NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVO - US6701002056 - ADR
48.2155 USD
+0.61 (+1.27%)
Overall NVO gets a fundamental rating of 7 out of 10. We evaluated NVO against 191 industry peers in the Pharmaceuticals industry. While NVO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NVO has a correct valuation and a medium growth rate. Finally NVO also has an excellent dividend rating. These ratings could make NVO a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year NVO was profitable.
In the past year NVO had a positive cash flow from operations.
Each year in the past 5 years NVO has been profitable.
In the past 5 years NVO always reported a positive cash flow from operatings.
1.2 Ratios
NVO has a better Return On Assets (20.26%) than 97.38% of its industry peers.
NVO has a better Return On Equity (61.08%) than 98.95% of its industry peers.
The Return On Invested Capital of NVO (38.03%) is better than 98.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NVO is significantly above the industry average of 12.85%.
The last Return On Invested Capital (38.03%) for NVO is well below the 3 year average (50.29%), which needs to be investigated, but indicates that NVO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.26% | ||
| ROE | 61.08% | ||
| ROIC | 38.03% |
ROA(3y)23.77%
ROA(5y)24.99%
ROE(3y)71.81%
ROE(5y)69.89%
ROIC(3y)50.29%
ROIC(5y)49.64%
1.3 Margins
NVO has a Profit Margin of 32.88%. This is amongst the best in the industry. NVO outperforms 96.34% of its industry peers.
NVO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 42.03%, NVO belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
NVO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.05%, NVO belongs to the top of the industry, outperforming 86.39% of the companies in the same industry.
NVO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.03% | ||
| PM (TTM) | 32.88% | ||
| GM | 82.05% |
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVO is creating value.
NVO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NVO has been increased compared to 5 years ago.
NVO has a worse debt/assets ratio than last year.
2.2 Solvency
NVO has an Altman-Z score of 4.17. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.17, NVO is in the better half of the industry, outperforming 72.77% of the companies in the same industry.
The Debt to FCF ratio of NVO is 1.66, which is an excellent value as it means it would take NVO, only 1.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.66, NVO belongs to the top of the industry, outperforming 95.29% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that NVO is somewhat dependend on debt financing.
NVO has a Debt to Equity ratio of 0.52. This is in the lower half of the industry: NVO underperforms 63.35% of its industry peers.
Even though the debt/equity ratio score it not favorable for NVO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 4.17 |
ROIC/WACC6.09
WACC6.24%
2.3 Liquidity
NVO has a Current Ratio of 0.78. This is a bad value and indicates that NVO is not financially healthy enough and could expect problems in meeting its short term obligations.
NVO has a Current ratio of 0.78. This is amonst the worse of the industry: NVO underperforms 89.53% of its industry peers.
NVO has a Quick Ratio of 0.78. This is a bad value and indicates that NVO is not financially healthy enough and could expect problems in meeting its short term obligations.
NVO has a worse Quick ratio (0.57) than 89.01% of its industry peers.
The current and quick ratio evaluation for NVO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.05% over the past year.
NVO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
Looking at the last year, NVO shows a quite strong growth in Revenue. The Revenue has grown by 16.64% in the last year.
Measured over the past years, NVO shows a quite strong growth in Revenue. The Revenue has been growing by 18.94% on average per year.
EPS 1Y (TTM)10.05%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%-26.47%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
3.2 Future
The Earnings Per Share is expected to grow by 6.93% on average over the next years.
The Revenue is expected to grow by 7.05% on average over the next years.
EPS Next Y5.3%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
EPS Next 5Y6.93%
Revenue Next Year8.5%
Revenue Next 2Y5.13%
Revenue Next 3Y5.85%
Revenue Next 5Y7.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.17, the valuation of NVO can be described as correct.
Based on the Price/Earnings ratio, NVO is valued cheaper than 87.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of NVO to the average of the S&P500 Index (26.26), we can say NVO is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.86 indicates a correct valuation of NVO.
83.77% of the companies in the same industry are more expensive than NVO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.68. NVO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVO is valued cheaply inside the industry as 90.05% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 83.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | 9.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NVO may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)1.97
EPS Next 2Y2.73%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
NVO has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of NVO has falen by -22.46%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 0.52, NVO pays a better dividend. On top of this NVO pays more dividend than 95.81% of the companies listed in the same industry.
NVO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
5.2 History
On average, the dividend of NVO grows each year by 16.56%, which is quite nice.
NVO has been paying a dividend for at least 10 years, so it has a reliable track record.
