ebitda14.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.35
Revenue Forecast (FY)$5.17B
Novonesis Business Overview & Revenue Model
Company Description
Novonesis (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 ...
How the Company Makes Money
Novonesis 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 o...
Novonesis Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial story: solid organic growth (7% FY), strong margins (adjusted EBITDA 37.1%), excellent cash generation and EPS growth, successful M&A integration and a powerful innovation engine with large R&D and IP backing. Balanced against these positives are meaningful but manageable headwinds — chiefly currency impacts, effects from exiting certain countries, one-off integration and restructuring costs, timing variability in Agriculture/Tech, and a temporary step-up in CapEx. Management provided a constructive 2026 outlook (organic growth 5%–7%, EBITDA margin 37%–38%) that already incorporates the noted risks. On balance, highlights materially outweigh the lowlights.Positive Updates
Robust Cash Generation and EPS Growth
Operating cash flow of EUR 1.22bn (+EUR 189m YoY). Free cash flow before acquisitions EUR 770m (+15%), equaling 19% of sales. Diluted adjusted EPS EUR 1.49 (+16% YoY); EPS ex-PPA EUR 1.99 (+15%).
Negative Updates
Currency Headwinds
Significant negative FX impact: ~3% headwind to FY sales and ~4% in Q4; currency effects reduced adjusted EBITDA by ~0.5–1.0 ppt and are expected to negatively impact 2026 euro sales by ~2 ppt at current spot rates.
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Q4-2025 Updates
Positive
Negative
Robust Cash Generation and EPS Growth
Operating cash flow of EUR 1.22bn (+EUR 189m YoY). Free cash flow before acquisitions EUR 770m (+15%), equaling 19% of sales. Diluted adjusted EPS EUR 1.49 (+16% YoY); EPS ex-PPA EUR 1.99 (+15%).
Read all positive updates
Company Guidance
Novonesis guided 2026 for organic sales growth of 5–7% (volume‑driven; includes close to 1 percentage‑point drag from exiting certain countries), with pricing and sales synergies each expected to contribute roughly 1 ppt, around 1 ppt inorganic uplift from the Feed Enzyme Alliance and a ~1 ppt deferred‑revenue boost in Human Health; current FX spot rates imply about a 2 ppt negative translation to euro sales. They expect an adjusted EBITDA margin of 37–38% (continued margin expansion despite ~0.5 ppt currency headwind), ~EUR 40m of special items, net financials of EUR 80–90m, an effective tax rate of 22–23%, CapEx of 12–14% of sales (temporary step‑up to expand capacity and ERP), and year‑end net debt/EBITDA around 1.7 — while noting a good start to the year and a timing‑related inventory uplift in H1 that will be neutral for the full year.Novonesis Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.16B | 3.83B | 17.90B | 17.55B | 14.95B |
| Gross Profit | 2.24B | 1.81B | 9.72B | 9.58B | 8.62B |
| EBITDA | 1.39B | 8.07B | 5.47B | 6.12B | 5.40B |
| Net Income | 583.60M | 305.80M | 3.02B | 3.68B | 3.15B |
Balance Sheet | |||||
| Total Assets | 16.35B | 15.20B | 28.39B | 27.98B | 24.77B |
| Cash, Cash Equivalents and Short-Term Investments | 295.60M | 284.00M | 1.12B | 1.12B | 1.04B |
| Total Debt | 22.45B | 1.80B | 7.73B | 411.00M | 482.00M |
| Total Liabilities | 5.49B | 4.02B | 14.04B | 13.76B | 12.56B |
| Stockholders Equity | 10.86B | 11.18B | 13.98B | 13.84B | 11.83B |
Cash Flow | |||||
| Free Cash Flow | 750.70M | 660.10M | 2.10B | 1.12B | 2.82B |
| Operating Cash Flow | 1.22B | 1.02B | 4.15B | 4.01B | 4.06B |
| Investing Cash Flow | -1.97B | -199.70M | -2.13B | -2.67B | -2.75B |
| Financing Cash Flow | 753.30M | -703.20M | -1.89B | -1.25B | -1.59B |
Novonesis Technical Analysis
Positive
63.41
Price Trends
58.47
Positive
60.61
Positive
62.55
Negative
Market Momentum
0.73
Negative
64.85
Neutral
94.82
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 above the 20-day moving average (MA) of 56.37, above the 50-day MA of 58.47, and above the 200-day MA of 62.55, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 94.82 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 | $13.92B | 21.09 | 22.70% | 1.96% | 3.09% | 12.25% | |
68 Neutral | $24.69B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $23.91B | -18.77 | -6.63% | 12.78% | -19.65% | -157.13% | |
57 Neutral | $28.27B | 287.37 | 13.55% | 1.51% | ― | ― | |
57 Neutral | $18.84B | -46.13 | -2.49% | 2.41% | -3.01% | 82.30% | |
56 Neutral | $19.57B | -21.54 | -3.77% | 1.74% | 2.42% | -196.54% |
* Basic Materials Sector Average
NVZMY
Novonesis
60.88
5.93
10.78%
IFF
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73.77
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3.55%
LYB
LyondellBasell
74.22
19.46
35.54%
PPG
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110.47
10.01
9.96%
RPM
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108.72
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4.90%
DD
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47.85
22.46
88.47%
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.