NBY  Novabay Pharmaceuticals Inc.

Exchange

AMEX

Sector

Consumer Durables

Industry

Major Pharmaceuticals

Market Cap.

68.13M

Vuru Grade

34.16/100

Current Price

$4.45
-0.05 (-1.11%)

Company Metrics

  • P/E 0
  • P/S 4.49
  • P/B 21.43
  • EPS -0.79
  • Cash ROIC 697.76%
  • Cash Ratio 2.20
  • Dividend 0 / 0%
  • Avg. Vol. 13,949.00
  • Shares 9.41M
  • Market Cap. 68.13M

Company Description

NovaBay Pharmaceuticals Inc., a clinical stage biotechnology company, engages in developing proprietary and patented topical Aganocide compounds for the treatment and prevention of various infections without causing bacterial resistance. Its Aganocide compounds are synthetic anti-infective product candidates with equivalent activity to the active antimicrobial molecules generated within white bloo... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

NovaBay Pharmaceuticals to Hold Third Quarter 2017 Conference Call on November 14
Business Wire (press release) - Nov 7, 2017
EMERYVILLE, Calif.--(BUSINESS WIRE)--NovaBay Pharmaceuticals, Inc. (NYSE American: NBY), a biopharmaceutical company focusing on commercializing its prescription Avenova┬« lid and lash hygiene product for the domestic eye care market, ...
Financial Review: Celyad SA (CYAD) & NovaBay Pharmaceuticals (NBY) - Week Herald
NovaBay Pharmaceuticals Reports Third Quarter 2017 Financial Results
Business Wire (press release) - Nov 14, 2017
BUSINESS WIRE)--NovaBay Pharmaceuticals, Inc. (NYSE American: NBY), a biopharmaceutical company focusing on commercializing prescription Avenova┬« for lid and lash hygiene in the domestic eye care market, reports financial results for the three and ...
NovaBay Pharmaceuticals (NBY) CEO Mark Sieczkarek on Q3 2017 Results ... - Seeking Alpha
NovaBay Pharmaceuticals' (NBY) CEO Mark Sieczkarek on Q2 2017 Results ...
Seeking Alpha - Aug 11, 2017
Thank you. This is Bruce Voss with LHA. Thank you all for participating in today's call to discuss NovaBay's second quarter 2017 financial results.
NovaBay Pharmaceuticals Reports Second Quarter 2017 Financial Results - Business Wire (press release)
NovaBay Pharmaceuticals' (NBY) CEO Mark Sieczkarek on Q1 2017 Results ...
Seeking Alpha - May 12, 2017
Joining me from NovaBay Pharmaceuticals are Mark Sieczkarek, President & CEO and Tom Paulson the Company's Chief Financial Officer.
NovaBay Pharmaceuticals' (NBY) CEO Mark Sieczkarek on Q4 2016 Results ...
Seeking Alpha - Mar 24, 2017
Joining me from NovaBay Pharmaceuticals are Mark Sieczkarek, President & CEO and Tom Paulson the Company's CFO.
NovaBay Pharmaceuticals Announces CFO Transition
Business Wire (press release) - Jul 10, 2017
EMERYVILLE, Calif.--(BUSINESS WIRE)--NovaBay Pharmaceuticals, Inc. (NYSE MKT: NBY), a specialty pharmaceutical company focusing on commercializing prescription Avenova┬« for lid and lash hygiene in the domestic eye care market, announces that ...
IDACORP, Inc. (IDA) Shares Sold by Municipal Employees Retirement System of ...
StockNewsTimes - Oct 18, 2017
IDACORP logo Municipal Employees Retirement System of Michigan reduced its holdings in IDACORP, Inc. (NYSE:IDA) by 21.6% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned ...
NovaBay Pharmaceuticals, Inc. (NBY) Given a $6.00 Price Target by HC ...
The Ledger Gazette - Nov 16, 2017
NovaBay Pharmaceuticals, Inc. logo HC Wainwright set a $6.00 price target on NovaBay Pharmaceuticals, Inc. (NYSEAMERICAN:NBY) in a research report sent to investors on Wednesday. The brokerage currently has a buy rating on the biopharmaceutical ...
NovaBay Pharmaceuticals, Inc. (NBY) Given New $8.00 Price Target at - Dispatch Tribunal
NovaBay Pharmaceuticals, Inc. (NBY) Price Target Cut to $8.00 by Analysts at ... - TrueBlueTribune
Laidlaw Cuts NovaBay Pharmaceuticals, Inc. (NBY) Price Target to $8.00
The Ledger Gazette - Nov 18, 2017
NovaBay Pharmaceuticals, Inc. logo NovaBay Pharmaceuticals, Inc. (NYSEAMERICAN:NBY) had its price target reduced by Laidlaw from $10.00 to $8.00 in a research note published on Wednesday, Marketbeat reports.
Cuts NovaBay Pharmaceuticals, Inc. (NBY) Price Target to $8.00 - Dispatch Tribunal
Reviewing AC Immune SA (ACIU) & NovaBay Pharmaceuticals (NBY)
The Ledger Gazette - Nov 13, 2017
NovaBay Pharmaceuticals logo NovaBay Pharmaceuticals, Inc., formerly NovaCal Pharmaceuticals, Inc., is a biopharmaceutical company, which develops products for the eye care market.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NBY to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NBY's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$4.45 Current Price

