NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVO - US6701002056 - ADR
52.4 USD
-0.16 (-0.3%)
52.2397 USD
-0.16 (-0.31%)
NVO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. NVO scores excellent on profitability, but there are some minor concerns on its financial health. NVO is not valued too expensively and it also shows a decent growth rate.
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's Return On Assets of 20.26% is amongst the best of the industry. NVO outperforms 97.40% of its industry peers.
NVO has a Return On Equity of 61.08%. This is amongst the best in the industry. NVO outperforms 98.96% of its industry peers.
With an excellent Return On Invested Capital value of 38.03%, NVO belongs to the best of the industry, outperforming 98.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
With an excellent Profit Margin value of 32.88%, NVO belongs to the best of the industry, outperforming 96.35% of the companies in the same industry.
NVO's Profit Margin has improved in the last couple of years.
NVO has a better Operating Margin (42.03%) than 97.40% of its industry peers.
In the last couple of years the Operating Margin of NVO has grown nicely.
NVO has a better Gross Margin (82.05%) than 85.94% 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 | 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.
Compared to 1 year ago, NVO has less shares outstanding
The number of shares outstanding for NVO has been increased compared to 5 years ago.
The debt/assets ratio for NVO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.40 indicates that NVO is not in any danger for bankruptcy at the moment.
NVO's Altman-Z score of 4.40 is fine compared to the rest of the industry. NVO outperforms 72.40% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.66, NVO belongs to the best of the industry, outperforming 95.31% 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.
With a Debt to Equity ratio value of 0.52, NVO is not doing good in the industry: 63.54% 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 | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 4.4 |
ROIC/WACC6
WACC6.34%
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.
Looking at the Current ratio, with a value of 0.78, NVO is doing worse than 89.06% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that NVO may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, NVO is not doing good in the industry: 88.54% 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 | 0.78 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.05% over the past year.
Measured over the past 5 years, NVO shows a small growth in Earnings Per Share. The EPS has been growing by 6.68% on average per year.
NVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.64%.
NVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.94% yearly.
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
Based on estimates for the next years, NVO will show a small growth in Earnings Per Share. The EPS will grow by 6.93% on average per year.
Based on estimates for the next years, NVO will show a small growth in Revenue. The Revenue will grow by 7.05% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.24, which indicates a correct valuation of NVO.
NVO's Price/Earnings ratio is rather cheap when compared to the industry. NVO is cheaper than 86.98% of the companies in the same industry.
NVO is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.89, NVO is valued correctly.
Based on the Price/Forward Earnings ratio, NVO is valued cheaply inside the industry as 82.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NVO to the average of the S&P500 Index (24.04), we can say NVO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 88.02% of the companies listed in the same industry.
82.81% of the companies in the same industry are more expensive than NVO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.21 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NVO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)2.13
EPS Next 2Y2.73%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, NVO has a reasonable but not impressive dividend return.
NVO's Dividend Yield is rather good when compared to the industry average which is at 0.61. NVO pays more dividend than 95.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, NVO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of NVO is nicely growing with an annual growth rate of 16.56%!
NVO has paid a dividend for at least 10 years, which is 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
49.88% of the earnings are spent on dividend by NVO. This is a bit on the high side, but may be sustainable.
NVO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.88%
EPS Next 2Y2.73%
EPS Next 3Y4.42%
52.4
-0.16 (-0.3%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner Change-4.46%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap232.84B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price Target63.79 (21.74%)
Short Float %0.71%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend1.57
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)-2.06%
EPS NQ rev (3m)-8.47%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-5.54%
Revenue NQ rev (1m)-2.52%
Revenue NQ rev (3m)-8.7%
Revenue NY rev (1m)-1.32%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.24 | ||
| Fwd PE | 13.89 | ||
| P/S | 4.68 | ||
| P/FCF | 24.21 | ||
| P/OCF | 11.92 | ||
| P/B | 8.68 | ||
| P/tB | 23.31 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)3.68
EY7.02%
EPS(NY)3.77
Fwd EY7.2%
FCF(TTM)2.16
FCFY4.13%
OCF(TTM)4.4
OCFY8.39%
SpS11.21
BVpS6.03
TBVpS2.25
PEG (NY)2.69
PEG (5Y)2.13
Graham Number22.35
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 | 4.4 |
F-Score4
WACC6.34%
ROIC/WACC6
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 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.
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%.