Novo Nordisk (CPSE:NOVO B) - Share price, News & Analysis

NOVO B fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	5/6
Financial Health	4/6
Dividends	4/6

NOVO B Stock Overview

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

Rewards

Trading at 33.4% below our estimate of its fair value

Earnings are forecast to grow 13.59% per year

Earnings grew by 15.1% over the past year

Risk Analysis

Unstable dividend track record

Novo Nordisk Competitors

H. Lundbeck

CPSE:LUN

kr.32.3b

Johnson & Johnson

NYSE:JNJ

US$477.3b

Pfizer

NYSE:PFE

US$299.7b

Roche Holding

SWX:ROG

CHF270.0b

Price History & Performance

Summary of all time highs, changes and price drops for Novo Nordisk
Historical stock prices
Current Share Price	kr.738.60
52 Week High	kr.834.50
52 Week Low	kr.475.45
Beta	0.25
1 Month Change	-5.08%
3 Month Change	14.89%
1 Year Change	51.28%
3 Year Change	134.70%
5 Year Change	162.47%
Change since IPO	13,603.16%

Recent News & Updates

May 21

If You Like EPS Growth Then Check Out Novo Nordisk (CPH:NOVO B) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Apr 20

We Think Novo Nordisk (CPH:NOVO B) Can Manage Its Debt With Ease

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	NOVO B	DK Pharmaceuticals	DK Market
7D	-0.6%	1.2%	-0.4%
1Y	51.3%	19.0%	0.8%

Return vs Industry: NOVO B exceeded the Danish Pharmaceuticals industry which returned 19% over the past year.

Return vs Market: NOVO B exceeded the Danish Market which returned 0.8% over the past year.

Price Volatility

Is NOVO B's price volatile compared to industry and market?
NOVO B volatility
NOVO B Average Weekly Movement	4.3%
Pharmaceuticals Industry Average Movement	6.4%
Market Average Movement	6.3%
10% most volatile stocks in DK Market	10.8%
10% least volatile stocks in DK Market	3.8%

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.

About the Company

Founded	Employees	CEO	Website
1923	49,295	Lars Jorgensen	https://www.novonordisk.com

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 Biopharm. 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.

Novo Nordisk Fundamentals Summary

How do Novo Nordisk's earnings and revenue compare to its market cap?
NOVO B fundamental statistics
Market Cap	kr.1.70t
Earnings (TTM)	kr.49.34b
Revenue (TTM)	kr.149.03b

34.0x

P/E Ratio

11.3x

P/S Ratio

Is NOVO B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOVO B income statement (TTM)
Revenue	kr.149.03b
Cost of Revenue	kr.24.76b
Gross Profit	kr.124.26b
Other Expenses	kr.74.92b
Earnings	kr.49.34b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	21.73
Gross Margin	83.38%
Net Profit Margin	33.11%
Debt/Equity Ratio	38.3%

How did NOVO B perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

48%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

33.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NOVO B (DKK738.6) is trading below our estimate of fair value (DKK1109.65)

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 Price-To-Earnings Ratio (34x) compared to the European Pharmaceuticals industry average (20.3x).

PE vs Market: NOVO B is poor value based on its Price-To-Earnings Ratio (34x) compared to the Danish market (13.5x).

Price to Earnings Growth Ratio

PEG Ratio: NOVO B is poor value based on its PEG Ratio (2.5x)

Price to Book Ratio

PB vs Industry: NOVO B is overvalued based on its Price-To-Book Ratio (25.2x) compared to the XE Pharmaceuticals industry average (2.5x).

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVO B's forecast earnings growth (13.6% per year) is above the savings rate (0.09%).

Earnings vs Market: NOVO B's earnings (13.6% per year) are forecast to grow faster than the Danish market (8.9% per year).

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

Revenue vs Market: NOVO B's revenue (10.8% per year) is forecast to grow faster than the Danish market (6% per year).

High Growth Revenue: NOVO B's revenue (10.8% 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 (77.1%).

Past Performance

How has Novo Nordisk performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

4.6%

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 (33.1%) are lower than last year (33.8%).

Past Earnings Growth Analysis

Earnings Trend: NOVO B's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: NOVO B's earnings growth over the past year (15.1%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: NOVO B earnings growth over the past year (15.1%) exceeded the Pharmaceuticals industry 14.9%.

Return on Equity

High ROE: NOVO B's Return on Equity (74.1%) is considered outstanding.

Financial Health

How is Novo Nordisk's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOVO B's short term assets (DKK86.5B) do not cover its short term liabilities (DKK95.6B).

Long Term Liabilities: NOVO B's short term assets (DKK86.5B) exceed its long term liabilities (DKK35.0B).

Debt to Equity History and Analysis

Debt Level: NOVO B's net debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: NOVO B's debt to equity ratio has increased from 1.5% to 38.3% over the past 5 years.

Debt Coverage: NOVO B's debt is well covered by operating cash flow (264.3%).

Interest Coverage: NOVO B's interest payments on its debt are well covered by EBIT (97.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.41%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NOVO B's dividend (1.41%) is higher than the bottom 25% of dividend payers in the Danish market (1.39%).

High Dividend: NOVO B's dividend (1.41%) is low compared to the top 25% of dividend payers in the Danish market (6.21%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.2%), NOVO B's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (39.6%), NOVO B's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure

CEO

Lars Jorgensen (55 yo)

5.33yrs

Tenure

kr.56,500,000

Compensation

Mr. Lars Fruergaard Jorgensen has been Chief Executive Officer and President of Novo Nordisk A/S since January 2017and serves as its Member of Management Board. He served as Deputy Chair of the Supervisory...

CEO Compensation Analysis

Compensation vs Market: Lars's total compensation ($USD8.11M) is above average for companies of similar size in the Danish market ($USD3.33M).

Compensation vs Earnings: Lars's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: NOVO B's management team is considered experienced (3.5 years average tenure).

Board Members

Experienced Board: NOVO B's board of directors are considered experienced (4.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31