NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
FRA:NOV - Deutsche Boerse Ag - DK0062498333 - Common Stock - Currency: EUR
NOV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 52 industry peers in the Pharmaceuticals industry. NOV scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NOV is not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
In the past year NOV had a positive cash flow from operations.
Each year in the past 5 years NOV has been profitable.
Each year in the past 5 years NOV had a positive operating cash flow.
1.2 Ratios
NOV's Return On Assets of 21.68% is amongst the best of the industry. NOV outperforms 98.08% of its industry peers.
Looking at the Return On Equity, with a value of 70.38%, NOV belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
NOV has a Return On Invested Capital of 43.02%. This is amongst the best in the industry. NOV outperforms 100.00% 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 13.62%.
The 3 year average ROIC (50.29%) for NOV is well above the current ROIC(43.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.68% | ||
| ROE | 70.38% | ||
| ROIC | 43.02% |
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
With an excellent Profit Margin value of 34.78%, NOV belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Profit Margin of NOV has grown nicely.
Looking at the Operating Margin, with a value of 46.16%, NOV belongs to the top of the industry, outperforming 98.08% of the companies in the same industry.
NOV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 84.67%, NOV belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
In the last couple of years the Gross Margin of NOV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.16% | ||
| PM (TTM) | 34.78% | ||
| GM | 84.67% |
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.
Compared to 1 year ago, NOV has less shares outstanding
The number of shares outstanding for NOV has been increased compared to 5 years ago.
NOV has a worse debt/assets ratio than last year.
2.2 Solvency
NOV has an Altman-Z score of 6.80. This indicates that NOV is financially healthy and has little risk of bankruptcy at the moment.
NOV has a Altman-Z score of 6.80. This is amongst the best in the industry. NOV outperforms 92.31% of its industry peers.
NOV has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.48, NOV belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that NOV is somewhat dependend on debt financing.
NOV has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: NOV outperforms 53.85% of its industry peers.
Although NOV 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 6.8 |
ROIC/WACC6.41
WACC6.71%
2.3 Liquidity
A Current Ratio of 0.74 indicates that NOV may have some problems paying its short term obligations.
The Current ratio of NOV (0.74) is worse than 86.54% of its industry peers.
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.
With a Quick ratio value of 0.55, NOV is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
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 | 0.74 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.49%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
Looking at the last year, NOV shows a very strong growth in Revenue. The Revenue has grown by 25.03%.
The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)22.49%
EPS 3Y3.21%
EPS 5Y6.84%
EPS Q2Q%32.64%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%33.16%
3.2 Future
The Earnings Per Share is expected to grow by 15.44% on average over the next years. This is quite good.
Based on estimates for the next years, NOV will show a quite strong growth in Revenue. The Revenue will grow by 13.05% on average per year.
EPS Next Y21.86%
EPS Next 2Y22.65%
EPS Next 3Y19.03%
EPS Next 5Y15.44%
Revenue Next Year23.4%
Revenue Next 2Y20.17%
Revenue Next 3Y16.86%
Revenue Next 5Y13.05%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.21 indicates a quite expensive valuation of NOV.
NOV's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of NOV to the average of the S&P500 Index (29.35), we can say NOV is valued inline with the index average.
The Price/Forward Earnings ratio is 21.53, which indicates a rather expensive current valuation of NOV.
NOV's Price/Forward Earnings ratio is in line with the industry average.
NOV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 21.53 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.12 | ||
| EV/EBITDA | 17.77 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as NOV's earnings are expected to grow with 19.03% in the coming years.
PEG (NY)1.2
PEG (5Y)3.83
EPS Next 2Y22.65%
EPS Next 3Y19.03%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 1.86%.
The stock price of NOV dropped by -23.74% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.86, NOV has a dividend in line with its industry peers.
NOV's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of NOV is nicely growing with an annual growth rate of 16.56%!
Dividend Growth(5Y)16.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NOV pays out 43.71% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NOV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.71%
EPS Next 2Y22.65%
EPS Next 3Y19.03%
FRA:NOV (3/7/2025, 7:00:00 PM)
80.19
-1.6 (-1.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners37.62%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap355.97B
Analysts75.63
Price Target113.65 (41.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP43.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.51%
Min EPS beat(2)0.64%
Max EPS beat(2)10.39%
EPS beat(4)3
Avg EPS beat(4)3.46%
Min EPS beat(4)-4.65%
Max EPS beat(4)10.39%
EPS beat(8)6
Avg EPS beat(8)2.93%
EPS beat(12)9
Avg EPS beat(12)2.72%
EPS beat(16)13
Avg EPS beat(16)3.28%
Revenue beat(2)1
Avg Revenue beat(2)3.49%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)9.55%
Revenue beat(4)2
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)9.55%
Revenue beat(8)5
Avg Revenue beat(8)1.56%
Revenue beat(12)8
Avg Revenue beat(12)1.64%
Revenue beat(16)12
Avg Revenue beat(16)1.7%
PT rev (1m)-4.35%
PT rev (3m)-12.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 21.53 | ||
| P/S | 9.14 | ||
| P/FCF | 38.12 | ||
| P/OCF | 21.95 | ||
| P/B | 18.5 | ||
| P/tB | 81.96 | ||
| EV/EBITDA | 17.77 |
EPS(TTM)3.06
EY3.82%
EPS(NY)3.73
Fwd EY4.65%
FCF(TTM)2.1
FCFY2.62%
OCF(TTM)3.65
OCFY4.56%
SpS8.77
BVpS4.33
TBVpS0.98
PEG (NY)1.2
PEG (5Y)3.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.68% | ||
| ROE | 70.38% | ||
| ROCE | 53.99% | ||
| ROIC | 43.02% | ||
| ROICexc | 48.11% | ||
| ROICexgc | 96.32% | ||
| OM | 46.16% | ||
| PM (TTM) | 34.78% | ||
| GM | 84.67% | ||
| FCFM | 23.99% |
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 | 0.62 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 268.54% | ||
| Cap/Sales | 17.67% | ||
| Interest Coverage | 219.02 | ||
| Cash Conversion | 78.99% | ||
| Profit Quality | 68.98% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 6.8 |
F-Score5
WACC6.71%
ROIC/WACC6.41
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)22.49%
EPS 3Y3.21%
EPS 5Y6.84%
EPS Q2Q%32.64%
EPS Next Y21.86%
EPS Next 2Y22.65%
EPS Next 3Y19.03%
EPS Next 5Y15.44%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%33.16%
Revenue Next Year23.4%
Revenue Next 2Y20.17%
Revenue Next 3Y16.86%
Revenue Next 5Y13.05%
EBIT growth 1Y30.68%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year37.19%
EBIT Next 3Y19.26%
EBIT Next 5Y15.4%
FCF growth 1Y-0.5%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y11.07%
OCF growth 3Y30.05%
OCF growth 5Y20.93%