Analyzing NYSE:NVO's Dividend Potential.

Last update: Apr 30, 2024

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.

How do we evaluate the Dividend for NYSE:NVO?

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:NVO has achieved a 7 out of 10:

Compared to an average industry Dividend Yield of 4.39, NVO pays a better dividend. On top of this NVO pays more dividend than 90.77% of the companies listed in the same industry.
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.
NVO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
NVO pays out 37.96% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVO is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Analysis for NYSE:NVO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:NVO, the assigned 7 reflects its health status:

An Altman-Z score of 13.54 indicates that NVO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.54, NVO belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Debt to FCF ratio of NVO is 0.39, which is an excellent value as it means it would take NVO, only 0.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NVO (0.39) is better than 96.41% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that NVO is not too dependend on debt financing.
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.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:NVO has earned a 9 out of 10:

NVO's Return On Assets of 26.61% is amongst the best of the industry. NVO outperforms 98.46% of its industry peers.
NVO's Return On Equity of 78.53% is amongst the best of the industry. NVO outperforms 98.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 56.78%, NVO belongs to the top of the industry, outperforming 99.49% of the companies in the same industry.
NVO had an Average Return On Invested Capital over the past 3 years of 50.71%. This is significantly above the industry average of 16.40%.
The 3 year average ROIC (50.71%) for NVO is below the current ROIC(56.78%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 36.03%, NVO belongs to the top of the industry, outperforming 95.90% of the companies in the same industry.
Looking at the Operating Margin, with a value of 44.16%, NVO belongs to the top of the industry, outperforming 97.95% of the companies in the same industry.
With an excellent Gross Margin value of 84.60%, NVO belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of NVO for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.