About Novo Nordisk A/S
Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products. It operates through two segments, Obesity and Diabetes Care, and Rare Disease. The Obesity and Diabetes care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides NovoPen 6 and NovoPen Echo Plus, smart insulin pens; Dose Check, an insulin dose guidance application; growth hormone pens and injection needles; and Wegovy pill an oral glucagon-like peptide-1 (GLP-1) receptor agonist therapy for weight management. It operates in Europe, Canada, the United States, Japan, Korea, Oceania, Southeast Asia, Mainland China, Hong Kong and Taiwan, Latin America, the Middle East, and Africa. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
Novo Nordisk A/S (NVO) is a Healthcare company in the Drug Manufacturers - General industry with a market capitalisation of $190.3B. The stock trades at 10.53x trailing earnings and yields 4.17%.
- Sector
- Healthcare
- Industry
- Drug Manufacturers - General
- Market cap
- $190.3B
- P/E ratio
- 10.53
- Forward P/E
- 12.66
- EPS (TTM)
- $4.09
- Revenue (TTM)
- $329.4B
- Free cash flow
- $37.7B
- Profit margin
- 35.3%
- Dividend yield
- 4.17%
- Beta
- 0.34
- Shares outstanding
- 3.3B
Financial health: Fair5.9/10
5 strengths, 3 concerns. Weakest points: current ratio, earnings growth, peg ratio.
- Debt to equity: 0.67 (Watch, benchmark < 0.5) — Debt of 0.67x equity is moderate against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 3.3y (Watch, benchmark < 4 years) — Net debt of $95.9B is 3.3x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 0.80 (Concern, benchmark > 1.5) — Short-term assets cover only 0.80x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 59.8% (Strong, benchmark > 15%) — Earns 59.8% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 82.0% (Strong, benchmark > 40%) — Keeps 82.0% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 35.4% (Strong, benchmark > 10%) — Turns 35.4% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $29.0B (Strong, benchmark positive) — Generated $29.0B of free cash flow after capital spending. It has deteriorated over the last 4 years.
- Revenue growth: 2.1% (Watch, benchmark > 10%) — Revenue changed 2.1% year on year, short of the > 10% mark.
- Earnings growth: -20.6% (Concern, benchmark > 10%) — Earnings changed -20.6% year on year, well short of the > 10% mark.
- PEG ratio: 3.04 (Concern, benchmark < 1) — At 3.04, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 44.5% (Strong, benchmark < 60%) — Pays out 44.5% of earnings as dividends, leaving room to keep paying.