Meta Materials Stock (MMAT:NSD) Cormark Securities is Bullish On stock

The fundamental analysis for Meta Materials stock is currently set at a score of 3.3 out of 10. Where the Meta Materials stock has got a bearish sentiment.

Meta Materials Stock Forecast & Price:

 
Meta Materials stock has the average analyst price target of $3.75 over the period of the next 12 months. Based on 1 analyst covering the Meta Material stock. Meta Materials stock average analyst rating is set at a  Buy rating. Stock Target Advisor’s analysis of Meta Materials stock is currently Slightly Bearish. Based on 3 positive signals and 6 negative signals. The stock price of Meta Materials stock was US$1.66 at the most recent close. The stock price of Meta Materials stock changed by:
  • +26.72% over the previous week
  • +86.52% over the previous month
  • -60.48% over the previous year
 

News:

 
The third quarter saw a significant revenue increase for Meta Materials Inc. It is a Nova Scotia-based nanotech company. A deal got signed. They agreed with lowering the price and weight of batteries for electric vehicles. This will help extend their range and enhance the safety of electric vehicles.
 
In comparison to the same period in 2021, total sales increased YOY in Q3 by:
  • 329% to US$2.5 million
  • 388% to US$8.8 million throughout the first nine months.
 

Analyst Sentiments:

 
MacMurray Whale states he had anticipated signs of a faster climb in quantities. It was more than what the Cormark Securities analyst, previously anticipated. He acknowledged that modelling was challenging. Given the quick changes in the EV market. The current quarterly spend:
“gives a narrower runway than we had envisaged closing the year,”
because the cash balance has decreased to (US$31 million).
 

Company Financial Performance

 
The company’s Q3 net loss jumped to US$24.5 million, or 7 cents per share, on 362.2 million weighted average shares. In comparison to the US$11.4 million, or 4 cents per share, on 280 million weighted average shares in Q3 2021. However, the analyst noted something else in the report. Many significant acquisitions got done by the company. So, operating expenses also increased YOY to US$23.9 million.
 
The majority of the early-stage projects have not yet begun commercial-scale production yet. These are across a variety of different verticals. According to Whale, a single customer accounted for the $1.9 million earnings increase. They developed anti-counterfeiting methods for currencies with a confidential G10 central bank customer. It’s part of a bank arrangement for $41.5 million in five-year development initiatives.
 

About Meta Materials Stock

 
Meta Materials got established in the 1960s. The company flourished once its manufacturing and design capabilities got upgraded. The company is creating nanotechnology products including:
  • See-through antennas,
  • Self-de-icing and defogging vehicle features,
  • Truck headlights and windows,
  • Augmented reality spectacles that resemble conventional glasses,
  • Unique eye protection for pilots against laser strikes.
 
Meta Materials is utilizing its cutting-edge technologies in five sectors. These are:
  • Clean energy
  • Aerospace
  • Automotive
  • Health and Wellness
  • Communications Industries
 
MMAT stated earlier this month that it has signed a memorandum of understanding (MOU). These were with:
  • DuPont Teijin Films
  • Mitsubishi Electric Europe
Establish a high-volume manufacturing system for film-based, coated copper current collectors using PLASMAfusion. The procedure lessens the quantity of red metal required for EV batteries. The switch to green energy is being threatened by an impending copper scarcity.
 

Fundamental Analysis of Meta Materials stock:

 

Positive Fundamentals for Meta Materials Stock

 

Underpriced compared to book value

On a price-to-book value metric, the stock is trading at a low price compared to its peers and is in the top quartile. It might be low-priced. Be sure there isn’t a specific explanation by looking at its financial performance.
 

Superior growth in revenue

Meta Materials stock’s revenue growth has been in the top quartile. Based on the industry and company analysis of the past five years.
 

High Asset to Gross Profit Ratio

When compared to its rivals, this stock’s Gross Profit to Asset Ratio is in the top quartile. Value investors choose this metric because it exhibits superior long-term returns.
 

Negative Fundamentals for Meta Materials Stock

 

Subpar risk-adjusted returns

In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming returns. Be careful as you go.
 

Lower-than-average dividend returns

The company’s average income yield during the past five years has been low. In comparison to its competition from the industry. If you are not seeking for work, it is not an issue.
 

Overleveraged

In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.
 

Poor cash flow

The last four quarters saw a negative total cash flow for the organization.
 

Free cash flow that is negative

In the last four quarters, the company’s free cash flow was negative.
 

Low growth in earnings

Meta Material stock five-year median earnings growth was lower than average. Compared to its sector rivals.
 

Conclusion of Analysis

 
The fundamental analysis for Meta Materials stock is currently set at a score of 3.3 out of 10. Where the Meta Materials stock has got a bearish sentiment.

Fundamental analysis for Meta Materials Stock (MMAT:NSD) is Slightly Bearish

Stock Target Advisor’s own stock analysis of Meta Materials Stock is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, MMAT stock price was USD 1.05MMAT stock price has changed by +0.36% over the past week, +0.20% over the past month and -80.23% over the last year.

 

About Meta Materials Inc. (MMAT:NSD):

Meta Materials Inc. invents, designs, develops, and manufactures various functional materials and nanocomposites. Its products include metaAIR, a laser glare protection eyewear; NANOWEB, a transparent conductive film; holoOPTIX, a holographic optical element; glucoWISE, a non-invasive glucose measurement device; and metaSURFACE, which allows an enhancement in signal to noise ratio of up to 40 times for magnetic resonance imaging scans. The company was formerly known as Torchlight Energy Resources, Inc. and changed its name to Meta Materials Inc. in June 2021. Meta Materials Inc. was incorporated in 2007 and is headquartered in Dartmouth, Canada.

 

What we like:

Underpriced compared to book value

MMAT stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth

MMAT stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

MMAT stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the market news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

Meta Materials stock had negative total cash flow in the most recent four quarters.

Negative free cash flow

Meta Materials stock had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

MMAT stock has shown below median earnings growth in the previous 5 years compared to its sector.