Novo Nordisk
Market Cap
kr.1.1t
Last Updated
2021/05/13 18:34 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 less volatile than 75% 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
5.1%
NOVO B
1.4%
DK Pharmaceuticals
-0.6%
DK Market
1 Year Return
9.0%
NOVO B
-3.3%
DK Pharmaceuticals
30.7%
DK Market
Return vs Industry: NOVO B exceeded the Danish Pharmaceuticals industry which returned -3.6% over the past year.
Return vs Market: NOVO B underperformed the Danish Market which returned 29.6% over the past year.
Shareholder returns
| NOVO B | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.1% | 1.4% | -0.6% |
| 30 Day | 8.7% | 2.1% | 0.5% |
| 90 Day | 4.1% | 1.1% | 0.8% |
| 1 Year | 11.4%9.0% | -0.3%-3.3% | 34.0%30.7% |
| 3 Year | 65.7%54.7% | 32.1%17.1% | 58.3%46.2% |
| 5 Year | 52.0%34.1% | 45.1%20.9% | 79.1%55.6% |
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
Novo Nordisk A/S' (CPH:NOVO B) Stock Is Going Strong: Have Financials A Role To Play?1 month ago | Simply Wall St
Should You Be Adding Novo Nordisk (CPH:NOVO B) To Your Watchlist Today?1 month ago | Simply Wall St
Interested In Novo Nordisk's (CPH:NOVO B) Upcoming kr.5.85 Dividend? You Have Three Days LeftValuation
Is Novo Nordisk undervalued compared to its fair value and its price relative to the market?
33.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOVO B (DKK478.85) is trading below our estimate of fair value (DKK716.94)
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 (26x) compared to the European Pharmaceuticals industry average (25.2x).
PE vs Market: NOVO B is poor value based on its PE Ratio (26x) compared to the Danish market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: NOVO B is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: NOVO B is overvalued based on its PB Ratio (18.9x) compared to the XE Pharmaceuticals industry average (3.3x).
Future Growth
How is Novo Nordisk forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
7.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVO B's forecast earnings growth (7.6% per year) is above the savings rate (0.1%).
Earnings vs Market: NOVO B's earnings (7.6% 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 (7.1% per year) is forecast to grow faster than the Danish market (7% per year).
High Growth Revenue: NOVO B's revenue (7.1% 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 (65.9%).
Past Performance
How has Novo Nordisk performed over the past 5 years?
2.8%
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 (33.8%) are higher than last year (31.9%).
Past Earnings Growth Analysis
Earnings Trend: NOVO B's earnings have grown by 2.8% per year over the past 5 years.
Accelerating Growth: NOVO B's earnings growth over the past year (6.1%) exceeds its 5-year average (2.8% per year).
Earnings vs Industry: NOVO B earnings growth over the past year (6.1%) underperformed the Pharmaceuticals industry 6.7%.
Return on Equity
High ROE: NOVO B's Return on Equity (73.3%) is considered outstanding.
Financial Health
How is Novo Nordisk's financial position?
Financial Position Analysis
Short Term Liabilities: NOVO B's short term assets (DKK61.4B) do not cover its short term liabilities (DKK72.4B).
Long Term Liabilities: NOVO B's short term assets (DKK61.4B) exceed its long term liabilities (DKK10.5B).
Debt to Equity History and Analysis
Debt Level: NOVO B's debt to equity ratio (10.3%) is considered satisfactory.
Reducing Debt: NOVO B's debt to equity ratio has increased from 1.1% to 10.3% over the past 5 years.
Debt Coverage: NOVO B's debt is well covered by operating cash flow (879.5%).
Interest Coverage: NOVO B earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Novo Nordisk current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NOVO B's dividend (1.9%) is higher than the bottom 25% of dividend payers in the Danish market (1.15%).
High Dividend: NOVO B's dividend (1.9%) is low compared to the top 25% of dividend payers in the Danish market (3.4%).
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 (49.3%), 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 (49% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Lars Jorgensen (54 yo)
4.33yrs
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 has been Deputy Chair of the Supervisory ...
CEO Compensation Analysis
Compensation vs Market: Lars's total compensation ($USD9.18M) is above average for companies of similar size in the Danish market ($USD3.73M).
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 not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
Experienced Board: NOVO B's board of directors are considered experienced (3.3 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.
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.1.101t
- Shares outstanding: 2.30b
- Website: https://www.novonordisk.com
Number of Employees
Location
- Novo Nordisk A/S
- Novo Allé
- Bagsvaerd
- Capital Region of Denmark
- 2880
- Denmark
Listings
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 | 2021/05/13 18:34 |
| End of Day Share Price | 2021/05/12 00:00 |
| Earnings | 2021/03/31 |
| 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.