Novo Nordisk A/S may be undervalued with mixed growth prospects, but the 10 analysts following the company give it an rating of hold. Their target prices range from $49.926647 to $104.84596 per share, for an average of $67.43. At today's price of $48.77, Novo Nordisk A/S is trading -27.69% away from its average target price, suggesting there is an analyst consensus of strong upside potential for the stock.
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 78,387 full time employees. Novo Nordisk A/S has offered a 25.7% dividend yield over the last 12 months.
Novo Nordisk A/S has a trailing twelve month P/E ratio of 12.6, compared to an average of 22.94 for the Health Care sector. Considering its EPS guidance of $4.07, the company has a forward P/E ratio of 12.0.
On the other hand, the market is potentially undervaluing Novo Nordisk A/S in terms of its book value because its P/B ratio is 1.29. In comparison, the sector average P/B ratio is 3.19. The company's shares are currently -61.9% above their Graham number, which suggests that they are not trading at a fair value in terms of earnings and net assets.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $122,021 | $126,946 | $140,800 | $176,954 | $232,261 | $290,403 |
| Gross Margins | 84% | 84% | 83% | 84% | 85% | 85% |
| Net Margins | 32% | 33% | 34% | 31% | 36% | 35% |
| Net Income (M) | $38,951 | $42,138 | $47,757 | $55,525 | $83,683 | $100,988 |
| Net Interest Expense (M) | $220 | $390 | $289 | $378 | $542 | $1,640 |
| Depreciation & Amort. (M) | $5,661 | $5,753 | $6,025 | $6,553 | $7,289 | $8,545 |
| Earnings Per Share | $16.38 | $18.01 | $10.37 | $12.22 | $18.62 | $22.63 |
| EPS Growth | n/a | 9.95% | -42.42% | 17.84% | 52.37% | 21.54% |
| Free Cash Flow (M) | $46,782 | $51,951 | $55,000 | $78,887 | $108,908 | $120,968 |
| Total Debt (M) | $3,009 | $2,897 | $12,961 | $24,318 | $20,528 | $89,674 |
| Net Debt / EBITDA | -0.21 | -0.16 | 0.03 | 0.14 | 0.06 | 0.54 |
| Current Ratio | 1.06 | 0.94 | 0.86 | 0.89 | 0.82 | 0.74 |
