NYSE:NVO stands out as a growth opportunity that won't break the bank.

Our stock screener has singled out NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO) as an attractive growth opportunity. NYSE:NVO is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth Metrics for NYSE:NVO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:NVO was assigned a score of 7 for growth:

• The Earnings Per Share has grown by an impressive 47.44% over the past year.
• Looking at the last year, NVO shows a very strong growth in Revenue. The Revenue has grown by 29.72%.
• NVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.74% yearly.
• The Earnings Per Share is expected to grow by 16.69% on average over the next years. This is quite good.
• 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.

A Closer Look at Valuation for NYSE:NVO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:NVO has received a 5 out of 10:

• Based on the Price/Earnings ratio, NVO is valued cheaply inside the industry as 80.41% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, NVO is valued a bit cheaper than the industry average as 76.80% of the companies are valued more expensively.
• NVO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NVO is cheaper than 77.84% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than 76.80% of the companies in the same industry.
• NVO has an outstanding profitability rating, which 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.

Evaluating Health: NYSE:NVO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:NVO has received a 7 out of 10:

• NVO has an Altman-Z score of 14.09. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 14.09, NVO belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
• The Debt to FCF ratio of NVO is 0.54, which is an excellent value as it means it would take NVO, only 0.54 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.54, NVO belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
• NVO has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
• 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

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:

• With an excellent Return On Assets value of 29.87%, NVO belongs to the best of the industry, outperforming 98.45% of the companies in the same industry.
• NVO has a better Return On Equity (90.26%) than 97.94% of its industry peers.
• NVO has a better Return On Invested Capital (65.80%) than 99.48% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for NVO is significantly above the industry average of 17.97%.
• The last Return On Invested Capital (65.80%) for NVO is above the 3 year average (50.71%), which is a sign of increasing profitability.
• NVO has a better Profit Margin (36.55%) than 95.88% of its industry peers.
• NVO has a Operating Margin of 44.80%. This is amongst the best in the industry. NVO outperforms 98.45% of its industry peers.
• NVO has a better Gross Margin (84.65%) than 88.14% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.