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Novo Nordisk

NYSE:NVO
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NVO
NYSE
DKK809B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Novo Nordisk A/S, a healthcare company, engages in the development, manufacture, and marketing of pharmaceutical products worldwide. The last earnings update was 45 days ago. More info.


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NVO Share Price and Events
7 Day Returns
-0.4%
NYSE:NVO
-0.6%
US Pharmaceuticals
0.3%
US Market
1 Year Returns
14%
NYSE:NVO
6.1%
US Pharmaceuticals
0.7%
US Market
NVO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Novo Nordisk (NVO) -0.4% 9% -2.3% 14% -1.2% 10.7%
US Pharmaceuticals -0.6% 0.2% -3% 6.1% 9% 13.8%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • NVO outperformed the Pharmaceuticals industry which returned 6.1% over the past year.
  • NVO outperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
NVO
Industry
5yr Volatility vs Market

NVO Value

 Is Novo Nordisk undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Novo Nordisk to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Novo Nordisk.

NYSE:NVO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 26 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:NVO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.64 (1 + (1- 22%) (0.53%))
0.76
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:NVO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Novo Nordisk is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:NVO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (DKK, Millions) Source Present Value
Discounted (@ 7.5%)
2019 32,611.64 Analyst x14 30,336.97
2020 38,968.83 Analyst x15 33,722.26
2021 43,296.34 Analyst x11 34,853.79
2022 42,747.00 Analyst x1 32,011.36
2023 43,829.00 Analyst x1 30,532.31
2024 44,955.33 Est @ 2.57% 29,132.58
2025 46,132.21 Est @ 2.62% 27,810.04
2026 47,355.42 Est @ 2.65% 26,556.24
2027 48,622.21 Est @ 2.68% 25,364.79
2028 49,930.90 Est @ 2.69% 24,230.67
Present value of next 10 years cash flows DKK294,551.01
NYSE:NVO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= DKK49,930.90 × (1 + 2.73%) ÷ (7.5% – 2.73%)
DKK1,075,797.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= DKK1,075,797.17 ÷ (1 + 7.5%)10
DKK522,067.37
NYSE:NVO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= DKK294,551.01 + DKK522,067.37
DKK816,618.38
Equity Value per Share
(DKK)
= Total value / Shares Outstanding
= DKK816,618.38 / 2,374.73
DKK343.88
NYSE:NVO Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NYSE:NVO represents 0.14979x of CPSE:NOVO B
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.14979x
Value per Share
(Listing Adjusted, USD)
= Value per Share (DKK) x Listing Adjustment Factor
= DKK 343.88 x 0.14979
$51.51
Value per share (USD) From above. $51.51
Current discount Discount to share price of $51.01
= -1 x ($51.01 - $51.51) / $51.51
1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Novo Nordisk is available for.
Intrinsic value
1%
Share price is $51.01 vs Future cash flow value of $51.51
Current Discount Checks
For Novo Nordisk to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Novo Nordisk's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Novo Nordisk's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Novo Nordisk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Novo Nordisk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:NVO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in DKK DKK15.92
CPSE:NOVO B Share Price ** CPSE (2019-06-17) in DKK DKK340.55
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 17.22x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Novo Nordisk.

NYSE:NVO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= CPSE:NOVO B Share Price ÷ EPS (both in DKK)

= 340.55 ÷ 15.92

21.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novo Nordisk is overvalued based on earnings compared to the US Pharmaceuticals industry average.
  • Novo Nordisk is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Novo Nordisk's expected growth come at a high price?
Raw Data
NYSE:NVO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts
8.8%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 21 Publicly-Listed Pharmaceuticals Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:NVO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.4x ÷ 8.8%

2.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novo Nordisk is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Novo Nordisk's assets?
Raw Data
NYSE:NVO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in DKK DKK19.80
CPSE:NOVO B Share Price * CPSE (2019-06-17) in DKK DKK340.55
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 183 Publicly-Listed Pharmaceuticals Companies 3.26x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:NVO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= CPSE:NOVO B Share Price ÷ Book Value per Share (both in DKK)

= 340.55 ÷ 19.80

17.2x

* Primary Listing of Novo Nordisk.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novo Nordisk is overvalued based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess Novo Nordisk's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Novo Nordisk has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NVO Future Performance

