NOVO-NORDISK A/S-SPONS ADR (NVO) Fundamental Analysis & Valuation

NYSE:NVO • US6701002056

Current stock price

36.98 USD
+0.5 (+1.37%)
At close:
36.87 USD
-0.11 (-0.3%)
After Hours:

This NVO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. NVO Profitability Analysis

1.1 Basic Checks

  • NVO had positive earnings in the past year.
  • In the past year NVO had a positive cash flow from operations.
  • Each year in the past 5 years NVO has been profitable.
  • In the past 5 years NVO always reported a positive cash flow from operatings.
NVO Yearly Net Income VS EBIT VS OCF VS FCFNVO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

1.2 Ratios

  • NVO has a better Return On Assets (18.87%) than 96.88% of its industry peers.
  • NVO has a better Return On Equity (52.79%) than 98.44% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 30.79%, NVO belongs to the top of the industry, outperforming 98.44% 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 13.06%.
  • The last Return On Invested Capital (30.79%) for NVO is well below the 3 year average (43.61%), which needs to be investigated, but indicates that NVO had better years and this may not be a problem.
Industry RankSector 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%
NVO Yearly ROA, ROE, ROICNVO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • NVO has a Profit Margin of 33.14%. This is amongst the best in the industry. NVO outperforms 95.83% of its industry peers.
  • NVO's Profit Margin has been stable in the last couple of years.
  • With an excellent Operating Margin value of 41.30%, NVO belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
  • NVO's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of NVO (80.98%) is better than 84.90% of its industry peers.
  • NVO's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NVO Yearly Profit, Operating, Gross MarginsNVO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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4

2. NVO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVO is creating value.
  • NVO has about the same amout of shares outstanding than it did 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.
NVO Yearly Shares OutstandingNVO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
NVO Yearly Total Debt VS Total AssetsNVO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

2.2 Solvency

  • NVO has an Altman-Z score of 3.58. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
  • NVO's Altman-Z score of 3.58 is fine compared to the rest of the industry. NVO outperforms 70.83% of its industry peers.
  • NVO has a debt to FCF ratio of 4.52. This is a neutral value as NVO would need 4.52 years to pay back of all of its debts.
  • NVO has a better Debt to FCF ratio (4.52) than 83.85% of its industry peers.
  • NVO has a Debt/Equity ratio of 0.61. This is a neutral value indicating NVO is somewhat dependend on debt financing.
  • NVO has a Debt to Equity ratio of 0.61. This is in the lower half of the industry: NVO underperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 4.52
Altman-Z 3.58
ROIC/WACC4.77
WACC6.46%
NVO Yearly LT Debt VS Equity VS FCFNVO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.3 Liquidity

  • NVO has a Current Ratio of 0.80. 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 0.80, NVO is doing worse than 88.54% of the companies in the same industry.
  • NVO has a Quick Ratio of 0.80. 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 Quick ratio, with a value of 0.57, NVO is doing worse than 87.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.57
NVO Yearly Current Assets VS Current LiabilitesNVO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NVO Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 1.77% over the past year.
  • 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.
  • Looking at the last year, NVO shows a small growth in Revenue. The Revenue has grown by 6.43% in the last 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

  • The Earnings Per Share is expected to grow by 5.80% 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 4.07% on average per year.
EPS Next Y-3.96%
EPS Next 2Y-2.8%
EPS Next 3Y1.16%
EPS Next 5Y5.8%
Revenue Next Year-4.65%
Revenue Next 2Y-0.75%
Revenue Next 3Y1.62%
Revenue Next 5Y4.07%

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.
NVO Yearly Revenue VS EstimatesNVO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 100B 200B 300B
NVO Yearly EPS VS EstimatesNVO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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7

4. NVO Valuation Analysis

4.1 Price/Earnings Ratio

  • NVO is valuated reasonably with a Price/Earnings ratio of 10.39.
  • 90.10% 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 25.60. NVO is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of NVO.
  • 86.98% of the companies in the same industry are more expensive than NVO, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.84. NVO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.39
Fwd PE 10.82
NVO Price Earnings VS Forward Price EarningsNVO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 90.63% 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 a bit cheaper than 79.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 36.76
EV/EBITDA 7.81
NVO Per share dataNVO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The excellent profitability rating of NVO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-2.8%
EPS Next 3Y1.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. NVO Dividend Analysis

