NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
FRA:NOV - Deutsche Boerse Ag - DK0062498333 - Common Stock - Currency: EUR
NOV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 54 industry peers in the Pharmaceuticals industry. NOV gets an excellent profitability rating and is at the same time showing great financial health properties. NOV is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, NOV could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year NOV was profitable.
In the past year NOV had a positive cash flow from operations.
Each year in the past 5 years NOV has been profitable.
Each year in the past 5 years NOV had a positive operating cash flow.
1.2 Ratios
NOV has a Return On Assets of 21.68%. This is amongst the best in the industry. NOV outperforms 96.23% of its industry peers.
The Return On Equity of NOV (70.38%) is better than 94.34% of its industry peers.
NOV's Return On Invested Capital of 43.02% is amongst the best of the industry. NOV outperforms 98.11% of its industry peers.
NOV had an Average Return On Invested Capital over the past 3 years of 50.29%. This is significantly above the industry average of 15.44%.
The 3 year average ROIC (50.29%) for NOV is well above the current ROIC(43.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.68% | ||
| ROE | 70.38% | ||
| ROIC | 43.02% |
ROA(3y)23.77%
ROA(5y)24.99%
ROE(3y)71.81%
ROE(5y)69.89%
ROIC(3y)50.29%
ROIC(5y)49.64%
1.3 Margins
NOV has a better Profit Margin (34.78%) than 98.11% of its industry peers.
In the last couple of years the Profit Margin of NOV has grown nicely.
With an excellent Operating Margin value of 46.16%, NOV belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
NOV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 84.67%, NOV belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
In the last couple of years the Gross Margin of NOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.16% | ||
| PM (TTM) | 34.78% | ||
| GM | 84.67% |
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
NOV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NOV has less shares outstanding than it did 1 year ago.
NOV has more shares outstanding than it did 5 years ago.
NOV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.60 indicates that NOV is not in any danger for bankruptcy at the moment.
The Altman-Z score of NOV (5.60) is better than 86.79% of its industry peers.
NOV has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.48, NOV belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that NOV is somewhat dependend on debt financing.
The Debt to Equity ratio of NOV (0.62) is better than 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 5.6 |
ROIC/WACC6.23
WACC6.9%
2.3 Liquidity
NOV has a Current Ratio of 0.74. This is a bad value and indicates that NOV is not financially healthy enough and could expect problems in meeting its short term obligations.
NOV's Current ratio of 0.74 is on the low side compared to the rest of the industry. NOV is outperformed by 84.91% of its industry peers.
NOV has a Quick Ratio of 0.74. This is a bad value and indicates that NOV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, NOV is doing worse than 86.79% of the companies in the same industry.
NOV 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.96%, which is quite good.
NOV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
NOV shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.03%.
NOV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.94% yearly.
EPS 1Y (TTM)17.96%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%14.96%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%19.49%
3.2 Future
NOV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.97% yearly.
NOV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.68% yearly.
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y13.97%
Revenue Next Year19.4%
Revenue Next 2Y17.49%
Revenue Next 3Y15.32%
Revenue Next 5Y12.68%
3.3 Evolution
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.78, which indicates a rather expensive current valuation of NOV.
Compared to the rest of the industry, the Price/Earnings ratio of NOV is on the same level as its industry peers.
NOV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
With a Price/Forward Earnings ratio of 14.00, NOV is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as NOV.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, NOV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 14 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
NOV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.65 | ||
| EV/EBITDA | 13.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NOV has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NOV's earnings are expected to grow with 18.20% in the coming years.
PEG (NY)1
PEG (5Y)2.96
EPS Next 2Y21.13%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, NOV has a reasonable but not impressive dividend return.
In the last 3 months the price of NOV has falen by -27.89%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NOV's Dividend Yield is a higher than the industry average which is at 3.05.
Compared to an average S&P500 Dividend Yield of 2.38, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of NOV is nicely growing with an annual growth rate of 16.56%!
Dividend Growth(5Y)16.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NOV pays out 43.71% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NOV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.71%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
FRA:NOV (5/30/2025, 7:00:00 PM)
62.32
+1.69 (+2.79%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners37.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap276.91B
Analysts74.38
Price Target91.97 (47.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP43.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.05%
Min EPS beat(2)0.64%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-4.65%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)2.56%
EPS beat(12)9
Avg EPS beat(12)2.47%
EPS beat(16)13
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)2.19%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)6.95%
Revenue beat(4)2
Avg Revenue beat(4)1.23%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)1.42%
Revenue beat(16)12
Avg Revenue beat(16)1.54%
PT rev (1m)-15.32%
PT rev (3m)-19.78%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-5.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 14 | ||
| P/S | 7.11 | ||
| P/FCF | 29.65 | ||
| P/OCF | 17.08 | ||
| P/B | 14.4 | ||
| P/tB | 63.76 | ||
| EV/EBITDA | 13.57 |
EPS(TTM)3.15
EY5.05%
EPS(NY)4.45
Fwd EY7.14%
FCF(TTM)2.1
FCFY3.37%
OCF(TTM)3.65
OCFY5.86%
SpS8.76
BVpS4.33
TBVpS0.98
PEG (NY)1
PEG (5Y)2.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.68% | ||
| ROE | 70.38% | ||
| ROCE | 53.99% | ||
| ROIC | 43.02% | ||
| ROICexc | 48.11% | ||
| ROICexgc | 96.32% | ||
| OM | 46.16% | ||
| PM (TTM) | 34.78% | ||
| GM | 84.67% | ||
| FCFM | 23.99% |
ROA(3y)23.77%
ROA(5y)24.99%
ROE(3y)71.81%
ROE(5y)69.89%
ROIC(3y)50.29%
ROIC(5y)49.64%
ROICexc(3y)60.7%
ROICexc(5y)59.32%
ROICexgc(3y)124.92%
ROICexgc(5y)112.44%
ROCE(3y)63.71%
ROCE(5y)65.35%
ROICexcg growth 3Y-1.28%
ROICexcg growth 5Y0.46%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-9.95%
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
F-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 268.54% | ||
| Cap/Sales | 17.67% | ||
| Interest Coverage | 219.02 | ||
| Cash Conversion | 78.99% | ||
| Profit Quality | 68.98% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 5.6 |
F-Score5
WACC6.9%
ROIC/WACC6.23
Cap/Depr(3y)294.05%
Cap/Depr(5y)277.71%
Cap/Sales(3y)14.25%
Cap/Sales(5y)13.08%
Profit Quality(3y)89.38%
Profit Quality(5y)87.75%
High Growth Momentum
Growth
EPS 1Y (TTM)17.96%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%14.96%
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y13.97%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%19.49%
Revenue Next Year19.4%
Revenue Next 2Y17.49%
Revenue Next 3Y15.32%
Revenue Next 5Y12.68%
EBIT growth 1Y30.68%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year32.99%
EBIT Next 3Y20.98%
EBIT Next 5Y15.67%
FCF growth 1Y-0.5%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y11.07%
OCF growth 3Y30.05%
OCF growth 5Y20.93%