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

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.

What does the Growth looks like 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 26.83% over the past year.
• The Revenue has grown by 26.15% 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.
• NVO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.88% yearly.
• Based on estimates for the next years, NVO will show a quite strong growth in Revenue. The Revenue will grow by 15.14% on average per year.
• 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

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:NVO boasts a 6 out of 10:

• Based on the Price/Earnings ratio, NVO is valued cheaper than 82.26% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, NVO is valued cheaply inside the industry as 80.11% of the companies are valued more expensively.
• NVO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVO is cheaper than 80.65% of the companies in the same industry.
• 80.65% of the companies in the same industry are more expensive than NVO, based on the Price/Free Cash Flow ratio.
• NVO has an outstanding profitability rating, which may justify a higher PE ratio.
• NVO's earnings are expected to grow with 23.35% in the coming years. This may justify a more expensive valuation.

Health Assessment of 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 7.58 indicates that NVO is not in any danger for bankruptcy at the moment.
• NVO has a better Altman-Z score (7.58) than 83.87% 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 has a better Debt to FCF ratio (0.85) than 95.70% of its industry peers.
• A Debt/Equity ratio of 0.43 indicates that NVO is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for NVO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• 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.

Analyzing Profitability Metrics

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:

• NVO has a better Return On Assets (23.83%) than 98.92% of its industry peers.
• NVO has a Return On Equity of 78.59%. This is amongst the best in the industry. NVO outperforms 98.92% of its industry peers.
• With an excellent Return On Invested Capital value of 52.61%, NVO belongs to the best of the industry, outperforming 98.92% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for NVO is significantly above the industry average of 43.99%.
• The 3 year average ROIC (50.71%) for NVO is below the current ROIC(52.61%), indicating increased profibility in the last year.
• The Profit Margin of NVO (35.01%) is better than 96.77% of its industry peers.
• NVO's Operating Margin of 45.85% is amongst the best of the industry. NVO outperforms 98.39% of its industry peers.
• Looking at the Gross Margin, with a value of 84.66%, NVO belongs to the top of the industry, outperforming 90.86% of the companies in the same industry.

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