NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVO - US6701002056 - ADR
52.56 USD
+0.95 (+1.84%)
52.6399 USD
+0.08 (+0.15%)
Overall NVO gets a fundamental rating of 7 out of 10. We evaluated NVO against 192 industry peers in the Pharmaceuticals industry. NVO has an excellent profitability rating, but 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. With these ratings, NVO could be worth investigating further 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.
NVO had positive earnings in each of the past 5 years.
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 97.40% of its industry peers.
Looking at the Return On Equity, with a value of 61.08%, NVO belongs to the top of the industry, outperforming 98.96% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for NVO is significantly above the industry average of 12.85%.
The 3 year average ROIC (50.29%) for NVO is well above the current ROIC(38.03%). The reason for the recent decline needs to be investigated.
| 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.
In the last couple of years the Profit Margin of NVO has grown nicely.
NVO's Operating Margin of 42.03% is amongst the best of the industry. NVO outperforms 97.40% of its industry peers.
NVO's Operating Margin has improved in the last couple of years.
NVO has a Gross Margin of 82.05%. This is amongst the best in the industry. NVO outperforms 85.94% of its industry peers.
NVO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVO is creating value.
The number of shares outstanding for NVO has been reduced compared to 1 year ago.
The number of shares outstanding for NVO has been increased compared to 5 years ago.
Compared to 1 year ago, NVO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.36 indicates that NVO is not in any danger for bankruptcy at the moment.
NVO has a Altman-Z score of 4.36. This is in the better half 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.
NVO's Debt to FCF ratio of 1.66 is amongst the best of the industry. NVO outperforms 95.31% 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.
Looking at the Debt to Equity ratio, with a value of 0.52, NVO is doing worse than 63.54% 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 | 4.36 |
ROIC/WACC6
WACC6.34%
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: 89.06% 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.
The Quick ratio of NVO (0.57) is worse than 88.54% 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
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.
NVO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.68% yearly.
NVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.64%.
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.
The Revenue is expected to grow by 7.05% on average over the next years.
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
NVO is valuated correctly with a Price/Earnings ratio of 14.28.
Based on the Price/Earnings ratio, NVO is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. NVO is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.94, the valuation of NVO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 82.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. NVO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 13.94 |
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 88.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NVO is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.29 | ||
| EV/EBITDA | 9.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NVO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NVO may justify a higher PE ratio.
PEG (NY)2.7
PEG (5Y)2.14
EPS Next 2Y2.73%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.83%, NVO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.45, 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 1.87, NVO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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
NVO pays out 49.88% of its income as dividend. 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%
52.56
+0.95 (+1.84%)
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 Cap233.55B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price TargetN/A
Short Float %0.71%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)-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 | 14.28 | ||
| Fwd PE | 13.94 | ||
| P/S | 4.69 | ||
| P/FCF | 24.29 | ||
| P/OCF | 11.96 | ||
| P/B | 8.71 | ||
| P/tB | 23.38 | ||
| EV/EBITDA | 9.86 |
EPS(TTM)3.68
EY7%
EPS(NY)3.77
Fwd EY7.17%
FCF(TTM)2.16
FCFY4.12%
OCF(TTM)4.4
OCFY8.36%
SpS11.21
BVpS6.03
TBVpS2.25
PEG (NY)2.7
PEG (5Y)2.14
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 | 4.36 |
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%.