Despite its growth, NYSE:NVO remains within the realm of affordability.

Consider NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) as an affordable growth stock, identified by our stock screening tool. NYSE:NVO is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

A Closer Look at Growth for NYSE:NVO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:NVO boasts a 7 out of 10:

• The Earnings Per Share has grown by an nice 19.65% over the past year.
• The Revenue has grown by 28.29% in the past year. This is a very strong growth!
• The Revenue has been growing by 9.64% on average over the past years. This is quite good.
• NVO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.37% yearly.
• Based on estimates for the next years, NVO will show a quite strong growth in Revenue. The Revenue will grow by 17.51% on average per year.
• 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.

Evaluating Valuation: NYSE:NVO

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 5 out of 10:

• 78.82% of the companies in the same industry are more expensive than NVO, based on the Price/Earnings ratio.
• NVO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NVO is cheaper than 79.31% of the companies in the same industry.
• NVO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NVO is cheaper than 77.83% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than 79.80% 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 30.33% in the coming years. This may justify a more expensive valuation.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:NVO has earned a 7 out of 10:

• NVO has an Altman-Z score of 10.70. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.70, NVO belongs to the best of the industry, outperforming 88.67% of the companies in the same industry.
• NVO has a debt to FCF ratio of 0.34. This is a very positive value and a sign of high solvency as it would only need 0.34 years to pay back of all of its debts.
• NVO has a better Debt to FCF ratio (0.34) than 94.58% 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.

How do we evaluate the Profitability for NYSE:NVO?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:NVO, the assigned 9 is a significant indicator of profitability:

• NVO has a Return On Assets of 25.10%. This is amongst the best in the industry. NVO outperforms 97.54% of its industry peers.
• The Return On Equity of NVO (80.99%) is better than 98.03% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 58.71%, NVO belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
• NVO had an Average Return On Invested Capital over the past 3 years of 49.65%. This is significantly above the industry average of 16.81%.
• The last Return On Invested Capital (58.71%) for NVO is above the 3 year average (49.65%), which is a sign of increasing profitability.
• The Profit Margin of NVO (35.11%) is better than 97.54% of its industry peers.
• The Operating Margin of NVO (43.31%) is better than 98.03% of its industry peers.
• The Gross Margin of NVO (84.14%) is better than 88.18% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of NVO for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.