NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
FRA:NOV - DK0062498333 - Common Stock
47.95 EUR
-0.97 (-1.98%)
Taking everything into account, NOV scores 7 out of 10 in our fundamental rating. NOV was compared to 50 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making NOV a very profitable company, without any liquidiy or solvency issues. 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.
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's Return On Assets of 23.04% is amongst the best of the industry. NOV outperforms 98.00% of its industry peers.
NOV has a better Return On Equity (66.09%) than 94.00% of its industry peers.
NOV has a better Return On Invested Capital (41.43%) than 98.00% 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 15.31%.
The last Return On Invested Capital (41.43%) for NOV is well below the 3 year average (50.29%), which needs to be investigated, but indicates that NOV had better years and this may not be a problem.
| 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
With an excellent Profit Margin value of 35.61%, NOV belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NOV has grown nicely.
The Operating Margin of NOV (45.78%) is better than 98.00% of its industry peers.
NOV's Operating Margin has improved in the last couple of years.
The Gross Margin of NOV (83.95%) is better than 90.00% 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
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.
Compared to 5 years ago, NOV has more shares outstanding
Compared to 1 year ago, NOV has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.10 indicates that NOV is not in any danger for bankruptcy at the moment.
NOV's Altman-Z score of 5.10 is fine compared to the rest of the industry. NOV outperforms 74.00% of its industry peers.
The Debt to FCF ratio of NOV is 1.61, which is an excellent value as it means it would take NOV, only 1.61 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.61, NOV belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that 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.
Although NOV does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 5.1 |
ROIC/WACC7.5
WACC5.52%
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.
With a Current ratio value of 0.78, NOV is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.56, NOV is not doing good in the industry: 86.00% of the companies in the same industry are doing better.
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!
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)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
The Earnings Per Share is expected to grow by 10.93% on average over the next years. This is quite good.
NOV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.96% yearly.
EPS Next Y11.47%
EPS Next 2Y10.46%
EPS Next 3Y10.57%
EPS Next 5Y10.93%
Revenue Next Year10.76%
Revenue Next 2Y10.34%
Revenue Next 3Y10%
Revenue Next 5Y9.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 14.36, NOV is valued correctly.
NOV's Price/Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 62.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.90. NOV is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.96, the valuation of NOV can be described as correct.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than 64.00% of the companies in the same industry.
NOV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.96 |
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 | 25.81 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
NOV's 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.
PEG (NY)1.25
PEG (5Y)2.15
EPS Next 2Y10.46%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.25%, NOV has a reasonable but not impressive dividend return.
The stock price of NOV dropped by -26.85% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.04, NOV pays a bit more dividend than its industry peers.
NOV's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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.
NOV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.63%
EPS Next 2Y10.46%
EPS Next 3Y10.57%
FRA:NOV (9/2/2025, 5:29:56 PM)
47.95
-0.97 (-1.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.28%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap213.06B
Analysts71.61
Price Target69.76 (45.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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)-18.43%
PT rev (3m)-24.15%
EPS NQ rev (1m)-4.59%
EPS NQ rev (3m)-15.23%
EPS NY rev (1m)-6.89%
EPS NY rev (3m)-6.89%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)-12.86%
Revenue NY rev (1m)-3.43%
Revenue NY rev (3m)-7.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.96 | ||
| P/S | 5.1 | ||
| P/FCF | 25.81 | ||
| P/OCF | 13.09 | ||
| P/B | 9.46 | ||
| P/tB | 26.42 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)3.34
EY6.97%
EPS(NY)3.7
Fwd EY7.72%
FCF(TTM)1.86
FCFY3.87%
OCF(TTM)3.66
OCFY7.64%
SpS9.41
BVpS5.07
TBVpS1.82
PEG (NY)1.25
PEG (5Y)2.15
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%
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-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 | 5.1 |
F-Score4
WACC5.52%
ROIC/WACC7.5
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 Y11.47%
EPS Next 2Y10.46%
EPS Next 3Y10.57%
EPS Next 5Y10.93%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%12.93%
Revenue Next Year10.76%
Revenue Next 2Y10.34%
Revenue Next 3Y10%
Revenue Next 5Y9.96%
EBIT growth 1Y21.88%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year32.99%
EBIT Next 3Y20.98%
EBIT Next 5Y11.51%
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%