NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
FRA:NOV - Deutsche Boerse Ag - DK0062498333 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to NOV. NOV was compared to 52 industry peers in the Pharmaceuticals industry. NOV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NOV is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make NOV suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NOV was profitable.
In the past year NOV had a positive cash flow from operations.
In the past 5 years NOV has always been profitable.
Each year in the past 5 years NOV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NOV (23.83%) is better than 97.92% of its industry peers.
With an excellent Return On Equity value of 78.59%, NOV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NOV has a better Return On Invested Capital (52.61%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOV is significantly above the industry average of 12.45%.
The last Return On Invested Capital (52.61%) for NOV is above the 3 year average (50.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.83% | ||
| ROE | 78.59% | ||
| ROIC | 52.61% |
ROA(3y)24.73%
ROA(5y)26.85%
ROE(3y)70.85%
ROE(5y)69.34%
ROIC(3y)50.71%
ROIC(5y)53.98%
1.3 Margins
NOV has a better Profit Margin (35.01%) than 95.83% of its industry peers.
In the last couple of years the Profit Margin of NOV has remained more or less at the same level.
The Operating Margin of NOV (45.85%) is better than 97.92% of its industry peers.
NOV's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 84.66%, NOV belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
NOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.85% | ||
| PM (TTM) | 35.01% | ||
| GM | 84.66% |
OM growth 3Y1.58%
OM growth 5Y1.31%
PM growth 3Y2.77%
PM growth 5Y0.85%
GM growth 3Y0.43%
GM growth 5Y0.08%
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.
The number of shares outstanding for NOV has been increased compared to 1 year ago.
Compared to 5 years ago, NOV has more shares outstanding
NOV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.84 indicates that NOV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.84, NOV belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of NOV is 0.85, which is an excellent value as it means it would take NOV, only 0.85 years of fcf income to pay off all of its debts.
NOV has a better Debt to FCF ratio (0.85) than 87.50% of its industry peers.
NOV has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NOV (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 7.84 |
ROIC/WACC8.09
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.94 indicates that NOV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, NOV is doing worse than 87.50% of the companies in the same industry.
NOV has a Quick Ratio of 0.94. This is a bad value and indicates that NOV is not financially healthy enough and could expect problems in meeting its short term obligations.
NOV has a worse Quick ratio (0.75) than 75.00% of its industry peers.
The current and quick ratio evaluation for NOV 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.83% over the past year.
Measured over the past 5 years, NOV shows a small growth in Earnings Per Share. The EPS has been growing by 3.16% on average per year.
NOV shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.15%.
Measured over the past years, NOV shows a quite strong growth in Revenue. The Revenue has been growing by 15.74% on average per year.
EPS 1Y (TTM)26.83%
EPS 3Y1.11%
EPS 5Y3.16%
EPS Q2Q%22.4%
Revenue 1Y (TTM)26.15%
Revenue growth 3Y22.31%
Revenue growth 5Y15.74%
Sales Q2Q%21.42%
3.2 Future
Based on estimates for the next years, NOV will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.24% on average per year.
Based on estimates for the next years, NOV will show a quite strong growth in Revenue. The Revenue will grow by 15.93% on average per year.
EPS Next Y21.91%
EPS Next 2Y22.25%
EPS Next 3Y21.94%
EPS Next 5Y17.24%
Revenue Next Year24.84%
Revenue Next 2Y23.11%
Revenue Next 3Y21.11%
Revenue Next 5Y15.93%
3.3 Evolution
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
NOV is valuated quite expensively with a Price/Earnings ratio of 29.10.
The rest of the industry has a similar Price/Earnings ratio as NOV.
NOV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 22.16 indicates a rather expensive valuation of NOV.
The rest of the industry has a similar Price/Forward Earnings ratio as NOV.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, NOV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.1 | ||
| Fwd PE | 22.16 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NOV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.84 | ||
| EV/EBITDA | 18.55 |
4.3 Compensation for Growth
NOV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NOV may justify a higher PE ratio.
NOV's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)9.19
EPS Next 2Y22.25%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.64%.
In the last 3 months the price of NOV has falen by -20.06%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.69, NOV pays a bit more dividend than its industry peers.
NOV's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of NOV is nicely growing with an annual growth rate of 11.24%!
