investorscraft@gmail.com

Stock Analysis & ValuationNanogate AG (N7G.DE)

Professional Stock Screener
Previous Close
0.91
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method9.85985
Graham Formula10.321037

Strategic Investment Analysis

Company Overview

Nanogate AG is a Germany-based leader in high-performance surface and component solutions, specializing in integrated systems that enhance plastic, metal, and other materials with advanced functional properties. Operating in the industrial specialties sector, Nanogate provides scratchproof, chemical-resistant, UV-protected, and hygienic coatings for industries such as automotive, construction, medical technology, and consumer goods. The company's flagship brands, N-Metals and N-Glaze, cater to diverse applications, including electrical automation, security, and aviation. With strategic collaborations like ERBIWA GmbH, Nanogate combines innovation with industrial scalability, positioning itself as a key player in functional surface technology. Headquartered in Quierschied, Germany, the company serves international markets with a focus on high-value, performance-driven solutions.

Investment Summary

Nanogate AG presents a high-risk, high-reward investment opportunity due to its niche focus on advanced surface technologies and a beta of 4.53, indicating significant volatility. While the company reported modest net income of €1.41 million in FY2018, its revenue of €239.17 million reflects strong market demand. However, negative capital expenditures (-€31.23 million) and substantial total debt (€129.84 million) raise liquidity concerns. The lack of dividends may deter income-focused investors, but growth-oriented investors might find value in its specialized industrial applications and strategic collaborations. The company's ability to scale its high-performance solutions in competitive markets like automotive and medical technology will be critical for long-term success.

Competitive Analysis

Nanogate AG competes in the high-performance surfaces market by leveraging its integrated systems and proprietary brands (N-Metals, N-Glaze). Its competitive edge lies in multifunctional coatings (e.g., anti-static, UV-resistant) tailored for industries requiring durability and precision, such as automotive and medical technology. However, the company faces stiff competition from larger chemical and material science firms with broader R&D budgets. Nanogate’s collaboration with ERBIWA GmbH enhances its metal surface capabilities, but its relatively small market cap (~€4.46 million) limits economies of scale. The industrial specialties sector is fragmented, with competitors offering overlapping solutions, but Nanogate’s focus on customized, high-value applications differentiates it. Challenges include debt management and the capital-intensive nature of coating technologies, which could constrain innovation if cash flows weaken.

Major Competitors

  • BASF SE (BAS.DE): BASF dominates the chemical industry with extensive R&D resources and a global footprint. Its advanced materials division competes directly with Nanogate in functional coatings, but BASF’s scale allows for lower production costs. Weaknesses include slower innovation cycles due to its size and less specialization in niche applications.
  • Evonik Industries AG (EVK.DE): Evonik specializes in high-performance polymers and surface solutions, overlapping with Nanogate’s offerings. Its strengths lie in diversified industrial applications and strong R&D, but it lacks Nanogate’s agility in custom solutions for smaller markets like medical technology.
  • Akzo Nobel NV (AKZA.AS): Akzo Nobel is a leader in decorative and functional coatings, with a broader product portfolio than Nanogate. Its global distribution network is a strength, but its focus on mass-market coatings limits expertise in high-performance niche applications where Nanogate excels.
  • PPG Industries Inc (PPG): PPG is a multinational coatings giant with strong positions in automotive and aerospace. Its scale and technological prowess pose a threat, but Nanogate’s specialized, integrated systems offer more tailored solutions for European industrial clients.
HomeMenuAccount