NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NOV - DK0062498333 - Common Stock
44.415 EUR
+3.71 (+9.13%)
We assign a fundamental rating of 7 out of 10 to NOV. NOV was compared to 54 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 has a correct valuation and a medium growth rate. These ratings would make NOV suitable for 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.
Each year in the past 5 years NOV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NOV (20.26%) is better than 98.15% of its industry peers.
Looking at the Return On Equity, with a value of 61.08%, NOV belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 38.03%, NOV belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NOV is significantly above the industry average of 13.79%.
The 3 year average ROIC (50.29%) for NOV is well above the current ROIC(38.03%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.26% | ||
| ROE | 61.08% | ||
| ROIC | 38.03% |
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 32.88% is amongst the best of the industry. NOV outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of NOV has grown nicely.
Looking at the Operating Margin, with a value of 42.03%, NOV belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
NOV's Operating Margin has improved in the last couple of years.
NOV has a Gross Margin of 82.05%. This is amongst the best in the industry. NOV outperforms 85.19% of its industry peers.
NOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.03% | ||
| PM (TTM) | 32.88% | ||
| GM | 82.05% |
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.
NOV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOV has more shares outstanding
The debt/assets ratio for NOV is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.39 indicates that NOV is not in any danger for bankruptcy at the moment.
NOV has a Altman-Z score of 4.39. This is in the better half of the industry: NOV outperforms 61.11% of its industry peers.
NOV has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
NOV has a better Debt to FCF ratio (1.66) than 90.74% 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 | 1.66 | ||
| Altman-Z | 4.39 |
ROIC/WACC6.07
WACC6.26%
2.3 Liquidity
NOV has a Current Ratio of 0.78. 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 0.78, NOV is doing worse than 85.19% of the companies in the same industry.
NOV has a Quick Ratio of 0.78. 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 0.57, NOV is not doing good in the industry: 85.19% 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 | 0.78 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.05%, 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 quite strong growth in Revenue. The Revenue has grown by 16.64% in the last year.
The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)10.05%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%-26.47%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
3.2 Future
NOV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.93% yearly.
The Revenue is expected to grow by 7.05% on average over the next years.
EPS Next Y5.3%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
EPS Next 5Y6.93%
Revenue Next Year8.5%
Revenue Next 2Y5.13%
Revenue Next 3Y5.85%
Revenue Next 5Y7.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 14.24, the valuation of NOV can be described as correct.
72.22% of the companies in the same industry are more expensive than NOV, based on the Price/Earnings ratio.
NOV is valuated rather cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.89, NOV is valued correctly.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than 72.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (24.03), we can say NOV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOV is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
NOV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.19 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NOV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)2.13
EPS Next 2Y2.73%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 1.85, NOV pays a better dividend. On top of this NOV pays more dividend than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, NOV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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 49.88% 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.
DP49.88%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
FRA:NOV (12/23/2025, 7:00:00 PM)
44.415
+3.71 (+9.13%)
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 Cap197.36B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP49.88%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.09%
Min EPS beat(2)-7.04%
Max EPS beat(2)-1.15%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-7.04%
Max EPS beat(4)7.46%
EPS beat(8)5
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)1.59%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)6.95%
Revenue beat(8)3
Avg Revenue beat(8)0.61%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)9
Avg Revenue beat(16)0.77%
PT rev (1m)-8.73%
PT rev (3m)-17.82%
EPS NQ rev (1m)-2.06%
EPS NQ rev (3m)-8.47%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-5.54%
Revenue NQ rev (1m)-2.52%
Revenue NQ rev (3m)-8.7%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.89 | ||
| P/S | 4.67 | ||
| P/FCF | 24.19 | ||
| P/OCF | 11.91 | ||
| P/B | 8.68 | ||
| P/tB | 23.28 | ||
| EV/EBITDA | 10 |
EPS(TTM)3.12
EY7.02%
EPS(NY)3.2
Fwd EY7.2%
FCF(TTM)1.84
FCFY4.13%
OCF(TTM)3.73
OCFY8.4%
SpS9.51
BVpS5.12
TBVpS1.91
PEG (NY)2.69
PEG (5Y)2.13
Graham Number18.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.26% | ||
| ROE | 61.08% | ||
| ROCE | 47.73% | ||
| ROIC | 38.03% | ||
| ROICexc | 43.08% | ||
| ROICexgc | 76.17% | ||
| OM | 42.03% | ||
| PM (TTM) | 32.88% | ||
| GM | 82.05% | ||
| FCFM | 19.31% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 290.66% | ||
| Cap/Sales | 19.91% | ||
| Interest Coverage | 53.02 | ||
| Cash Conversion | 80.23% | ||
| Profit Quality | 58.73% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 4.39 |
F-Score4
WACC6.26%
ROIC/WACC6.07
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)10.05%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%-26.47%
EPS Next Y5.3%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
EPS Next 5Y6.93%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year8.5%
Revenue Next 2Y5.13%
Revenue Next 3Y5.85%
Revenue Next 5Y7.05%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year19.06%
EBIT Next 3Y9.34%
EBIT Next 5Y9.17%
FCF growth 1Y-21.68%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y16.27%
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 5 / 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 14.24 and the Price/Book (PB) ratio is 8.68.
How financially healthy is NOVO NORDISK A/S-B?
The financial health rating of NOVO NORDISK A/S-B (NOV.DE) is 7 / 10.