NovaBay Pharmaceuticals, Inc. (NYSE: NBY)

Sector: Healthcare Industry: Biotechnology CIK: 0001389545
Market Cap 751,596.30
P/B 0.68
P/E 0.23
P/S 0.27
ROIC (Qtr) -209.29
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 970,000.00
Debt/Equity (Qtr) 0.87
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About

NovaBay Pharmaceuticals, Inc. (NBY) operates in the healthcare industry, specializing in the development and sale of scientifically-created and clinically-proven eyecare and wound care products. The company's main business activities involve designing, manufacturing, and marketing products that cater to the needs of individuals suffering from dry eye disease and blepharitis, a common condition characterized by inflammation and irritation of the eyelids. NovaBay generates revenue primarily through the sale of its products, including its leading...

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Investment thesis

Bull case

  • Healthy cash reserves of 2.31M provide 4.09x coverage of short-term debt 565000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 3.49M provides 3.59x coverage of total debt 970000, indicating robust asset backing and low credit risk.
  • Tangible assets of 3.49M provide robust 4.32x coverage of other current liabilities 807000, indicating strong asset backing.
  • Strong cash position of 2.31M provides 2.86x coverage of other current liabilities 807000, indicating excellent liquidity.
  • Cash reserves of 2.31M provide robust 1.59x coverage of current liabilities 1.45M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (7.13M) provides thin coverage of dividend payments of (4.82M) with a 1.48 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of 0 provide weak support for R&D spending of 10000, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (7.13M) shows concerning coverage of stock compensation expenses of 17000, with a -419.24 ratio indicating potential earnings quality issues.
  • Operating cash flow of (7.13M) barely covers operating expenses of 658000 with a -10.83 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of (7.13M) is outpaced by equity issuance of 851000 (-8.37 ratio), indicating concerning reliance on equity markets for funding operations.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -1.02 11.06
EV to Cash from Ops. EV/CFO 0.50 26.32
EV to Debt EV to Debt -3.66 762.61
EV to EBIT EV/EBIT -1.09 -13.49
EV to EBITDA EV/EBITDA 0.47 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF 0.50 25.66
EV to Market Cap EV to Market Cap -4.72 203.37
EV to Revenue EV/Rev -1.25 156.31
Price to Book Value [P/B] P/B 0.68 20.59
Price to Earnings [P/E] P/E 0.23 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.67 -12.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.14
Interest Coverage Interest Coverage 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 197.55 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 131.22 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.58 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 131.22 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 131.22 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 102.51 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -8.84 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 42.57 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.81 0.14
Cash Payout Ratio Cash Payout (Qtr) -0.68 0.00
Cash Ratio Cash Ratio (Qtr) 1.59 3.92
Current Ratio Curr Ratio (Qtr) 2.00 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.87 0.48
Interest Cover Ratio Interest Cover Ratio 0.00 956.66
Times Interest Earned Times Interest Earned 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 122.50 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) 114.59 -18,246.34
EBT Margin % EBT Margin % (Qtr) 114.59 -19,108.08
Gross Margin % Gross Margin % (Qtr) 54.60 -10.30
Net Profit Margin % Net Margin % (Qtr) 114.60 -19,056.96