 How is Novo Nordisk expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Novo Nordisk expected to grow at an attractive rate?
  • Novo Nordisk's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Novo Nordisk's earnings growth is positive but not above the United States of America market average.
  • Novo Nordisk's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:NVO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:NVO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts 8.8%
NYSE:NVO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 7%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 14.7%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:NVO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
All numbers in DKK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:NVO Future Estimates Data
Date (Data in DKK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 156,756 60,261 54,673 10
2022-12-31 148,734 57,103 51,941 10
2021-12-31 135,738 52,115 47,542 23
2020-12-31 127,214 47,855 43,783 26
2019-12-31 119,717 42,632 39,002 25
NYSE:NVO Past Financials Data
Date (Data in DKK Millions) Revenue Cash Flow Net Income *
2019-03-31 114,192 44,691 38,322
2018-12-31 111,831 44,616 38,628
2018-09-30 110,091 43,236 38,384
2018-06-30 108,943 44,538 39,117
2018-03-31 110,174 38,885 38,725
2017-12-31 111,696 41,168 38,130
2017-09-30 113,276 46,289 38,576
2017-06-30 114,199 48,557 38,609
2017-03-31 113,020 52,937 38,626
2016-12-31 111,780 48,314 37,925
2016-09-30 111,084 47,280 37,484
2016-06-30 110,339 44,179 36,064

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Novo Nordisk's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
  • Novo Nordisk's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:NVO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below

All data from Novo Nordisk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NVO Future Estimates Data
Date (Data in DKK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 24.86 28.50 20.75 6.00
2022-12-31 23.05 25.50 20.83 6.00
2021-12-31 20.52 22.94 18.24 21.00
2020-12-31 18.68 21.08 17.47 23.00
2019-12-31 16.37 17.20 15.91 23.00
NYSE:NVO Past Financials Data
Date (Data in DKK Millions) EPS *
2019-03-31 15.92
2018-12-31 15.96
2018-09-30 15.79
2018-06-30 16.00
2018-03-31 15.75
2017-12-31 15.42
2017-09-30 15.49
2017-06-30 15.41
2017-03-31 15.34
2016-12-31 14.99
2016-09-30 14.77
2016-06-30 14.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Novo Nordisk is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Novo Nordisk's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Novo Nordisk has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NVO Past Performance

  How has Novo Nordisk performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Novo Nordisk's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Novo Nordisk's year on year earnings growth rate has been positive over the past 5 years.
  • Novo Nordisk's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Novo Nordisk's 1-year earnings growth is negative, it can't be compared to the US Pharmaceuticals industry average.
Earnings and Revenue History
Novo Nordisk's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Novo Nordisk Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:NVO Past Revenue, Cash Flow and Net Income Data
Date (Data in DKK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 114,192.00 38,322.00 34,269.00 14,162.00
2018-12-31 111,831.00 38,628.00 33,727.00 14,805.00
2018-09-30 110,091.00 38,384.00 32,729.00 14,244.00
2018-06-30 108,943.00 39,117.00 32,062.00 13,928.00
2018-03-31 110,174.00 38,725.00 32,031.00 14,046.00
2017-12-31 111,696.00 38,130.00 32,416.00 14,014.00
2017-09-30 113,276.00 38,576.00 31,786.00 14,501.00
2017-06-30 114,199.00 38,609.00 32,268.00 14,631.00
2017-03-31 113,020.00 38,626.00 32,390.00 14,548.00
2016-12-31 111,780.00 37,925.00 32,707.00 14,563.00
2016-09-30 111,084.00 37,484.00 32,467.00 13,884.00
2016-06-30 110,339.00 36,064.00 32,495.00 13,715.00
2016-03-31 109,939.00 34,439.00 32,817.00 13,419.00
2015-12-31 107,927.00 34,860.00 32,169.00 13,608.00
2015-09-30 103,636.00 33,131.00 30,712.00 13,616.00
2015-06-30 99,093.00 31,248.00 29,578.00 13,381.00
2015-03-31 93,663.00 29,899.00 27,870.00 13,421.00
2014-12-31 88,806.00 26,481.00 26,760.00 13,762.00
2014-09-30 85,919.00 26,005.00 26,571.00 12,863.00
2014-06-30 84,181.00 25,920.00 26,153.00 12,604.00
2014-03-31 83,932.00 25,660.00 26,448.00 12,244.00
2013-12-31 83,572.00 25,184.00 26,888.00 11,733.00
2013-09-30 82,836.00 24,886.00 26,514.00 11,377.00
2013-06-30 82,170.00 24,138.00 26,228.00 11,199.00
2013-03-31 80,258.00 22,750.00 25,561.00 11,047.00
2012-12-31 78,026.00 21,432.00 24,856.00 10,897.00
2012-09-30 75,184.00 20,366.00 23,983.00 10,439.00
2012-06-30 71,871.00 18,900.00 23,430.00 10,085.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Novo Nordisk made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Novo Nordisk used its assets more efficiently than the US Pharmaceuticals industry average last year based on Return on Assets.
  • Novo Nordisk's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Novo Nordisk's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Novo Nordisk has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NVO Health

