Looking for growth without the hefty price tag? Consider NYSE:NVO.

Take a closer look at NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO), an affordable growth stock uncovered by our stock screener. NYSE:NVO boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Analyzing Growth Metrics

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:NVO scores a 7 out of 10:

• NVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.44%, which is quite impressive.
• The Revenue has grown by 29.72% in the past year. This is a very strong growth!
• 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.
• Based on estimates for the next years, NVO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.69% on average per year.
• The Revenue is expected to grow by 15.91% on average over the next years. This is quite good.
• 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.

Exploring NYSE:NVO's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:NVO has achieved a 5 out of 10:

• Based on the Price/Earnings ratio, NVO is valued cheaper than 80.31% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, NVO is valued a bit cheaper than the industry average as 75.65% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, NVO is valued a bit cheaper than 76.68% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than 76.68% of the companies in the same industry.
• The excellent profitability rating of NVO may justify a higher PE ratio.
• A more expensive valuation may be justified as NVO's earnings are expected to grow with 22.83% in the coming years.

Assessing Health Metrics for NYSE:NVO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:NVO has earned a 7 out of 10:

• An Altman-Z score of 15.10 indicates that NVO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NVO (15.10) is better than 88.08% 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 96.89% of its industry peers.
• A Debt/Equity ratio of 0.17 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 employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:NVO, the assigned 9 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 29.87%, NVO belongs to the top of the industry, outperforming 98.45% of the companies in the same industry.
• NVO's Return On Equity of 90.26% is amongst the best of the industry. NVO outperforms 97.93% of its industry peers.
• The Return On Invested Capital of NVO (65.80%) is better than 99.48% of its industry peers.
• NVO had an Average Return On Invested Capital over the past 3 years of 50.71%. This is significantly above the industry average of 18.14%.
• The 3 year average ROIC (50.71%) for NVO is below the current ROIC(65.80%), indicating increased profibility in the last year.
• NVO has a better Profit Margin (36.55%) than 96.37% of its industry peers.
• With an excellent Operating Margin value of 44.80%, NVO belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 84.65%, NVO belongs to the top of the industry, outperforming 88.08% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.