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Novabay Pharmaceuticals (NBY)
:NBY
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NovaBay Pharma
(NYSE MKT:NBY)
41Neutral
Positive Factors
Asset Sale
NovaBay accepted an increased offer of $11.5 million for its Avenova assets, which may benefit the company's financial position.
Business Strategy
The sale of DERMAdoctor should reduce its cash burn and allows it to focus on pursuing newer and stronger growth opportunities that are better aligned with its core eyecare business.
Negative Factors
Financial Performance
Net loss was $1.6 million or EPS of $(1.37) compared with our estimates of $(1.28) and consensus of $(1.23).
Investor Uncertainty
The company did not provide 2024 guidance, which creates uncertainty for investors.
Revenue Performance
Revenue was $2.4 million compared with our estimates of $2.8 million and consensus of $3.2 million.
NovaBay Pharma (NBY) vs. S&P 500 (SPY)
Market Cap
$3.27M
Dividend YieldN/A
Average Volume (3M)57.25K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-23.51%
EPS Growth85.17%
CountryUS
Employees24
SectorHealthcare
Sector Strength79
IndustryBiotechnology
Share Statistics
EPS (TTM)-7.16
Shares Outstanding5,816,204
10 Day Avg. Volume62,330
30 Day Avg. Volume57,249
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)-0.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.85Price Target Upside63.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
NovaBay Pharma Business Overview & Revenue Model
Company DescriptionNovaBay Pharmaceuticals, Inc. is a biopharmaceutical company that operates primarily in the healthcare sector, focusing on developing and commercializing non-antibiotic products for the eye care and dermatology markets. Its core product, Avenova, is an eyelid and eyelash cleanser intended for the management of various eye conditions, including blepharitis and dry eye. The company is dedicated to improving the quality of life for patients by offering innovative and effective solutions for eye care.
How the Company Makes MoneyNovaBay Pharmaceuticals generates revenue primarily through the sale of its flagship product, Avenova, which is distributed via multiple sales channels including direct sales to healthcare professionals, online retail platforms, and strategic partnerships with distributors. The company employs a multi-faceted sales strategy, leveraging both direct-to-consumer marketing and partnerships with eye care specialists to enhance product reach and adoption. Additionally, NovaBay may explore licensing opportunities and partnerships to expand its product offerings and enter new markets, thus contributing to its revenue streams. The company's focus on non-antibiotic treatments aligns with growing industry trends towards safer, long-term healthcare solutions.
NovaBay Pharma Financial Statement Overview
Summary
NovaBay Pharma faces significant financial challenges, characterized by declining revenues, persistent losses, and a weakening balance sheet. The reliance on external financing to support operations and cash flow highlights potential liquidity risks.Income Statement
NovaBay Pharma's income statement reveals a consistent decline in total revenue over the TTM (Trailing-Twelve-Months) period, dropping by 23.9% from the previous year. The gross profit margin stands at 60.6%, indicating some ability to manage cost of goods sold. However, the net profit margin is deeply negative due to substantial net losses, reflecting ongoing challenges in achieving profitability. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.42
Neutral
Balance Sheet
The balance sheet indicates a weakening financial position with a high debt-to-equity ratio of 1.18 in the TTM period, suggesting potential leverage risk. Return on equity is negative, driven by consistent net losses. The equity ratio has significantly declined, indicating reduced financial stability and a shrinking asset base.38
Negative
Cash Flow
NovaBay Pharma's cash flow statement shows negative free cash flow, although there is a slight improvement in operating cash flow to net income ratio in the TTM period. The free cash flow growth rate is negative, indicating challenges in generating cash. The company is reliant on financing activities, which poses a risk if external funding becomes less accessible.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 11.20M | 14.73M | 14.40M | 8.42M | 9.93M | 6.60M | Gross Profit |
| 6.79M | 7.89M | 7.78M | 5.64M | 5.96M | 4.86M | EBIT |
| -4.48M | -5.00M | -7.68M | -8.86M | -6.43M | -9.40M | EBITDA |
| -5.85M | -4.80M | -7.20M | -8.74M | -6.38M | -9.34M | Net Income Common Stockholders |
| -10.12M | -9.64M | -16.27M | -6.56M | -11.04M | -10.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.74M | 3.13M | 5.36M | 7.50M | 11.95M | 6.94M | Total Assets |
| 16.17M | 9.03M | 16.40M | 23.98M | 15.24M | 11.22M | Total Debt |
| 372.00K | 2.74M | 2.04M | 551.00K | 503.00K | 4.05M | Net Debt |
| -12.52M | -390.00K | -3.32M | -6.95M | -11.45M | -2.89M | Total Liabilities |
| 3.98M | 5.72M | 5.84M | 13.81M | 2.92M | 10.25M | Stockholders Equity |
| 12.19M | 3.31M | 10.55M | 10.17M | 12.32M | 973.00K |
| Cash Flow | Free Cash Flow | ||||
| -4.42M | -4.15M | -6.77M | -9.24M | -4.75M | -7.95M | Operating Cash Flow |
| -4.41M | -4.13M | -6.65M | -9.19M | -4.72M | -7.93M | Investing Cash Flow |
| 1.06M | -19.00K | -112.00K | -12.04M | -26.00K | -19.00K | Financing Cash Flow |
| 976.00K | 1.91M | 4.63M | 16.79M | 9.76M | 11.70M |
NovaBay Pharma Technical Analysis
Negative
0.52
Price Trends
0.63
Negative
0.63
Negative
0.81
Negative
Market Momentum
-0.01
Positive
41.36
Neutral
-0.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBY, the sentiment is Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.63, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of -0.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBY.
