CPSE:NOVO B

Stock Analysis Report

Executive Summary

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


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 BIndustryMarket
7 Day6.5%2.6%4.8%
30 Day-3.3%-10.8%-12.2%
90 Day-1.0%-13.4%-12.9%
1 Year12.4%9.9%1.9%-3.7%2.4%-0.6%
3 Year72.1%59.8%14.3%1.3%30.0%19.0%
5 Year14.6%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

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

NamePositionTenureCompensationOwnership
Sylvie Grégoire
Independent Director5yrsø1.70m0.000080% DKK718.4k
Anne Kverneland
Employee Representative Director19.33yrsø1.00m0.00041% DKK3.7m
Stig Strøbæk
Employee Representative Director22.17yrsø1.20m0.000090% DKK808.2k
Elizabeth Hewitt
Independent Director8yrsø2.10m0.00014% DKK1.3m
Helge Lund
Independent Chairman of the Board2yrsø3.10m0.00013% DKK1.2m
Jeppe Christiansen
Vice Chairman7yrsø1.90m0.0010% DKK9.1m
Brian Daniels
Independent Director4yrsø1.50m0.000090% DKK808.2k
Kasim Kutay
Director3yrsø1.00mno data
Mette Jensen
Former Member of the Nomination Committee2yrsø1.00m0.000060% DKK538.8k
Thomas Rantzau
Employee Representative Director2.17yrsø1.00m0.000030% 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

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
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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 21:09
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.