Investors should take note of NYSE:NVO, a growth stock that remains attractively priced.

Our stock screening tool has pinpointed NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) as a growth stock that isn't overvalued. NYSE:NVO is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

How do we evaluate the Growth for NYSE:NVO?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:NVO has achieved a 7 out of 10:

• The Earnings Per Share has grown by an impressive 52.33% over the past year.
• NVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.26%.
• Measured over the past years, NVO shows a quite strong growth in Revenue. The Revenue has been growing by 15.74% on average per year.
• 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.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:NVO, the assigned 5 reflects its valuation:

• 81.03% of the companies in the same industry are more expensive than NVO, based on the Price/Earnings ratio.
• Based on the Price/Forward Earnings ratio, NVO is valued a bit cheaper than the industry average as 78.97% of the companies are valued more expensively.
• 77.95% of the companies in the same industry are more expensive than NVO, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than 78.97% of the companies in the same industry.
• 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.

A Closer Look at Health for NYSE:NVO

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:NVO, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 13.27 indicates that NVO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NVO (13.27) is better than 89.23% of its industry peers.
• 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.
• NVO's Debt to FCF ratio of 0.39 is amongst the best of the industry. NVO outperforms 96.41% of its industry peers.
• NVO has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
• 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.

Profitability Assessment of NYSE:NVO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:NVO scores a 9 out of 10:

• Looking at the Return On Assets, with a value of 26.61%, NVO belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
• NVO's Return On Equity of 78.53% is amongst the best of the industry. NVO outperforms 98.46% of its industry peers.
• NVO has a Return On Invested Capital of 56.78%. This is amongst the best in the industry. NVO outperforms 99.49% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for NVO is significantly above the industry average of 16.31%.
• The 3 year average ROIC (50.71%) for NVO is below the current ROIC(56.78%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 36.03%, NVO belongs to the best of the industry, outperforming 95.90% of the companies in the same industry.
• The Operating Margin of NVO (44.16%) is better than 97.95% of its industry peers.
• The Gross Margin of NVO (84.60%) is better than 87.18% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.