Last Updated: 17 Sep 2024
Executive Summary
Nutriband Inc. (NTRB) is a small-cap biotech company focused on developing transdermal pharmaceuticals. Despite a challenging operating environment, the company has shown promising growth in its revenue and gross profit. However, profitability remains elusive, with the company reporting negative earnings and EBITDA. The stock is currently trading at $4.52, well below its 52-week high of $9.60.
Company Overview
Nutriband Inc. was founded in 2004 and is headquartered in Orlando, Florida. The company's primary focus is on developing and commercializing transdermal patches that deliver drugs through the skin. Nutriband's pipeline includes treatments for pain, inflammation, and addiction.
Fundamental Analysis
Revenue: Nutriband's revenue has grown steadily in recent years, reaching $20.17 million in the trailing twelve months (TTM). This represents a 0.143% decline year-over-year.
Gross Profit: Gross profit has also increased, reaching $7.50 million in the TTM. This represents a gross profit margin of 37.2%.
Earnings: Nutriband has reported negative earnings per share (EPS) of $0.81 in the TTM. This is primarily due to high operating expenses, which have outpaced revenue growth.
Profitability: Nutriband's profitability metrics are weak, with a negative EBITDA margin of -4.625% and a negative return on equity (ROE) of -60.4%.
Balance Sheet: Nutriband has a strong balance sheet with $12.2 million in cash and equivalents and no debt.
Technical Analysis
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: The stock has strong support at $4.00 and resistance at $6.00.
Momentum: The stock's relative strength index (RSI) is currently at 35, indicating that it is oversold.
Short Term Outlook
In the short term, Nutriband's stock is likely to remain under pressure due to its weak profitability and the overall bearish market sentiment. The stock could test its support level at $4.00 in the coming weeks.
Long Term Outlook
Nutriband's long-term outlook is more positive. The company has a promising pipeline of products and a strong balance sheet. If Nutriband can successfully commercialize its products and improve its profitability, the stock could see significant upside potential.
Analyst Recommendations
The majority of analysts covering Nutriband have a "Buy" rating on the stock. The average analyst target price is $18.00, which represents a potential upside of 298.4% from the current price.
