NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - NYSE:NVO - US6701002056 - ADR
57.08 USD
+1.46 (+2.62%)
Taking everything into account, NVO scores 7 out of 10 in our fundamental rating. NVO was compared to 196 industry peers in the Pharmaceuticals industry. NVO scores excellent on profitability, but there are some minor concerns on its financial health. NVO is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make NVO a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
NVO had positive earnings in the past year.
NVO had a positive operating cash flow in the past year.
In the past 5 years NVO has always been profitable.
Each year in the past 5 years NVO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 23.04%, NVO belongs to the top of the industry, outperforming 97.45% of the companies in the same industry.
NVO has a Return On Equity of 66.09%. This is amongst the best in the industry. NVO outperforms 97.96% of its industry peers.
The Return On Invested Capital of NVO (41.43%) is better than 98.98% 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 15.28%.
The last Return On Invested Capital (41.43%) for NVO is well below the 3 year average (50.29%), which needs to be investigated, but indicates that NVO 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
Looking at the Profit Margin, with a value of 35.61%, NVO belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
In the last couple of years the Profit Margin of NVO has grown nicely.
The Operating Margin of NVO (45.78%) is better than 98.47% of its industry peers.
NVO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.95%, NVO belongs to the best of the industry, outperforming 88.78% of the companies in the same industry.
NVO'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
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.
Compared to 1 year ago, NVO has a worse debt to assets ratio.
2.2 Solvency
NVO has an Altman-Z score of 4.99. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.99, NVO is in the better half of the industry, outperforming 79.08% of the companies in the same industry.
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 94.39% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that NVO is somewhat dependend on debt financing.
NVO has a worse Debt to Equity ratio (0.52) than 61.22% 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 | 4.99 |
ROIC/WACC7.29
WACC5.68%
2.3 Liquidity
NVO has a Current 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's Current ratio of 0.78 is on the low side compared to the rest of the industry. NVO is outperformed by 87.76% 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 Quick ratio of 0.56. This is amonst the worse of the industry: NVO underperforms 89.80% of its industry peers.
The current and quick ratio evaluation for NVO 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 | 0.56 |
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.
NVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.90%.
NVO 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
Based on estimates for the next years, NVO will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.82% on average per year.
The Revenue is expected to grow by 9.70% on average over the next years. This is quite good.
EPS Next Y11.47%
EPS Next 2Y10.46%
EPS Next 3Y10.57%
EPS Next 5Y10.82%
Revenue Next Year10.53%
Revenue Next 2Y10.11%
Revenue Next 3Y9.73%
Revenue Next 5Y9.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.49 indicates a correct valuation of NVO.
86.22% of the companies in the same industry are more expensive than NVO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.27. NVO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.11, which indicates a correct valuation of NVO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 84.18% of the companies listed in the same industry.
NVO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
88.27% of the companies in the same industry are more expensive than NVO, based on the Enterprise Value to EBITDA ratio.
NVO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVO is cheaper than 82.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.12 | ||
| EV/EBITDA | 10.38 |
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)1.26
PEG (5Y)2.17
EPS Next 2Y10.46%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
NVO has a Yearly Dividend Yield of 3.37%. Purely for dividend investing, there may be better candidates out there.
The stock price of NVO dropped by -24.60% 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.
NVO's Dividend Yield is rather good when compared to the industry average which is at 5.04. NVO pays more dividend than 93.88% of the companies in the same industry.
NVO's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
5.2 History
The dividend of NVO is nicely growing with an annual growth rate of 16.56%!
NVO has paid a dividend for at least 10 years, which is a reliable track record.
As NVO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
The dividend of NVO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.63%
EPS Next 2Y10.46%
EPS Next 3Y10.57%
NYSE:NVO (9/16/2025, 2:45:09 PM)
57.08
+1.46 (+2.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.28%
Inst Owner Change-4.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap253.63B
Analysts71.33
Price Target79.27 (38.88%)
Short Float %0.62%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
Yearly Dividend1.56
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)-6.47%
PT rev (3m)-24.6%
EPS NQ rev (1m)-5.15%
EPS NQ rev (3m)-18.53%
EPS NY rev (1m)-6.89%
EPS NY rev (3m)-6.88%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-13.53%
Revenue NY rev (1m)-3.63%
Revenue NY rev (3m)-7.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.49 | ||
| Fwd PE | 13.11 | ||
| P/S | 5.16 | ||
| P/FCF | 26.12 | ||
| P/OCF | 13.24 | ||
| P/B | 9.57 | ||
| P/tB | 26.73 | ||
| EV/EBITDA | 10.38 |
EPS(TTM)3.94
EY6.9%
EPS(NY)4.36
Fwd EY7.63%
FCF(TTM)2.19
FCFY3.83%
OCF(TTM)4.31
OCFY7.55%
SpS11.07
BVpS5.96
TBVpS2.14
PEG (NY)1.26
PEG (5Y)2.17
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 | 4.99 |
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 5Y10.82%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%12.93%
Revenue Next Year10.53%
Revenue Next 2Y10.11%
Revenue Next 3Y9.73%
Revenue Next 5Y9.7%
EBIT growth 1Y21.88%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year32.99%
EBIT Next 3Y20.98%
EBIT Next 5Y10.92%
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%