CPSE:NOVO B

Stock Analysis Report

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Executive Summary

Novo Nordisk A/S, a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide. More Details


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Novo Nordisk's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NOVO B is less volatile than 75% of Danish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NOVO B's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-1.0%

NOVO B

-0.3%

DK Pharmaceuticals

-2.4%

DK Market


1 Year Return

8.1%

NOVO B

-2.0%

DK Pharmaceuticals

20.2%

DK Market

Return vs Industry: NOVO B exceeded the Danish Pharmaceuticals industry which returned -2.8% over the past year.

Return vs Market: NOVO B underperformed the Danish Market which returned 20.5% over the past year.


Shareholder returns

NOVO BIndustryMarket
7 Day-1.0%-0.3%-2.4%
30 Day-6.4%-2.5%-0.7%
90 Day1.5%-0.4%7.8%
1 Year10.5%8.1%1.1%-2.0%22.5%20.2%
3 Year35.5%26.2%26.9%12.2%47.6%36.3%
5 Year24.9%9.8%29.7%7.7%56.7%36.8%

Long-Term Price Volatility Vs. Market

How volatile is Novo Nordisk's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Novo Nordisk undervalued compared to its fair value and its price relative to the market?

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOVO B (DKK415.1) is trading below our estimate of fair value (DKK527.7)

Significantly Below Fair Value: NOVO B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NOVO B is poor value based on its PE Ratio (23.4x) compared to the XE Pharmaceuticals industry average (23x).

PE vs Market: NOVO B is poor value based on its PE Ratio (23.4x) compared to the Danish market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: NOVO B is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: NOVO B is overvalued based on its PB Ratio (16.2x) compared to the XE Pharmaceuticals industry average (3.5x).


Next Steps

Future Growth

How is Novo Nordisk forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVO B's forecast earnings growth (7.5% per year) is above the savings rate (0.3%).

Earnings vs Market: NOVO B's earnings (7.5% per year) are forecast to grow slower than the Danish market (11.7% per year).

High Growth Earnings: NOVO B's earnings are forecast to grow, but not significantly.

Revenue vs Market: NOVO B's revenue (6.9% per year) is forecast to grow faster than the Danish market (6.4% per year).

High Growth Revenue: NOVO B's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOVO B's Return on Equity is forecast to be very high in 3 years time (66.2%).


Next Steps

Past Performance

How has Novo Nordisk performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOVO B has high quality earnings.

Growing Profit Margin: NOVO B's current net profit margins (32.6%) are higher than last year (32.4%).


Past Earnings Growth Analysis

Earnings Trend: NOVO B's earnings have grown by 3% per year over the past 5 years.

Accelerating Growth: NOVO B's earnings growth over the past year (7.2%) exceeds its 5-year average (3% per year).

Earnings vs Industry: NOVO B earnings growth over the past year (7.2%) underperformed the Pharmaceuticals industry 13.5%.


Return on Equity

High ROE: NOVO B's Return on Equity (69.7%) is considered outstanding.


Next Steps

Financial Health

How is Novo Nordisk's financial position?


Financial Position Analysis

Short Term Liabilities: NOVO B's short term assets (DKK73.7B) exceed its short term liabilities (DKK70.9B).

Long Term Liabilities: NOVO B's short term assets (DKK73.7B) exceed its long term liabilities (DKK9.4B).


Debt to Equity History and Analysis

Debt Level: NOVO B's debt to equity ratio (1.1%) is considered satisfactory.

Reducing Debt: NOVO B's debt to equity ratio has reduced from 1.5% to 1.1% over the past 5 years.

Debt Coverage: NOVO B's debt is well covered by operating cash flow (8720.4%).

Interest Coverage: NOVO B earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Novo Nordisk current dividend yield, its reliability and sustainability?

2.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NOVO B's dividend (2.07%) is higher than the bottom 25% of dividend payers in the Danish market (1.14%).

High Dividend: NOVO B's dividend (2.07%) is low compared to the top 25% of dividend payers in the Danish market (3.86%).


