NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NOV - DK0062498333 - Common Stock
40.925 EUR
-1.19 (-2.81%)
We assign a fundamental rating of 6 out of 10 to NOV. NOV was compared to 55 industry peers in the Pharmaceuticals industry. While NOV belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NOV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NOV had positive earnings in the past year.
In the past year NOV had a positive cash flow from operations.
In the past 5 years NOV has always been profitable.
In the past 5 years NOV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.26%, NOV belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
NOV has a better Return On Equity (61.08%) than 94.55% of its industry peers.
With an excellent Return On Invested Capital value of 38.03%, NOV belongs to the best of the industry, outperforming 98.18% 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 13.92%.
The last Return On Invested Capital (38.03%) for NOV is well below the 3 year average (50.29%), which needs to be investigated, but indicates that NOV had better years and this may not be a problem.
| 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
With an excellent Profit Margin value of 32.88%, 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.
The Operating Margin of NOV (42.03%) is better than 94.55% of its industry peers.
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 83.64% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NOV is creating value.
NOV has less shares outstanding than it did 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 4.26. This indicates that NOV is financially healthy and has little risk of bankruptcy at the moment.
NOV has a better Altman-Z score (4.26) than 61.82% 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 92.73% 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.
NOV has a better Debt to Equity ratio (0.52) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 4.26 |
ROIC/WACC6.61
WACC5.75%
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.
NOV's Current ratio of 0.78 is on the low side compared to the rest of the industry. NOV is outperformed by 85.45% of its industry peers.
A Quick Ratio of 0.57 indicates that NOV may have some problems paying its short term obligations.
NOV has a worse Quick ratio (0.57) than 85.45% 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 | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.05% 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 6.68% on average per year.
NOV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.64%.
Measured over the past years, NOV shows a quite strong growth in Revenue. The Revenue has been growing by 18.94% on average per year.
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
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.
The Revenue is expected to grow by 7.05% on average over the next years.
EPS Next Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y6.93%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
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
A Price/Earnings ratio of 13.12 indicates a correct valuation of NOV.
NOV's Price/Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, NOV is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.92, which indicates a very decent 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 69.09% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.22. NOV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOV indicates a somewhat cheap valuation: NOV is cheaper than 76.36% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.28 | ||
| EV/EBITDA | 9.5 |
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)2.29
PEG (5Y)1.96
EPS Next 2Y6.44%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.86, NOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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 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 2Y6.44%
EPS Next 3Y6.78%
FRA:NOV (12/2/2025, 5:29:56 PM)
40.925
-1.19 (-2.81%)
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 Cap181.85B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts74.19
Price Target58.09 (41.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)-10.47%
PT rev (3m)-16.73%
EPS NQ rev (1m)-3.62%
EPS NQ rev (3m)-7.2%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-4.57%
Revenue NQ rev (3m)-6.81%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.92 | ||
| P/S | 4.3 | ||
| P/FCF | 22.28 | ||
| P/OCF | 10.97 | ||
| P/B | 7.99 | ||
| P/tB | 21.45 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)3.12
EY7.62%
EPS(NY)3.43
Fwd EY8.39%
FCF(TTM)1.84
FCFY4.49%
OCF(TTM)3.73
OCFY9.11%
SpS9.51
BVpS5.12
TBVpS1.91
PEG (NY)2.29
PEG (5Y)1.96
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 | 4.26 |
F-Score4
WACC5.75%
ROIC/WACC6.61
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 Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y6.93%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.05%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year21.98%
EBIT Next 3Y13.55%
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 6 / 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 13.12 and the Price/Book (PB) ratio is 7.99.
How financially healthy is NOVO NORDISK A/S-B?
The financial health rating of NOVO NORDISK A/S-B (NOV.DE) is 6 / 10.