(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 showing excellent growth while it is valued at reasonable prices. 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
- NOVC has a better Return On Assets (23.95%) than 95.56% of its industry peers.
- Looking at the Return On Equity, with a value of 74.32%, NOVC belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
- NOVC has a better Return On Invested Capital (55.96%) than 97.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NOVC 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 better Profit Margin (33.40%) than 91.11% of its industry peers.
- In the last couple of years the Profit Margin of NOVC has declined.
- NOVC has a Operating Margin of 42.80%. This is amongst the best in 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.
- The Gross Margin of NOVC (84.35%) is better than 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
- 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.
- NOVC has a better Altman-Z score (11.18) 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.
- A Debt/Equity ratio of 0.21 indicates that NOVC is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.21, NOVC perfoms like the industry average, outperforming 60.00% of the companies in the same 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
- A Current Ratio of 0.88 indicates that NOVC may have some problems paying 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
- The earnings per share for NOVC have decreased strongly by -32.68% in the last year.
- NOVC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.48% yearly.
- Looking at the last year, NOVC shows a very strong growth in Revenue. 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
- NOVC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.79% yearly.
- 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
- 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.
- When comparing the Price/Earnings ratio of NOVC to the average of the S&P500 Index (28.41), we can say NOVC is valued expensively.
- The Price/Forward Earnings ratio is 15.13, which indicates a correct valuation of NOVC.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NOVC indicates a somewhat cheap valuation: NOVC is cheaper than 64.44% of the companies listed in the same industry.
- NOVC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.64.
| 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.
- NOVC's Price/Free Cash Flow ratio is in line with the industry average.
| 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%.