(NOVC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NOVC - DK0060534915 - Common Stock
86.34 EUR
-2.03 (-2.3%)
NOVC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 55 industry peers in the Pharmaceuticals industry. While NOVC has a great profitability rating, there are some minor concerns on its financial health. NOVC is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes NOVC very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year NOVC was profitable.
- In the past year NOVC had a positive cash flow from operations.
1.2 Ratios
- Looking at the Return On Assets, with a value of 23.95%, NOVC belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
- NOVC has a Return On Equity of 74.32%. This is amongst the best in the industry. NOVC outperforms 95.56% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 55.96%, NOVC belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
- NOVC had an Average Return On Invested Capital over the past 3 years of 49.65%. This is significantly above the industry average of 14.00%.
- The last Return On Invested Capital (55.96%) for NOVC is above the 3 year average (49.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.95% | ||
| ROE | 74.32% | ||
| ROIC | 55.96% |
ROA(3y)25.55%
ROA(5y)28.51%
ROE(3y)66.85%
ROE(5y)68.54%
ROIC(3y)49.65%
ROIC(5y)55.99%
1.3 Margins
- The Profit Margin of NOVC (33.40%) is better than 91.11% of its industry peers.
- NOVC's Profit Margin has declined in the last couple of years.
- The Operating Margin of NOVC (42.80%) is better than 95.56% of its industry peers.
- In the last couple of years the Operating Margin of NOVC has remained more or less at the same level.
- NOVC has a better Gross Margin (84.35%) than 84.44% of its industry peers.
- In the last couple of years the Gross Margin of NOVC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.8% | ||
| PM (TTM) | 33.4% | ||
| GM | 84.35% |
OM growth 3Y-0.97%
OM growth 5Y-0.64%
PM growth 3Y-0.57%
PM growth 5Y-1.67%
GM growth 3Y-0.02%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NOVC is creating value.
- The number of shares outstanding for NOVC has been reduced compared to 1 year ago.
- The debt/assets ratio for NOVC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.18 indicates that NOVC is not in any danger for bankruptcy at the moment.
- NOVC has a better Altman-Z score (11.18) than 93.33% of its industry peers.
- NOVC has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
- NOVC's Debt to FCF ratio of 0.38 is amongst the best of the industry. NOVC outperforms 91.11% of its industry peers.
- NOVC has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
- NOVC's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. NOVC outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 11.18 |
ROIC/WACC7.69
WACC7.28%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that NOVC may have some problems paying its short term obligations.
- NOVC has a worse Current ratio (0.88) than 84.44% of its industry peers.
- A Quick Ratio of 0.70 indicates that NOVC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.70, NOVC is doing worse than 82.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
- NOVC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.68%.
- NOVC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.48% yearly.
- NOVC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.03%.
- The Revenue has been growing by 9.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-32.68%
EPS 3Y3.69%
EPS 5Y3.48%
EPS Q2Q%-26.37%
Revenue 1Y (TTM)28.03%
Revenue growth 3Y13.19%
Revenue growth 5Y9.64%
Sales Q2Q%31.59%
3.2 Future
- Based on estimates for the next years, NOVC will show a very strong growth in Earnings Per Share. The EPS will grow by 25.79% on average per year.
- The Revenue is expected to grow by 13.65% on average over the next years. This is quite good.
EPS Next Y96.77%
EPS Next 2Y52.67%
EPS Next 3Y40.31%
EPS Next 5Y25.79%
Revenue Next Year27.56%
Revenue Next 2Y22.92%
Revenue Next 3Y20.4%
Revenue Next 5Y13.65%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- NOVC is valuated quite expensively with a Price/Earnings ratio of 43.17.
- 64.44% of the companies in the same industry are cheaper than NOVC, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. NOVC is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 15.13, NOVC is valued correctly.
- Based on the Price/Forward Earnings ratio, NOVC is valued a bit cheaper than 64.44% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NOVC to the average of the S&P500 Index (25.98), we can say NOVC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.17 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NOVC is valued a bit more expensive than 64.44% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as NOVC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.68 | ||
| EV/EBITDA | 30.33 |
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.
- The decent profitability rating of NOVC may justify a higher PE ratio.
- A more expensive valuation may be justified as NOVC's earnings are expected to grow with 40.31% in the coming years.
PEG (NY)0.45
PEG (5Y)12.41
EPS Next 2Y52.67%
EPS Next 3Y40.31%
5. Dividend
5.1 Amount
- NOVC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
/ NOVC.DE FAQ
What is the fundamental rating for NOVC stock?
ChartMill assigns a fundamental rating of 7 / 10 to NOVC.DE.
What is the valuation status of (NOVC.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to (NOVC.DE). This can be considered as Fairly Valued.
How profitable is (NOVC.DE) stock?
(NOVC.DE) has a profitability rating of 9 / 10.
What is the financial health of (NOVC.DE) stock?
The financial health rating of (NOVC.DE) is 7 / 10.
How sustainable is the dividend of (NOVC.DE) stock?
The dividend rating of (NOVC.DE) is 4 / 10 and the dividend payout ratio is 41.57%.