Novo Nordisk
Market Cap
ø898.0b
Last Updated
2020/03/29 21:09 UTC
Data Sources
Company Financials +
Executive Summary
Novo Nordisk A/S, a healthcare company, engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet average dividend payer.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.5%
NOVO B
2.6%
DK Pharmaceuticals
4.8%
DK Market
1 Year Return
9.9%
NOVO B
-3.7%
DK Pharmaceuticals
-0.6%
DK Market
Return vs Industry: NOVO B exceeded the Danish Pharmaceuticals industry which returned -3.7% over the past year.
Return vs Market: NOVO B exceeded the Danish Market which returned -0.6% over the past year.
Shareholder returns
| NOVO B | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.5% | 2.6% | 4.8% |
| 30 Day | -3.3% | -10.8% | -12.2% |
| 90 Day | -1.0% | -13.4% | -12.9% |
| 1 Year | 12.4%9.9% | 1.9%-3.7% | 2.4%-0.6% |
| 3 Year | 72.1%59.8% | 14.3%1.3% | 30.0%19.0% |
| 5 Year | 14.6%1.5% | 9.5%-9.2% | 24.1%8.2% |
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
1 week ago | Simply Wall St
4 Days Left Until Novo Nordisk A/S (CPH:NOVO B) Trades Ex-Dividend1 week ago | Simply Wall St
What Kind Of Investor Owns Most Of Novo Nordisk A/S (CPH:NOVO B)?3 weeks ago | Simply Wall St
Does Novo Nordisk A/S's (CPH:NOVO B) CEO Salary Reflect Performance?Valuation
Is Novo Nordisk undervalued compared to its fair value and its price relative to the market?
38.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOVO B (DKK382.75) is trading below our estimate of fair value (DKK620.02)
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 (23.3x) compared to the Pharmaceuticals industry average (19.3x).
PE vs Market: NOVO B is poor value based on its PE Ratio (23.3x) compared to the Danish market (12x).
Price to Earnings Growth Ratio
PEG Ratio: NOVO B is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: NOVO B is overvalued based on its PB Ratio (15.6x) compared to the XE Pharmaceuticals industry average (2.4x).
Next Steps
Future Growth
How is Novo Nordisk forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
8.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVO B's forecast earnings growth (8.3% per year) is above the savings rate (-0.3%).
Earnings vs Market: NOVO B's earnings (8.3% per year) are forecast to grow slower than the Danish market (12% per year).
High Growth Earnings: NOVO B's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOVO B's revenue (7.2% per year) is forecast to grow faster than the Danish market (6% per year).
High Growth Revenue: NOVO B's revenue (7.2% 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 (73.8%).
Next Steps
Past Performance
How has Novo Nordisk performed over the past 5 years?
5.0%
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 (31.9%) are lower than last year (34.5%).
Past Earnings Growth Analysis
Earnings Trend: NOVO B's earnings have grown by 5% per year over the past 5 years.
Accelerating Growth: NOVO B's earnings growth over the past year (0.8%) is below its 5-year average (5% per year).
Earnings vs Industry: NOVO B earnings growth over the past year (0.8%) underperformed the Pharmaceuticals industry 1.9%.
Return on Equity
High ROE: NOVO B's Return on Equity (67.6%) 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 (DKK62.5B) exceed its short term liabilities (DKK59.0B).
Long Term Liabilities: NOVO B's short term assets (DKK62.5B) exceed its long term liabilities (DKK9.0B).
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 1.8% to 1.1% over the past 5 years.
Debt Coverage: NOVO B's debt is well covered by operating cash flow (7098.9%).
Interest Coverage: NOVO B's interest payments on its debt are well covered by EBIT (344.9x coverage).
Balance Sheet
Inventory Level: NOVO B has a high level of physical assets or inventory.
Debt Coverage by Assets: NOVO B's debt is covered by short term assets (assets are 94.8x debt).
Next Steps
Dividend
What is Novo Nordisk's current dividend yield, its reliability and sustainability?
2.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NOVO B's dividend (2.18%) is higher than the bottom 25% of dividend payers in the Danish market (1.7%).
High Dividend: NOVO B's dividend (2.18%) is low compared to the top 25% of dividend payers in the Danish market (5.62%).
