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 52 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, NOV could be worth investigating further 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.
NOV had positive earnings in each of the past 5 years.
Each year in the past 5 years NOV had a positive operating cash flow.
1.2 Ratios
NOV has a better Return On Assets (21.39%) than 98.08% of its industry peers.
The Return On Equity of NOV (75.51%) is better than 98.08% of its industry peers.
The Return On Invested Capital of NOV (44.39%) is better than 98.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOV is significantly above the industry average of 14.50%.
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
Looking at the Profit Margin, with a value of 34.51%, NOV belongs to the top of the industry, outperforming 98.08% of the companies in the same industry.
NOV's Profit Margin has improved in the last couple of years.
The Operating Margin of NOV (46.51%) is better than 98.08% of its industry peers.
In the last couple of years the Operating Margin of NOV has grown nicely.
With an excellent Gross Margin value of 84.33%, NOV belongs to the best of the industry, outperforming 86.54% 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 | 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
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.
NOV has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NOV has a worse debt to assets ratio.
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 84.62% of the companies in the same industry.
The Debt to FCF ratio of NOV is 1.60, which is an excellent value as it means it would take NOV, only 1.60 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.60, NOV belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
NOV has a Debt/Equity ratio of 0.70. This is a neutral value indicating NOV is somewhat dependend on debt financing.
NOV's Debt to Equity ratio of 0.70 is in line compared to the rest of the industry. NOV outperforms 44.23% of its industry peers.
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/WACC7.76
WACC5.72%
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 has a worse Current ratio (0.74) than 82.69% 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.
Looking at the Quick ratio, with a value of 0.56, NOV is doing worse than 84.62% of the companies in the same industry.
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 | 0.74 | ||
| 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.
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.
The Revenue has grown by 24.11% in the past year. This is a very strong growth!
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)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
Based on estimates for the next years, NOV will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.29% on average per year.
The Revenue is expected to grow by 11.94% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 18.76.
NOV's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.29, NOV is valued a bit cheaper.
NOV is valuated correctly with a Price/Forward Earnings ratio of 13.28.
NOV's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of NOV to the average of the S&P500 Index (21.74), we can say NOV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
NOV's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 26.35 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
NOV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NOV 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)0.95
PEG (5Y)2.81
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 3.05, NOV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, NOV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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
48.61% 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.
DP48.61%
EPS Next 2Y21.13%
EPS Next 3Y18.2%
FRA:NOV (7/7/2025, 7:00:00 PM)
59.09
-1.75 (-2.88%)
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 Cap262.56B
Analysts74.38
Price Target89.31 (51.14%)
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 | 18.76 | ||
| Fwd PE | 13.28 | ||
| P/S | 6.46 | ||
| P/FCF | 26.35 | ||
| P/OCF | 14.93 | ||
| P/B | 14.14 | ||
| P/tB | 67.18 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)3.15
EY5.33%
EPS(NY)4.45
Fwd EY7.53%
FCF(TTM)2.24
FCFY3.8%
OCF(TTM)3.96
OCFY6.7%
SpS9.14
BVpS4.18
TBVpS0.88
PEG (NY)0.95
PEG (5Y)2.81
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
WACC5.72%
ROIC/WACC7.76
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%