5.1 Amount

  • NVO has a Yearly Dividend Yield of 5.12%, which is a nice return.
  • In the last 3 months the price of NVO has falen by -29.41%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • NVO's Dividend Yield is rather good when compared to the industry average which is at 0.64. NVO pays more dividend than 96.88% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, NVO pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.12%

5.2 History

  • On average, the dividend of NVO grows each year by 19.05%, which is quite nice.
  • NVO has been paying a dividend for at least 10 years, so it has 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
NVO Yearly Dividends per shareNVO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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.
  • The dividend of NVO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.53%
EPS Next 2Y-2.8%
EPS Next 3Y1.16%
NVO Yearly Income VS Free CF VS DividendNVO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B
NVO Dividend Payout.NVO Dividend Payout, showing the Payout Ratio.NVO Dividend Payout.PayoutRetained Earnings

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NVO Fundamentals: All Metrics, Ratios and Statistics

NOVO-NORDISK A/S-SPONS ADR

NYSE:NVO (4/2/2026, 8:04:00 PM)

After market: 36.87 -0.11 (-0.3%)

36.98

+0.5 (+1.37%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-03
Earnings (Next)05-06
Inst Owners32.22%
Inst Owner Change3.18%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap164.37B
Revenue(TTM)309.06B
Net Income(TTM)102.43B
Analysts67.57
Price Target57.95 (56.71%)
Short Float %0.59%
Short Ratio1
Dividend
Industry RankSector Rank
Dividend Yield 5.12%
Yearly Dividend1.8
Dividend Growth(5Y)19.05%
DP50.53%
Div Incr Years7
Div Non Decr Years7
Ex-Date03-30
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)0%
PT rev (3m)-9.16%
EPS NQ rev (1m)6.2%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)-2.86%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-51.8%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-4.89%
Valuation
Industry RankSector Rank
PE 10.39
Fwd PE 10.82
P/S 3.45
P/FCF 36.76
P/OCF 8.95
P/B 5.49
P/tB 16.65
EV/EBITDA 7.81
EPS(TTM)3.56
EY9.63%
EPS(NY)3.42
Fwd EY9.24%
FCF(TTM)1.01
FCFY2.72%
OCF(TTM)4.13
OCFY11.18%
SpS10.72
BVpS6.73
TBVpS2.22
PEG (NY)N/A
PEG (5Y)0.5
Graham Number23.22
Profitability
Industry RankSector 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 RankSector 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 3.58
F-Score5
WACC6.46%
ROIC/WACC4.77
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-3.96%
EPS Next 2Y-2.8%
EPS Next 3Y1.16%
EPS Next 5Y5.8%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y20.43%
Revenue growth 5Y19.48%
Sales Q2Q%-7.63%
Revenue Next Year-4.65%
Revenue Next 2Y-0.75%
Revenue Next 3Y1.62%
Revenue Next 5Y4.07%
EBIT growth 1Y-4.76%
EBIT growth 3Y19.04%
EBIT growth 5Y18.51%
EBIT Next Year8.51%
EBIT Next 3Y5.92%
EBIT Next 5Y7.75%
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 Fundamental Analysis 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.


What is the profitability of NVO stock?

NOVO-NORDISK A/S-SPONS ADR (NVO) has a profitability rating of 9 / 10.


What is the expected EPS growth for NOVO-NORDISK A/S-SPONS ADR (NVO) stock?

The Earnings per Share (EPS) of NOVO-NORDISK A/S-SPONS ADR (NVO) is expected to decline by -3.96% in the next year.


Is the dividend of NOVO-NORDISK A/S-SPONS ADR sustainable?

The dividend rating of NOVO-NORDISK A/S-SPONS ADR (NVO) is 8 / 10 and the dividend payout ratio is 50.53%.