Novo Nordisk A/S
Find Ratings ReportsNOVO NORDISK A/S's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its subsector. NOVO NORDISK A/S has weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 31.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 10843.67 | 8445.6 |
EBITDA ($mil) | 4943.73 | 3429.47 |
EBIT ($mil) | 4458.49 | 3073.6 |
Net Income ($mil) | 3656.28 | 2452.64 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 4483.19 | 3387.11 |
Total Assets ($mil) | 46639.07 | 34663.79 |
Total Debt ($mil) | 4005.06 | 3704.64 |
Equity ($mil) | 15803.27 | 11995.26 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 89.24 | 87.31 |
EBITDA Margin | 45.59 | 40.6 |
Operating Margin | 41.12 | 36.39 |
Sales Turnover | 0.74 | 0.73 |
Return on Assets | 26.6 | 23.01 |
Return on Equity | 78.53 | 66.51 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.82 | 0.89 |
Debt/Capital | 0.2 | 0.24 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 4510.0 | 4499.8 |
Div / share | 0.0 | 0.0 |
EPS | 0.82 | 0.54 |
Book value / share | 3.5 | 2.67 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 5097106.0 | 4594370.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 38.41 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. The valuation analysis reveals that, NOVO NORDISK A/S seems to be trading at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NVO 48.85 | Peers 85.83 | NVO 37.58 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. NVO is trading at a significant discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NVO is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NVO 5.07 | Peers 18.08 | NVO 0.07 | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. NVO is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NVO trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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NVO 38.41 | Peers 19.07 | NVO 56.98 | Peers 12.58 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NVO is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. NVO is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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NVO 17.62 | Peers 84.44 | NVO 35.47 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NVO is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NVO trails its peers on the basis of sales growth. |
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