Dividend Growth(5Y)11.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NOV pays out 46.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
NOV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.6%
EPS Next 2Y22.25%
EPS Next 3Y21.94%
NOVO NORDISK A/S-B
FRA:NOV (2/5/2025, 3:34:55 PM)
82.63
+2.63 (+3.29%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners37.53%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap366.89B
Analysts74
Price Target118.83 (43.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend7.54
Dividend Growth(5Y)11.24%
DP46.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2%
Min EPS beat(2)-4.65%
Max EPS beat(2)0.64%
EPS beat(4)3
Avg EPS beat(4)2.69%
Min EPS beat(4)-4.65%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)1.99%
EPS beat(12)9
Avg EPS beat(12)1.87%
EPS beat(16)13
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.84%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)4.69%
Revenue beat(8)5
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.85%
Revenue beat(16)11
Avg Revenue beat(16)1.1%
PT rev (1m)-8.38%
PT rev (3m)-9.41%
EPS NQ rev (1m)-3.65%
EPS NQ rev (3m)-4.21%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-1.14%
Revenue NQ rev (1m)-2.29%
Revenue NQ rev (3m)-4.96%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.1 | ||
| Fwd PE | 22.16 | ||
| P/S | 10.12 | ||
| P/FCF | 40.84 | ||
| P/OCF | 23.16 | ||
| P/B | 22.71 | ||
| P/tB | 41.45 | ||
| EV/EBITDA | 18.55 |
EPS(TTM)2.84
EY3.44%
EPS(NY)3.73
Fwd EY4.51%
FCF(TTM)2.02
FCFY2.45%
OCF(TTM)3.57
OCFY4.32%
SpS8.17
BVpS3.64
TBVpS1.99
PEG (NY)1.33
PEG (5Y)9.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.83% | ||
| ROE | 78.59% | ||
| ROCE | 65.62% | ||
| ROIC | 52.61% | ||
| ROICexc | 87.1% | ||
| ROICexgc | 166.58% | ||
| OM | 45.85% | ||
| PM (TTM) | 35.01% | ||
| GM | 84.66% | ||
| FCFM | 24.77% |
ROA(3y)24.73%
ROA(5y)26.85%
ROE(3y)70.85%
ROE(5y)69.34%
ROIC(3y)50.71%
ROIC(5y)53.98%
ROICexc(3y)62.18%
ROICexc(5y)66.41%
ROICexgc(3y)126.94%
ROICexgc(5y)112.71%
ROCE(3y)65.89%
ROCE(5y)70.28%
ROICexcg growth 3Y18.83%
ROICexcg growth 5Y7.73%
ROICexc growth 3Y4.62%
ROICexc growth 5Y-4.53%
OM growth 3Y1.58%
OM growth 5Y1.31%
PM growth 3Y2.77%
PM growth 5Y0.85%
GM growth 3Y0.43%
GM growth 5Y0.08%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 302.86% | ||
| Cap/Sales | 18.92% | ||
| Interest Coverage | 248.63 | ||
| Cash Conversion | 83.86% | ||
| Profit Quality | 70.77% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 7.84 |
F-Score6
WACC6.5%
ROIC/WACC8.09
Cap/Depr(3y)245.39%
Cap/Depr(5y)263.68%
Cap/Sales(3y)10.11%
Cap/Sales(5y)11.39%
Profit Quality(3y)99.62%
Profit Quality(5y)92.21%
High Growth Momentum
Growth
EPS 1Y (TTM)26.83%
EPS 3Y1.11%
EPS 5Y3.16%
EPS Q2Q%22.4%
EPS Next Y21.91%
EPS Next 2Y22.25%
EPS Next 3Y21.94%
EPS Next 5Y17.24%
Revenue 1Y (TTM)26.15%
Revenue growth 3Y22.31%
Revenue growth 5Y15.74%
Sales Q2Q%21.42%
Revenue Next Year24.84%
Revenue Next 2Y23.11%
Revenue Next 3Y21.11%
Revenue Next 5Y15.93%
EBIT growth 1Y33.56%
EBIT growth 3Y24.23%
EBIT growth 5Y17.25%
EBIT Next Year40.23%
EBIT Next 3Y26.96%
EBIT Next 5Y18.56%
FCF growth 1Y15.82%
FCF growth 3Y32.84%
FCF growth 5Y16.5%
OCF growth 1Y71.91%
OCF growth 3Y27.98%
OCF growth 5Y19.32%