 How is Novo Nordisk's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Novo Nordisk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Novo Nordisk's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Novo Nordisk's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Novo Nordisk's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 12.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Novo Nordisk Company Filings, last reported 2 months ago.

NYSE:NVO Past Debt and Equity Data
Date (Data in DKK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 47,319.00 4,318.00 9,055.00
2018-12-31 51,839.00 515.00 15,638.00
2018-09-30 47,512.00 337.00 16,401.00
2018-06-30 49,081.00 247.00 18,393.00
2018-03-31 44,238.00 228.00 10,513.00
2017-12-31 49,815.00 1,694.00 18,852.00
2017-09-30 46,946.00 260.00 19,137.00
2017-06-30 48,436.00 1,683.00 21,330.00
2017-03-31 40,301.00 613.00 17,766.00
2016-12-31 45,269.00 229.00 20,699.00
2016-09-30 41,327.00 456.00 16,579.00
2016-06-30 42,585.00 406.00 15,220.00
2016-03-31 37,284.00 406.00 8,850.00
2015-12-31 46,969.00 1,073.00 20,465.00
2015-09-30 43,109.00 630.00 17,508.00
2015-06-30 39,111.00 736.00 11,839.00
2015-03-31 32,108.00 594.00 7,188.00
2014-12-31 40,294.00 720.00 15,905.00
2014-09-30 37,967.00 284.00 13,620.00
2014-06-30 36,661.00 406.00 6,523.00
2014-03-31 33,583.00 804.00 5,168.00
2013-12-31 42,569.00 215.00 14,701.00
2013-09-30 39,125.00 670.00 13,482.00
2013-06-30 35,357.00 716.00 11,123.00
2013-03-31 33,801.00 300.00 11,223.00
2012-12-31 40,632.00 500.00 16,629.00
2012-09-30 35,660.00 1,091.00 17,545.00
2012-06-30 31,334.00 890.00 12,390.00
  • Novo Nordisk's level of debt (9.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.4% vs 9.1% today).
  • Debt is well covered by operating cash flow (1035%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 437.8x coverage).
X
Financial health checks
We assess Novo Nordisk's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Novo Nordisk has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NVO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.39%
Current annual income from Novo Nordisk dividends. Estimated to be 2.8% next year.
If you bought $2,000 of Novo Nordisk shares you are expected to receive $48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Novo Nordisk's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Novo Nordisk's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:NVO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:NVO Future Dividends Estimate Data
Date (Data in DKK) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 11.77 5.00
2022-12-31 10.97 5.00
2021-12-31 10.22 20.00
2020-12-31 9.26 23.00
2019-12-31 8.42 23.00
NYSE:NVO Past Annualized Dividends Data
Date (Data in DKK) Dividend per share (annual) Avg. Yield (%)
2019-03-21 8.150 2.473
2018-03-22 7.850 2.581
2017-08-09 7.600 2.421
2017-02-09 9.200 3.518
2017-02-02 9.200 3.935
2016-10-28 6.000 2.472
2016-08-05 6.000 2.041
2016-03-18 6.400 1.761
2015-02-05 5.000 1.370
2015-01-30 5.000 1.733
2014-02-05 4.500 1.763
2014-01-30 4.500 2.055
2013-01-31 3.600 1.870
2012-02-07 2.800 1.598
2012-02-03 2.800 1.892
2011-03-23 2.000 1.631
2010-02-08 1.500 1.453
2010-02-03 1.500 1.980
2010-02-02 1.500 2.013

