Novonesis (NVZMY) AI Stock Analysis

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Novonesis

(OTC:NVZMY)

66Neutral

Novonesis exhibits strong financial stability and profitability, supported by effective cost management and cash flow generation. Technical indicators suggest potential for stock price support, though momentum is currently weak. Valuation is high, indicating potential overvaluation concerns. Positive earnings call sentiment and strategic achievements, despite certain market challenges, contribute to a favorable outlook.

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

Market Cap

$29.30B

Dividend Yield0.9%

Average Volume (3M)25.39K

Price to Earnings (P/E)87.1

Beta (1Y)0.40

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees10,582

SectorBasic Materials

Sector Strength60

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.71

Shares Outstanding414,555,050

10 Day Avg. Volume0

30 Day Avg. Volume25,387

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)5.90

Price to Cash Flow (P/CF)N/A

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 TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Novonesis Business Overview & Revenue Model

Company DescriptionNovonesis (NVZMY) is a technology-driven company specializing in the development of advanced software solutions and services for the healthcare sector. The company focuses on creating innovative digital platforms and applications that enhance clinical efficiency, improve patient care, and streamline operational processes within healthcare institutions.

How the Company Makes MoneyNovonesis generates revenue through a diverse range of streams primarily centered around its software solutions. The company offers subscription-based access to its proprietary healthcare platforms, which provide hospitals and clinics with tools for electronic health records management, patient engagement, and data analytics. Additionally, Novonesis collaborates with healthcare providers and pharmaceutical companies, offering customized software development services and consultancy. Key partnerships with major healthcare networks and technology firms further bolster its revenue by expanding its market reach and facilitating the integration of its solutions into existing healthcare systems.

Novonesis Financial Statement Overview

Summary

Novonesis is financially stable with strong profit margins and efficient cash flow management. Despite a revenue and free cash flow downturn in 2024, effective cost management and a solid equity position indicate resilience. However, increased leverage requires monitoring.

Income Statement

Positive

Novonesis has shown robust revenue growth over the years, with significant improvements in gross profit margin and net profit margin. Although there was a notable drop in revenue from 2023 to 2024, the margins remained relatively stable, indicating effective cost management. The EBIT and EBITDA margins have been consistently strong, supporting profitability.

Balance Sheet

Positive

The company maintains a solid equity position with a high equity ratio, suggesting financial stability. However, the debt-to-equity ratio increased in 2024, indicating higher leverage, which could pose risks if not managed properly. Return on equity remains strong, reflecting effective use of shareholder funds.

Cash Flow

Positive

Novonesis has demonstrated strong operating cash flow generation, consistently exceeding net income, which is a positive indicator of cash-generating efficiency. The free cash flow growth has been impressive over the years, although it saw a decline in 2024, which could impact future flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.83B	17.90B	17.55B	14.95B	14.01B
	Gross Profit
1.81B	9.72B	9.58B	8.62B	7.85B
	EBIT
659.00M	3.98B	4.63B	4.01B	3.65B
	EBITDA
659.00M	5.47B	6.12B	5.20B	4.85B
	Net Income Common Stockholders
305.80M	3.02B	3.68B	3.15B	2.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
284.00M	1.16B	1.12B	1.04B	1.30B
	Total Assets
15.20B	28.39B	27.98B	24.77B	20.51B
	Total Debt
1.80B	7.73B	411.00M	482.00M	3.78B
	Net Debt
1.52B	6.62B	-630.00M	-481.00M	2.60B
	Total Liabilities
4.02B	14.04B	13.76B	12.56B	9.27B
	Stockholders Equity
11.18B	13.98B	13.84B	11.83B	11.23B
Cash Flow		Free Cash Flow
660.10M	2.10B	1.12B	2.82B	3.42B
	Operating Cash Flow
1.02B	4.15B	4.01B	4.06B	4.36B
	Investing Cash Flow
-199.70M	-2.13B	-2.67B	-2.75B	-1.52B
	Financing Cash Flow
-703.20M	-1.89B	-1.25B	-1.59B	-2.31B

Novonesis Technical Analysis

Technical Analysis Sentiment

Positive

Last Price62.88

Price Trends

50DMA

59.11

Positive

100DMA

57.93

Positive

200DMA

61.10

Positive

Market Momentum

MACD

1.23

Negative

RSI

60.67

Neutral

STOCH

87.75

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 62.88 is above the 20-day moving average (MA) of 60.13, above the 50-day MA of 59.11, and above the 200-day MA of 61.10, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 87.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVZMY.

