Balancing Dividends and Fundamentals: The Case of NYSE:NVO.

Unearth the potential of NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) as a dividend stock recommended by our stock screening tool. NYSE:NVO maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

ChartMill's Evaluation of Dividend

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:NVO scores a 7 out of 10:

• NVO's Dividend Yield is rather good when compared to the industry average which is at 4.27. NVO pays more dividend than 91.00% of the companies in the same industry.
• On average, the dividend of NVO grows each year by 11.24%, which is quite nice.
• 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.
• 37.96% of the earnings are spent on dividend by NVO. This is a low number and sustainable payout ratio.
• NVO's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Assessment of NYSE:NVO

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:NVO scores a 7 out of 10:

• An Altman-Z score of 13.10 indicates that NVO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 13.10, NVO belongs to the top of the industry, outperforming 89.50% of the companies in the same industry.
• NVO has a debt to FCF ratio of 0.39. This is a very positive value and a sign of high solvency as it would only need 0.39 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 0.39, NVO belongs to the best of the industry, outperforming 94.50% of the companies in the same industry.
• A Debt/Equity ratio of 0.19 indicates that NVO is not too dependend on debt financing.
• 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.

How do we evaluate the Profitability for NYSE:NVO?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NVO has achieved a 9:

• NVO has a Return On Assets of 26.61%. This is amongst the best in the industry. NVO outperforms 97.50% of its industry peers.
• NVO has a Return On Equity of 78.53%. This is amongst the best in the industry. NVO outperforms 98.50% of its industry peers.
• NVO has a better Return On Invested Capital (56.78%) than 99.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for NVO is significantly above the industry average of 16.99%.
• The last Return On Invested Capital (56.78%) for NVO is above the 3 year average (50.71%), which is a sign of increasing profitability.
• NVO's Profit Margin of 36.03% is amongst the best of the industry. NVO outperforms 97.00% of its industry peers.
• NVO's Operating Margin of 44.16% is amongst the best of the industry. NVO outperforms 98.00% of its industry peers.
• The Gross Margin of NVO (84.60%) is better than 88.00% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of NVO contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.