This is the direct link....

This is the direct link.

https://www.infovisualinvesting.com...tock-portfolio-7-commercial-stage-disruptors/


Featured emerging growth stock portfolio: 7 commercial-stage disruptors


Novonix

The EV industry demands cheaper, safer, and longer-lasting batteries. Outside of Asia, the industry seeks to safeguard their supply chains with manufacturers outside of China. Novonix, a manufacturer of synthetic graphite and battery testing equipment, is the only North American based competitor to China’s dominance in the battery material industry. China recorded 79% of global synthetic graphite sales in 2018.

Source: Co. press release
Novonix started as an Australian graphite mining company that bought a Canadian battery testing equipment manufacturer with a client list that includes Apple, Microsoft, GM, Panasonic, and Tesla. Novonix set up its R&D at the Canadian facility and developed a new single crystal cathode process using dry particle micro granulation (“DPMG”. Novonix has patents on its DPMG process, which has no waste and utilizes cheaper materials, to produce its patented synthetic graphite, named PUREgraphite.
Novonix has a PUREgraphite anode material plant in Chattanooga, Tennessee, which ramps up capacity to 2,000 tons/year. Samsung, the world’s largest lithium-ion battery manufacturer, became Novonix’s first customer for the graphite anode product with an initial purchase of 500 tons, with contracts of increasing size anticipated in subsequent years. Delivery has been pushed back from April 2021 until the second half of the year, most likely due to the pandemic.
Novonix is undergoing testing with Sanyo, a subsidiary of Panasonic. It is expected that Sanyo will sign on when testing is completed in the second half of 2021. Panasonic is the world’s second-largest lithium-ion battery manufacturer and a Tesla supplier.
Management plans to scale the company into a tier 1 lithium-ion battery supplier of the anode, cathode, and electrolyte materials and increase its production capacity incrementally each year. There is also the option to license their patented DPMG process.
Tesla’s Elon Musk started the million-mile battery quest, which has led his company to single-crystal synthetic graphite. Synthetic graphite lasts longer than natural graphite, while polycrystalline graphite is prone to cracking. Tesla has its own single crystal patents but does not produce synthetic graphite. GM is also using single-crystal synthetic graphite.
Novonix stock got a lot of attention in Sept. from traders looking for some connection to Tesla on Tesla’s Battery Day. It is quite possible that Novonix could become a Teslar supplier when Panasonic becomes a customer, but Novonix does not need Tesla to be successful and investors seem to be realizing that as the stock price seems to be building an uptrend.

As indicated in the investor presentation, the company plans to produce 2,000 tons in 2021, increasing to 25,000 tons by 2025 and 100,000 tons by 2030. 2,000 tons results in revenue of $30 million at the average current synthetic graphite market price of $15,000 per ton. Adding in revenue from battery testing equipment results in annual revenue of $34 million, scaling to nearly $400 million in 2025.
Institutions own 32%, and insiders own 24% of the shares. There are almost 352 million shares. At the recent share price of US $0.73, the market cap is $328 million. Novonix completed a $63 million capital raise in June and used $25.5 million to pay off debt, $23.5 million to expand production capacity at the Chattanooga factory, and $5 million was earmarked for R&D.
Using my $34 million revenue estimate results in a P/S ratio of 7x for this year and 1.2x based on 2025 estimates.