NOVO-NORDISK A/S-SPONS ADR (NVO)
US6701002056 - ADR
Overall NVO gets a fundamental rating of 7 out of 10. We evaluated NVO against 198 industry peers in the Pharmaceuticals industry. NVO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make NVO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NVO was profitable.
In the past year NVO had a positive cash flow from operations.
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
NVO has a Return On Assets of 29.87%. This is amongst the best in the industry. NVO outperforms 98.97% of its industry peers.
The Return On Equity of NVO (90.26%) is better than 98.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 65.80%, NVO belongs to the top of the industry, outperforming 99.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NVO is significantly above the industry average of 16.31%.
The last Return On Invested Capital (65.80%) for NVO is above the 3 year average (50.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.87% | ||
| ROE | 90.26% | ||
| ROIC | 65.8% |
ROA(3y)24.73%
ROA(5y)26.85%
ROE(3y)70.85%
ROE(5y)69.34%
ROIC(3y)50.71%
ROIC(5y)53.98%
1.3 Margins
NVO has a better Profit Margin (36.55%) than 95.90% of its industry peers.
In the last couple of years the Profit Margin of NVO has remained more or less at the same level.
NVO has a Operating Margin of 44.80%. This is amongst the best in the industry. NVO outperforms 97.95% of its industry peers.
In the last couple of years the Operating Margin of NVO has remained more or less at the same level.
The Gross Margin of NVO (84.65%) is better than 87.18% of its industry peers.
NVO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.8% | ||
| PM (TTM) | 36.55% | ||
| GM | 84.65% |
OM growth 3Y1.58%
OM growth 5Y1.31%
PM growth 3Y2.77%
PM growth 5Y0.85%
GM growth 3Y0.43%
GM growth 5Y0.08%
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.
NVO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NVO has been increased compared to 5 years ago.
NVO has a better debt/assets ratio than last year.
2.2 Solvency
NVO has an Altman-Z score of 14.09. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
NVO has a better Altman-Z score (14.09) than 89.74% of its industry peers.
NVO has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
NVO has a Debt to FCF ratio of 0.54. This is amongst the best in the industry. NVO outperforms 96.41% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that NVO is not too dependend on debt financing.
The Debt to Equity ratio of NVO (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 14.09 |
ROIC/WACC9.44
WACC6.97%
2.3 Liquidity
A Current Ratio of 0.70 indicates that NVO may have some problems paying its short term obligations.
NVO has a worse Current ratio (0.70) than 92.82% of its industry peers.
NVO has a Quick Ratio of 0.70. This is a bad value and indicates that NVO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.50, NVO is not doing good in the industry: 93.33% of the companies in the same industry are doing better.
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 | 0.7 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.22% over the past year.
Measured over the past 5 years, NVO shows a small growth in Earnings Per Share. The EPS has been growing by 3.16% on average per year.
The Revenue has grown by 29.72% in the past year. This is a very strong growth!
NVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.74% yearly.
EPS 1Y (TTM)48.22%
EPS 3Y1.11%
EPS 5Y3.16%
EPS growth Q2Q31.77%
Revenue 1Y (TTM)29.72%
Revenue growth 3Y22.31%
Revenue growth 5Y15.74%
Revenue growth Q2Q22.45%
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 15.88% yearly.
NVO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.50% yearly.
EPS Next Y26.98%
EPS Next 2Y24.4%
EPS Next 3Y22.9%
EPS Next 5Y15.88%
Revenue Next Year25.89%
Revenue Next 2Y23.3%
Revenue Next 3Y21.15%
Revenue Next 5Y15.5%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
NVO is valuated quite expensively with a Price/Earnings ratio of 43.89.
81.03% of the companies in the same industry are more expensive than NVO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.11, NVO is valued quite expensively.
NVO is valuated quite expensively with a Price/Forward Earnings ratio of 30.53.
Based on the Price/Forward Earnings ratio, NVO is valued a bit cheaper than 78.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NVO to the average of the S&P500 Index (20.39), we can say NVO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 30.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVO is valued a bit cheaper than the industry average as 77.95% of the companies are valued more expensively.
78.46% of the companies in the same industry are more expensive than NVO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.21 | ||
| EV/EBITDA | 32.9 |
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.
NVO's earnings are expected to grow with 22.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)13.87
EPS Next 2Y24.4%
EPS Next 3Y22.9%
5. Dividend
5.1 Amount
NVO has a Yearly Dividend Yield of 1.07%.
NVO's Dividend Yield is rather good when compared to the industry average which is at 4.19. NVO pays more dividend than 91.28% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NVO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
The dividend of NVO is nicely growing with an annual growth rate of 11.24%!
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)11.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
NVO pays out 47.03% of its income as dividend. This is a bit on the high side, but may be sustainable.
NVO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.03%
EPS Next 2Y24.4%
EPS Next 3Y22.9%
NOVO-NORDISK A/S-SPONS ADR
NYSE:NVO (5/8/2024, 12:18:08 PM)
127.28
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap567.80B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.89 | ||
| Fwd PE | 30.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.63
PEG (5Y)13.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.87% | ||
| ROE | 90.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 44.8% | ||
| PM (TTM) | 36.55% | ||
| GM | 84.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)48.22%
EPS 3Y1.11%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.72%
Revenue growth 3Y22.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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