$-7.66 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.66 NCA Price

Overvalued by 85.21%

$3.23 Book Price

Overvalued by 27.32%


Varying Cash Return on Invested Capital over the past 5 years

NBY has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

NBY has created $697.76 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -6.68M -13.11M -15.12M -18.68M -12.30M
divided by
Invested Capital -808,000.00 -1.03M -1.24M -1.94M 1.55M
Cash ROIC 826.24% 1,272.82% 1,222.55% 962.49% -795.28%

Very Poor Return on Equity over the past 5 years

NBY has shown an inability to deliver results for shareholders. This could be due to poor management, NBY operating in a highly competitive industry, or having a weak business in general.

NBY has generated a $249.16 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -7.03M -16.04M -15.19M -18.97M -13.15M
divided by
Stockholders' Equity 14.05M 8.52M 1.85M -5.10M 7.10M
Return on Equity -50.02% -188.37% -822.19% - -185.20%

Poor Business Performance over the past 10 years

NBY's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

NBY has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -6.93M -10.55M -2.38M 1.83M -3.26M -6.68M -13.11M -15.12M -18.68M -12.30M

Weak Balance Sheet

NBY's financial position is not ideal. The key is to check whether NBY is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 22.35M 12.10M 11.29M 12.81M 14.14M 16.87M 13.05M 5.43M 2.39M 9.51M
Current Assets 22.77M 12.51M 15.61M 13.75M 14.56M 18.28M 14.79M 6.95M 4.53M 14.47M
Total Assets 23.92M 13.97M 17.52M 15.52M 15.96M 19.24M 15.65M 7.54M 5.08M 15.38M
Current Liabilities 4.58M 4.48M 4.04M 2.72M 2.84M 3.17M 3.63M 3.35M 4.63M 4.32M
Total Liabilities 9.60M 6.62M 4.18M 5.03M 6.62M 5.19M 7.13M 5.69M 10.18M 8.28M
Stockholder' Equity 14.32M 7.35M 13.35M 10.49M 9.34M 14.05M 8.52M 1.85M -5.10M 7.10M
Current Ratio 4.97 2.79 3.86 5.05 5.13 5.76 4.08 2.08 0.98 3.35
TL-to-TA 0.40 0.47 0.24 0.32 0.41 0.27 0.46 0.75 2.00 0.54

Low or No Reinvestment of Profits over the past 10 years

NBY has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to NBY operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -18.47M -26.59M -23.89M -28.20M -33.28M -40.31M -56.35M -71.55M -90.52M -103.67M
Retained Earnings Growth - -43.92% 10.14% -18.03% -18.03% -21.11% -39.80% -26.96% -26.52% -14.53%

Erratic Net Profit Margins over the past 10 years

NBY has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -5.40M -8.11M 2.70M -4.31M -5.09M -7.03M -16.04M -15.19M -18.97M -13.15M
divided by
Revenue 5.91M 6.72M 15.68M 9.75M 11.02M 6.95M 3.48M 1.05M 4.38M 11.90M
Net Profit Margin -91.32% -120.71% 17.20% -44.17% -46.15% -101.15% -461.37% -1,441.56% -433.07% -110.54%

Varying Pricing Power over the past 10 years

NBY has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$80.98 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 5.91M 6.72M 15.68M 9.75M 1.11M 6.95M 3.32M 568,000.00 3.12M 9.43M
divided by
Revenue 5.91M 6.72M 15.68M 9.75M 11.02M 6.95M 3.48M 1.05M 4.38M 11.90M
Gross Margin 100.00% 100.00% 100.00% 100.00% 10.06% 100.00% 95.34% 53.89% 71.22% 79.29%

Medium Capital Intensity over the past 10 years

NBY has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

27.10% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 663,000.00 610,000.00 731,000.00 203,000.00 119,000.00 148,000.00 141,000.00 68,000.00 123,000.00 160,000.00
divided by
Net Income -5.40M -8.11M 2.70M -4.31M -5.09M -7.03M -16.04M -15.19M -18.97M -13.15M
Capital Expenditure Ratio -12.28% -7.52% 27.10% -4.71% -2.34% -2.11% -0.88% -0.45% -0.65% -1.22%

No Dividend History over the past 10 years

NBY has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 8.97M 21.31M 23.12M 23.33M 25.77M 29.45M 38.18M 49.63M 2.78M 9.41M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.79 1.03 2.02 1.67 1.34 1.14 1.23 0.65 2.08 3.30
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

NBY has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 8.97M 21.31M 23.12M 23.33M 25.77M 29.45M 38.18M 49.63M 2.78M 9.41M
Stock Bought Back - -57.89% -7.80% -0.90% -9.49% -12.48% -22.88% -23.06% 1,682.54% -70.41%
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