NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
NYSE:NVO • US6701002056
37.09 USD
-0.36 (-0.96%)
Last: Mar 2, 2026, 09:43 AM
We assign a fundamental rating of 6 out of 10 to NVO. NVO was compared to 193 industry peers in the Pharmaceuticals industry. While NVO has a great profitability rating, there are some minor concerns on its financial health. NVO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally NVO also has an excellent dividend rating.
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
- Looking at the Return On Assets, with a value of 18.87%, NVO belongs to the top of the industry, outperforming 96.89% of the companies in the same industry.
- NVO has a Return On Equity of 52.79%. This is amongst the best in the industry. NVO outperforms 98.45% of its industry peers.
- NVO's Return On Invested Capital of 30.79% is amongst the best of the industry. NVO outperforms 98.45% of its industry peers.
- NVO had an Average Return On Invested Capital over the past 3 years of 43.61%. This is significantly above the industry average of 12.93%.
- The 3 year average ROIC (43.61%) for NVO is well above the current ROIC(30.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 52.79% | ||
| ROIC | 30.79% |
ROA(3y)22.39%
ROA(5y)22.95%
ROE(3y)67.23%
ROE(5y)67.14%
ROIC(3y)43.61%
ROIC(5y)44.74%
1.3 Margins
- Looking at the Profit Margin, with a value of 33.14%, NVO belongs to the top of the industry, outperforming 96.37% of the companies in the same industry.
- NVO's Profit Margin has been stable in the last couple of years.
- NVO has a Operating Margin of 41.30%. This is amongst the best in the industry. NVO outperforms 97.41% of its industry peers.
- NVO's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 80.98%, NVO belongs to the best of the industry, outperforming 84.97% 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 | 41.3% | ||
| PM (TTM) | 33.14% | ||
| GM | 80.98% |
OM growth 3Y-1.15%
OM growth 5Y-0.81%
PM growth 3Y1.84%
PM growth 5Y-0.03%
GM growth 3Y-1.18%
GM growth 5Y-0.61%
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 remains at a similar level compared to 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
- NVO has an Altman-Z score of 3.56. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.56, NVO is in the better half of the industry, outperforming 70.47% of the companies in the same industry.
- The Debt to FCF ratio of NVO is 4.52, which is a neutral value as it means it would take NVO, 4.52 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.52, NVO belongs to the top of the industry, outperforming 84.97% of the companies in the same industry.
- NVO has a Debt/Equity ratio of 0.61. This is a neutral value indicating NVO is somewhat dependend on debt financing.
- NVO's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. NVO is outperformed by 66.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.56 |
ROIC/WACC5.01
WACC6.15%
2.3 Liquidity
- A Current Ratio of 0.80 indicates that NVO may have some problems paying its short term obligations.
- With a Current ratio value of 0.80, NVO is not doing good in the industry: 87.56% 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.
- With a Quick ratio value of 0.57, NVO is not doing good in the industry: 86.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- NVO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.77%.
- Measured over the past years, NVO shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.66% on average per year.
- The Revenue has been growing slightly by 6.43% in the past year.
- Measured over the past years, NVO shows a quite strong growth in Revenue. The Revenue has been growing by 19.48% on average per year.
EPS 1Y (TTM)1.77%
EPS 3Y23.52%
EPS 5Y20.66%
EPS Q2Q%-4.73%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y20.43%
Revenue growth 5Y19.48%
Sales Q2Q%-7.63%
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 3.45% on average per year.
- NVO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y-1.09%
EPS Next 2Y2.5%
EPS Next 3Y7.19%
EPS Next 5Y3.45%
Revenue Next Year-3.91%
Revenue Next 2Y0.15%
Revenue Next 3Y2.35%
Revenue Next 5Y3.58%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 10.19, the valuation of NVO can be described as very reasonable.
- Based on the Price/Earnings ratio, NVO is valued cheaper than 91.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.07, NVO is valued rather cheaply.
- NVO is valuated reasonably with a Price/Forward Earnings ratio of 10.29.
- 88.60% 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 rather cheap valuation when compared to the S&P500 average which is at 28.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 10.29 |
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 91.19% of the companies listed in the same industry.
- NVO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVO is cheaper than 80.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.01 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
- The excellent profitability rating of NVO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y2.5%
EPS Next 3Y7.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.90%, NVO is a good candidate for dividend investing.
- The stock price of NVO dropped by -24.11% 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 0.66. NVO pays more dividend than 97.41% of the companies in the same industry.
- NVO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
5.2 History
- On average, the dividend of NVO grows each year by 19.05%, which is quite nice.
- 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)19.05%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- NVO pays out 50.53% 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.
