(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
We assign a fundamental rating of 6 out of 10 to NOVC. 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NOVC a good candidate 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
- NOVC has a better Return On Assets (23.95%) 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 better Return On Invested Capital (55.96%) than 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 14.00%.
- 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
- 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.
- NOVC's Operating Margin of 42.80% is amongst the best of the industry. NOVC outperforms 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's Gross Margin of 84.35% is amongst the best of the industry. NOVC outperforms 84.44% of its industry peers.
- 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
- 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
- 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.
- The Altman-Z score of NOVC (11.18) is better than 93.33% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 0.38, NOVC belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
- 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 of 0.21. This is comparable 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
- 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.
- NOVC has a Current ratio of 0.88. This is amonst the worse of the industry: NOVC underperforms 84.44% of its industry peers.
- NOVC has a Quick 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.
- 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%.
- The Earnings Per Share has been growing slightly by 3.48% on average over the past years.
- Looking at the last year, NOVC shows a very strong growth in Revenue. The Revenue has grown by 28.03%.
- 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
- 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
- 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.
- 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
- With a Price/Earnings ratio of 43.17, NOVC can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, NOVC is valued a bit more expensive than 64.44% of the companies in the same industry.
- NOVC is valuated expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- NOVC is valuated correctly with a Price/Forward Earnings ratio of 15.13.
- 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 (25.57), we can say NOVC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.17 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
- NOVC's Enterprise Value to EBITDA 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 the rest of the industry, the Price/Free Cash Flow ratio of NOVC is on the same level as its industry peers.
| 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.
- 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%.