Novan, Inc.Find Ratings Reports
NOVAN INC's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. NOVAN INC is extremely liquid. Currently, the Quick Ratio is 4.68 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 113.35% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY20||Q4 FY19|
|Net Sales ($mil)||1.07||1.38|
|Net Income ($mil)||-6.64||-5.95|
|Balance Sheet||Q4 FY20||Q4 FY19|
|Cash & Equiv. ($mil)||35.88||13.71|
|Total Assets ($mil)||46.83||29.1|
|Total Debt ($mil)||25.96||31.26|
|Profitability||Q4 FY20||Q4 FY19|
|Gross Profit Margin||-710.29||-398.4|
|Return on Assets||-62.55||-104.39|
|Return on Equity||-983.98||0.0|
|Debt||Q4 FY20||Q4 FY19|
|Share Data||Q4 FY20||Q4 FY19|
|Shares outstanding (mil)||145.7||26.74|
|Div / share||0.0||0.0|
|Book value / share||0.02||-0.83|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.4461614E7||1.5214183E7|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 72.43 indicates a significant premium versus the S&P 500 average of 4.31 and a significant premium versus the subsector average of 8.58. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, NOVAN INC seems to be trading at a premium to investment alternatives.
|NOVN NM||Peers 28.45||NOVN NM||Peers 18.55|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
NOVN's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
NOVN's P/CF is negative making the measure meaningless.
|NOVN NM||Peers 16.84||NOVN NA||Peers 0.38|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
NOVN's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|NOVN 72.43||Peers 8.58||NOVN 66.96||Peers -13.01|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
NOVN is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
NOVN is expected to have an earnings growth rate that significantly exceeds its peers.
|NOVN 43.83||Peers 10.93||NOVN 0.49||Peers 52.74|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
NOVN is trading at a significant premium to its subsector.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
NOVN significantly trails its peers on the basis of sales growth.