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 gets an excellent profitability rating and is at the same time showing great financial health properties. NOV is growing strongly while it is still valued neutral. This is a good combination! This makes NOV very considerable for growth and quality investing!
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.
Each year in the past 5 years NOV had a positive operating cash flow.
1.2 Ratios
NOV has a Return On Assets of 21.39%. This is amongst the best in the industry. NOV outperforms 98.00% of its industry peers.
The Return On Equity of NOV (75.51%) is better than 98.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 44.39%, NOV belongs to the top of the industry, outperforming 98.00% 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 14.75%.
The last Return On Invested Capital (44.39%) 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 | 21.39% | ||
| ROE | 75.51% | ||
| ROIC | 44.39% |
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
The Profit Margin of NOV (34.51%) is better than 98.00% of its industry peers.
In the last couple of years the Profit Margin of NOV has grown nicely.
NOV has a better Operating Margin (46.51%) than 98.00% of its industry peers.
In the last couple of years the Operating Margin of NOV has grown nicely.
NOV has a better Gross Margin (84.33%) than 86.00% of its industry peers.
NOV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.51% | ||
| PM (TTM) | 34.51% | ||
| GM | 84.33% |
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.
Compared to 1 year ago, NOV has less shares outstanding
Compared to 5 years ago, NOV has more shares outstanding
NOV has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.27 indicates that NOV is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.27, NOV belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
NOV has a debt to FCF ratio of 1.60. This is a very positive value and a sign of high solvency as it would only need 1.60 years to pay back of all of its debts.
The Debt to FCF ratio of NOV (1.60) is better than 92.00% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that NOV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, NOV perfoms like the industry average, outperforming 46.00% of the companies in the same 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 | 0.7 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 5.27 |
ROIC/WACC7.72
WACC5.75%
2.3 Liquidity
NOV has a Current 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's Current ratio of 0.74 is on the low side compared to the rest of the industry. NOV is outperformed by 82.00% of its industry peers.
A Quick Ratio of 0.56 indicates that NOV may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, NOV is not doing good in the industry: 84.00% of the companies in the same industry are doing better.
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 | 0.56 |
3. Growth
3.1 Past
NOV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.96%, which is quite good.
The Earnings Per Share has been growing slightly by 6.68% on average over the past years.
The Revenue has grown by 24.11% 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)17.96%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%14.96%
Revenue 1Y (TTM)24.11%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%19.49%
3.2 Future
The Earnings Per Share is expected to grow by 14.29% on average over the next years. This is quite good.
Based on estimates for the next years, NOV will show a quite strong growth in Revenue. The Revenue will grow by 11.94% on average per year.
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y14.29%
Revenue Next Year19.4%
Revenue Next 2Y17.49%
Revenue Next 3Y15.32%
Revenue Next 5Y11.94%
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
NOV is valuated rather expensively with a Price/Earnings ratio of 19.31.
The rest of the industry has a similar Price/Earnings ratio as NOV.
When comparing the Price/Earnings ratio of NOV to the average of the S&P500 Index (27.45), we can say NOV is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.67, the valuation of NOV can be described as correct.
NOV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 62.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, NOV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA is on the same level as the industry average.
NOV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.13 | ||
| EV/EBITDA | 12.99 |
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.
A more expensive valuation may be justified as NOV's earnings are expected to grow with 18.20% in the coming years.
PEG (NY)0.98
PEG (5Y)2.89
EPS Next 2Y21.13%
EPS Next 3Y18.2%
5. Dividend
5.1 Amount
NOV has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.04, NOV pays a bit more dividend than its industry peers.
NOV's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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
48.61% of the earnings are spent on dividend by NOV. 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.
DP48.61%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
FRA:NOV (7/4/2025, 7:00:00 PM)
60.84
+2.09 (+3.56%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.28%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap270.34B
Analysts74.38
Price Target89.31 (46.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend1.33
Dividend Growth(5Y)16.56%
DP48.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.7%
Min EPS beat(2)3.94%
Max EPS beat(2)7.46%
EPS beat(4)3
Avg EPS beat(4)1.85%
Min EPS beat(4)-4.65%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)2.79%
EPS beat(12)9
Avg EPS beat(12)2.12%
EPS beat(16)13
Avg EPS beat(16)2.95%
Revenue beat(2)1
Avg Revenue beat(2)2.92%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)6.95%
Revenue beat(4)1
Avg Revenue beat(4)0.36%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)4
Avg Revenue beat(8)0.95%
Revenue beat(12)7
Avg Revenue beat(12)0.8%
Revenue beat(16)11
Avg Revenue beat(16)1.29%
PT rev (1m)-2.9%
PT rev (3m)-17.77%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-11.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 13.67 | ||
| P/S | 6.65 | ||
| P/FCF | 27.13 | ||
| P/OCF | 15.37 | ||
| P/B | 14.56 | ||
| P/tB | 69.17 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)3.15
EY5.18%
EPS(NY)4.45
Fwd EY7.31%
FCF(TTM)2.24
FCFY3.69%
OCF(TTM)3.96
OCFY6.51%
SpS9.14
BVpS4.18
TBVpS0.88
PEG (NY)0.98
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.39% | ||
| ROE | 75.51% | ||
| ROCE | 55.72% | ||
| ROIC | 44.39% | ||
| ROICexc | 53.11% | ||
| ROICexgc | 110% | ||
| OM | 46.51% | ||
| PM (TTM) | 34.51% | ||
| GM | 84.33% | ||
| FCFM | 24.53% |
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 | 0.7 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 284.1% | ||
| Cap/Sales | 18.77% | ||
| Interest Coverage | 108.03 | ||
| Cash Conversion | 81.52% | ||
| Profit Quality | 71.08% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 5.27 |
F-Score5
WACC5.75%
ROIC/WACC7.72
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)17.96%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%14.96%
EPS Next Y19.72%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
EPS Next 5Y14.29%
Revenue 1Y (TTM)24.11%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%19.49%
Revenue Next Year19.4%
Revenue Next 2Y17.49%
Revenue Next 3Y15.32%
Revenue Next 5Y11.94%
EBIT growth 1Y28.85%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year32.99%
EBIT Next 3Y20.98%
EBIT Next 5Y13.43%
FCF growth 1Y10.42%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y54.2%
OCF growth 3Y30.05%
OCF growth 5Y20.93%