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 52 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 has a correct valuation and a medium growth rate. These ratings could make NOV a good candidate 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.
NOV had positive earnings in each of the past 5 years.
NOV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NOV (20.26%) is better than 98.15% of its industry peers.
With an excellent Return On Equity value of 61.08%, NOV belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
NOV's Return On Invested Capital of 38.03% is amongst the best of the industry. NOV outperforms 98.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOV is significantly above the industry average of 13.72%.
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 has a Profit Margin of 32.88%. This is amongst the best in the industry. NOV outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of NOV has grown nicely.
NOV has a Operating Margin of 42.03%. This is amongst the best in the industry. NOV outperforms 94.44% of its industry peers.
NOV's Operating Margin has improved in the last couple of years.
The Gross Margin of NOV (82.05%) is better than 85.19% of its industry peers.
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 | 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.
The Altman-Z score of NOV (4.39) is better than 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's Debt to FCF ratio of 1.66 is amongst the best of the industry. NOV outperforms 90.74% of its industry peers.
NOV has a Debt/Equity ratio of 0.52. This is a neutral value indicating NOV is somewhat dependend on debt financing.
The Debt to Equity ratio of NOV (0.52) is comparable to the rest of the industry.
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
A Current Ratio of 0.78 indicates that NOV may have some problems paying its short term obligations.
With a Current ratio value of 0.78, NOV is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that NOV may have some problems paying 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 years, NOV shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.54% on average per year.
NOV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.64%.
NOV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.94% yearly.
EPS 1Y (TTM)10.05%
EPS 3Y29.71%
EPS 5Y22.54%
EPS Q2Q%-26.47%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
3.2 Future
Based on estimates for the next years, NOV will show a small growth in Earnings Per Share. The EPS will grow by 6.93% on average per year.
NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y4.79%
EPS Next 2Y0.88%
EPS Next 3Y2.8%
EPS Next 5Y6.93%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y7.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 14.24 indicates a correct valuation of NOV.
Based on the Price/Earnings ratio, NOV is valued a bit cheaper than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, NOV is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.40, which indicates a correct valuation of NOV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 70.37% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (23.46), we can say NOV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
74.07% 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 | 24.19 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NOV does not grow enough to justify the current Price/Earnings ratio.
NOV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.97
PEG (5Y)0.63
EPS Next 2Y0.88%
EPS Next 3Y2.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, NOV has a reasonable but not impressive dividend return.
NOV's Dividend Yield is a higher than the industry average which is at 2.20.
NOV's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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
49.88% 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.
DP49.88%
EPS Next 2Y0.88%
EPS Next 3Y2.8%
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 Target54.95 (23.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)-5.41%
PT rev (3m)-19.33%
EPS NQ rev (1m)-3.52%
EPS NQ rev (3m)-9.84%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)-2.52%
Revenue NQ rev (3m)-8.7%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 14.4 | ||
| 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)3.08
Fwd EY6.94%
FCF(TTM)1.84
FCFY4.13%
OCF(TTM)3.73
OCFY8.4%
SpS9.51
BVpS5.12
TBVpS1.91
PEG (NY)2.97
PEG (5Y)0.63
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 3Y29.71%
EPS 5Y22.54%
EPS Q2Q%-26.47%
EPS Next Y4.79%
EPS Next 2Y0.88%
EPS Next 3Y2.8%
EPS Next 5Y6.93%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y7.05%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year18.56%
EBIT Next 3Y8.09%
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.