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Novo Nordisk has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Novo Nordisk only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Novo Nordisk's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Novo Nordisk's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Novo Nordisk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Novo Nordisk has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NVO Management

 What is the CEO of Novo Nordisk's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lars Jørgensen
COMPENSATION DKK11,200,000
AGE 52
TENURE AS CEO 2.4 years
CEO Bio

Mr. Lars Fruergaard Jørgensen has been the Chief Executive Officer and President of Novo Nordisk A/S since January 1, 2017. He has been Deputy Chair of the Supervisory Board at Carlsberg A/S since March 13, 2019 and at Carlsberg Breweries A/S since March 14, 2019. He served as Executive Vice President and Head of Corporate Development at Novo Nordisk A/S since December 17, 2015 until December 31, 2016 and served as its Chief of Staff until October 27, 2016. Mr. Jørgensen served as an Executive Vice President at Novo Nordisk A/S from January 2013 to December 17, 2015 and served as its Chief Information Officer since January 2013, Head of IT & Corporate Development from 2004 to January 31, 2013 and Member of Senior Management Board. He joined Novo Nordisk in 1991 as an economist in Health Care, Economy & Planning and has over the years completed overseas postings in the US and Japan. Since 2004, he served as Senior Vice President for IT & Corporate Development at Novo Nordisk. From 2001 to 2004, he served as Vice President, Regional Finance and Information Technology, of Novo Nordisk Pharmaceutical Ltd. He served as Chairman of the Board of Harno Invest A/S. He served as Chairman of the Board of NNE A/S since 2014 until March 13, 2017 and served as its Vice Chairman. He serves as a Director of Novo Nordisk Biotech Fund. He served as a Director of NNIT A/S since 2005. He served as Member of Supervisory Board at Innate Pharma SA since 2011. He served as a Director of ZymoGenetics, Inc. from June 2010 to October 8, 2010; Dako A/S from 2006 to 2007 and Accuro Immunology A/B from 2003 to 2009. He served as a Director of Xencor Inc. He holds an MSc in Finance and Business Administration from Aarhus School of Business, Aarhus University, Denmark since 1991.

CEO Compensation
  • Lars's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Lars's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Novo Nordisk management team in years:

3.3
Average Tenure
52
Average Age
  • The tenure for the Novo Nordisk management team is about average.
Management Team

Lars Jørgensen

TITLE
President & CEO
COMPENSATION
DKK11M
AGE
52
TENURE
2.4 yrs

Mads Thomsen

TITLE
Executive VP & Chief Science Officer
COMPENSATION
DKK13M
AGE
58
TENURE
18.6 yrs

Karsten Knudsen

TITLE
Executive VP & CFO
AGE
46
TENURE
1.3 yrs

Lars Green

TITLE
Executive VP and Head of Business Services & Compliance
AGE
51
TENURE
1.9 yrs

Ole Ramsby

TITLE
Senior VP & General Counsel of Legal Affairs

Peter Kurtzhals

TITLE
Head of Global Research

Lars Guldbaek Karlsen

TITLE
Senior Vice President of Product Supply Quality
TENURE
11.4 yrs

Claus Eilersen

TITLE
Member of Senior Management Board & Senior VP

Kim Bundegaard

TITLE
Senior Vice President

Jerzy Gruhn

TITLE
Head of Europe and Senior Vice President
AGE
55
TENURE
4.2 yrs
Board of Directors Tenure

Average tenure and age of the Novo Nordisk board of directors in years:

3.8
Average Tenure
58
Average Age
  • The tenure for the Novo Nordisk board of directors is about average.
Board of Directors

