Nextgen Biomed Ltd develops topical treatment for psoriasis. The company was formerly known as Sela Group.Com Ltd. and changed its name to Nextgen Biomed Ltd in February 2010. Nextgen Biomed Ltd was incorporated in 1990 and is based in Tel Aviv, Israel.

Israel

Nextgen Biomed Ltd

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

NXGN.TA reported revenue of ILS 0mn in the last 12 months, down 0% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 4% from FY23 to ILS -1.88.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 9ppts and its growth accelerated by 14ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months it exceeded the performance of this peer group by 6ppts and accelerated its growth by 25ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Nextgen Biomed Ltd reported a return on equity (RoE) of -275.7% in the last 12 months, down from -85.6% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to -178.7% in the last 12 months, a decrease from -73.7% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to -244.9%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -14.1 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

NXGN.TA has very poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is very unstable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, inadequate interest coverage, and poor cash flow generation. We note an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, NXGN.TA is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, NXGN.TA is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. 

Nextgen Biomed Ltd

ILA 65.4

3

Nextgen Biomed Ltd

ILA 65.4

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

ILA 65.4

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