Nanoco Group plc (NANO) AI Stock Analysis

• Market Cap: £14.11M
• Dividend Yield: N/A
• Average Volume (3M): 645.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 40.16%
• EPS Growth: -112.50%
• Country: UK
• Employees: 47
• Sector: Technology
• Sector Strength: 40
• Industry: Semiconductors
• EPS (TTM): >-0.01
• Shares Outstanding: 194,608,030
• 10 Day Avg. Volume: 574,014
• 30 Day Avg. Volume: 645,058
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.98
• Price to Cash Flow (P/CF): 0.20
• P/FCF Ratio: 0.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Nanoco Group plc faces significant financial and technical challenges, with a transition to net losses and negative equity impacting its financial health. The stock's bearish technical indicators further compound the negative outlook. While strategic shifts and revenue growth from licensing arrangements are positive, the anticipated revenue decline and cash burn pose risks. The company needs to leverage its new leadership and IP strategy to overcome these hurdles and improve its financial stability.

Nanoco Group plc Business Overview & Revenue Model

Company Description

Nanoco Group plc (NANO) is a leading technology company specializing in the development and manufacture of cadmium-free quantum dots and other nanomaterials. These advanced materials are utilized across a variety of sectors, including display, lighting, solar energy, and bio-imaging. The company's core products focus on enhancing color performance and energy efficiency in displays, offering an environmentally friendly alternative to traditional materials.

How the Company Makes Money

Nanoco Group plc generates revenue primarily through the sale and licensing of its proprietary nanomaterials and quantum dot technologies. The company collaborates with major display manufacturers who integrate these materials into their products to improve performance and sustainability. Additionally, Nanoco earns income through research and development contracts, where it partners with other organizations to innovate and develop new nanotechnology applications. The company's earnings are significantly influenced by its ability to form strategic partnerships and secure long-term supply agreements with industry leaders.

Nanoco Group plc Financial Statement Overview

Summary

Nanoco Group plc shows strong revenue growth and excellent gross profit margins. However, the shift to a net loss and negative equity position signals underlying challenges. While cash flow management is commendable, the negative equity raises concerns about financial stability. The company must address profitability and balance sheet issues to ensure long-term sustainability.

Income Statement

The company has demonstrated significant revenue growth from 2023 to 2024, with a revenue increase of approximately 40.1%. However, despite the revenue growth, the company has moved from a net profit in 2023 to a net loss in 2024, resulting in a negative net profit margin. The gross profit margin is strong at 84.6%, indicating efficient production or service delivery. Nonetheless, the transition to a net loss and the negative EBIT margin of 21.7% highlight profitability challenges.

Balance Sheet

The balance sheet reflects financial instability, as indicated by the negative stockholders' equity of -£17 million in 2024. This, coupled with a total debt of £1.9 million, raises concerns about the company's leverage and stability. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is also negative. These factors suggest financial distress, potentially posing risks to creditors and stakeholders.

Cash Flow

The cash flow statement shows a robust operating cash flow in 2024, significantly improving from previous years and resulting in a highly positive free cash flow. This indicates strong cash generation capabilities despite the net loss. The free cash flow to net income ratio is favorable, suggesting efficient cash management. However, the sustainability of this cash flow remains uncertain given the net loss scenario.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
8.01M	7.87M	5.62M	2.47M	2.09M	3.86M
	Gross Profit
6.47M	6.66M	4.77M	1.09M	757.00K	1.78M
	EBIT
-49.39M	1.71M	14.99M	-4.50M	-4.86M	-5.85M
	EBITDA
20.52M	3.58M	15.94M	-3.82M	-3.88M	-4.16M
	Net Income Common Stockholders
14.92M	-1.25M	11.09M	-4.70M	-4.39M	-5.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.18M	20.29M	8.21M	6.76M	3.81M	5.17M
	Total Assets
10.72M	30.66M	50.77M	10.89M	9.23M	11.86M
	Total Debt
1.81M	1.91M	6.43M	3.56M	1.08M	1.58M
	Net Debt
-2.37M	-18.38M	-1.77M	-3.20M	-2.73M	-3.59M
	Total Liabilities
3.92M	47.67M	34.35M	6.41M	6.18M	4.83M
	Stockholders Equity
6.80M	-17.01M	16.41M	4.48M	3.05M	7.03M
Cash Flow		Free Cash Flow
21.02M	49.88M	-28.22M	-1.90M	-3.75M	-4.24M
	Operating Cash Flow
20.13M	51.48M	-27.84M	-1.78M	-3.36M	-3.53M
	Investing Cash Flow
35.41M	-816.00K	34.18M	-82.00K	-344.00K	-704.00K
	Financing Cash Flow
-2.54M	-38.92M	-5.08M	4.79M	2.32M	2.40M

Nanoco Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NANO, the sentiment is Negative. The current price of 7.25 is below the 20-day moving average (MA) of 7.53, below the 50-day MA of 8.93, and below the 200-day MA of 12.22, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 51.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NANO.

Nanoco Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRB	68 Neutral	£78.79M	14.36	10.98%	1.76%	4.97%	3.63%
OXIG	65 Neutral	$922.34M	17.52	14.23%	1.29%	7.18%	-13.14%
Sector *	57 Neutral	$18.52B	9.81	-13.96%	2.71%	5.07%	-23.65%
SRT	47 Neutral	£136.23M	―		―	―	―
NANO	44 Neutral	£14.11M	―	7.37%	―	40.16%	-112.50%
ITM	40 Underperform	£171.63M	―	-14.63%	―	91.71%	39.80%

Nanoco Group plc Corporate Events

Nanoco Group to Release Half Year Results in April 2025

Nanoco Group plc has announced that it will release its Half Year Results for the period ended 31 January 2025 on 15 April 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress. The release of these results is expected to impact Nanoco’s positioning in the market, particularly within the electronics industry, where its cadmium-free quantum dots are a notable innovation.

Nanoco Group plc AGM Resolutions Passed, New Chairman Appointed

Nanoco Group plc has announced that all resolutions proposed during its Annual General Meeting (AGM) were successfully passed, including the appointment of Jalal Bagherli as the new Non-Executive Chairman, succeeding Christopher Richards. Despite most resolutions being approved with significant majorities, the board acknowledges a notable number of votes against Resolutions 5, 16, and 17, primarily from a single investor. The board is committed to consulting with shareholders to address these concerns and will provide an update within six months.