NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NOV - DK0062498333 - Common Stock
41.015 EUR
+0.16 (+0.38%)
Taking everything into account, NOV scores 6 out of 10 in our fundamental rating. NOV was compared to 55 industry peers in the Pharmaceuticals industry. NOV scores excellent on profitability, but there are some minor concerns on its financial health. NOV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NOV had positive earnings in the past year.
NOV had a positive operating cash flow in the past year.
Each year in the past 5 years NOV has been profitable.
NOV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOV has a Return On Assets of 20.26%. This is amongst the best in the industry. NOV outperforms 98.18% of its industry peers.
NOV's Return On Equity of 61.08% is amongst the best of the industry. NOV outperforms 94.55% of its industry peers.
NOV has a better Return On Invested Capital (38.03%) than 98.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOV is significantly above the industry average of 13.92%.
The 3 year average ROIC (50.29%) for NOV is well above the current ROIC(38.03%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.26% | ||
| ROE | 61.08% | ||
| ROIC | 38.03% |
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 (32.88%) than 100.00% of its industry peers.
NOV's Profit Margin has improved in the last couple of years.
NOV has a Operating Margin of 42.03%. This is amongst the best in the industry. NOV outperforms 94.55% of its industry peers.
In the last couple of years the Operating Margin of NOV has grown nicely.
With an excellent Gross Margin value of 82.05%, NOV belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
NOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.03% | ||
| PM (TTM) | 32.88% | ||
| GM | 82.05% |
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.
Compared to 1 year ago, NOV has less shares outstanding
Compared to 5 years ago, NOV has more shares outstanding
NOV has a worse debt/assets ratio than last year.
2.2 Solvency
NOV has an Altman-Z score of 4.19. This indicates that NOV is financially healthy and has little risk of bankruptcy at the moment.
NOV's Altman-Z score of 4.19 is fine compared to the rest of the industry. NOV outperforms 63.64% of its industry peers.
NOV has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
NOV has a better Debt to FCF ratio (1.66) than 92.73% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that NOV is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.52, NOV is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 4.19 |
ROIC/WACC6.61
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.78 indicates that NOV may have some problems paying its short term obligations.
NOV has a worse Current ratio (0.78) than 85.45% of its industry peers.
NOV has a Quick 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 has a Quick ratio of 0.57. This is amonst the worse of the industry: NOV underperforms 85.45% of its industry peers.
The current and quick ratio evaluation for NOV is rather negative, while it does have 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 | 0.57 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.05%, 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.
Looking at the last year, NOV shows a quite strong growth in Revenue. The Revenue has grown by 16.64% in the last year.
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)10.05%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%-26.47%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
Based on estimates for the next years, NOV will show a small growth in Revenue. The Revenue will grow by 7.05% on average per year.
EPS Next Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y6.93%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 13.15 indicates a correct valuation of NOV.
Based on the Price/Earnings ratio, NOV is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
NOV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.95, the valuation of NOV can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 70.91% of the companies listed in the same industry.
NOV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 11.95 |
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 80.00% of the companies listed in the same industry.
NOV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.33 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NOV does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NOV may justify a higher PE ratio.
PEG (NY)2.29
PEG (5Y)1.97
EPS Next 2Y6.44%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.63%.
Compared to an average industry Dividend Yield of 2.86, NOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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
49.88% of the earnings are spent on dividend by NOV. 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.
DP49.88%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
FRA:NOV (12/3/2025, 3:49:46 PM)
41.015
+0.16 (+0.38%)
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 Cap182.25B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts74.19
Price Target58.09 (41.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP49.88%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.09%
Min EPS beat(2)-7.04%
Max EPS beat(2)-1.15%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-7.04%
Max EPS beat(4)7.46%
EPS beat(8)5
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)1.59%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)6.95%
Revenue beat(8)3
Avg Revenue beat(8)0.61%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)9
Avg Revenue beat(16)0.77%
PT rev (1m)-10.47%
PT rev (3m)-16.73%
EPS NQ rev (1m)-3.62%
EPS NQ rev (3m)-7.2%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-4.57%
Revenue NQ rev (3m)-6.81%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 11.95 | ||
| P/S | 4.31 | ||
| P/FCF | 22.33 | ||
| P/OCF | 11 | ||
| P/B | 8.01 | ||
| P/tB | 21.5 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)3.12
EY7.61%
EPS(NY)3.43
Fwd EY8.37%
FCF(TTM)1.84
FCFY4.48%
OCF(TTM)3.73
OCFY9.09%
SpS9.51
BVpS5.12
TBVpS1.91
PEG (NY)2.29
PEG (5Y)1.97
Graham Number18.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.26% | ||
| ROE | 61.08% | ||
| ROCE | 47.73% | ||
| ROIC | 38.03% | ||
| ROICexc | 43.08% | ||
| ROICexgc | 76.17% | ||
| OM | 42.03% | ||
| PM (TTM) | 32.88% | ||
| GM | 82.05% | ||
| FCFM | 19.31% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 290.66% | ||
| Cap/Sales | 19.91% | ||
| Interest Coverage | 53.02 | ||
| Cash Conversion | 80.23% | ||
| Profit Quality | 58.73% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 4.19 |
F-Score4
WACC5.75%
ROIC/WACC6.61
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)10.05%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%-26.47%
EPS Next Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y6.93%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.05%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year21.98%
EBIT Next 3Y13.55%
EBIT Next 5Y9.17%
FCF growth 1Y-21.68%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y16.27%
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 6 / 10 to NOV.DE.
What is the valuation status for NOV stock?
ChartMill assigns a valuation rating of 5 / 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 13.15 and the Price/Book (PB) ratio is 8.01.
How financially healthy is NOVO NORDISK A/S-B?
The financial health rating of NOVO NORDISK A/S-B (NOV.DE) is 6 / 10.