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NYSE:NVO stands out as a growth opportunity that won't break the bank.

By Mill Chart

Last update: Sep 26, 2023

Uncover the potential of NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO), a growth stock that our stock screener found to be reasonably priced. NYSE:NVO is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Assessing Growth for NYSE:NVO

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:NVO has achieved a 7 out of 10:

  • NVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.03%.
  • NVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.64% yearly.
  • The Earnings Per Share is expected to grow by 25.79% on average over the next years. This is a very strong growth
  • NVO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.65% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:NVO's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:NVO has received a 7 out of 10:

  • Compared to the rest of the industry, the Price/Earnings ratio of NVO indicates a somewhat cheap valuation: NVO is cheaper than 79.52% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 82.38% of the companies listed in the same industry.
  • NVO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.00, which is the current average of the S&P500 Index.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVO indicates a somewhat cheap valuation: NVO is cheaper than 78.10% of the companies listed in the same industry.
  • NVO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVO is cheaper than 81.43% of the companies in the same industry.
  • NVO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • NVO has an outstanding profitability rating, which may justify a higher PE ratio.
  • NVO's earnings are expected to grow with 40.31% in the coming years. This may justify a more expensive valuation.

What does the Health looks like for NYSE:NVO

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:NVO scores a 7 out of 10:

  • NVO has an Altman-Z score of 11.11. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 11.11, NVO belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
  • NVO has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
  • NVO has a better Debt to FCF ratio (0.38) than 95.71% of its industry peers.
  • NVO has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
  • NVO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:NVO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NVO has achieved a 9:

  • NVO's Return On Assets of 23.95% is amongst the best of the industry. NVO outperforms 95.71% of its industry peers.
  • With an excellent Return On Equity value of 74.32%, NVO belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
  • NVO has a better Return On Invested Capital (55.96%) than 99.05% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NVO is significantly above the industry average of 15.23%.
  • The 3 year average ROIC (49.65%) for NVO is below the current ROIC(55.96%), indicating increased profibility in the last year.
  • NVO has a Profit Margin of 33.40%. This is amongst the best in the industry. NVO outperforms 96.67% of its industry peers.
  • Looking at the Operating Margin, with a value of 42.80%, NVO belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
  • NVO has a Gross Margin of 84.35%. This is amongst the best in the industry. NVO outperforms 87.62% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of NVO

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.



NYSE:NVO (11/29/2023, 7:17:05 PM)

After market: 101.7 -0.3 (-0.29%)


+0.57 (+0.56%)

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