NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
FRA:NOV - Deutsche Boerse Ag - DK0062498333 - Common Stock - Currency: EUR
Taking everything into account, NOV scores 7 out of 10 in our fundamental rating. NOV was compared to 50 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making NOV a very profitable company, without any liquidiy or solvency issues. NOV is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NOV a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NOV was profitable.
NOV had a positive operating cash flow in the past year.
In the past 5 years NOV has always been profitable.
In the past 5 years NOV always reported a positive cash flow from operatings.
1.2 Ratios
NOV's Return On Assets of 21.39% is amongst the best of the industry. NOV outperforms 98.00% of its industry peers.
Looking at the Return On Equity, with a value of 75.51%, NOV belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
The Return On Invested Capital of NOV (44.39%) is better than 98.00% of its industry peers.
NOV had an Average Return On Invested Capital over the past 3 years of 50.29%. This is significantly above the industry average of 14.77%.
The last Return On Invested Capital (44.39%) for NOV is well below the 3 year average (50.29%), which needs to be investigated, but indicates that NOV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 75.51% | ||
| ROIC | 44.39% |
ROA(3y)23.77%
ROA(5y)24.99%
ROE(3y)71.81%
ROE(5y)69.89%
ROIC(3y)50.29%
ROIC(5y)49.64%
1.3 Margins
NOV's Profit Margin of 34.51% is amongst the best of the industry. NOV outperforms 98.00% of its industry peers.
In the last couple of years the Profit Margin of NOV has grown nicely.
NOV's Operating Margin of 46.51% is amongst the best of the industry. NOV outperforms 98.00% of its industry peers.
In the last couple of years the Operating Margin of NOV has grown nicely.
The Gross Margin of NOV (84.33%) is better than 88.00% of its industry peers.
NOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.51% | ||
| PM (TTM) | 34.51% | ||
| GM | 84.33% |
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
NOV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NOV has less shares outstanding than it did 1 year ago.
NOV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NOV has a worse debt to assets ratio.
2.2 Solvency
NOV has an Altman-Z score of 5.05. This indicates that NOV is financially healthy and has little risk of bankruptcy at the moment.
NOV has a Altman-Z score of 5.05. This is in the better half of the industry: NOV outperforms 80.00% of its industry peers.
The Debt to FCF ratio of NOV is 1.60, which is an excellent value as it means it would take NOV, only 1.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.60, NOV belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
NOV has a Debt/Equity ratio of 0.70. This is a neutral value indicating NOV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, NOV is in line with its industry, outperforming 46.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for NOV, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 5.05 |
ROIC/WACC7.84
WACC5.66%
2.3 Liquidity
NOV has a Current Ratio of 0.74. This is a bad value and indicates that NOV is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.74, NOV is doing worse than 82.00% of the companies in the same industry.
NOV has a Quick Ratio of 0.74. This is a bad value and indicates that NOV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NOV (0.56) is worse than 84.00% of its industry peers.
NOV 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.96%, which is quite good.
Measured over the past 5 years, NOV shows a small growth in Earnings Per Share. The EPS has been growing by 6.68% on average per year.
Looking at the last year, NOV shows a very strong growth in Revenue. The Revenue has grown by 24.11%.
The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)17.96%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%14.96%
Revenue 1Y (TTM)24.11%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%19.49%
3.2 Future
The Earnings Per Share is expected to grow by 14.29% on average over the next years. This is quite good.
NOV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.94% yearly.
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y14.29%
Revenue Next Year19.4%
Revenue Next 2Y17.49%
Revenue Next 3Y15.32%
Revenue Next 5Y11.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.60 indicates a rather expensive valuation of NOV.
NOV's Price/Earnings is on the same level as the industry average.
NOV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
The Price/Forward Earnings ratio is 12.46, which indicates a correct valuation of NOV.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than 70.00% of the companies in the same industry.
NOV is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 12.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NOV.
NOV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NOV may justify a higher PE ratio.
A more expensive valuation may be justified as NOV's earnings are expected to grow with 18.20% in the coming years.
PEG (NY)0.89
PEG (5Y)2.64
EPS Next 2Y21.13%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
NOV's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.35, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
On average, the dividend of NOV grows each year by 16.56%, which is quite nice.
Dividend Growth(5Y)16.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
48.61% of the earnings are spent on dividend by NOV. This is a bit on the high side, but may be sustainable.
NOV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.61%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
FRA:NOV (7/18/2025, 7:00:00 PM)
55.45
-1.53 (-2.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.28%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap246.39B
Analysts74.38
Price Target89.31 (61.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP48.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.7%
Min EPS beat(2)3.94%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)1.85%
Min EPS beat(4)-4.65%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)2.79%
EPS beat(12)9
Avg EPS beat(12)2.12%
EPS beat(16)13
Avg EPS beat(16)2.95%
Revenue beat(2)1
Avg Revenue beat(2)2.92%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)6.95%
Revenue beat(4)1
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)11
Avg Revenue beat(16)1.29%
PT rev (1m)-2.54%
PT rev (3m)-17.77%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-7.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-4.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.6 | ||
| Fwd PE | 12.46 | ||
| P/S | 6.07 | ||
| P/FCF | 24.73 | ||
| P/OCF | 14.01 | ||
| P/B | 13.27 | ||
| P/tB | 63.05 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)3.15
EY5.68%
EPS(NY)4.45
Fwd EY8.02%
FCF(TTM)2.24
FCFY4.04%
OCF(TTM)3.96
OCFY7.14%
SpS9.14
BVpS4.18
TBVpS0.88
PEG (NY)0.89
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 75.51% | ||
| ROCE | 55.72% | ||
| ROIC | 44.39% | ||
| ROICexc | 53.11% | ||
| ROICexgc | 110% | ||
| OM | 46.51% | ||
| PM (TTM) | 34.51% | ||
| GM | 84.33% | ||
| FCFM | 24.53% |
ROA(3y)23.77%
ROA(5y)24.99%
ROE(3y)71.81%
ROE(5y)69.89%
ROIC(3y)50.29%
ROIC(5y)49.64%
ROICexc(3y)60.7%
ROICexc(5y)59.32%
ROICexgc(3y)124.92%
ROICexgc(5y)112.44%
ROCE(3y)63.71%
ROCE(5y)65.35%
ROICexcg growth 3Y-1.28%
ROICexcg growth 5Y0.46%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-9.95%
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
F-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 284.1% | ||
| Cap/Sales | 18.77% | ||
| Interest Coverage | 108.03 | ||
| Cash Conversion | 81.52% | ||
| Profit Quality | 71.08% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 5.05 |
F-Score5
WACC5.66%
ROIC/WACC7.84
Cap/Depr(3y)294.05%
Cap/Depr(5y)277.71%
Cap/Sales(3y)14.25%
Cap/Sales(5y)13.08%
Profit Quality(3y)89.38%
Profit Quality(5y)87.75%
High Growth Momentum
Growth
EPS 1Y (TTM)17.96%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%14.96%
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y14.29%
Revenue 1Y (TTM)24.11%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%19.49%
Revenue Next Year19.4%
Revenue Next 2Y17.49%
Revenue Next 3Y15.32%
Revenue Next 5Y11.94%
EBIT growth 1Y28.85%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year32.99%
EBIT Next 3Y20.98%
EBIT Next 5Y13.43%
FCF growth 1Y10.42%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y54.2%
OCF growth 3Y30.05%
OCF growth 5Y20.93%