NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) – A Strong Growth Stock with Solid Fundamentals

NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) stands out as an attractive growth stock with reasonable valuation, according to our fundamental analysis. The company, a leader in diabetes and obesity care, demonstrates strong profitability, financial health, and consistent growth.

Key Strengths

• Profitability: NVO scores a high 9/10 in profitability, with a return on equity of 70.38%, outperforming 98% of its pharmaceutical peers.
• Growth: Revenue grew by 25% in the past year, with expected annual earnings growth of 13.97% in the coming years.
• Valuation: Despite strong performance, the stock trades at a reasonable forward P/E of 12.86, below the industry average.
• Financial Health: The company maintains a solid balance sheet with manageable debt levels and strong cash flow coverage.

Considerations

• Dividend Sustainability: While NVO offers a 2.55% dividend yield, earnings growth has lagged behind dividend increases, which may require monitoring.
• Liquidity Metrics: The current and quick ratios are below industry averages, though strong solvency mitigates concerns.

Our Affordable Growth screener provides more stocks with similar growth and value characteristics. For a deeper dive, review the full fundamental report on NVO.

Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.