{"id":3246,"date":"2019-06-04T16:30:34","date_gmt":"2019-06-04T06:00:34","guid":{"rendered":"https:\/\/strawman.com\/blog\/?p=3246"},"modified":"2019-06-04T16:30:36","modified_gmt":"2019-06-04T06:00:36","slug":"are-shares-in-nanosonics-asxnan-worth-buying","status":"publish","type":"post","link":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/","title":{"rendered":"Are shares in Nanosonics (ASX:NAN) worth buying?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The first four months of 2019 have seen shares in disinfection specialist <strong><a href=\"https:\/\/strawman.com\/member\/company\/forecasts\/NAN\">Nanosonics<\/a><\/strong> (ASX:NAN) soar almost 80% higher, as the business continued its successful expansion and posted another record profit result for the first half. But, with the company hitting an eye-watering P\/E of over 140 by the end of April (on a trailing 12-month basis), shares finally ran out of puff. <\/p>\n\n\n\n<p>Since then, Nanosonics has lost around 17% of its value. Which begs the question, is this a good buying opportunity, or are shares still too expensive?<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>What does Nanosonics do?<\/strong><\/p>\n\n\n\n<p>Nanosonics manufactures and sells a high level disinfection unit for ultrasound probes, the Trophon EPR, which is increasingly becoming the gold standard for disinfection procedures. Sales have almost tripled in the past few years, and the business continues to see its installed base grow at double-digit rates. Despite this rapid expansion, Nanosonics estimates it has only captured around 16% of the total market opportunity.<\/p>\n\n\n\n<p>The business has a \u2018razor and blade\u2019 model, providing it with very \u2018sticky\u2019, high margin, recurring revenue thanks to the sale of consumables. As the installed base grows, and as usage increases, the potential here is significant.<\/p>\n\n\n\n<p>The business has no net debt, mountains of cash, strong sales momentum, a good industry tailwind, market leading positioning and capable &amp; aligned management. The market is right to attribute a generous premium to this world-class business.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Are shares good value?<\/strong><\/p>\n\n\n\n<p>Despite the pull-back in the share price, Nanosonics is still trading at a lofty P\/E (trailing) of 117x, or a Price-to-Sales ratio of about 17x. Although these are insane levels for mature companies, Nanosonics is expected to sustain strong rates of growth for many years to come. Indeed, assuming we see first half sales momentum continue, we could expect total revenue to grow by around 35% for FY2019 and, given the operating leverage of the business, net profit should exhibit much stronger growth.<\/p>\n\n\n\n<p>In fact, Nanosonics made more than double the profit in the first half of this year than it did for the entirety of 2018.<\/p>\n\n\n\n<p>Ranked #9 on Strawman, Nanosonics has delivered some solid returns for many of our members and yet, on a consensus basis, remain below the community&#8217;s valuation. Click below to read the full report:<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-secondary-background-color\" href=\"https:\/\/strawman.com\/member\/company\/forecasts\/NAN\">Click here for Nanosonics (ASX:NAN) share price &amp; research<br><\/a><\/div>\n\n\n\n<p class=\"has-text-color has-background has-very-dark-gray-color has-very-light-gray-background-color\"><em>Strawman is Australia&#8217;s premier online investment club. Join for free to access independent &amp; actionable recommendations from proven private investors.<\/em><br><\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-text-color has-very-light-gray-color has-background has-tertiary-background-color\" href=\"https:\/\/strawman.com\/member\/landing\/signup\">Register for free ASX recommendations<\/a><\/div>\n\n\n\n<p><em><strong>Disclaimer\u2013<\/strong> The author may hold positions in the stocks mentioned in this publication, at the time of writing. The information contained in the publication and the links shared are general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. For errors that warrant correction please contact the editor at admin@strawman.com.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p style=\"text-align:center\" class=\"has-text-color has-cyan-bluish-gray-color\">This Service provides general financial advice only, and has not taken your personal circumstances into account. Strawman Pty Ltd operates under AFSL 501223 . For more information please see our <a href=\"https:\/\/strawman.com\/member\/landing\/terms\">Terms of use<\/a>. Please remember that share market investments can go up and down and that past performance is not necessarily indicative of future returns. Strawman Pty Ltd does not guarantee the performance of, or returns on any investment.<\/p>\n\n\n\n<p style=\"text-align:center\" class=\"has-text-color has-cyan-bluish-gray-color\">\u00a9 2019 Strawman Pty Ltd. All rights reserved.<\/p>\n\n\n\n<p style=\"text-align:center\">| <a href=\"https:\/\/strawman.com\/member\/landing\/privacy\">Privacy Policy<\/a>&nbsp;|&nbsp;<a href=\"https:\/\/strawman.com\/member\/landing\/terms\">Terms of Service<\/a> | <a href=\"https:\/\/strawman.com\/member\/landing\/fsg\">Financial Services Guide<\/a> | <\/p>\n\n\n\n<p style=\"text-align:center\" class=\"has-text-color has-cyan-bluish-gray-color\">ACN: 610 908 211 | Australian Financial Services Licence (AFSL): 501223<\/p>\n\n\n\n<p>this year to hit an all time high of $5.02 <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does the recent pull-back represent a buying opportunity, or do shares have further to fall?<\/p>\n","protected":false},"author":5,"featured_media":3248,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are shares in Nanosonics (ASX:NAN) worth buying? - Strawman Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are shares in Nanosonics (ASX:NAN) worth buying? - Strawman Blog\" \/>\n<meta property=\"og:description\" content=\"Does the recent pull-back represent a buying opportunity, or do shares have further to fall?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/\" \/>\n<meta property=\"og:site_name\" content=\"Strawman Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-04T06:00:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-04T06:00:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2019\/06\/nanosonics.