NYSE:NVO is showing good growth, while it is not too expensive.

Last update: Apr 15, 2024

Here's NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) for you, a growth stock our stock screener believes is undervalued. NYSE:NVO is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Examination for NYSE:NVO

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:NVO scores a 7 out of 10:

NVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.33%, which is quite impressive.
Looking at the last year, NVO shows a very strong growth in Revenue. The Revenue has grown by 31.26%.
Measured over the past years, NVO shows a quite strong growth in Revenue. The Revenue has been growing by 15.74% on average per year.
NVO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.23% yearly.
The Revenue is expected to grow by 13.61% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NYSE:NVO's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:NVO has earned a 5 for valuation:

NVO's Price/Earnings ratio is rather cheap when compared to the industry. NVO is cheaper than 80.61% of the companies in the same industry.
NVO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NVO is cheaper than 78.57% of the companies in the same industry.
78.57% of the companies in the same industry are more expensive than NVO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than 79.08% of the companies in the same industry.
NVO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVO's earnings are expected to grow with 22.90% in the coming years.

What does the Health looks like for NYSE:NVO

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:NVO was assigned a score of 7 for health:

An Altman-Z score of 13.40 indicates that NVO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.40, NVO belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
The Debt to FCF ratio of NVO is 0.39, which is an excellent value as it means it would take NVO, only 0.39 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.39, NVO belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
NVO has a Debt/Equity ratio of 0.19. 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 26.61% is amongst the best of the industry. NVO outperforms 98.47% of its industry peers.
NVO has a Return On Equity of 78.53%. This is amongst the best in the industry. NVO outperforms 98.47% of its industry peers.
Looking at the Return On Invested Capital, with a value of 56.78%, NVO belongs to the top of the industry, outperforming 99.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVO is significantly above the industry average of 16.71%.
The last Return On Invested Capital (56.78%) for NVO is above the 3 year average (50.71%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 36.03%, NVO belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
NVO has a better Operating Margin (44.16%) than 97.96% of its industry peers.
The Gross Margin of NVO (84.60%) is better than 87.24% of its industry peers.

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

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

Disclaimer

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.