(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 has a great profitability rating, there are some minor concerns on its financial health. NOVC is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, NOVC could be worth investigating further 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.
- With an excellent Return On Invested Capital value of 55.96%, NOVC belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NOVC is significantly above the industry average of 14.23%.
- 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
- 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.
- With an excellent Operating Margin value of 42.80%, NOVC belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
- NOVC's Operating Margin has been stable in the last couple of years.
- 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
- NOVC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 Altman-Z score of 11.18. This is amongst the best in the industry. NOVC outperforms 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 (0.21) which is in line with 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's Current ratio of 0.88 is on the low side compared to the rest of the industry. NOVC is outperformed by 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
- The earnings per share for NOVC have decreased strongly by -32.68% in the last year.
- 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
- 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.
- 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.
- NOVC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
- With a Price/Forward Earnings ratio of 15.13, NOVC is valued correctly.
- 64.44% of the companies in the same industry are more expensive than NOVC, based on the Price/Forward Earnings ratio.
- NOVC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| 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
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- NOVC has a very decent profitability rating, which 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
- 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%.