NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
FRA:NOV - Deutsche Boerse Ag - DK0062498333 - Common Stock - Currency: EUR
Overall NOV gets a fundamental rating of 7 out of 10. We evaluated NOV against 50 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 is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make NOV suitable 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
The Return On Assets of NOV (21.68%) is better than 96.00% of its industry peers.
With an excellent Return On Equity value of 70.38%, NOV belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
NOV has a better Return On Invested Capital (43.02%) than 98.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOV is significantly above the industry average of 14.89%.
The last Return On Invested Capital (43.02%) 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 | 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
Looking at the Profit Margin, with a value of 34.78%, NOV belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NOV has grown nicely.
NOV has a Operating Margin of 46.16%. This is amongst the best in the industry. NOV outperforms 96.00% of its industry peers.
NOV's Operating Margin has improved in the last couple of years.
NOV has a Gross Margin of 84.67%. This is amongst the best in the industry. NOV outperforms 88.00% of its industry peers.
NOV's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NOV is creating value.
The number of shares outstanding for NOV has been reduced compared to 1 year ago.
NOV has more shares outstanding than it did 5 years ago.
NOV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.25 indicates that NOV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.25, NOV belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
The Debt to FCF ratio of NOV is 1.48, which is an excellent value as it means it would take NOV, only 1.48 years of fcf income to pay off all of its debts.
NOV's Debt to FCF ratio of 1.48 is amongst the best of the industry. NOV outperforms 88.00% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that NOV is somewhat dependend on debt financing.
NOV has a Debt to Equity ratio (0.62) which is in line with its industry peers.
Even though the debt/equity ratio score it not favorable for NOV, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 5.25 |
ROIC/WACC6.26
WACC6.87%
2.3 Liquidity
A Current Ratio of 0.74 indicates that NOV may have some problems paying its short term obligations.
NOV has a worse Current ratio (0.74) than 86.00% 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.
NOV has a Quick ratio of 0.55. This is amonst the worse of the industry: NOV underperforms 84.00% 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 | 0.74 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.57% over the past year.
NOV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
The Revenue has grown by 25.03% in the past year. This is a very strong growth!
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)21.57%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%29.12%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%30.09%
3.2 Future
NOV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.97% yearly.
The Revenue is expected to grow by 12.68% on average over the next years. This is quite good.
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y13.97%
Revenue Next Year23.4%
Revenue Next 2Y20.17%
Revenue Next 3Y16.86%
Revenue Next 5Y12.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 17.94, the valuation of NOV can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as NOV.
NOV is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.98, NOV is valued correctly.
Based on the Price/Forward Earnings ratio, NOV is valued a bit cheaper than 62.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (21.38), we can say NOV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as NOV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.86 | ||
| EV/EBITDA | 12.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NOV has an outstanding profitability rating, which may justify a higher PE ratio.
NOV's earnings are expected to grow with 18.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)2.69
EPS Next 2Y21.13%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.71%.
In the last 3 months the price of NOV has falen by -34.80%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.15, NOV pays a bit more dividend than its industry peers.
NOV's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
43.71% 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.
DP43.71%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
FRA:NOV (4/25/2025, 7:00:00 PM)
54.36
-0.6 (-1.09%)
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 Cap241.31B
Analysts76.88
Price Target108.61 (99.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)4.05%
Min EPS beat(2)0.64%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-4.65%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)2.56%
EPS beat(12)9
Avg EPS beat(12)2.47%
EPS beat(16)13
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)2.19%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)6.95%
Revenue beat(4)2
Avg Revenue beat(4)1.23%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)5
Avg Revenue beat(8)1.24%
Revenue beat(12)8
Avg Revenue beat(12)1.42%
Revenue beat(16)12
Avg Revenue beat(16)1.54%
PT rev (1m)-4.44%
PT rev (3m)-16.26%
EPS NQ rev (1m)-5.5%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)-2.5%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)-1.68%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.98 | ||
| P/S | 6.2 | ||
| P/FCF | 25.86 | ||
| P/OCF | 14.89 | ||
| P/B | 12.56 | ||
| P/tB | 55.61 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)3.03
EY5.57%
EPS(NY)3.63
Fwd EY6.68%
FCF(TTM)2.1
FCFY3.87%
OCF(TTM)3.65
OCFY6.71%
SpS8.76
BVpS4.33
TBVpS0.98
PEG (NY)0.91
PEG (5Y)2.69
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 | 5.25 |
F-Score5
WACC6.87%
ROIC/WACC6.26
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)21.57%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%29.12%
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y13.97%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%30.09%
Revenue Next Year23.4%
Revenue Next 2Y20.17%
Revenue Next 3Y16.86%
Revenue Next 5Y12.68%
EBIT growth 1Y30.68%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year40.14%
EBIT Next 3Y22.7%
EBIT Next 5Y15.67%
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%