Stability and Growth of Payments

Stable Dividend: NOVO B's dividend payments have been volatile in the past 10 years.

Growing Dividend: NOVO B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), NOVO B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NOVO B's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average board tenure


CEO

Lars Jørgensen (54 yo)

3.92yrs

Tenure

kr.54,800,000

Compensation

Mr. Lars Fruergaard Jørgensen was the Chief Executive Officer and President of Novo Nordisk A/S and serves as its Member of Management Board. He has been Deputy Chair of the Supervisory Board at Carlsberg ...


CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD8.94M) is above average for companies of similar size in the Danish market ($USD3.48M).

Compensation vs Earnings: Lars's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sylvie Gregoire
Independent Director5.75yrskr.1.70m0.000080%
DKK 764.4k
Anne Kverneland
Employee Representative Director20.08yrskr.1.00m0.00027%
DKK 2.6m
Stig Strobaek
Employee Representative Director22.92yrskr.1.20m0.000090%
DKK 859.9k
Elizabeth Hewitt
Independent Director8.75yrskr.2.10m0.00014%
DKK 1.3m
Helge Lund
Independent Chairman of the Board2.75yrskr.3.10m0.00013%
DKK 1.2m
Jeppe Christiansen
Vice Chairman of the Board7.75yrskr.1.90m0.0010%
DKK 9.8m
Martin MacKay
Independent Director2.75yrskr.1.40m0.000090%
DKK 859.9k
Brian Daniels
Independent Director4.75yrskr.1.50m0.000090%
DKK 859.9k
Andreas Fibig
Independent Director2.75yrskr.1.40mno data
Kasim Kutay
Director3.75yrskr.1.00mno data
Mette Jensen
Employee Representative Director2.75yrskr.1.00m0.000060%
DKK 573.3k
Thomas Rantzau
Employee Representative Director2.92yrskr.1.00m0.000030%
DKK 286.6k

4.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NOVO B's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Novo Nordisk A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novo Nordisk A/S
  • Ticker: NOVO B
  • Exchange: CPSE
  • Founded: 1923
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr.955.492b
  • Shares outstanding: 2.31b
  • Website: https://www.novonordisk.com

Number of Employees


Location

  • Novo Nordisk A/S
  • Novo Allé
  • Bagsvaerd
  • Capital Region of Denmark
  • 2880
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVONYSE (New York Stock Exchange)ADR-EACH CNV INTO 1 CLASS'B'DKK1USUSDApr 1981
NOVADB (Deutsche Boerse AG)ADR-EACH CNV INTO 1 CLASS'B'DKK1DEEURApr 1981
NOVAXTRA (XETRA Trading Platform)ADR-EACH CNV INTO 1 CLASS'B'DKK1DEEURApr 1981
NVO NBMV (Bolsa Mexicana de Valores)ADR-EACH CNV INTO 1 CLASS'B'DKK1MXMXNApr 1981
0TDDLSE (London Stock Exchange)ADR-EACH CNV INTO 1 CLASS'B'DKK1GBUSDApr 1981
NONO.FOTCPK (Pink Sheets LLC)YesClass B Common SharesUSUSDJan 1992
NOVOBSWX (SIX Swiss Exchange)YesClass B Common SharesCHCHFJan 1992
0QIULSE (London Stock Exchange)YesClass B Common SharesGBDKKJan 1992
NOVCDB (Deutsche Boerse AG)YesClass B Common SharesDEEURJan 1992
NOVO BCPSE (OMX Nordic Exchange Copenhagen)YesClass B Common SharesDKDKKJan 1992
NOVXTRA (XETRA Trading Platform)YesClass B Common SharesDEEURJan 1992
NOVOBCBATS-CHIXE (BATS 'Chi-X Europe')YesClass B Common SharesGBDKKJan 1992
NNORWBAG (Wiener Boerse AG)YesClass B Common SharesATEURJan 1992

Biography

Novo Nordisk A/S, a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes and Obesity care, and Bi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 18:10
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.