NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVO - US6701002056 - ADR
50.18 USD
-0.11 (-0.22%)
50.34 USD
+0.16 (+0.32%)
We assign a fundamental rating of 7 out of 10 to NVO. 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 is not valued too expensively and it also shows a decent growth rate. Finally NVO also has an excellent dividend rating. These ratings would make NVO suitable for 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.
In the past 5 years NVO has always been profitable.
Each year in the past 5 years NVO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.26%, NVO belongs to the best of the industry, outperforming 97.38% of the companies in the same industry.
NVO has a Return On Equity of 61.08%. This is amongst the best in the industry. NVO outperforms 98.95% of its industry peers.
NVO has a better Return On Invested Capital (38.03%) 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
Looking at the Profit Margin, with a value of 32.88%, NVO belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
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.
NVO has a better Gross Margin (82.05%) than 86.39% 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
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.
NVO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NVO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.30 indicates that NVO is not in any danger for bankruptcy at the moment.
NVO has a better Altman-Z score (4.30) than 73.30% 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.
The Debt to FCF ratio of NVO (1.66) is better than 95.29% of its industry peers.
NVO has a Debt/Equity ratio of 0.52. This is a neutral value indicating NVO is somewhat dependend on debt financing.
NVO has a worse Debt to Equity ratio (0.52) than 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 | 4.3 |
ROIC/WACC6.52
WACC5.83%
2.3 Liquidity
A Current Ratio of 0.78 indicates that NVO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, NVO is doing worse than 89.53% 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.
NVO's Quick ratio of 0.57 is on the low side compared to the rest of the industry. NVO is outperformed by 89.01% of its industry peers.
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 | 0.57 |
3. Growth
3.1 Past
NVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.05%, which is quite good.
The Earnings Per Share has been growing slightly by 6.68% on average over the past years.
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 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.
NVO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 13.67, NVO is valued correctly.
NVO's Price/Earnings ratio is rather cheap when compared to the industry. NVO is cheaper than 87.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, NVO is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.37, NVO is valued correctly.
82.20% 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 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.67 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVO is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
83.25% 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 | 23.29 | ||
| EV/EBITDA | 9.64 |
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)2.58
PEG (5Y)2.05
EPS Next 2Y2.73%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, NVO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.71, NVO pays a better dividend. On top of this NVO pays more dividend than 95.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.96, NVO pays a better dividend.
| 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 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
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 2Y2.73%
EPS Next 3Y4.42%
50.18
-0.11 (-0.22%)
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 Cap222.97B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price Target65.47 (30.47%)
Short Float %0.66%
Short Ratio1.62
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 | 13.67 | ||
| Fwd PE | 13.37 | ||
| P/S | 4.5 | ||
| P/FCF | 23.29 | ||
| P/OCF | 11.47 | ||
| P/B | 8.36 | ||
| P/tB | 22.43 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)3.67
EY7.31%
EPS(NY)3.75
Fwd EY7.48%
FCF(TTM)2.15
FCFY4.29%
OCF(TTM)4.37
OCFY8.72%
SpS11.15
BVpS6
TBVpS2.24
PEG (NY)2.58
PEG (5Y)2.05
Graham Number22.27
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 | 4.3 |
F-Score4
WACC5.83%
ROIC/WACC6.52
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 6 / 10 and the dividend payout ratio is 49.88%.