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Is NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) a Strong Candidate for Quality Investing?

By Mill Chart

Last update: Apr 25, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) is suited for quality investing. Investors should of course do their own research, but we spotted NOVO-NORDISK A/S-SPONS ADR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NYSE:NVO.

  • NOVO-NORDISK A/S-SPONS ADR has shown strong performance in revenue growth over the past 5 years, with a 15.74% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 152.0%, NOVO-NORDISK A/S-SPONS ADR demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 0.39, NOVO-NORDISK A/S-SPONS ADR exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a favorable Profit Quality (5-year) ratio of 92.21%, NOVO-NORDISK A/S-SPONS ADR showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 17.25%, NOVO-NORDISK A/S-SPONS ADR showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • NOVO-NORDISK A/S-SPONS ADR has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to NVO. NVO was compared to 198 industry peers in the Pharmaceuticals industry. NVO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVO is growing strongly while it is still valued neutral. This is a good combination! NVO also has an excellent dividend rating. These ratings would make NVO suitable for dividend and growth and quality investing!

For an up to date full fundamental analysis you can check the fundamental report of NVO

More quality stocks can be found in our Caviar Cruise screen.

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.

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