NOVO-NORDISK A/S-SPONS ADR (NVO)
US6701002056 - ADR
NVO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making NVO a very profitable company, without any liquidiy or solvency issues. NVO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make NVO suitable for growth and quality 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 Return On Assets of 23.83%. This is amongst the best in the industry. NVO outperforms 98.95% of its industry peers.
NVO has a Return On Equity of 78.59%. This is amongst the best in the industry. NVO outperforms 98.43% of its industry peers.
NVO has a better Return On Invested Capital (52.61%) than 98.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NVO is significantly above the industry average of 43.18%.
The last Return On Invested Capital (52.61%) for NVO is above the 3 year average (50.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.83% | ||
| ROE | 78.59% | ||
| ROIC | 52.61% |
ROA(3y)24.73%
ROA(5y)26.85%
ROE(3y)70.85%
ROE(5y)69.34%
ROIC(3y)50.71%
ROIC(5y)53.98%
1.3 Margins
NVO's Profit Margin of 35.01% is amongst the best of the industry. NVO outperforms 96.86% of its industry peers.
In the last couple of years the Profit Margin of NVO has remained more or less at the same level.
The Operating Margin of NVO (45.85%) is better than 98.43% of its industry peers.
NVO's Operating Margin has been stable in the last couple of years.
NVO has a Gross Margin of 84.66%. This is amongst the best in the industry. NVO outperforms 91.10% of its industry peers.
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 | 45.85% | ||
| PM (TTM) | 35.01% | ||
| GM | 84.66% |
OM growth 3Y1.58%
OM growth 5Y1.31%
PM growth 3Y2.77%
PM growth 5Y0.85%
GM growth 3Y0.43%
GM growth 5Y0.08%
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.
The number of shares outstanding for NVO has been increased compared to 1 year ago.
NVO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NVO has an improved debt to assets ratio.
2.2 Solvency
NVO has an Altman-Z score of 9.25. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVO (9.25) is better than 85.86% of its industry peers.
The Debt to FCF ratio of NVO is 0.85, which is an excellent value as it means it would take NVO, only 0.85 years of fcf income to pay off all of its debts.
NVO has a Debt to FCF ratio of 0.85. This is amongst the best in the industry. NVO outperforms 95.81% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that NVO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, NVO is not doing good in the industry: 62.83% of the companies in the same industry are doing better.
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 | 0.43 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 9.25 |
ROIC/WACC7.86
WACC6.69%
2.3 Liquidity
A Current Ratio of 0.94 indicates that NVO may have some problems paying its short term obligations.
The Current ratio of NVO (0.94) is worse than 87.43% of its industry peers.
NVO has a Quick Ratio of 0.94. 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 Quick ratio value of 0.75, NVO is not doing good in the industry: 87.43% of the companies in the same industry are doing better.
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 | 0.94 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
NVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.69%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.16% on average over the past years.
Looking at the last year, NVO shows a very strong growth in Revenue. The Revenue has grown by 26.15%.
The Revenue has been growing by 15.74% on average over the past years. This is quite good.
EPS 1Y (TTM)26.69%
EPS 3Y1.11%
EPS 5Y3.16%
EPS Q2Q%22.27%
Revenue 1Y (TTM)26.15%
Revenue growth 3Y22.31%
Revenue growth 5Y15.74%
Sales Q2Q%21.42%
3.2 Future
Based on estimates for the next years, NVO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.67% on average per year.
NVO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.87% yearly.
EPS Next Y23.18%
EPS Next 2Y24.57%
EPS Next 3Y23.3%
EPS Next 5Y16.67%
Revenue Next Year25.41%
Revenue Next 2Y22.91%
Revenue Next 3Y21.14%
Revenue Next 5Y14.87%
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 accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.72, which means the current valuation is very expensive for NVO.
Based on the Price/Earnings ratio, NVO is valued cheaply inside the industry as 80.63% of the companies are valued more expensively.
NVO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 21.05, which indicates a rather expensive current valuation of NVO.
78.01% of the companies in the same industry are more expensive than NVO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, NVO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVO is valued a bit cheaper than 79.58% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than the industry average as 79.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.51 | ||
| EV/EBITDA | 23.19 |
4.3 Compensation for Growth
NVO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NVO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NVO's earnings are expected to grow with 23.30% in the coming years.
PEG (NY)1.24
PEG (5Y)9.08
EPS Next 2Y24.57%
EPS Next 3Y23.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, NVO has a reasonable but not impressive dividend return.
The stock price of NVO dropped by -33.34% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NVO's Dividend Yield is rather good when compared to the industry average which is at 4.32. NVO pays more dividend than 91.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, NVO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of NVO is nicely growing with an annual growth rate of 11.24%!
