NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NVO • US6701002056
50.3 USD
-8.63 (-14.64%)
At close: Feb 3, 2026
48.85 USD
-1.45 (-2.88%)
After Hours: 2/3/2026, 8:04:00 PM
Overall NVO gets a fundamental rating of 7 out of 10. We evaluated NVO against 191 industry peers in the Pharmaceuticals industry. NVO scores excellent on profitability, but there are some minor concerns on its financial health. NVO is valued quite cheap, while showing a decent growth score. This is a good combination! Finally NVO also has an excellent dividend rating. With these ratings, NVO could be worth investigating further for value and 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.
- In the past 5 years NVO always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.26%, NVO belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
- The Return On Equity of NVO (61.08%) is better than 98.95% of its industry peers.
- NVO's Return On Invested Capital of 38.03% is amongst the best of the industry. NVO outperforms 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 12.83%.
- 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
- NVO's Profit Margin of 32.88% is amongst the best of the industry. NVO outperforms 96.34% of its industry peers.
- In the last couple of years the Profit Margin of NVO has grown nicely.
- NVO has a better Operating Margin (42.03%) than 97.38% of its industry peers.
- In the last couple of years the Operating Margin of NVO has grown nicely.
- NVO has a Gross Margin of 82.05%. This is amongst the best in the industry. NVO outperforms 86.39% 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.
- NVO has less shares outstanding than it did 1 year ago.
- NVO has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NVO has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.71 indicates that NVO is not in any danger for bankruptcy at the moment.
- NVO has a better Altman-Z score (4.71) than 72.25% 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 has a better Debt to FCF ratio (1.66) than 95.29% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that NVO is somewhat dependend on debt financing.
- NVO has a Debt to Equity ratio of 0.52. This is in the lower half of the industry: NVO underperforms 63.35% of its industry peers.
- Although NVO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 4.71 |
ROIC/WACC5.91
WACC6.43%
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.
- NVO's Current ratio of 0.78 is on the low side compared to the rest of the industry. NVO is outperformed by 89.53% of its industry peers.
- NVO has a Quick 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.
- With a Quick ratio value of 0.57, NVO is not doing good in the industry: 87.96% 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
- 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 by 22.54% on average over the past years. This is a very strong growth
- The Revenue has grown by 16.64% in the past year. This is quite good.
- Measured over the past years, NVO shows a quite strong growth in Revenue. The Revenue has been growing by 18.94% on average per year.
EPS 1Y (TTM)10.05%
EPS 3Y29.71%
EPS 5Y22.54%
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 5.49% on average over the next years.
- Based on estimates for the next years, NVO will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y4.45%
EPS Next 2Y0.33%
EPS Next 3Y2.25%
EPS Next 5Y5.49%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y6.1%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- Based on the Price/Earnings ratio of 13.59, the valuation of NVO can be described as correct.
- 85.86% of the companies in the same industry are more expensive than NVO, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.18. NVO is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 13.92, NVO is valued correctly.
- Based on the Price/Forward Earnings ratio, NVO is valued cheaper than 81.68% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. NVO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
- 86.91% of the companies in the same industry are more expensive than NVO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, NVO is valued cheaper than 82.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.13 | ||
| EV/EBITDA | 11.15 |
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.
- NVO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)0.6
EPS Next 2Y0.33%
EPS Next 3Y2.25%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.15%, 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 0.62. NVO pays more dividend than 94.76% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, NVO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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
- 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 2Y0.33%
EPS Next 3Y2.25%
50.3
-8.63 (-14.64%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-04 2026-02-04/bmo
Inst Owners33.25%
Inst Owner Change-2.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap223.51B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts71.88
Price Target62.61 (24.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend1.58
Dividend Growth(5Y)16.56%
DP49.88%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)-1.86%
PT rev (3m)-12.4%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-6.94%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-4.34%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-6.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 13.92 | ||
| P/S | 4.47 | ||
| P/FCF | 23.13 | ||
| P/OCF | 11.39 | ||
| P/B | 8.3 | ||
| P/tB | 22.27 | ||
| EV/EBITDA | 11.15 |
EPS(TTM)3.7
EY7.36%
EPS(NY)3.61
Fwd EY7.18%
FCF(TTM)2.17
FCFY4.32%
OCF(TTM)4.42
OCFY8.78%
SpS11.26
BVpS6.06
TBVpS2.26
PEG (NY)3.06
PEG (5Y)0.6
Graham Number22.46
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 | 4.71 |
F-Score4
WACC6.43%
ROIC/WACC5.91
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 3Y29.71%
EPS 5Y22.54%
EPS Q2Q%-26.47%
EPS Next Y4.45%
EPS Next 2Y0.33%
EPS Next 3Y2.25%
EPS Next 5Y5.49%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year7.98%
Revenue Next 2Y4.04%
Revenue Next 3Y4.95%
Revenue Next 5Y6.1%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year18.56%
EBIT Next 3Y8.09%
EBIT Next 5Y8.99%
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.
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 13.59 and the Price/Book (PB) ratio is 8.3.
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.