NOVO-NORDISK A/S-SPONS ADR (NVO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVO - US6701002056 - ADR
48.71 USD
+1.65 (+3.51%)
49.22 USD
+0.51 (+1.05%)
NVO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. While NVO has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NVO. NVO also has an excellent dividend rating. These ratings would make NVO suitable 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.
Each year in the past 5 years NVO has been profitable.
NVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NVO (20.26%) is better than 97.92% 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 98.44% 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.
NVO had an Average Return On Invested Capital over the past 3 years of 50.29%. This is significantly above the industry average of 12.71%.
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
NVO's Profit Margin of 32.88% is amongst the best of the industry. NVO outperforms 96.88% 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 97.92% of its industry peers.
In the last couple of years the Operating Margin of NVO has grown nicely.
The Gross Margin of NVO (82.05%) is better than 85.42% 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.
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
NVO has an Altman-Z score of 4.26. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
NVO has a better Altman-Z score (4.26) than 74.48% 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 Debt to FCF ratio of 1.66. This is amongst the best in the industry. NVO outperforms 94.27% 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 62.50% 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 | 4.26 |
ROIC/WACC6.42
WACC5.92%
2.3 Liquidity
A Current Ratio of 0.78 indicates that NVO may have some problems paying its short term obligations.
The Current ratio of NVO (0.78) is worse than 89.58% of its industry peers.
A Quick Ratio of 0.57 indicates that NVO may have some problems paying its short term obligations.
NVO has a Quick ratio of 0.57. This is amonst the worse of the industry: NVO underperforms 89.58% 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
The Earnings Per Share has grown by an nice 10.05% over the past year.
The Earnings Per Share has been growing slightly by 6.68% on average over the past years.
NVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.64%.
NVO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.94% yearly.
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 7.77% on average over the next years.
The Revenue is expected to grow by 7.51% on average over the next years.
EPS Next Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y7.77%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.51%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
NVO is valuated correctly with a Price/Earnings ratio of 13.46.
Based on the Price/Earnings ratio, NVO is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NVO to the average of the S&P500 Index (26.15), we can say NVO is valued slightly cheaper.
NVO is valuated correctly with a Price/Forward Earnings ratio of 12.24.
Based on the Price/Forward Earnings ratio, NVO is valued cheaper than 85.42% of the companies in the same industry.
NVO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 12.24 |
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 89.58% 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 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.89 | ||
| EV/EBITDA | 9.49 |
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)2.35
PEG (5Y)2.01
EPS Next 2Y6.44%
EPS Next 3Y6.78%
5. Dividend
5.1 Amount
NVO has a Yearly Dividend Yield of 3.71%.
NVO's Dividend Yield is rather good when compared to the industry average which is at 7.92. NVO pays more dividend than 95.83% of the companies in the same industry.
NVO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of NVO is nicely growing with an annual growth rate of 16.56%!
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 2Y6.44%
EPS Next 3Y6.78%
48.71
+1.65 (+3.51%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners36.01%
Inst Owner Change-4.5%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap216.44B
Revenue(TTM)315.60B
Net Income(TTM)103.77B
Analysts74.19
Price Target66.81 (37.16%)
Short Float %0.68%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.53
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)-12.75%
PT rev (3m)-18.12%
EPS NQ rev (1m)-6.81%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)-5.15%
Revenue NQ rev (1m)-5.32%
Revenue NQ rev (3m)-7.45%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 12.24 | ||
| P/S | 4.42 | ||
| P/FCF | 22.89 | ||
| P/OCF | 11.27 | ||
| P/B | 8.21 | ||
| P/tB | 22.04 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)3.62
EY7.43%
EPS(NY)3.98
Fwd EY8.17%
FCF(TTM)2.13
FCFY4.37%
OCF(TTM)4.32
OCFY8.87%
SpS11.02
BVpS5.93
TBVpS2.21
PEG (NY)2.35
PEG (5Y)2.01
Graham Number21.98
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 | 4.26 |
F-Score4
WACC5.92%
ROIC/WACC6.42
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 Y5.73%
EPS Next 2Y6.44%
EPS Next 3Y6.78%
EPS Next 5Y7.77%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y27.29%
Revenue growth 5Y18.94%
Sales Q2Q%5.14%
Revenue Next Year9.95%
Revenue Next 2Y7.78%
Revenue Next 3Y7.4%
Revenue Next 5Y7.51%
EBIT growth 1Y6.92%
EBIT growth 3Y32.76%
EBIT growth 5Y20.94%
EBIT Next Year21.98%
EBIT Next 3Y13.55%
EBIT Next 5Y10.27%
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 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.
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%.