Novo Nordisk
Market Cap
kr.1.0t
Last Updated
2021/03/05 18:06 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with adequate balance sheet 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 not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NOVO B's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-2.5%
NOVO B
-0.5%
DK Pharmaceuticals
-4.4%
DK Market
1 Year Return
4.3%
NOVO B
-4.0%
DK Pharmaceuticals
20.1%
DK Market
Return vs Industry: NOVO B exceeded the Danish Pharmaceuticals industry which returned -6.7% over the past year.
Return vs Market: NOVO B underperformed the Danish Market which returned 18.1% over the past year.
Shareholder returns
| NOVO B | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.5% | -0.5% | -4.4% |
| 30 Day | -5.1% | -4.1% | -8.2% |
| 90 Day | 2.9% | -4.0% | -0.4% |
| 1 Year | 6.6%4.3% | -0.9%-4.0% | 22.8%20.1% |
| 3 Year | 49.6%39.3% | 27.9%13.2% | 56.2%44.3% |
| 5 Year | 28.2%12.7% | 32.7%11.1% | 65.2%44.0% |
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
1 week ago | Simply Wall St
What Can We Conclude About Novo Nordisk's (CPH:NOVO B) CEO Pay?3 weeks ago | Simply Wall St
Investors Who Bought Novo Nordisk (CPH:NOVO B) Shares Three Years Ago Are Now Up 47%1 month ago | Simply Wall St
Do Fundamentals Have Any Role To Play In Driving Novo Nordisk A/S' (CPH:NOVO B) Stock Up Recently?Valuation
Is Novo Nordisk undervalued compared to its fair value and its price relative to the market?
32.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOVO B (DKK427.1) is trading below our estimate of fair value (DKK630.06)
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 good value based on its PE Ratio (23.7x) compared to the XE Pharmaceuticals industry average (24x).
PE vs Market: NOVO B is poor value based on its PE Ratio (23.7x) compared to the Danish market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: NOVO B is poor value based on its PEG Ratio (3.5x)
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 (3.4x).
Next Steps
Future Growth
How is Novo Nordisk forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
6.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVO B's forecast earnings growth (6.8% per year) is above the savings rate (0.2%).
Earnings vs Market: NOVO B's earnings (6.8% per year) are forecast to grow slower than the Danish market (9.6% per year).
High Growth Earnings: NOVO B's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOVO B's revenue (6.5% per year) is forecast to grow slower than the Danish market (6.7% per year).
High Growth Revenue: NOVO B's revenue (6.5% 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 (66.8%).
Next Steps
Past Performance
How has Novo Nordisk performed over the past 5 years?
2.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOVO B has a high level of non-cash earnings.
Growing Profit Margin: NOVO B's current net profit margins (33.2%) are higher than last year (31.9%).
Past Earnings Growth Analysis
Earnings Trend: NOVO B's earnings have grown by 2.7% per year over the past 5 years.
Accelerating Growth: NOVO B's earnings growth over the past year (8.1%) exceeds its 5-year average (2.7% per year).
Earnings vs Industry: NOVO B earnings growth over the past year (8.1%) underperformed the Pharmaceuticals industry 12.8%.
Return on Equity
High ROE: NOVO B's Return on Equity (66.5%) 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 (DKK65.8B) do not cover its short term liabilities (DKK70.3B).
Long Term Liabilities: NOVO B's short term assets (DKK65.8B) exceed its long term liabilities (DKK11.3B).
Debt to Equity History and Analysis
Debt Level: NOVO B's debt to equity ratio (10.6%) is considered satisfactory.
Reducing Debt: NOVO B's debt to equity ratio has increased from 2.3% to 10.6% over the past 5 years.
Debt Coverage: NOVO B's debt is well covered by operating cash flow (777.2%).
Interest Coverage: NOVO B's interest payments on its debt are well covered by EBIT (1027.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Novo Nordisk current dividend yield, its reliability and sustainability?
2.13%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NOVO B's dividend (2.13%) is higher than the bottom 25% of dividend payers in the Danish market (1.22%).
High Dividend: NOVO B's dividend (2.13%) is low compared to the top 25% of dividend payers in the Danish market (3.96%).
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 (50.4%), 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 (48.8% 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 (54 yo)
4.17yrs
Tenure
kr.56,500,000
Compensation
Mr. Lars Fruergaard Jørgensen has been Chief Executive Officer and President of Novo Nordisk A/S since January 2017and serves as its Member of Management Board. He has been Deputy Chair of the Supervisory ...
CEO Compensation Analysis
Compensation vs Market: Lars's total compensation ($USD9.05M) is above average for companies of similar size in the Danish market ($USD3.89M).
Compensation vs Earnings: Lars's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 6yrs | kr.1.50m | 0.000080% DKK 803.1k | |
| Employee Representative Non-Independent Director | 20.33yrs | kr.900.00k | 0.00027% DKK 2.7m | |
| Employee Representative Non-Independent Director | 23.17yrs | kr.1.10m | 0.000090% DKK 903.5k | |
| Independent Director | 9yrs | kr.1.60m | 0.00015% DKK 1.5m | |
| Independent Chairman of the Board | 3yrs | kr.2.70m | 0.00013% DKK 1.3m | |
| Non-Independent Vice Chairman of the Board | 8yrs | kr.1.80m | 0.0010% DKK 10.3m | |
| Independent Director | 3yrs | kr.1.20m | 0.000090% DKK 903.5k | |
| Independent Director | 5yrs | kr.1.20m | 0.000090% DKK 903.5k | |
| Independent Director | 3yrs | kr.1.10m | no data | |
| Non-Independent Director | 4yrs | kr.1.00m | no data | |
| Employee Non-Independent Representative Director | 3yrs | kr.900.00k | 0.000060% DKK 602.3k | |
| Employee Representative Non-Independent Director | 3.17yrs | kr.900.00k | 0.000030% DKK 301.2k |
4.5yrs
Average Tenure
58.5yo
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.
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.1.004t
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NVO | NYSE (New York Stock Exchange) | ADR | US | USD | Apr 1981 | |
| NOVA | DB (Deutsche Boerse AG) | ADR | DE | EUR | Apr 1981 | |
| NOVA | XTRA (XETRA Trading Platform) | ADR | DE | EUR | Apr 1981 | |
| NVO N | BMV (Bolsa Mexicana de Valores) | ADR | MX | MXN | Apr 1981 | |
| 0TDD | LSE (London Stock Exchange) | ADR | 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 |
| NOV | XTRA (XETRA Trading Platform) | Yes | Class B Common Shares | DE | EUR | 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 Bi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/05 18:06 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.