NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
Europe - FRA:NOV - DK0062498333 - Common Stock
39.26 EUR
-1.79 (-4.35%)
We assign a fundamental rating of 7 out of 10 to NOV. NOV was compared to 53 industry peers in the Pharmaceuticals industry. NOV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NOV is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes NOV very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NOV was profitable.
NOV had a positive operating cash flow in the past year.
NOV had positive earnings in each of the past 5 years.
In the past 5 years NOV always reported a positive cash flow from operatings.
1.2 Ratios
NOV has a better Return On Assets (23.04%) than 98.11% of its industry peers.
With an excellent Return On Equity value of 66.09%, NOV belongs to the best of the industry, outperforming 94.34% of the companies in the same industry.
NOV has a better Return On Invested Capital (41.43%) than 98.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOV is significantly above the industry average of 14.46%.
The 3 year average ROIC (50.29%) for NOV is well above the current ROIC(41.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.04% | ||
| ROE | 66.09% | ||
| ROIC | 41.43% |
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
Looking at the Profit Margin, with a value of 35.61%, NOV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NOV's Profit Margin has improved in the last couple of years.
NOV has a better Operating Margin (45.78%) than 98.11% of its industry peers.
In the last couple of years the Operating Margin of NOV has grown nicely.
NOV's Gross Margin of 83.95% is amongst the best of the industry. NOV outperforms 90.57% of its industry peers.
NOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.78% | ||
| PM (TTM) | 35.61% | ||
| GM | 83.95% |
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NOV is creating value.
The number of shares outstanding for NOV has been reduced compared to 1 year ago.
NOV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NOV is higher compared to a year ago.
2.2 Solvency
NOV has an Altman-Z score of 4.60. This indicates that NOV is financially healthy and has little risk of bankruptcy at the moment.
NOV has a Altman-Z score of 4.60. This is in the better half of the industry: NOV outperforms 71.70% of its industry peers.
NOV has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.61, NOV belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
NOV has a Debt/Equity ratio of 0.52. This is a neutral value indicating NOV is somewhat dependend on debt financing.
NOV has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for NOV, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.6 |
ROIC/WACC7.56
WACC5.48%
2.3 Liquidity
NOV has a Current Ratio of 0.78. 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 0.78 is on the low side compared to the rest of the industry. NOV is outperformed by 84.91% of its industry peers.
A Quick Ratio of 0.56 indicates that NOV may have some problems paying its short term obligations.
NOV has a worse Quick ratio (0.56) than 84.91% of its industry peers.
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 | 0.78 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.25% over the past year.
The Earnings Per Share has been growing slightly by 6.68% on average over the past years.
The Revenue has grown by 20.90% in the past year. This is a very strong growth!
The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)24.25%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%32.74%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%12.93%
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 9.00% yearly.
NOV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.45% yearly.
EPS Next Y9.19%
EPS Next 2Y8.94%
EPS Next 3Y9.11%
EPS Next 5Y9%
Revenue Next Year10.32%
Revenue Next 2Y8.85%
Revenue Next 3Y8.6%
Revenue Next 5Y8.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NOV is valuated reasonably with a Price/Earnings ratio of 11.75.
NOV's Price/Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 71.70% of the companies in the same industry.
When comparing the Price/Earnings ratio of NOV to the average of the S&P500 Index (25.83), we can say NOV is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.92, the valuation of NOV can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 71.70% of the companies listed in the same industry.
NOV is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 69.81% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NOV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.15 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
NOV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NOV may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)1.76
EPS Next 2Y8.94%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, NOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, NOV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
On average, the dividend of NOV grows each year by 16.56%, which is quite nice.
Dividend Growth(5Y)16.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NOV pays out 45.63% 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.
DP45.63%
EPS Next 2Y8.94%
EPS Next 3Y9.11%
FRA:NOV (11/7/2025, 7:00:00 PM)
39.26
-1.79 (-4.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap174.45B
Revenue(TTM)311.94B
Net Income(TTM)111.07B
Analysts74.19
Price Target61.27 (56.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP45.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-1.15%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-1.15%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)3.48%
EPS beat(12)9
Avg EPS beat(12)2.29%
EPS beat(16)12
Avg EPS beat(16)2.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.6%
Revenue beat(4)1
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)1.1%
PT rev (1m)-10.06%
PT rev (3m)-28.36%
EPS NQ rev (1m)-14.53%
EPS NQ rev (3m)-21.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.8%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.92 | ||
| P/S | 4.18 | ||
| P/FCF | 21.15 | ||
| P/OCF | 10.72 | ||
| P/B | 7.75 | ||
| P/tB | 21.64 | ||
| EV/EBITDA | 9.08 |
EPS(TTM)3.34
EY8.51%
EPS(NY)3.6
Fwd EY9.16%
FCF(TTM)1.86
FCFY4.73%
OCF(TTM)3.66
OCFY9.33%
SpS9.4
BVpS5.07
TBVpS1.81
PEG (NY)1.28
PEG (5Y)1.76
Graham Number19.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.04% | ||
| ROE | 66.09% | ||
| ROCE | 52% | ||
| ROIC | 41.43% | ||
| ROICexc | 44.49% | ||
| ROICexgc | 76.96% | ||
| OM | 45.78% | ||
| PM (TTM) | 35.61% | ||
| GM | 83.95% | ||
| FCFM | 19.75% |
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%
ROICexgc growth 3Y-1.28%
ROICexgc 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-Score4
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 374.26% | ||
| Cap/Sales | 19.21% | ||
| Interest Coverage | 60.84 | ||
| Cash Conversion | 76.52% | ||
| Profit Quality | 55.47% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.6 |
F-Score4
WACC5.48%
ROIC/WACC7.56
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)24.25%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%32.74%
EPS Next Y9.19%
EPS Next 2Y8.94%
EPS Next 3Y9.11%
EPS Next 5Y9%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%12.93%
Revenue Next Year10.32%
Revenue Next 2Y8.85%
Revenue Next 3Y8.6%
Revenue Next 5Y8.45%
EBIT growth 1Y21.88%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year21.98%
EBIT Next 3Y13.55%
EBIT Next 5Y10.24%
FCF growth 1Y-8.73%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y35.43%
OCF growth 3Y30.05%
OCF growth 5Y20.93%
NOVO NORDISK A/S-B / NOV.DE FAQ
What is the fundamental rating for NOV stock?
ChartMill assigns a fundamental rating of 7 / 10 to NOV.DE.
What is the valuation status for NOV stock?
ChartMill assigns a valuation rating of 6 / 10 to NOVO NORDISK A/S-B (NOV.DE). This can be considered as Fairly Valued.
What is the profitability of NOV stock?
NOVO NORDISK A/S-B (NOV.DE) has a profitability rating of 9 / 10.
What is the valuation of NOVO NORDISK A/S-B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NOVO NORDISK A/S-B (NOV.DE) is 11.75 and the Price/Book (PB) ratio is 7.75.
How financially healthy is NOVO NORDISK A/S-B?
The financial health rating of NOVO NORDISK A/S-B (NOV.DE) is 7 / 10.