Cancel anytime
- Chart
- Upturn Summary
- Highlights
- Valuation
- AI Summary
- About
Novo Nordisk A/S (NVO)
- BUY Advisory
- Profitable SELL
- Loss-Inducing SELL
- Profit
- Loss
- Pass (Skip investing)
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
01/21/2025: NVO (4-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit 69.22% | Avg. Invested days 84 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 4.0 | Stock Returns Performance 3.0 |
Profits based on simulation | Last Close 01/21/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 352.92B USD | Price to earnings Ratio 26.92 | 1Y Target Price 112.49 |
Price to earnings Ratio 26.92 | 1Y Target Price 112.49 | ||
Volume (30-day avg) 8879523 | Beta 0.17 | 52 Weeks Range 78.17 - 147.60 | Updated Date 01/22/2025 |
52 Weeks Range 78.17 - 147.60 | Updated Date 01/22/2025 | ||
Dividends yield (FY) 1.84% | Basic EPS (TTM) 3.01 |
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 35.01% | Operating Margin (TTM) 47.43% |
Management Effectiveness
Return on Assets (TTM) 21.47% | Return on Equity (TTM) 88.73% |
Valuation
Trailing PE 26.92 | Forward PE 20.08 | Enterprise Value 349548176277 | Price to Sales(TTM) 1.3 |
Enterprise Value 349548176277 | Price to Sales(TTM) 1.3 | ||
Enterprise Value to Revenue 9.38 | Enterprise Value to EBITDA 18.62 | Shares Outstanding 3365289984 | Shares Floating 3186288495 |
Shares Outstanding 3365289984 | Shares Floating 3186288495 | ||
Percent Insiders - | Percent Institutions 10.14 |
AI Summary
Novo Nordisk A/S: A Comprehensive Overview
Company Profile:
History and Background:
Novo Nordisk A/S is a global healthcare company founded in 1923 in Copenhagen, Denmark. Originally a subsidiary of insulin producer Nordisk Insulinlaboratorium, it emerged as an independent entity in 1989. Today, Novo Nordisk is a leading player in the diabetes care market, offering a broad portfolio of innovative products and services for people with diabetes.
Core Business Areas:
- Diabetes Care: This segment constitutes Novo Nordisk's core business, offering various insulins, oral antidiabetic drugs, and delivery devices for diabetes treatment.
- Biopharmaceuticals: This segment focuses on developing and marketing products for other chronic conditions, including hemophilia, growth hormone deficiency, and obesity.
Leadership and Corporate Structure:
- Lars Fruergaard Jørgensen, President & CEO, leads the company.
- Kasper Roer Stephensen, Executive Vice President and Chief Science Officer, spearheads research and development.
- Toft Juel Wulff, Chief Financial Officer, manages financial strategy.
- Novo Nordisk A/S has a two-tier board structure:
- Supervisory Board: Oversees overall strategy and governance
- Executive Management Board: Responsible for daily operations
Top Products and Market Share:
Top Products:
- Insulin: Novo Nordisk holds a leading position in the global insulin market with brands like NovoRapid®, Tresiba®, and Levemir®
- GLP-1 Receptor Agonists: Ozempic® and Victoza® are key players in this class of diabetes medications
- Hemophilia Treatments: NovoEight®, NovoSeven® and ReFacto® are leading products for hemophilia A and B
Market Share:
- Global Insulin Market: ~50% market share
- US Insulin Market: ~45% market share
- GLP-1 Receptor Agonists Market: ~35% market share
Product Performance and Market Reception:
Novo Nordisk's products are generally well-received in the market, known for their efficacy, safety, and innovation. However, competition in the diabetes market is intense, and the company faces pressure from biosimilar manufacturers.
Total Addressable Market:
The global diabetes market is estimated to reach USD 103.1 billion by 2027. This large and growing market presents significant opportunities for Novo Nordisk.
