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

NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) stands out as an affordable growth stock, according to our screening criteria. The company demonstrates solid growth, strong profitability, and financial health while maintaining a reasonable valuation.

Growth Prospects

• Revenue Growth: NVO reported a 25.03% increase in revenue over the past year, with an average annual growth rate of 18.94% in recent years.
• Earnings Expansion: Earnings per share (EPS) grew by 17.96% last year, and analysts expect continued growth of 13.97% annually in the coming years.
• Accelerating Growth: The EPS growth rate is improving, suggesting stronger performance ahead.

Valuation

• Attractive P/E Ratio: NVO trades at a P/E ratio of 20.08, below the industry average of 19.98 and the S&P 500’s 26.25.
• Forward P/E: At 14.21, the forward P/E is lower than the S&P 500 average of 22.15, indicating potential upside.
• Enterprise Value/EBITDA: The company is valued cheaper than 80.71% of its industry peers based on this metric.

Profitability & Financial Health

• High Margins: NVO boasts a 34.78% profit margin and an 84.67% gross margin, outperforming most competitors.
• Strong ROIC: With a return on invested capital of 43.02%, the company efficiently generates profits from its investments.
• Solid Solvency: Despite a modest debt-to-equity ratio of 0.62, NVO’s free cash flow comfortably covers its debt obligations.

For a deeper look, review the full fundamental analysis of NVO.

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Disclaimer

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