Now trading at a price of $88.08, Novo Nordisk A/S has moved 5.2% so far today.
Novo Nordisk A/S returned losses of -28.7% last year, with its stock price reaching a high of $148.15 and a low of $77.82. Over the same period, the stock underperformed the S&P 500 index by -47.3%. AThe company's 50-day average price was $88.64. Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. Based in Bagsvaerd, Denmark, the Large-Cap Health Care company has 76,302 full time employees. Novo Nordisk A/S has offered a 13.6% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 57.86%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $111,831 | $122,021 | $126,946 | $140,800 | $176,954 | $232,261 |
| Gross Margins | 84% | 84% | 84% | 83% | 84% | 85% |
| Net Margins | 35% | 32% | 33% | 34% | 31% | 36% |
| Net Income (M) | $38,628 | $38,951 | $42,138 | $47,757 | $55,525 | $83,683 |
| Net Interest Expense (M) | $85 | $220 | $390 | $289 | $378 | $542 |
| Depreciation & Amort. (M) | $3,925 | $5,661 | $5,753 | $6,025 | $7,362 | $9,413 |
| Earnings Per Share | $15.93 | $16.38 | $18.01 | $10.37 | $12.22 | $18.62 |
| EPS Growth | n/a | 2.82% | 9.95% | -42.42% | 17.84% | 52.37% |
| Free Cash Flow (M) | $44,616 | $46,782 | $51,951 | $55,000 | $78,887 | $108,908 |
| Total Debt (M) | n/a | $3,009 | $2,897 | $12,961 | $24,318 | $20,528 |
| Net Debt / EBITDA | nan | -0.21 | -0.16 | 0.03 | 0.14 | 0.05 |
| Current Ratio | 1.09 | 1.06 | 0.94 | 0.86 | 0.89 | 0.82 |
Novo Nordisk A/S has generally positive cash flows and wider gross margins than its peer group. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.82.
The Market May Be Undervaluing Novo Nordisk A/S's Assets and Equity:
Novo Nordisk A/S has a trailing twelve month P/E ratio of 28.1, compared to an average of 26.07 for the Health Care sector. Based on its EPS guidance of $4.07, the company has a forward P/E ratio of 21.8. The -17.7% compound average growth rate of Novo Nordisk A/S's historical and projected earnings per share yields a PEG ratio of -1.58. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Novo Nordisk A/S in terms of its equity because its P/B ratio is 2.73 while the sector average is 3.53. The company's shares are currently trading -11.5% above their Graham number.
Novo Nordisk A/S Has an Analyst Consensus of Strong Upside Potential:
The 10 analysts following Novo Nordisk A/S have set target prices ranging from $71.58453 to $161.0818 per share, for an average of $110.7 with a buy rating. The company is trading -20.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Novo Nordisk A/S has a very low short interest because 0.4% of the company's shares are sold short. Institutions own 10.2% of the company's shares, and the insider ownership rate stands at 0.14%, suggesting a small amount of insider investors. The largest shareholder is Jennison Associates LLC, whose 1% stake in the company is worth $1,756,738,813.