Novonesis Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	73 Outperform	$8.76B	9.88	16.11%	4.32%	1.91%	2.94%
RPM	69 Neutral	$13.41B	21.14	25.53%	1.86%	-0.61%	15.06%
PPG	67 Neutral	$23.28B	17.20	19.13%	2.62%	-4.59%	11.09%
DD	67 Neutral	$24.65B	35.23	3.12%	2.36%	2.64%	80.37%
NVZMY	66 Neutral	$29.30B	87.09	21.63%	0.90%	―	―
LYB	58 Neutral	$19.19B	14.27	10.69%	9.02%	-6.53%	―
Sector *	49 Neutral	$1.95B	-1.59	-21.99%	3.77%	0.61%	-27.45%

* Basic Materials Sector Average

Performance Comparison

NVZMY

Novonesis

62.88

7.57

13.69%

EMN

Eastman Chemical

75.84

-18.27

-19.41%

LYB

LyondellBasell

59.44

-36.25

-37.88%

PPG

PPG Industries

102.57

-25.35

-19.82%

RPM

RPM International

104.44

-2.33

-2.18%

DuPont de Nemours

65.69

-6.83

-9.42%

Novonesis Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: 10.98% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong organic growth, improved profitability, successful integration, and sustainability achievements. However, challenges in the Human Health segment, particularly in the U.S. and China, and the impact of exiting certain markets were noted. Despite these challenges, the overall outlook for 2025 remains positive.

Highlights

Strong Organic Sales Growth

Novonesis delivered a strong broad-based organic growth of 8% for the year 2024, driven by a 6% volume increase and a 2% contribution from pricing. Emerging markets were particularly strong, delivering 12% growth.

Improved Profitability

The strong sales growth coupled with cost synergies and operational excellence led to a 36.1% pro forma adjusted EBITDA margin for the year, an increase of 2.3 percentage points compared to 2023.

Successful Integration and Cost Synergy Achievement

Novonesis has achieved an 80% run rate of the three-year cost synergy program in the first year. The company is on track to realize a €200 million run rate in revenue synergy program.

Sustainability Achievements

80% – 83% of revenue is aligned with six of the United Nations Sustainable Development Goals. Since 2018, Scope 1 and 2 CO2 emissions have been reduced by 63%.

New Product Launches

In 2024, Novonesis launched 45 new products across industries and geographies, solidifying their innovation leadership in biosolutions.

Positive Outlook for 2025

For 2025, Novonesis expects continued strong growth performance of 5% to 8%, with a 37% to 38% outlook for the adjusted EBITDA margin.

Lowlights

Limited Growth in Human Health

Dietary supplements were flat due to muted growth in the U.S. market. HMO faced a high comparable and declined as expected.

Challenges in China

China, a small part of the Dairy business, saw a slightly negative development due to a decline in the Chinese dairy market, despite innovation momentum.

Impact of Exit from Russia and Belarus

The decision to exit Russia and Belarus is expected to negatively impact the full year organic sales growth by around one percentage point.

Company Guidance

In the Novonesis Full Year Financial Statement for 2024, the company highlighted several key metrics and strategic achievements. The company reported an 8% organic sales growth for the year, driven by a 6% volume increase and a 2% contribution from pricing. Emerging markets exhibited robust growth with a 12% increase. The company's adjusted EBITDA margin improved to 36.1%, a 2.3 percentage point increase from 2023, supported by cost synergies and operational excellence. Novonesis launched 45 new products and achieved a 30% revenue contribution from innovations in the past five years. The firm also made significant strides in sustainability, with 80%-83% of revenue aligned with the UN's Sustainable Development Goals, and reduced Scope 1 and 2 CO2 emissions by 63% since 2018. Looking ahead, Novonesis projects a 5% to 8% organic sales growth for 2025, with an anticipated EBITDA margin between 37% and 38%.

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.