(NOVC.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:NOVC • DK0060534915
86.34 EUR
-2.03 (-2.3%)
Last: Sep 19, 2023, 05:26 PM
Taking everything into account, NOVC scores 6 out of 10 in our fundamental rating. NOVC was compared to 55 industry peers in the Pharmaceuticals industry. While NOVC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NOVC is growing strongly while it is still valued neutral. This is a good combination! This makes NOVC very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year NOVC was profitable.
- NOVC had a positive operating cash flow in the past year.
1.2 Ratios
- The Return On Assets of NOVC (23.95%) is better than 95.56% of its industry peers.
- 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.
- NOVC has a Return On Invested Capital of 55.96%. This is amongst the best in the industry. NOVC outperforms 97.78% of its industry peers.
- NOVC had an Average Return On Invested Capital over the past 3 years of 49.65%. This is significantly above the industry average of 14.23%.
- The 3 year average ROIC (49.65%) for NOVC is below the current ROIC(55.96%), indicating increased profibility in the last year.
| 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
- NOVC has a Profit Margin of 33.40%. This is amongst the best in the industry. NOVC outperforms 91.11% of its industry peers.
- In the last couple of years the Profit Margin of NOVC has declined.
- The Operating Margin of NOVC (42.80%) is better than 95.56% of its industry peers.
- NOVC's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 84.35%, NOVC belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
- NOVC's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NOVC is creating value.
- NOVC has less shares outstanding than it did 1 year ago.
- Compared to 1 year ago, NOVC has an improved debt to assets ratio.
2.2 Solvency
- NOVC has an Altman-Z score of 11.18. This indicates that NOVC is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 11.18, NOVC belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
- The Debt to FCF ratio of NOVC is 0.38, which is an excellent value as it means it would take NOVC, only 0.38 years of fcf income to pay off all of its debts.
- NOVC has a better Debt to FCF ratio (0.38) than 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 has a Debt to Equity ratio (0.21) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 11.18 |
ROIC/WACC7.69
WACC7.28%
2.3 Liquidity
- NOVC has a Current Ratio of 0.88. This is a bad value and indicates that NOVC is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of NOVC (0.88) is worse 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.
- With a Quick ratio value of 0.70, NOVC is not doing good in the industry: 82.22% of the companies in the same industry are doing better.
| 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%.
- Measured over the past 5 years, NOVC shows a small growth in Earnings Per Share. The EPS has been growing by 3.48% on average per year.
- The Revenue has grown by 28.03% in the past year. This is a very strong growth!
- NOVC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.64% yearly.
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
- The Earnings Per Share is expected to grow by 25.79% on average over the next years. This is a very strong growth
- Based on estimates for the next years, NOVC will show a quite strong growth in Revenue. The Revenue will grow by 13.65% on average per year.
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
- The Price/Earnings ratio is 43.17, which means the current valuation is very expensive for NOVC.
- NOVC's Price/Earnings ratio is a bit more expensive when compared to the industry. NOVC is more expensive than 64.44% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, NOVC is valued quite expensively.
- The Price/Forward Earnings ratio is 15.13, which indicates a correct valuation of NOVC.
- NOVC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOVC is cheaper than 64.44% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, NOVC is valued a bit 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
- NOVC's 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.
- NOVC's earnings are expected to grow with 40.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)12.41
EPS Next 2Y52.67%
EPS Next 3Y40.31%
5. Dividend
5.1 Amount
- No dividends for NOVC!.
| 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%.