While growth is established for NYSE:NVO, the stock's valuation remains reasonable.

Uncover the potential of NOVO-NORDISK A/S-SPONS ADR (NYSE:NVO), a growth stock that our stock screener found to be reasonably priced. NYSE:NVO is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Assessing Growth Metrics 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 27.44% over the past year.
• Looking at the last year, NVO shows a very strong growth in Revenue. The Revenue has grown by 26.15%.
• 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 16.66% yearly.
• Based on estimates for the next years, NVO will show a quite strong growth in Revenue. The Revenue will grow by 15.91% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Analysis for NYSE:NVO

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:NVO scores a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 80.21% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of NVO indicates a somewhat cheap valuation: NVO is cheaper than 77.08% of the companies listed in the same industry.
• Based on the Enterprise Value to EBITDA ratio, NVO is valued a bit cheaper than 79.17% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVO indicates a somewhat cheap valuation: NVO is cheaper than 79.69% of the companies listed 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 23.30% in the coming years. This may justify a more expensive valuation.

Health Examination for NYSE:NVO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:NVO has achieved a 7 out of 10:

• NVO has an Altman-Z score of 9.33. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
• NVO's Altman-Z score of 9.33 is amongst the best of the industry. NVO outperforms 85.42% of its industry peers.
• The Debt to FCF ratio of NVO is 0.85, which is an excellent value as it means it would take NVO, only 0.85 years of fcf income to pay off all of its debts.
• NVO's Debt to FCF ratio of 0.85 is amongst the best of the industry. NVO outperforms 96.35% of its industry peers.
• A Debt/Equity ratio of 0.43 indicates that NVO is not too dependend on debt financing.
• Although NVO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• 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 Analysis for NYSE:NVO

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:

• NVO has a Return On Assets of 23.83%. This is amongst the best in the industry. NVO outperforms 98.96% of its industry peers.
• With an excellent Return On Equity value of 78.59%, NVO belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
• NVO's Return On Invested Capital of 52.61% is amongst the best of the industry. NVO outperforms 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 42.16%.
• The last Return On Invested Capital (52.61%) for NVO is above the 3 year average (50.71%), which is a sign of increasing profitability.
• NVO has a Profit Margin of 35.01%. This is amongst the best in the industry. NVO outperforms 97.92% of its industry peers.
• NVO has a Operating Margin of 45.85%. This is amongst the best in the industry. NVO outperforms 98.44% of its industry peers.
• Looking at the Gross Margin, with a value of 84.66%, NVO belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.

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

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.