Is Novo Nordisk Stock a Good Investment?
Novo Nordisk Investment Advice | NVO |
- Examine Novo Nordisk's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Novo Nordisk's leadership team and their track record. Good management can help Novo Nordisk navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Novo Nordisk's business and its evolving consumer preferences.
- Compare Novo Nordisk's performance and market position to its competitors. Analyze how Novo Nordisk is positioned in terms of product offerings, innovation, and market share.
- Check if Novo Nordisk pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Novo Nordisk's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Novo Nordisk AS stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Novo Nordisk AS is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Novo Nordisk Stock
Researching Novo Nordisk's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has Price/Earnings To Growth (PEG) ratio of 1.59. Novo Nordisk AS last dividend was issued on the 16th of August 2024. The entity had 2:1 split on the 20th of September 2023.
To determine if Novo Nordisk is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Novo Nordisk's research are outlined below:
| Novo Nordisk AS generated a negative expected return over the last 90 days | |
| Novo Nordisk AS has 27.01 B in debt with debt to equity (D/E) ratio of 0.34, which is OK given its current industry classification. Novo Nordisk AS has a current ratio of 0.9, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Novo to invest in growth at high rates of return. | |
| Novo Nordisk AS has a poor financial position based on the latest SEC disclosures | |
| Latest headline from bnnbloomberg.ca: WeightWatchers Hires Digital Media Veteran to Replace CFO |
Novo Nordisk uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Novo Nordisk AS. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Novo Nordisk's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 31st of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Novo Nordisk's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Novo Nordisk's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-10-27 | 2006-09-30 | 0.09 | 0.1 | 0.01 | 11 | ||
2017-05-03 | 2017-03-31 | 0.265 | 0.2979 | 0.0329 | 12 | ||
2012-02-02 | 2011-12-31 | 0.26 | 0.3 | 0.04 | 15 | ||
2022-04-28 | 2022-03-31 | 0.4233 | 0.47 | 0.0467 | 11 | ||
2024-08-07 | 2024-06-30 | 0.7366 | 0.66 | -0.0766 | 10 | ||
2015-10-29 | 2015-09-30 | 1.585 | 0.245 | -1.34 | 84 | ||
2016-02-03 | 2015-12-31 | 1.61 | 0.24 | -1.37 | 85 | ||
2016-04-29 | 2016-03-31 | 1.815 | 0.275 | -1.54 | 84 |
Know Novo Nordisk's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Novo Nordisk is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Novo Nordisk AS backward and forwards among themselves. Novo Nordisk's institutional investor refers to the entity that pools money to purchase Novo Nordisk's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 7 M | Polen Capital | 2024-09-30 | 6.9 M | Everett Harris & Co | 2024-09-30 | 6.4 M | State Street Corp | 2024-06-30 | 6.4 M | State Farm Mutual Automobile Ins Co | 2024-09-30 | 6.1 M | Royal Bank Of Canada | 2024-06-30 | 5.9 M | Blackrock Inc | 2024-06-30 | 5.5 M | Jpmorgan Chase & Co | 2024-06-30 | 4.9 M | Capital World Investors | 2024-09-30 | 4.5 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 29.2 M | Jennison Associates Llc | 2024-09-30 | 20.2 M |
Novo Nordisk's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 472.8 B.Market Cap |
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Novo Nordisk's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.33 | 0.35 | |
| Return On Capital Employed | 0.71 | 0.74 | |
| Return On Assets | 0.27 | 0.14 | |
| Return On Equity | 0.79 | 0.82 |
Determining Novo Nordisk's profitability involves analyzing its financial statements and using various financial metrics to determine if Novo Nordisk is a good buy. For example, gross profit margin measures Novo Nordisk's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Novo Nordisk's profitability and make more informed investment decisions.
Evaluate Novo Nordisk's management efficiency
Novo Nordisk AS has Return on Asset of 0.2147 % which means that on every $100 spent on assets, it made $0.2147 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.8873 %, implying that it generated $0.8873 on every 100 dollars invested. Novo Nordisk's management efficiency ratios could be used to measure how well Novo Nordisk manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Novo Nordisk's Return On Tangible Assets are very stable compared to the past year. As of the 30th of November 2024, Return On Capital Employed is likely to grow to 0.74, while Return On Assets are likely to drop 0.14. At this time, Novo Nordisk's Net Tangible Assets are very stable compared to the past year. As of the 30th of November 2024, Return On Tangible Assets is likely to grow to 0.35, while Other Current Assets are likely to drop about 1.5 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 23.77 | 24.96 | |
| Tangible Book Value Per Share | 10.30 | 10.81 | |
| Enterprise Value Over EBITDA | 27.72 | 29.11 | |
| Price Book Value Ratio | 29.37 | 30.84 | |
| Enterprise Value Multiple | 27.72 | 29.11 | |
| Price Fair Value | 29.37 | 30.84 | |
| Enterprise Value | 729.2 B | 765.7 B |
The leadership approach at Novo Nordisk's fosters a culture of excellence and accountability. Our analysis examines how this culture influences financial outcomes and stock valuation.
