NOVO-NORDISK A/S-SPONS ADR (NVO) Fundamental Analysis & Valuation
NYSE:NVO • US6701002056
Current stock price
41.17 USD
+2.65 (+6.88%)
At close:
41.39 USD
+0.22 (+0.53%)
After Hours:
This NVO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- In the past 5 years NVO has always 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 (18.87%) is better than 96.34% of its industry peers.
- The Return On Equity of NVO (52.79%) is better than 98.43% of its industry peers.
- The Return On Invested Capital of NVO (30.79%) is better than 98.43% 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 13.10%.
- 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 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
- NVO's Profit Margin of 33.14% is amongst the best of the industry. NVO outperforms 95.81% of its industry peers.
- In the last couple of years the Profit Margin of NVO has remained more or less at the same level.
- NVO has a Operating Margin of 41.30%. This is amongst the best in the industry. NVO outperforms 98.43% 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 85.86% 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. NVO Health Analysis
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 remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, NVO has more shares outstanding
- The debt/assets ratio for NVO is higher compared to a year ago.
2.2 Solvency
- NVO has an Altman-Z score of 3.75. This indicates that NVO is financially healthy and has little risk of bankruptcy at the moment.
- NVO has a better Altman-Z score (3.75) than 68.06% of its industry peers.
- 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 84.29% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that NVO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.61, NVO is not doing good in the industry: 70.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.75 |
ROIC/WACC4.82
WACC6.39%
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.
- NVO's Current ratio of 0.80 is on the low side compared to the rest of the industry. NVO is outperformed by 90.58% 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 91.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.57 |
3. NVO Growth Analysis
3.1 Past
- NVO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.77%.
- NVO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.66% yearly.
- 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
- Based on estimates for the next years, NVO will show a small growth in Earnings Per Share. The EPS will grow by 3.93% on average per year.
- The Revenue is expected to grow by 3.35% on average over the next years.
EPS Next Y-7.2%
EPS Next 2Y-3.65%
EPS Next 3Y0.38%
EPS Next 5Y3.93%
Revenue Next Year-6.27%
Revenue Next 2Y-1.41%
Revenue Next 3Y1.06%
Revenue Next 5Y3.35%
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. NVO Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.37, the valuation of NVO can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of NVO indicates a rather cheap valuation: NVO is cheaper than 90.05% of the companies listed in the same industry.
- NVO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
- NVO is valuated correctly with a Price/Forward Earnings ratio of 12.25.
- NVO's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVO is cheaper than 84.82% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.29. NVO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.25 |
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 90.58% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NVO is valued a bit cheaper than the industry average as 78.53% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.2 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
- The excellent profitability rating of NVO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-3.65%
EPS Next 3Y0.38%
5. NVO Dividend Analysis
5.1 Amount
- NVO has a Yearly Dividend Yield of 4.74%, which is a nice return.
- The stock price of NVO dropped by -33.87% 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 0.73. NVO pays more dividend than 96.86% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, NVO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
- The dividend of NVO is nicely growing with an annual growth rate of 19.05%!
- 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 Years8
Div Non Decr Years8
5.3 Sustainability
- 50.53% 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.
DP50.53%
EPS Next 2Y-3.65%
EPS Next 3Y0.38%
NVO Fundamentals: All Metrics, Ratios and Statistics
41.17
+2.65 (+6.88%)
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 Owners31.87%
Inst Owner Change-0.12%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap182.65B
Revenue(TTM)309.06B
Net Income(TTM)102.43B
Analysts67.57
Price Target49.16 (19.41%)
Short Float %0.48%
Short Ratio0.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend1.83
Dividend Growth(5Y)19.05%
DP50.53%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-30 2026-03-30 (1.217376)
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)-15.17%
PT rev (3m)-21.48%
EPS NQ rev (1m)11.04%
EPS NQ rev (3m)15.76%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)-5.92%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)-37.39%
Revenue NY rev (1m)-1.7%
Revenue NY rev (3m)-6.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.25 | ||
| P/S | 3.77 | ||
| P/FCF | 40.2 | ||
| P/OCF | 9.79 | ||
| P/B | 6.01 | ||
| P/tB | 18.21 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)3.62
EY8.79%
EPS(NY)3.36
Fwd EY8.16%
FCF(TTM)1.02
FCFY2.49%
OCF(TTM)4.21
OCFY10.22%
SpS10.92
BVpS6.85
TBVpS2.26
PEG (NY)N/A
PEG (5Y)0.55
Graham Number23.6288 (-42.61%)
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 | 3.75 |
F-Score5
WACC6.39%
ROIC/WACC4.82
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-7.2%
EPS Next 2Y-3.65%
EPS Next 3Y0.38%
EPS Next 5Y3.93%
Revenue 1Y (TTM)6.43%
Revenue growth 3Y20.43%
Revenue growth 5Y19.48%
Sales Q2Q%-7.63%
Revenue Next Year-6.27%
Revenue Next 2Y-1.41%
Revenue Next 3Y1.06%
Revenue Next 5Y3.35%
EBIT growth 1Y-4.76%
EBIT growth 3Y19.04%
EBIT growth 5Y18.51%
EBIT Next Year8.72%
EBIT Next 3Y6.24%
EBIT Next 5Y8.11%
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 6 / 10 to NOVO-NORDISK A/S-SPONS ADR (NVO). This can be considered as Fairly Valued.
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 -7.2% 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%.