NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
Europe - FRA:NOV - DK0062498333 - Common Stock
42.725 EUR
+0.15 (+0.34%)
We assign a fundamental rating of 7 out of 10 to NOV. NOV was compared to 53 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, NOV could be worth investigating further 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.
Each year in the past 5 years NOV has been profitable.
NOV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NOV (23.04%) is better than 98.11% of its industry peers.
NOV has a better Return On Equity (66.09%) than 94.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 41.43%, NOV belongs to the top of the industry, outperforming 98.11% of the companies in the same industry.
NOV had an Average Return On Invested Capital over the past 3 years of 50.29%. This is significantly above the industry average of 14.46%.
The 3 year average ROIC (50.29%) for NOV is well above the current ROIC(41.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.04% | ||
| ROE | 66.09% | ||
| ROIC | 41.43% |
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 35.61%, NOV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NOV's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 45.78%, NOV belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
NOV's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 83.95%, NOV belongs to the best of the industry, outperforming 90.57% 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 | 45.78% | ||
| PM (TTM) | 35.61% | ||
| GM | 83.95% |
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NOV is creating value.
The number of shares outstanding for NOV has been reduced compared to 1 year ago.
The number of shares outstanding for NOV has been increased compared to 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 4.70. This indicates that NOV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.70, NOV is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
NOV has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
NOV has a Debt to FCF ratio of 1.61. This is amongst the best in the industry. NOV outperforms 90.57% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that NOV is somewhat dependend on debt financing.
NOV has a Debt to Equity ratio (0.52) which is in line with 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 | 0.52 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 4.7 |
ROIC/WACC7.5
WACC5.52%
2.3 Liquidity
A Current Ratio of 0.78 indicates that NOV may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, NOV is doing worse than 84.91% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that NOV may have some problems paying its short term obligations.
NOV has a worse Quick ratio (0.56) than 84.91% 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 | 0.78 | ||
| 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 24.25%, which is quite impressive.
NOV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
Looking at the last year, NOV shows a very strong growth in Revenue. The Revenue has grown by 20.90%.
The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)24.25%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%32.74%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%12.93%
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 9.00% on average per year.
The Revenue is expected to grow by 8.45% on average over the next years. This is quite good.
EPS Next Y9.19%
EPS Next 2Y8.94%
EPS Next 3Y9.11%
EPS Next 5Y9%
Revenue Next Year10.32%
Revenue Next 2Y8.85%
Revenue Next 3Y8.6%
Revenue Next 5Y8.45%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NOV is valuated correctly with a Price/Earnings ratio of 12.79.
Compared to the rest of the industry, the Price/Earnings ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 71.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, NOV is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.88, the valuation of NOV can be described as very reasonable.
71.70% of the companies in the same industry are more expensive than NOV, based on the Price/Forward Earnings ratio.
NOV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.88 |
4.2 Price Multiples
67.92% of the companies in the same industry are more expensive than NOV, based on the Enterprise Value to EBITDA ratio.
NOV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.01 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NOV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.39
PEG (5Y)1.92
EPS Next 2Y8.94%
EPS Next 3Y9.11%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 3.61%. 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 2.99.
NOV's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
NOV pays out 45.63% 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.
DP45.63%
EPS Next 2Y8.94%
EPS Next 3Y9.11%
FRA:NOV (11/3/2025, 3:56:05 PM)
42.725
+0.15 (+0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap189.85B
Revenue(TTM)311.94B
Net Income(TTM)111.07B
Analysts73.33
Price Target61.27 (43.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP45.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-1.15%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-1.15%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)3.48%
EPS beat(12)9
Avg EPS beat(12)2.29%
EPS beat(16)12
Avg EPS beat(16)2.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.6%
Revenue beat(4)1
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)1.1%
PT rev (1m)-10.06%
PT rev (3m)-28.36%
EPS NQ rev (1m)-14.53%
EPS NQ rev (3m)-21.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.8%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.88 | ||
| P/S | 4.54 | ||
| P/FCF | 23.01 | ||
| P/OCF | 11.67 | ||
| P/B | 8.44 | ||
| P/tB | 23.55 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)3.34
EY7.82%
EPS(NY)3.6
Fwd EY8.42%
FCF(TTM)1.86
FCFY4.35%
OCF(TTM)3.66
OCFY8.57%
SpS9.4
BVpS5.06
TBVpS1.81
PEG (NY)1.39
PEG (5Y)1.92
Graham Number19.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.04% | ||
| ROE | 66.09% | ||
| ROCE | 52% | ||
| ROIC | 41.43% | ||
| ROICexc | 44.49% | ||
| ROICexgc | 76.96% | ||
| OM | 45.78% | ||
| PM (TTM) | 35.61% | ||
| GM | 83.95% | ||
| FCFM | 19.75% |
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%
ROICexgc growth 3Y-1.28%
ROICexgc 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-Score4
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 374.26% | ||
| Cap/Sales | 19.21% | ||
| Interest Coverage | 60.84 | ||
| Cash Conversion | 76.52% | ||
| Profit Quality | 55.47% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.7 |
F-Score4
WACC5.52%
ROIC/WACC7.5
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)24.25%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%32.74%
EPS Next Y9.19%
EPS Next 2Y8.94%
EPS Next 3Y9.11%
EPS Next 5Y9%
Revenue 1Y (TTM)20.9%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%12.93%
Revenue Next Year10.32%
Revenue Next 2Y8.85%
Revenue Next 3Y8.6%
Revenue Next 5Y8.45%
EBIT growth 1Y21.88%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year21.98%
EBIT Next 3Y13.55%
EBIT Next 5Y10.24%
FCF growth 1Y-8.73%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y35.43%
OCF growth 3Y30.05%
OCF growth 5Y20.93%
NOVO NORDISK A/S-B / NOV.DE FAQ
What is the fundamental rating for NOV stock?
ChartMill assigns a fundamental rating of 7 / 10 to NOV.DE.
What is the valuation status for NOV stock?
ChartMill assigns a valuation rating of 6 / 10 to NOVO NORDISK A/S-B (NOV.DE). This can be considered as Fairly Valued.
What is the profitability of NOV stock?
NOVO NORDISK A/S-B (NOV.DE) has a profitability rating of 9 / 10.
What is the valuation of NOVO NORDISK A/S-B based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NOVO NORDISK A/S-B (NOV.DE) is 12.79 and the Price/Book (PB) ratio is 8.44.
How financially healthy is NOVO NORDISK A/S-B?
The financial health rating of NOVO NORDISK A/S-B (NOV.DE) is 6 / 10.