As NVO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)16.56%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
NVO pays out 49.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NVO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.88%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
NYSE:NVO (12/19/2025, 10:03:09 AM)
48.2155
+0.61 (+1.27%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner Change-4.45%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap214.24B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price Target65.47 (35.79%)
Short Float %0.71%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend1.56
Dividend Growth(5Y)16.56%
DP49.88%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.09%
Min EPS beat(2)-7.04%
Max EPS beat(2)-1.15%
EPS beat(4)2
Avg EPS beat(4)0.81%
Min EPS beat(4)-7.04%
Max EPS beat(4)7.46%
EPS beat(8)5
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)1.59%
EPS beat(16)11
Avg EPS beat(16)1.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)-0.44%
Revenue beat(4)1
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)6.95%
Revenue beat(8)3
Avg Revenue beat(8)0.61%
Revenue beat(12)6
Avg Revenue beat(12)0.51%
Revenue beat(16)9
Avg Revenue beat(16)0.77%
PT rev (1m)-8.25%
PT rev (3m)-17.41%
EPS NQ rev (1m)-5.5%
EPS NQ rev (3m)-8.21%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-5.54%
Revenue NQ rev (1m)-7.57%
Revenue NQ rev (3m)-8.68%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.86 | ||
| P/S | 4.33 | ||
| P/FCF | 22.41 | ||
| P/OCF | 11.03 | ||
| P/B | 8.04 | ||
| P/tB | 21.57 | ||
| EV/EBITDA | 9.18 |
EPS(TTM)3.66
EY7.59%
EPS(NY)3.75
Fwd EY7.78%
FCF(TTM)2.15
FCFY4.46%
OCF(TTM)4.37
OCFY9.06%
SpS11.14
BVpS6
TBVpS2.23
PEG (NY)2.49
PEG (5Y)1.97
Graham Number22.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.26% | ||
| ROE | 61.08% | ||
| ROCE | 47.73% | ||
| ROIC | 38.03% | ||
| ROICexc | 43.08% | ||
| ROICexgc | 76.17% | ||
| OM | 42.03% | ||
| PM (TTM) | 32.88% | ||
| GM | 82.05% | ||
| FCFM | 19.31% |
ROA(3y)23.77%
ROA(5y)24.99%
ROE(3y)71.81%
ROE(5y)69.89%
ROIC(3y)50.29%
ROIC(5y)49.64%
ROICexc(3y)60.7%
ROICexc(5y)59.32%
ROICexgc(3y)124.92%
ROICexgc(5y)112.44%
ROCE(3y)63.71%
ROCE(5y)65.35%
ROICexgc growth 3Y-1.28%
ROICexgc growth 5Y0.46%
ROICexc growth 3Y-2.16%
ROICexc growth 5Y-9.95%
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
F-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 290.66% | ||
| Cap/Sales | 19.91% | ||
| Interest Coverage | 53.02 | ||
| Cash Conversion | 80.23% | ||
| Profit Quality | 58.73% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 4.17 |
F-Score4
WACC6.24%
ROIC/WACC6.09
Cap/Depr(3y)294.05%
Cap/Depr(5y)277.71%
Cap/Sales(3y)14.25%
Cap/Sales(5y)13.08%
Profit Quality(3y)89.38%
Profit Quality(5y)87.75%
High Growth Momentum
Growth
EPS 1Y (TTM)10.05%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%-26.47%
EPS Next Y5.3%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
EPS Next 5Y6.93%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year8.5%
Revenue Next 2Y5.13%
Revenue Next 3Y5.85%
Revenue Next 5Y7.05%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year19.06%
EBIT Next 3Y9.34%
EBIT Next 5Y9.17%
FCF growth 1Y-21.68%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y16.27%
OCF growth 3Y30.05%
OCF growth 5Y20.93%
NOVO-NORDISK A/S-SPONS ADR / NVO FAQ
Can you provide the ChartMill fundamental rating for NOVO-NORDISK A/S-SPONS ADR?
ChartMill assigns a fundamental rating of 7 / 10 to NVO.
Can you provide the valuation status for NOVO-NORDISK A/S-SPONS ADR?
ChartMill assigns a valuation rating of 7 / 10 to NOVO-NORDISK A/S-SPONS ADR (NVO). This can be considered as Undervalued.
Can you provide the profitability details for NOVO-NORDISK A/S-SPONS ADR?
NOVO-NORDISK A/S-SPONS ADR (NVO) has a profitability rating of 9 / 10.
What is the financial health of NOVO-NORDISK A/S-SPONS ADR (NVO) stock?
The financial health rating of NOVO-NORDISK A/S-SPONS ADR (NVO) is 6 / 10.
Can you provide the dividend sustainability for NVO stock?
The dividend rating of NOVO-NORDISK A/S-SPONS ADR (NVO) is 7 / 10 and the dividend payout ratio is 49.88%.