NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
NYSE:NVO - US6701002056 - ADR
55.86 USD
+0.52 (+0.94%)
Overall NVO gets a fundamental rating of 7 out of 10. We evaluated NVO against 193 industry peers in the Pharmaceuticals industry. While NVO has a great profitability rating, there are some minor concerns on its financial health. NVO is evaluated to be cheap and growing strongly. This does not happen too often! This makes NVO very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
NVO had positive earnings in the past year.
In the past year NVO had a positive cash flow from operations.
NVO had positive earnings in each of the past 5 years.
NVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 23.04%, NVO belongs to the best of the industry, outperforming 97.41% of the companies in the same industry.
NVO's Return On Equity of 66.09% is amongst the best of the industry. NVO outperforms 97.93% of its industry peers.
NVO has a better Return On Invested Capital (41.43%) than 98.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVO is significantly above the industry average of 15.38%.
The 3 year average ROIC (50.29%) for NVO 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
NVO has a Profit Margin of 35.61%. This is amongst the best in the industry. NVO outperforms 96.89% of its industry peers.
NVO's Profit Margin has improved in the last couple of years.
The Operating Margin of NVO (45.78%) is better than 98.45% of its industry peers.
In the last couple of years the Operating Margin of NVO has grown nicely.
The Gross Margin of NVO (83.95%) is better than 89.12% of its industry peers.
In the last couple of years the Gross Margin of NVO has remained more or less at the same level.
| 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
NVO 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, NVO has less shares outstanding
The number of shares outstanding for NVO has been increased compared to 5 years ago.
The debt/assets ratio for NVO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.01 indicates that NVO is not in any danger for bankruptcy at the moment.
NVO has a Altman-Z score of 5.01. This is in the better half of the industry: NVO outperforms 78.76% of its industry peers.
NVO 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, NVO belongs to the top of the industry, outperforming 93.78% of the companies in the same industry.
NVO has a Debt/Equity ratio of 0.52. This is a neutral value indicating NVO is somewhat dependend on debt financing.
NVO's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. NVO is outperformed by 60.62% of its industry peers.
Although NVO 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 | 5.01 |
ROIC/WACC7.29
WACC5.68%
2.3 Liquidity
A Current Ratio of 0.78 indicates that NVO may have some problems paying its short term obligations.
The Current ratio of NVO (0.78) is worse than 87.56% of its industry peers.
NVO has a Quick Ratio of 0.78. This is a bad value and indicates that NVO is not financially healthy enough and could expect problems in meeting its short term obligations.
NVO has a worse Quick ratio (0.56) than 89.64% of its industry peers.
NVO 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.
NVO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
NVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.90%.
Measured over the past years, NVO shows a quite strong growth in Revenue. The Revenue has been growing by 18.94% on average per year.
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
NVO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
NVO 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 14.32, NVO is valued correctly.
Based on the Price/Earnings ratio, NVO is valued cheaply inside the industry as 87.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, NVO is valued a bit cheaper.
NVO is valuated correctly with a Price/Forward Earnings ratio of 12.95.
83.94% of the companies in the same industry are more expensive than NVO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, NVO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 87.56% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NVO is valued cheaply inside the industry as 81.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.8 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
NVO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NVO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)2.14
EPS Next 2Y10.46%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
NVO has a Yearly Dividend Yield of 3.27%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of NVO has falen by -22.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
NVO's Dividend Yield is rather good when compared to the industry average which is at 3.83. NVO pays more dividend than 94.30% of the companies in the same industry.
NVO's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
5.2 History
The dividend of NVO is nicely growing with an annual growth rate of 16.56%!
NVO has been paying a dividend for at least 10 years, so it has a reliable track record.
NVO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.56%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
45.63% of the earnings are spent on dividend by NVO. This is a bit on the high side, but may be sustainable.
NVO'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%
NYSE:NVO (8/27/2025, 9:52:08 AM)
55.86
+0.52 (+0.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.28%
Inst Owner Change-4.38%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap248.21B
Analysts71.61
Price Target81.61 (46.1%)
Short Float %0.5%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend1.54
Dividend Growth(5Y)16.56%
DP45.63%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)-17.49%
PT rev (3m)-21.32%
EPS NQ rev (1m)-4.83%
EPS NQ rev (3m)-14.32%
EPS NY rev (1m)-6.88%
EPS NY rev (3m)-7.02%
Revenue NQ rev (1m)-4.01%
Revenue NQ rev (3m)-12.13%
Revenue NY rev (1m)-7.24%
Revenue NY rev (3m)-7.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.32 | ||
| Fwd PE | 12.95 | ||
| P/S | 5.1 | ||
| P/FCF | 25.8 | ||
| P/OCF | 13.08 | ||
| P/B | 9.46 | ||
| P/tB | 26.4 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)3.9
EY6.98%
EPS(NY)4.31
Fwd EY7.72%
FCF(TTM)2.16
FCFY3.88%
OCF(TTM)4.27
OCFY7.65%
SpS10.96
BVpS5.91
TBVpS2.12
PEG (NY)1.25
PEG (5Y)2.14
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 | 5.01 |
F-Score4
WACC5.68%
ROIC/WACC7.29
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%