NOVO NORDISK A/S-B (NOV.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:NOV • DK0062498333
49.73 EUR
+0.32 (+0.65%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, NOV scores 7 out of 10 in our fundamental rating. NOV was compared to 55 industry peers in the Pharmaceuticals industry. NOV scores excellent on profitability, but there are some minor concerns on its financial health. NOV is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years NOV always reported a positive cash flow from operatings.
1.2 Ratios
- NOV has a Return On Assets of 20.26%. This is amongst the best in the industry. NOV outperforms 98.18% of its industry peers.
- The Return On Equity of NOV (61.08%) is better than 94.55% of its industry peers.
- NOV's Return On Invested Capital of 38.03% is amongst the best of the industry. NOV outperforms 98.18% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NOV is significantly above the industry average of 14.00%.
- 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.
- NOV's Profit Margin has improved in the last couple of years.
- NOV has a Operating Margin of 42.03%. This is amongst the best in the industry. NOV outperforms 94.55% of its industry peers.
- NOV's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 82.05%, NOV belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.
- 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
- NOV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for NOV is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.68 indicates that NOV is not in any danger for bankruptcy at the moment.
- NOV has a better Altman-Z score (4.68) than 65.45% 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.
- The Debt to FCF ratio of NOV (1.66) is better than 89.09% 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.
- Looking at the Debt to Equity ratio, with a value of 0.52, NOV is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 4.68 |
ROIC/WACC6.09
WACC6.24%
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 85.45% of the companies in the same industry.
- A Quick Ratio of 0.57 indicates that NOV may have some problems paying its short term obligations.
- NOV's Quick ratio of 0.57 is on the low side compared to the rest of the industry. NOV is outperformed by 80.00% 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 | 0.78 | ||
| 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.
- The Earnings Per Share has been growing by 22.54% on average over the past years. This is a very strong growth
- 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
- The Earnings Per Share is expected to grow by 5.49% on average over the next years.
- NOV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.10% yearly.
EPS Next Y4.45%
EPS Next 2Y0.33%
EPS Next 3Y2.25%
EPS Next 5Y5.49%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y6.1%
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
- The Price/Earnings ratio is 15.94, which indicates a correct valuation of NOV.
- Based on the Price/Earnings ratio, NOV is valued a bit cheaper than the industry average as 69.09% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, NOV is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 16.30, NOV is valued correctly.
- NOV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOV is cheaper than 65.45% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, NOV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.3 |
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 63.64% 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 | 27.07 | ||
| EV/EBITDA | 11.07 |
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)3.58
PEG (5Y)0.71
EPS Next 2Y0.33%
EPS Next 3Y2.25%
5. Dividend
5.1 Amount
- NOV has a Yearly Dividend Yield of 3.15%. Purely for dividend investing, there may be better candidates out there.
- NOV's Dividend Yield is a higher than the industry average which is at 1.62.
- Compared to an average S&P500 Dividend Yield of 1.82, NOV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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.
- The dividend of NOV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.88%
EPS Next 2Y0.33%
EPS Next 3Y2.25%
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.
Can you provide the valuation status for NOVO NORDISK A/S-B?
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.
Can you provide the expected EPS growth for NOV stock?
The Earnings per Share (EPS) of NOVO NORDISK A/S-B (NOV.DE) is expected to grow by 4.45% in the next year.
Is the dividend of NOVO NORDISK A/S-B sustainable?
The dividend rating of NOVO NORDISK A/S-B (NOV.DE) is 6 / 10 and the dividend payout ratio is 49.88%.