Helge Lund

TITLE
Chairman of the Board
COMPENSATION
DKK300K
AGE
56
TENURE
1.3 yrs

Jepp Christiansen

TITLE
Vice Chairman
COMPENSATION
DKK2M
AGE
59
TENURE
6.3 yrs

Liz Hewitt

TITLE
Independent Director
COMPENSATION
DKK1M
AGE
62
TENURE
7.3 yrs

Martin MacKay

TITLE
Director
AGE
61
TENURE
1.3 yrs

Anne Kverneland

TITLE
Director
COMPENSATION
DKK600K
AGE
62
TENURE
18.6 yrs

Stig Strøbæk

TITLE
Director
COMPENSATION
DKK900K
AGE
54
TENURE
21.4 yrs

Mette Jensen

TITLE
Director
TENURE
1.3 yrs

Sylvie Grégoire

TITLE
Director
COMPENSATION
DKK900K
AGE
57
TENURE
4.3 yrs

Brian Daniels

TITLE
Director
AGE
58
TENURE
3.3 yrs

Kasim Kutay

TITLE
Director
AGE
53
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Novo Nordisk's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Novo Nordisk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NVO News

Simply Wall St News

How To Gain With Novo Nordisk A/S (NYSE:NVO)

This is the best time to buy stocks like Novo Nordisk A/S at a discount. … NYSE:NVO Historical Debt May 7th 18 Novo Nordisk currently has Ø228.00M debt on its books which requires regular servicing. … This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Novo Nordisk as a long-term hold.

Simply Wall St -

Is Novo Nordisk A/S's (NYSE:NVO) 76.54% ROE Good Enough Compared To Its Industry?

This means Novo Nordisk returns enough to cover its own cost of equity, with a buffer of 68.05%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:NVO Last Perf Feb 19th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses. … Novo Nordisk exhibits a strong ROE against its peers, as well as sufficient returns to cover its cost of equity.

Simply Wall St -

NVO Company Info

Description

Novo Nordisk A/S, a healthcare company, engages in the development, manufacture, and marketing of pharmaceutical products worldwide. It operates in two segments, Diabetes Care and Obesity, and Biopharmaceuticals. The Diabetes Care and Obesity segment provides products in the areas of insulins, GLP-1 and related delivery systems, oral anti-diabetic 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 a collaboration agreement Lund University to develop stem cell-derived treatment for Parkinson’s diseases; and Staten Biotechnology B.V. to develop novel therapeutics for the treatment of dyslipidaemia. The company was founded in 1925 and is headquartered in Bagsvaerd, Denmark.

Details
Name: Novo Nordisk A/S
NVO
Exchange: NYSE
Founded: 1925
DKK121,532,968,206
2,374,733,857
Website: http://www.novonordisk.com
Address: Novo Nordisk A/S
Novo Allé,
Bagsvaerd,
Capital Region of Denmark, 2880,
Denmark
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
CPSE NOVO B Class B Common Shares OMX Nordic Exchange Copenhagen DK DKK 02. Jan 1992
OTCPK NONO.F Class B Common Shares Pink Sheets LLC US USD 02. Jan 1992
DB NOVC Class B Common Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0QIU Class B Common Shares London Stock Exchange GB DKK 02. Jan 1992
SWX NOVOB Class B Common Shares SIX Swiss Exchange CH CHF 02. Jan 1992
WBAG NNOR Class B Common Shares Wiener Boerse AG AT EUR 02. Jan 1992
BATS-CHIXE NOVOBC Class B Common Shares BATS 'Chi-X Europe' GB DKK 02. Jan 1992
NYSE NVO ADR-EACH CNV INTO 1 CLASS'B'DKK1 New York Stock Exchange US USD 30. Apr 1981
DB NOVA ADR-EACH CNV INTO 1 CLASS'B'DKK1 Deutsche Boerse AG DE EUR 30. Apr 1981
XTRA NOVA ADR-EACH CNV INTO 1 CLASS'B'DKK1 XETRA Trading Platform DE EUR 30. Apr 1981
LSE 0TDD ADR-EACH CNV INTO 1 CLASS'B'DKK1 London Stock Exchange GB USD 30. Apr 1981
BMV NVO N ADR-EACH CNV INTO 1 CLASS'B'DKK1 Bolsa Mexicana de Valores MX MXN 30. Apr 1981
Number of employees
Current staff
Staff numbers
42,453
Novo Nordisk employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 23:41
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.