NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVO - US6701002056 - ADR
60.68 USD
-1.65 (-2.65%)
60.6 USD
-0.08 (-0.13%)
Taking everything into account, NVO scores 7 out of 10 in our fundamental rating. NVO was compared to 191 industry peers in the Pharmaceuticals industry. While NVO has a great profitability rating, there are some minor concerns on its financial health. NVO has a correct valuation and a medium growth rate. NVO also has an excellent dividend rating. This makes NVO very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year NVO was profitable.
- NVO had a positive operating cash flow in the past year.
- In the past 5 years NVO has always been profitable.
- NVO had a positive operating cash flow in each of the past 5 years.
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.
- Looking at the Return On Invested Capital, with a value of 38.03%, NVO belongs to the top of the industry, outperforming 98.95% of the companies in the same industry.
- NVO had an Average Return On Invested Capital over the past 3 years of 50.29%. This is significantly above the industry average of 12.84%.
- 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
- The Profit Margin of NVO (32.88%) is better than 96.34% of its industry peers.
- NVO's Profit Margin has improved in the last couple of years.
- NVO has a Operating Margin of 42.03%. This is amongst the best in the industry. NVO outperforms 97.38% of its industry peers.
- In the last couple of years the Operating Margin of NVO has grown nicely.
- 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.
- In the last couple of years the Gross Margin of NVO has remained more or less at the same level.
| 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
- NVO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, NVO has less shares outstanding
- NVO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NVO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.93 indicates that NVO is not in any danger for bankruptcy at the moment.
- NVO has a better Altman-Z score (4.93) than 74.35% of its industry peers.
- NVO has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.66, NVO belongs to the best of the industry, outperforming 95.29% of the companies in the same industry.
- NVO has a Debt/Equity ratio of 0.52. This is a neutral value indicating NVO is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.52, NVO is doing worse than 63.87% of the companies in the same industry.
- 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 | 4.93 |
ROIC/WACC6.05
WACC6.29%
2.3 Liquidity
- A Current Ratio of 0.78 indicates that NVO may have some problems paying its short term obligations.
- With a Current ratio value of 0.78, NVO is not doing good in the industry: 89.53% of the companies in the same industry are doing better.
- A Quick Ratio of 0.57 indicates that NVO may have some problems paying its short term obligations.
- NVO's Quick ratio of 0.57 is on the low side compared to the rest of the industry. NVO is outperformed by 87.96% 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.
- The Earnings Per Share has been growing by 22.54% on average over the past years. This is a very strong growth
- Looking at the last year, NVO shows a quite strong growth in Revenue. The Revenue has grown by 16.64% in the last year.
- The Revenue has been growing by 18.94% on average over the past years. This is quite good.
EPS 1Y (TTM)10.05%
EPS 3Y29.71%
EPS 5Y22.54%
EPS Q2Q%-26.47%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
3.2 Future
- Based on estimates for the next years, NVO will show a small growth in Earnings Per Share. The EPS will grow by 5.49% on average per year.
- The Revenue is expected to grow by 6.10% on average over the next years.
EPS Next Y4.79%
EPS Next 2Y0.88%
EPS Next 3Y2.8%
EPS Next 5Y5.49%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y6.1%
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 decreasing.
- 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 16.72, NVO is valued correctly.
- Based on the Price/Earnings ratio, NVO is valued cheaper than 83.77% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NVO to the average of the S&P500 Index (26.94), we can say NVO is valued slightly cheaper.
- A Price/Forward Earnings ratio of 16.91 indicates a correct valuation of NVO.
- 79.58% of the companies in the same industry are more expensive than NVO, based on the Price/Forward Earnings ratio.
- NVO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
- NVO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVO is cheaper than 84.82% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NVO is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.42 | ||
| EV/EBITDA | 11.97 |
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)3.49
PEG (5Y)0.74
EPS Next 2Y0.88%
EPS Next 3Y2.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.19%, NVO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.40, NVO pays a better dividend. On top of this NVO pays more dividend than 95.29% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, NVO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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.
- 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
- 49.88% 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.
DP49.88%
EPS Next 2Y0.88%
EPS Next 3Y2.8%
60.68
-1.65 (-2.65%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners33.25%
Inst Owner Change0.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap269.63B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price Target62.61 (3.18%)
Short Float %0.78%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.54
Dividend Growth(5Y)16.56%
DP49.88%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)-4.38%
PT rev (3m)-18.24%
EPS NQ rev (1m)-1.49%
EPS NQ rev (3m)-10.09%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.7%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 16.91 | ||
| P/S | 5.49 | ||
| P/FCF | 28.42 | ||
| P/OCF | 13.99 | ||
| P/B | 10.2 | ||
| P/tB | 27.36 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)3.63
EY5.98%
EPS(NY)3.59
Fwd EY5.91%
FCF(TTM)2.14
FCFY3.52%
OCF(TTM)4.34
OCFY7.15%
SpS11.06
BVpS5.95
TBVpS2.22
PEG (NY)3.49
PEG (5Y)0.74
Graham Number22.05
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 | 4.93 |
F-Score4
WACC6.29%
ROIC/WACC6.05
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 3Y29.71%
EPS 5Y22.54%
EPS Q2Q%-26.47%
EPS Next Y4.79%
EPS Next 2Y0.88%
EPS Next 3Y2.8%
EPS Next 5Y5.49%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y6.1%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year18.56%
EBIT Next 3Y8.09%
EBIT Next 5Y8.99%
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.
What is the valuation status of NOVO-NORDISK A/S-SPONS ADR (NVO) stock?
ChartMill assigns a valuation rating of 6 / 10 to NOVO-NORDISK A/S-SPONS ADR (NVO). This can be considered as Fairly Valued.
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.
Can you provide the PE and PB ratios for NVO stock?
The Price/Earnings (PE) ratio for NOVO-NORDISK A/S-SPONS ADR (NVO) is 16.72 and the Price/Book (PB) ratio is 10.2.
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.