NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - NYSE:NVO - US6701002056 - ADR
46.51 USD
-1.95 (-4.02%)
46.5404 USD
+0.03 (+0.07%)
NVO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. While NVO has a great profitability rating, there are some minor concerns on its financial health. NVO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. NVO also has an excellent dividend rating. With these ratings, NVO could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
NVO had positive earnings in the past year.
NVO had a positive operating cash flow in the past year.
Each year in the past 5 years NVO has been profitable.
Each year in the past 5 years NVO had a positive operating cash flow.
1.2 Ratios
NVO has a better Return On Assets (23.04%) than 97.92% of its industry peers.
Looking at the Return On Equity, with a value of 66.09%, NVO belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
The Return On Invested Capital of NVO (41.43%) is better than 98.96% of its industry peers.
NVO had an Average Return On Invested Capital over the past 3 years of 50.29%. This is significantly above the industry average of 15.44%.
The last Return On Invested Capital (41.43%) 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 | 23.04% | ||
| ROE | 66.09% | ||
| ROIC | 41.43% |
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's Profit Margin of 35.61% is amongst the best of the industry. NVO outperforms 97.40% of its industry peers.
NVO's Profit Margin has improved in the last couple of years.
NVO's Operating Margin of 45.78% is amongst the best of the industry. NVO outperforms 98.44% of its industry peers.
NVO's Operating Margin has improved in the last couple of years.
NVO has a Gross Margin of 83.95%. This is amongst the best in the industry. NVO outperforms 88.02% of its industry peers.
NVO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.78% | ||
| PM (TTM) | 35.61% | ||
| GM | 83.95% |
OM growth 3Y4.3%
OM growth 5Y1.69%
PM growth 3Y0.84%
PM growth 5Y1.73%
GM growth 3Y0.72%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
NVO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 4.67. 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 4.67, NVO is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
NVO has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
The Debt to FCF ratio of NVO (1.61) is better than 94.27% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that NVO is somewhat dependend on debt financing.
NVO's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. NVO is outperformed by 61.98% 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 | 1.61 | ||
| Altman-Z | 4.67 |
ROIC/WACC7.45
WACC5.56%
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.
With a Current ratio value of 0.78, NVO is not doing good in the industry: 89.06% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that NVO may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, NVO is not doing good in the industry: 89.06% of the companies in the same industry are doing better.
NVO does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.10% over the past year.
The Earnings Per Share has been growing slightly by 6.68% on average over the past years.
NVO shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.03%.
The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)20.1%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%8.35%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%7.05%
3.2 Future
NVO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.77% yearly.
The Revenue is expected to grow by 7.51% on average over the next years.
EPS Next Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y7.77%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.51%
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
With a Price/Earnings ratio of 11.86, the valuation of NVO can be described as very reasonable.
NVO's Price/Earnings ratio is rather cheap when compared to the industry. NVO is cheaper than 89.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. NVO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.78, which indicates a very decent valuation of NVO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 84.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NVO to the average of the S&P500 Index (31.86), we can say NVO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVO is valued cheaply inside the industry as 89.06% 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 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 9.31 |
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)2.07
PEG (5Y)1.78
EPS Next 2Y6.44%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, NVO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.76, NVO pays a better dividend. On top of this NVO pays more dividend than 95.83% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NVO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
On average, the dividend of NVO grows each year by 16.56%, which is quite nice.
NVO has paid a dividend for at least 10 years, which is a reliable track record.
NVO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.56%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
45.63% of the earnings are spent on dividend by NVO. 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.
DP45.63%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
46.51
-1.95 (-4.02%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner Change-10.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap206.66B
Revenue(TTM)290.40B
Net Income(TTM)111.07B
Analysts74.19
Price Target71.47 (53.67%)
Short Float %0.64%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend1.53
Dividend Growth(5Y)16.56%
DP45.63%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-1.15%
Max EPS beat(2)3.94%
EPS beat(4)3
Avg EPS beat(4)2.73%
Min EPS beat(4)-1.15%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)3.48%
EPS beat(12)9
Avg EPS beat(12)2.29%
EPS beat(16)12
Avg EPS beat(16)2.31%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)-0.6%
Revenue beat(4)1
Avg Revenue beat(4)0.67%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)6.95%
Revenue beat(8)4
Avg Revenue beat(8)1.2%
Revenue beat(12)7
Avg Revenue beat(12)0.86%
Revenue beat(16)10
Avg Revenue beat(16)1.1%
PT rev (1m)-9.84%
PT rev (3m)-27.73%
EPS NQ rev (1m)-14.53%
EPS NQ rev (3m)-21.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.79%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 11.78 | ||
| P/S | 4.3 | ||
| P/FCF | 21.79 | ||
| P/OCF | 11.05 | ||
| P/B | 7.99 | ||
| P/tB | 22.3 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)3.92
EY8.43%
EPS(NY)3.95
Fwd EY8.49%
FCF(TTM)2.13
FCFY4.59%
OCF(TTM)4.21
OCFY9.05%
SpS10.81
BVpS5.82
TBVpS2.09
PEG (NY)2.07
PEG (5Y)1.78
Graham Number22.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.04% | ||
| ROE | 66.09% | ||
| ROCE | 52% | ||
| ROIC | 41.43% | ||
| ROICexc | 44.49% | ||
| ROICexgc | 76.96% | ||
| OM | 45.78% | ||
| PM (TTM) | 35.61% | ||
| GM | 83.95% | ||
| FCFM | 19.75% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 374.26% | ||
| Cap/Sales | 19.21% | ||
| Interest Coverage | 60.84 | ||
| Cash Conversion | 76.52% | ||
| Profit Quality | 55.47% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.67 |
F-Score4
WACC5.56%
ROIC/WACC7.45
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)20.1%
EPS 3Y2.95%
EPS 5Y6.68%
EPS Q2Q%8.35%
EPS Next Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y7.77%
Revenue 1Y (TTM)25.03%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%7.05%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.51%
EBIT growth 1Y21.88%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year21.98%
EBIT Next 3Y13.55%
EBIT Next 5Y10.27%
FCF growth 1Y-8.73%
FCF growth 3Y13.52%
FCF growth 5Y14.4%
OCF growth 1Y35.43%
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 8 / 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 45.63%.