NovaBay Pharma Risk Analysis
NovaBay Pharma disclosed 26 risk factors in its most recent earnings report. NovaBay Pharma reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NovaBay Pharma Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $1.11B | ― | -95.21% | ― | 9.03% | -25.00% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
48 Neutral | $342.96M | ― | -43.42% | ― | -5.97% | -25.87% | |
42 Neutral | $9.64M | ― | -52.85% | ― | ― | 8.99% | |
41 Neutral | $3.27M | ― | -452.75% | ― | -23.51% | 85.17% | |
35 Underperform | $9.06M | ― | 391.94% | ― | ― | 60.95% |
* Healthcare Sector Average
Performance Comparison
NBY
NovaBay Pharma
0.52
-2.70
-83.85%
EYPT
EyePoint Pharmaceuticals
4.61
-16.12
-77.76%
OCUL
Ocular Therapeutix
6.36
-1.63
-20.40%
CTXR
Citius Pharmaceuticals
1.02
-23.00
-95.75%
TSE:APS
Aptose Biosciences
4.80
-55.50
-92.04%
NovaBay Pharma Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -14.75% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with strong growth and efficiency improvements in the eyecare segment, but challenges in overall revenue and net loss due to declines in wound care sales and low cash reserves.Highlights
Eyecare Business Growth
Sales from eyecare products reached $4.8 million for the first half of 2024, showing growth in the eyecare segment driven by Avenova branded products.
Increase in Subscription Customers
The number of Avenova Subscribe & Save customers on Amazon increased by 123% since the beginning of 2022, 64% since the beginning of 2023, and 16% for the first 6 months of 2024.
Record Prime Day Sales
Avenova sales were 17% higher than Prime Day 2023 and 40% higher than Prime Day 2022.
Gross Margin Improvement
Gross margin on net product revenue for Q2 2024 was 66%, compared with 49% for Q2 2023, due to increased sales of higher-margin eyecare products.
Reduction in Marketing Expenses
Sales and marketing expenses for Q2 2024 declined 13% from the prior year, highlighting improved cost efficiency.
Lowlights
Net Loss
Net loss attributable to common stockholders for Q2 2024 was $1.6 million, compared with a net loss of $4 million for Q2 2023.
Decline in Total Sales
Total sales net for Q2 2024 were $2.4 million, down from $3.5 million in Q2 2023, due to a decrease in wound care product sales.
Reduced Wound Care Revenue
No significant wound care product orders in 2024 compared to a large order in 2023, impacting overall sales volume.
Cash Position
Cash and cash equivalents as of June 30, 2024, were $0.8 million, indicating a need for careful financial management.
Company Guidance
During the NovaBay Pharmaceuticals Q2 2024 earnings call, the company reported a strong performance in its eyecare segment, with sales of eyecare products reaching $4.8 million for the first half of the year. They are on track to meet their annual target of $10 million in eyecare sales. The company has successfully reduced sales and marketing expenses by 13% year-over-year while achieving an 8% increase in eyecare revenue for Q2 2024, primarily through online OTC channels. Subscribe & Save customers on Amazon, their largest sales channel, grew by 16% in the first half of 2024, contributing to approximately 24% of online Avenova revenue. The gross margin improved to 66% in Q2 2024 from 49% in the prior year due to a shift towards higher-margin eyecare products. NovaBay's strategic focus remains on efficient growth within the U.S. dry eye market, anticipated to exceed $4.8 billion by 2030.NovaBay Pharma Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
NovaBay Pharma’s Strategic Shift and Liquidation Plans
Negative
Jan 23, 2025
NovaBay Pharmaceuticals completed the sale of its Avenova eyecare business to PRN Physician Recommended Nutriceuticals, LLC on January 17, 2025, for $11.5 million. The sale, which represented nearly all of NovaBay’s revenue-generating assets, marks a significant shift in the company’s operations, as it plans to use the proceeds for the liquidation and dissolution of the company, pending stockholder approval of Proposal Two. Despite stockholder approval of the asset sale, the company’s liquidation proposal did not receive enough votes during the reconvened meeting on January 16, 2025, leading to the adjournment of the meeting until January 30, 2025, to allow further voting on the proposal.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.