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2121\" \/>\n\t<meta property=\"og:image:height\" content=\"1193\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Andrew Page\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@sage_simian\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrew Page\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/\"},\"author\":{\"name\":\"Andrew Page\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/c19fbf9f9087255d8072b447b883fdea\"},\"headline\":\"Are shares in Nanosonics (ASX:NAN) worth buying?\",\"datePublished\":\"2019-06-04T06:00:34+00:00\",\"dateModified\":\"2019-06-04T06:00:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/\"},\"wordCount\":587,\"image\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/nanosonics.jpg\",\"articleSection\":[\"General\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/\",\"name\":\"Are shares in Nanosonics (ASX:NAN) worth buying? - Strawman Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/nanosonics.jpg\",\"datePublished\":\"2019-06-04T06:00:34+00:00\",\"dateModified\":\"2019-06-04T06:00:36+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/c19fbf9f9087255d8072b447b883fdea\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#primaryimage\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/nanosonics.jpg\",\"contentUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/nanosonics.jpg\",\"width\":2121,\"height\":1193},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/are-shares-in-nanosonics-asxnan-worth-buying\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/strawman.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Are shares in Nanosonics (ASX:NAN) worth buying?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/\",\"name\":\"Strawman Blog\",\"description\":\"The Last Straw\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/strawman.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/c19fbf9f9087255d8072b447b883fdea\",\"name\":\"Andrew Page\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g\",\"caption\":\"Andrew Page\"},\"sameAs\":[\"https:\\\/\\\/x.com\\\/sage_simian\"],\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/author\\\/andrew\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Are shares in Nanosonics (ASX:NAN) worth buying? - Strawman Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/","og_locale":"en_US","og_type":"article","og_title":"Are shares in Nanosonics (ASX:NAN) worth buying? - Strawman Blog","og_description":"Does the recent pull-back represent a buying opportunity, or do shares have further to fall?","og_url":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/","og_site_name":"Strawman Blog","article_published_time":"2019-06-04T06:00:34+00:00","article_modified_time":"2019-06-04T06:00:36+00:00","og_image":[{"width":2121,"height":1193,"url":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2019\/06\/nanosonics.jpg","type":"image\/jpeg"}],"author":"Andrew Page","twitter_card":"summary_large_image","twitter_creator":"@sage_simian","twitter_misc":{"Written by":"Andrew Page","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#article","isPartOf":{"@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/"},"author":{"name":"Andrew Page","@id":"https:\/\/strawman.com\/blog\/#\/schema\/person\/c19fbf9f9087255d8072b447b883fdea"},"headline":"Are shares in Nanosonics (ASX:NAN) worth buying?","datePublished":"2019-06-04T06:00:34+00:00","dateModified":"2019-06-04T06:00:36+00:00","mainEntityOfPage":{"@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/"},"wordCount":587,"image":{"@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#primaryimage"},"thumbnailUrl":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2019\/06\/nanosonics.jpg","articleSection":["General"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/","url":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/","name":"Are shares in Nanosonics (ASX:NAN) worth buying? - Strawman Blog","isPartOf":{"@id":"https:\/\/strawman.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#primaryimage"},"image":{"@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#primaryimage"},"thumbnailUrl":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2019\/06\/nanosonics.jpg","datePublished":"2019-06-04T06:00:34+00:00","dateModified":"2019-06-04T06:00:36+00:00","author":{"@id":"https:\/\/strawman.com\/blog\/#\/schema\/person\/c19fbf9f9087255d8072b447b883fdea"},"breadcrumb":{"@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#primaryimage","url":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2019\/06\/nanosonics.jpg","contentUrl":"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2019\/06\/nanosonics.jpg","width":2121,"height":1193},{"@type":"BreadcrumbList","@id":"https:\/\/strawman.com\/blog\/are-shares-in-nanosonics-asxnan-worth-buying\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/strawman.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Are shares in Nanosonics (ASX:NAN) worth buying?"}]},{"@type":"WebSite","@id":"https:\/\/strawman.com\/blog\/#website","url":"https:\/\/strawman.com\/blog\/","name":"Strawman Blog","description":"The Last Straw","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/strawman.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/strawman.com\/blog\/#\/schema\/person\/c19fbf9f9087255d8072b447b883fdea","name":"Andrew Page","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a0a16ac2ef38545ecd749eab8ad8d66208f6371c4bf77ba739eb5380c82279a6?s=96&d=robohash&r=g","caption":"Andrew Page"},"sameAs":["https:\/\/x.com\/sage_simian"],"url":"https:\/\/strawman.com\/blog\/author\/andrew\/"}]}},"_links":{"self":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/posts\/3246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/comments?post=3246"}],"version-history":[{"count":0,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/posts\/3246\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/media\/3248"}],"wp:attachment":[{"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/media?parent=3246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/categories?post=3246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/strawman.com\/blog\/wp-json\/wp\/v2\/tags?post=3246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}