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 reasonable payout ratio (50.9%), NOVO B's dividend payments are 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 (48% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average board tenure
CEO
Lars Jørgensen (53yo)
3.17s
Tenure
ø54,800,000
Compensation
Mr. Lars Fruergaard Jørgensen has been the Chief Executive Officer and President of Novo Nordisk A/S since January 1, 2017 and serves as its Member of Management Board. He has been Deputy Chair of the Supe ...
CEO Compensation Analysis
Compensation vs Market: Lars's total compensation ($USD8.13M) is above average for companies of similar size in the Danish market ($USD3.26M).
Compensation vs Earnings: Lars's compensation has increased by more than 20% in the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 5yrs | ø1.70m | 0.000080% DKK718.4k | |
| Employee Representative Director | 19.33yrs | ø1.00m | 0.00041% DKK3.7m | |
| Employee Representative Director | 22.17yrs | ø1.20m | 0.000090% DKK808.2k | |
| Independent Director | 8yrs | ø2.10m | 0.00014% DKK1.3m | |
| Independent Chairman of the Board | 2yrs | ø3.10m | 0.00013% DKK1.2m | |
| Vice Chairman | 7yrs | ø1.90m | 0.0010% DKK9.1m | |
| Independent Director | 4yrs | ø1.50m | 0.000090% DKK808.2k | |
| Director | 3yrs | ø1.00m | no data | |
| Former Member of the Nomination Committee | 2yrs | ø1.00m | 0.000060% DKK538.8k | |
| Employee Representative Director | 2.17yrs | ø1.00m | 0.000030% DKK269.4k |
4.5yrs
Average Tenure
57.5yo
Average Age
Experienced Board: NOVO B's board of directors are considered experienced (4.5 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.
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: ø897.978b
- Shares outstanding: 2.35b
- Website: https://www.novonordisk.com
Number of Employees
Location
- Novo Nordisk A/S
- Novo Allé
- Bagsvaerd
- Capital Region of Denmark
- 2880
- Denmark
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NVO | NYSE (New York Stock Exchange) | ADR-EACH CNV INTO 1 CLASS'B'DKK1 | US | USD | Apr 1981 | |
| NOVA | DB (Deutsche Boerse AG) | ADR-EACH CNV INTO 1 CLASS'B'DKK1 | DE | EUR | Apr 1981 | |
| NOVA | XTRA (XETRA Trading Platform) | ADR-EACH CNV INTO 1 CLASS'B'DKK1 | DE | EUR | Apr 1981 | |
| NVO N | BMV (Bolsa Mexicana de Valores) | ADR-EACH CNV INTO 1 CLASS'B'DKK1 | MX | MXN | Apr 1981 | |
| 0TDD | LSE (London Stock Exchange) | ADR-EACH CNV INTO 1 CLASS'B'DKK1 | GB | USD | Apr 1981 | |
| NONO.F | OTCPK (Pink Sheets LLC) | Yes | Class B Common Shares | US | USD | Jan 1992 |
| NOVOB | SWX (SIX Swiss Exchange) | Yes | Class B Common Shares | CH | CHF | Jan 1992 |
| 0QIU | LSE (London Stock Exchange) | Yes | Class B Common Shares | GB | DKK | Jan 1992 |
| NOVC | DB (Deutsche Boerse AG) | Yes | Class B Common Shares | DE | EUR | Jan 1992 |
| NOVO B | CPSE (OMX Nordic Exchange Copenhagen) | Yes | Class B Common Shares | DK | DKK | Jan 1992 |
| NOVOBC | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Class B Common Shares | GB | DKK | Jan 1992 |
| NNOR | WBAG (Wiener Boerse AG) | Yes | Class B Common Shares | AT | EUR | Jan 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 Biopharmaceuticals. The Diabetes and Obesity care segment provides products in the areas of insulins, GLP-1 and related delivery systems, oral antidiabetic products, obesity, and other chronic diseases. The Biopharmaceuticals segment offers products in the areas of haemophilia, growth disorders, and hormone replacement therapy. The company has a strategic alliance with Evotec AG to discover and develop small molecule therapies to treat patients suffering from diabetes, obesity, and co-morbidities, as well as has a research collaboration with Kallyope Inc. It also has collaboration agreements with Lund University to develop stem cell-derived treatment for Parkinson’s diseases; Staten Biotechnology B.V. to develop novel therapeutics for the treatment of dyslipidaemia; Medtronic plc to develop integrated digital solutions for people with diabetes; and bluebird bio, Inc. to develop in vivo genome editing treatments for genetic diseases. The company was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/29 21:09 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.