DP50.53%
EPS Next 2Y2.5%
EPS Next 3Y7.19%
NYSE:NVO (3/2/2026, 9:43:10 AM)
37.09
-0.36 (-0.96%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-03 2026-02-03/amc
Earnings (Next)05-06 2026-05-06
Inst Owners33.25%
Inst Owner Change3.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap164.93B
Revenue(TTM)309.06B
Net Income(TTM)102.43B
Analysts71.76
Price Target57.95 (56.24%)
Short Float %0.76%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.9% |
Yearly Dividend1.84
Dividend Growth(5Y)19.05%
DP50.53%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-30 2026-03-30 (1.275101)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.82%
Min EPS beat(2)-7.04%
Max EPS beat(2)1.39%
EPS beat(4)2
Avg EPS beat(4)-0.71%
Min EPS beat(4)-7.04%
Max EPS beat(4)3.94%
EPS beat(8)5
Avg EPS beat(8)1.01%
EPS beat(12)8
Avg EPS beat(12)1.47%
EPS beat(16)11
Avg EPS beat(16)1.68%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)1.07%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)1.07%
Revenue beat(8)3
Avg Revenue beat(8)0.15%
Revenue beat(12)6
Avg Revenue beat(12)0.52%
Revenue beat(16)9
Avg Revenue beat(16)0.84%
PT rev (1m)-7.44%
PT rev (3m)-13.27%
EPS NQ rev (1m)-1.83%
EPS NQ rev (3m)-13.81%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-37.45%
Revenue NQ rev (3m)-51.78%
Revenue NY rev (1m)-4.16%
Revenue NY rev (3m)-10.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 10.29 | ||
| P/S | 3.38 | ||
| P/FCF | 36.01 | ||
| P/OCF | 8.76 | ||
| P/B | 5.38 | ||
| P/tB | 16.31 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)3.64
EY9.81%
EPS(NY)3.6
Fwd EY9.72%
FCF(TTM)1.03
FCFY2.78%
OCF(TTM)4.23
OCFY11.41%
SpS10.98
BVpS6.89
TBVpS2.27
PEG (NY)N/A
PEG (5Y)0.49
Graham Number23.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.87% | ||
| ROE | 52.79% | ||
| ROCE | 39.01% | ||
| ROIC | 30.79% | ||
| ROICexc | 33.56% | ||
| ROICexgc | 59.2% | ||
| OM | 41.3% | ||
| PM (TTM) | 33.14% | ||
| GM | 80.98% | ||
| FCFM | 9.38% |
ROA(3y)22.39%
ROA(5y)22.95%
ROE(3y)67.23%
ROE(5y)67.14%
ROIC(3y)43.61%
ROIC(5y)44.74%
ROICexc(3y)50.94%
ROICexc(5y)53.03%
ROICexgc(3y)100.46%
ROICexgc(5y)105.49%
ROCE(3y)55.75%
ROCE(5y)58.53%
ROICexgc growth 3Y-22.89%
ROICexgc growth 5Y-7.78%
ROICexc growth 3Y-18.13%
ROICexc growth 5Y-11.63%
OM growth 3Y-1.15%
OM growth 5Y-0.81%
PM growth 3Y1.84%
PM growth 5Y-0.03%
GM growth 3Y-1.18%
GM growth 5Y-0.61%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.52 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 409.94% | ||
| Cap/Sales | 29.16% | ||
| Interest Coverage | 37.34 | ||
| Cash Conversion | 79.59% | ||
| Profit Quality | 28.3% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 3.56 |
F-Score5
WACC6.15%
ROIC/WACC5.01
Cap/Depr(3y)363.9%
Cap/Depr(5y)282.93%
Cap/Sales(3y)21.19%
Cap/Sales(5y)15.43%
Profit Quality(3y)60.31%
Profit Quality(5y)79.23%
High Growth Momentum
Growth
EPS 1Y (TTM)1.77%
EPS 3Y23.52%
EPS 5Y20.66%
EPS Q2Q%-4.73%
EPS Next Y-1.09%
EPS Next 2Y2.5%
EPS Next 3Y7.19%
EPS Next 5Y3.45%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y20.43%
Revenue growth 5Y19.48%
Sales Q2Q%-7.63%
Revenue Next Year-3.91%
Revenue Next 2Y0.15%
Revenue Next 3Y2.35%
Revenue Next 5Y3.58%
EBIT growth 1Y-4.76%
EBIT growth 3Y19.04%
EBIT growth 5Y18.51%
EBIT Next Year9.02%
EBIT Next 3Y6.74%
EBIT Next 5Y6.83%
FCF growth 1Y-58.38%
FCF growth 3Y-23.26%
FCF growth 5Y-0.6%
OCF growth 1Y-1.54%
OCF growth 3Y14.72%
OCF growth 5Y18.05%
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 6 / 10 to NVO.
What is the valuation status of NOVO-NORDISK A/S-SPONS ADR (NVO) stock?
ChartMill assigns a valuation rating of 7 / 10 to NOVO-NORDISK A/S-SPONS ADR (NVO). This can be considered as Undervalued.
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 10.19 and the Price/Book (PB) ratio is 5.38.
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 4 / 10.