California Nanotechnologies (CNO) AI Stock Analysis

• Market Cap: C$27.09M
• Dividend Yield: N/A
• Average Volume (3M): 63.71K
• Price to Earnings (P/E): 86.5
• Beta (1Y): 2.37
• Revenue Growth: 125.01%
• EPS Growth: -123.89%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): >-0.01
• Shares Outstanding: 46,714,287
• 10 Day Avg. Volume: 63,659
• 30 Day Avg. Volume: 63,714
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.75
• Price to Cash Flow (P/CF): 6.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 27.43
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

California Nanotechnologies shows strong revenue growth and operational efficiency, but profitability challenges persist due to continued net losses. High leverage presents financial risks, though cash flow generation is a positive sign for future potential. Technical indicators suggest upward momentum, but valuation remains a concern with a high P/E ratio and no dividend yield. Overall, the stock is on a positive trajectory but requires careful management of profitability and leverage to ensure sustainable growth.

California Nanotechnologies Business Overview & Revenue Model

Company Description

California Nanotechnologies Corp. engages in the research, development, and production of nanocrystalline materials through grain size reduction. The company provides spark plasma/ field assisted sintering (SPS/FAST); hot pressing; sintering; diffusion bonding; hot isostatic pressing; vacuum pressureless sintering; cryogenic milling, inert gas milling, planetary ball milling, and pulverizing; and material development and testing services, including mechanical alloying, composites/non-composites, mechanical testing, sample fabrication, prototyping, scanning electron microscopy analysis, and particle size analysis. It also offers SPS starter accessory kits, SPS graphite tooling, SPS systems, tungsten carbide tooling, SPS graphite crucibles, carbon graphite foil/paper, carbon felt and yarn, and quartz glass windows; and Engemini, an SPS/FAST modeling software. It serves aerospace, defense, automotive, medical, and sports and recreation industries. The company is headquartered in Cerritos, California.

How the Company Makes Money

California Nanotechnologies makes money primarily through providing advanced materials and processing services to various industries including aerospace, defense, and automotive. Their revenue model includes the sale of custom-developed nanostructured materials and components, as well as offering specialized research and development services aimed at improving material performance. The company also engages in strategic partnerships and collaborations with industry leaders to co-develop innovative solutions, which not only enhances their technological offerings but also expands their customer base. Contract manufacturing and consulting services for the development and implementation of nanotechnologies in client projects also contribute significantly to their earnings.

California Nanotechnologies Financial Statement Overview

Summary

California Nanotechnologies demonstrates promising revenue growth and efficiency in operations, as reflected by positive EBIT and EBITDA margins. However, the transition from operating profit to net income remains challenging, with net losses persisting. The balance sheet shows progress in financial stability, yet high leverage poses risks. Cash flow generation remains strong, indicating potential for future profitability if managed carefully. Overall, the company is on a positive trajectory but must address profitability and leverage to ensure sustainable growth.

Income Statement

California Nanotechnologies shows strong revenue growth over the years, with a significant jump in revenue from previous periods. The gross profit margin is healthy at 61.8% for TTM, indicating efficient cost management. However, the company is currently facing a net loss, leading to a negative net profit margin of -5.6% for TTM. EBIT and EBITDA margins stand at 28% and 10%, respectively, suggesting profitability at the operating level, but there are challenges translating this into net income.

Balance Sheet

The company has a high debt-to-equity ratio, indicating a significant reliance on debt financing. However, it's important to note that equity has improved from being negative in previous years to positive in the most recent TTM, showcasing a notable financial turnaround. The equity ratio remains low at 30.5%, highlighting potential leverage risks. While there is progress in decreasing liabilities, the financial stability still faces challenges.

Cash Flow

Operating cash flow is strong relative to net income, showing resilience in cash generation despite net losses. The Free Cash Flow has shown positive growth, with a current free cash flow value of $489,356. However, the Free Cash Flow to Net Income ratio is not applicable due to negative net income, indicating potential volatility in cash flow management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.34M	1.82M	1.36M	1.06M	1.10M
	Gross Profit
2.33M	669.57K	514.32K	439.97K	523.36K
	EBIT
635.26K	248.51K	153.14K	-162.50K	17.20K
	EBITDA
753.02K	337.91K	314.81K	10.77K	141.12K
	Net Income Common Stockholders
381.68K	79.76K	200.60K	-161.40K	-74.36K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
841.35K	294.13K	65.11K	25.29K	56.31K
	Total Assets
2.36M	1.41M	1.22M	587.40K	864.54K
	Total Debt
1.21M	1.94M	2.15M	1.94M	2.31M
	Net Debt
365.59K	1.65M	2.09M	1.92M	2.25M
	Total Liabilities
2.21M	2.70M	2.58M	2.24M	2.47M
	Stockholders Equity
145.97K	-1.29M	-1.36M	-1.66M	-1.61M
Cash Flow		Free Cash Flow
89.98K	604.26K	45.29K	33.20K	180.62K
	Operating Cash Flow
104.28K	717.01K	54.97K	33.20K	180.62K
	Investing Cash Flow
-14.30K	-112.75K	―	0.00	0.00
	Financing Cash Flow
535.33K	-387.83K	―	-62.52K	-149.61K

California Nanotechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNO, the sentiment is Negative. The current price of 0.58 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.73, and below the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.93 is Neutral, neither overbought nor oversold. The STOCH value of 14.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CNO.

California Nanotechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNO	62 Neutral	C$27.09M	86.54	-20.41%	―	125.01%	-123.89%
Sector *	59 Neutral	$10.73B	10.11	-6.65%	3.02%	7.41%	-11.17%
GRA	52 Neutral	C$416.28M	―	-10.44%	―	12.92%	-3.66%
APL	50 Neutral	$2.88M	13.54	-2.32%	142.50%	-100.00%	-122.17%
NANO	45 Neutral	C$82.47M	―	-84.80%	―	―	13.34%
PYR	44 Neutral	C$84.94M	―	-5701.32%	―	26.79%	76.97%

California Nanotechnologies Corporate Events

California Nanotechnologies Achieves Record Revenue Amidst Expansion

California Nanotechnologies reported record quarterly revenue of $1,806,205, marking a 56% year-over-year increase, alongside a strong adjusted EBITDA despite increased costs from capacity expansion. The company’s net income was impacted by non-cash charges related to share purchase warrants, but it remains optimistic about long-term growth due to higher manufacturing capacity and recent investments.

California Nanotechnologies Celebrates Growth and Expansion

California Nanotechnologies experienced major growth in 2024, expanding its manufacturing capabilities with a new facility in Santa Ana, California, equipped with cutting-edge technology like the MSP-5 SPS system. This expansion significantly enhances their production capabilities, positioning the company as a leader in advanced materials processing.