Dividend Yield 0.0142 | Forward Dividend Yield 0.0142 | Forward Dividend Rate 1.45 | Beta 0.165 |
Basic technical analysis of Novo Stock
As of the 30th of November, Novo Nordisk secures the Standard Deviation of 1.81, mean deviation of 1.38, and Risk Adjusted Performance of (0.13). In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Novo Nordisk AS, as well as the relationship between them.Novo Nordisk's Outstanding Corporate Bonds
Novo Nordisk issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Novo Nordisk AS uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Novo bonds can be classified according to their maturity, which is the date when Novo Nordisk AS has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Novo Nordisk's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Novo Nordisk's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (1.79) | |||
| Mean Deviation | 1.38 | |||
| Coefficient Of Variation | (545.97) | |||
| Standard Deviation | 1.81 | |||
| Variance | 3.29 | |||
| Information Ratio | (0.26) | |||
| Jensen Alpha | (0.37) | |||
| Total Risk Alpha | (0.65) | |||
| Treynor Ratio | (1.80) | |||
| Maximum Drawdown | 9.66 | |||
| Value At Risk | (3.40) | |||
| Potential Upside | 2.37 | |||
| Skewness | (0.18) | |||
| Kurtosis | 0.3734 |
| Risk Adjusted Performance | (0.13) | |||
| Market Risk Adjusted Performance | (1.79) | |||
| Mean Deviation | 1.38 | |||
| Coefficient Of Variation | (545.97) | |||
| Standard Deviation | 1.81 | |||
| Variance | 3.29 | |||
| Information Ratio | (0.26) | |||
| Jensen Alpha | (0.37) | |||
| Total Risk Alpha | (0.65) | |||
| Treynor Ratio | (1.80) | |||
| Maximum Drawdown | 9.66 | |||
| Value At Risk | (3.40) | |||
| Potential Upside | 2.37 | |||
| Skewness | (0.18) | |||
| Kurtosis | 0.3734 |
Consider Novo Nordisk's intraday indicators
Novo Nordisk intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Novo Nordisk stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 42283.45 | |||
| Daily Balance Of Power | 0.3268 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 106.38 | |||
| Day Typical Price | 106.52 | |||
| Price Action Indicator | 0.76 | |||
| Period Momentum Indicator | 0.67 | |||
| Relative Strength Index | 28.72 |
Novo Nordisk Corporate Filings
6K | 25th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
Novo Stock media impact
Far too much social signal, news, headlines, and media speculation about Novo Nordisk that are available to investors today. That information is available publicly through Novo media outlets and privately through word of mouth or via Novo internal channels. However, regardless of the origin, that massive amount of Novo data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Novo Nordisk news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Novo Nordisk relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Novo Nordisk's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Novo Nordisk alpha.
Novo Nordisk Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Novo Nordisk can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Novo Nordisk AS Historical Investor Sentiment
Investor biases related to Novo Nordisk's public news can be used to forecast risks associated with an investment in Novo. The trend in average sentiment can be used to explain how an investor holding Novo can time the market purely based on public headlines and social activities around Novo Nordisk AS. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Novo Nordisk's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Novo Nordisk and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Novo Nordisk news discussions. The higher the estimate score, the more favorable the investor's outlook on Novo Nordisk.
Novo Nordisk Corporate Directors
| Kasim Kutay | Director | Profile | |
| Sylvie Gregoire | Independent Director | Profile | |
| Mette Jensen | Director, Employee Representative | Profile | |
| Thomas Rantzau | Director, Employee Representative | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Novo Nordisk AS. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Novo Nordisk. If investors know Novo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Novo Nordisk listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.224 | Dividend Share 9.9 | Earnings Share 2.99 | Revenue Per Share 60.698 | Quarterly Revenue Growth 0.214 |
The market value of Novo Nordisk AS is measured differently than its book value, which is the value of Novo that is recorded on the company's balance sheet. Investors also form their own opinion of Novo Nordisk's value that differs from its market value or its book value, called intrinsic value, which is Novo Nordisk's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Novo Nordisk's market value can be influenced by many factors that don't directly affect Novo Nordisk's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Novo Nordisk's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Novo Nordisk is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Novo Nordisk's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.