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)11.24%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
NVO pays out 46.60% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NVO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.6%
EPS Next 2Y24.57%
EPS Next 3Y23.3%
NOVO-NORDISK A/S-SPONS ADR
NYSE:NVO (12/20/2024, 8:04:00 PM)
After market: 86.09 +1.09 (+1.28%)85
-18.44 (-17.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners37.53%
Inst Owner Change1.78%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap377.54B
Analysts72.67
Price Target137.16 (61.36%)
Short Float %0.17%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Dividend Growth(5Y)11.24%
DP46.6%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2%
Min EPS beat(2)-4.65%
Max EPS beat(2)0.64%
EPS beat(4)3
Avg EPS beat(4)2.69%
Min EPS beat(4)-4.65%
Max EPS beat(4)7.46%
EPS beat(8)6
Avg EPS beat(8)1.99%
EPS beat(12)9
Avg EPS beat(12)1.87%
EPS beat(16)13
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.2%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-1.84%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)4.69%
Revenue beat(8)5
Avg Revenue beat(8)0.48%
Revenue beat(12)8
Avg Revenue beat(12)0.85%
Revenue beat(16)11
Avg Revenue beat(16)1.1%
PT rev (1m)-4.05%
PT rev (3m)-7.71%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)-2.73%
Revenue NQ rev (3m)-2.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 21.05 | ||
| P/S | 10.04 | ||
| P/FCF | 40.51 | ||
| P/OCF | 22.97 | ||
| P/B | 22.53 | ||
| P/tB | 41.12 | ||
| EV/EBITDA | 23.19 |
EPS(TTM)2.96
EY3.48%
EPS(NY)4.04
Fwd EY4.75%
FCF(TTM)2.1
FCFY2.47%
OCF(TTM)3.7
OCFY4.35%
SpS8.47
BVpS3.77
TBVpS2.07
PEG (NY)1.24
PEG (5Y)9.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.83% | ||
| ROE | 78.59% | ||
| ROCE | 65.62% | ||
| ROIC | 52.61% | ||
| ROICexc | 87.1% | ||
| ROICexgc | 166.58% | ||
| OM | 45.85% | ||
| PM (TTM) | 35.01% | ||
| GM | 84.66% | ||
| FCFM | 24.77% |
ROA(3y)24.73%
ROA(5y)26.85%
ROE(3y)70.85%
ROE(5y)69.34%
ROIC(3y)50.71%
ROIC(5y)53.98%
ROICexc(3y)62.18%
ROICexc(5y)66.41%
ROICexgc(3y)126.94%
ROICexgc(5y)112.71%
ROCE(3y)65.89%
ROCE(5y)70.28%
ROICexcg growth 3Y18.83%
ROICexcg growth 5Y7.73%
ROICexc growth 3Y4.62%
ROICexc growth 5Y-4.53%
OM growth 3Y1.58%
OM growth 5Y1.31%
PM growth 3Y2.77%
PM growth 5Y0.85%
GM growth 3Y0.43%
GM growth 5Y0.08%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 0.85 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 302.86% | ||
| Cap/Sales | 18.92% | ||
| Interest Coverage | 248.63 | ||
| Cash Conversion | 83.86% | ||
| Profit Quality | 70.77% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 9.25 |
F-Score6
WACC6.69%
ROIC/WACC7.86
Cap/Depr(3y)245.39%
Cap/Depr(5y)263.68%
Cap/Sales(3y)10.11%
Cap/Sales(5y)11.39%
Profit Quality(3y)99.62%
Profit Quality(5y)92.21%
High Growth Momentum
Growth
EPS 1Y (TTM)26.69%
EPS 3Y1.11%
EPS 5Y3.16%
EPS Q2Q%22.27%
EPS Next Y23.18%
EPS Next 2Y24.57%
EPS Next 3Y23.3%
EPS Next 5Y16.67%
Revenue 1Y (TTM)26.15%
Revenue growth 3Y22.31%
Revenue growth 5Y15.74%
Sales Q2Q%21.42%
Revenue Next Year25.41%
Revenue Next 2Y22.91%
Revenue Next 3Y21.14%
Revenue Next 5Y14.87%
EBIT growth 1Y33.56%
EBIT growth 3Y24.23%
EBIT growth 5Y17.25%
EBIT Next Year40.23%
EBIT Next 3Y26.96%
EBIT Next 5Y18.21%
FCF growth 1Y15.82%
FCF growth 3Y32.84%
FCF growth 5Y16.5%
OCF growth 1Y71.91%
OCF growth 3Y27.98%
OCF growth 5Y19.32%