Financial Performance:
Recent Financial Performance:
Novo Nordisk has experienced consistent revenue and earnings growth in recent years. In 2022, the company reported revenue of DKK 176.9 billion (USD 25.5 billion), net income of DKK 50.8 billion (USD 7.3 billion), a profit margin of 28.7%, and EPS of DKK 21.36 (USD 3.07).
Year-over-Year Comparison:
Revenue increased by 16% compared to 2021, while net income grew by 13%. This growth reflects strong demand for Novo Nordisk's products and successful product launches.
Cash Flow and Balance Sheet:
Novo Nordisk maintains a strong financial position with healthy cash flow and a solid balance sheet. The company has a AAA credit rating, reflecting its low debt levels and financial stability.
Dividends and Shareholder Returns:
Dividend History:
Novo Nordisk has a consistent history of paying dividends. The company's current dividend yield is 1.1%, and its payout ratio is around 30%.
Shareholder Returns:
Over the past year, Novo Nordisk shares have returned 12.5%, outperforming the broader market. Over the past five years, shareholder returns have been 85%, demonstrating the company's strong long-term growth potential.
Growth Trajectory:
Historical Growth:
Novo Nordisk has consistently grown revenue and earnings over the past five to ten years. This growth has been fueled by new product launches, global expansion, and increasing diabetes prevalence.
Future Growth Projections:
Analysts expect Novo Nordisk to continue growing in the coming years, with revenue expected to reach DKK 215 billion (USD 31 billion) by 2025. This growth is expected to be driven by increasing demand for diabetes care and the launch of new products.
Recent Growth Initiatives:
Novo Nordisk is pursuing several initiatives to drive future growth, including expanding into new markets, investing in R&D, and developing innovative new products.
Market Dynamics:
Industry Trends:
The global diabetes market is expected to continue growing due to several factors, including increasing prevalence, rising obesity rates, and aging populations.
Technological Advancements:
Technological advancements are playing an increasingly important role in the diabetes market, with the development of new insulin delivery devices, continuous glucose monitoring systems, and artificial intelligence-based solutions.
Novo Nordisk's Positioning:
Novo Nordisk is well-positioned to benefit from these market dynamics due to its strong brand recognition, innovative product portfolio, and global presence.
Key Challenges and Opportunities:
Key Challenges:
- Competition: Biosimilar manufacturers and other pharmaceutical companies are putting pressure on Novo Nordisk's market share.
- Supply Chain Issues: Global supply chain disruptions could impact Novo Nordisk's ability to manufacture and distribute its products.
- Regulatory Environment: Changes in regulations could affect the pricing and availability of Novo Nordisk's products.
Key Opportunities:
- Emerging Markets: Novo Nordisk has significant opportunities to grow its business in emerging markets with increasing diabetes rates.
- Innovation: Continued investment in R&D will allow Novo Nordisk to develop new and innovative products that meet the evolving needs of patients with diabetes and other chronic conditions.
- Strategic Partnerships: Partnering with other companies can help Novo Nordisk expand its reach and access new technologies.
Recent Acquisitions (last 3 years):
2023:
- Corvidia Therapeutics: Acquisition of this US-based biotechnology company strengthened Novo Nordisk's position in rare cardiovascular disease treatment.
2022:
- Forma Therapeutics: This acquisition expanded Novo Nordisk's portfolio into non-alcoholic steatohepatitis (NASH) treatment.
- Emisphere Technologies: This acquisition aimed to improve the delivery and efficacy of existing and future Novo Nordisk products.
2021:
- Dicerna Pharmaceuticals: This acquisition brought RNA interference (RNAi) technology into Novo Nordisk, targeting a new approach for treating chronic metabolic diseases like obesity.
These acquisitions demonstrate Novo Nordisk's commitment to expanding its product portfolio and entering new therapeutic areas.
AI-Based Fundamental Rating:
Overall Rating: 8.5 out of 10
Justification:
Novo Nordisk is a financially strong and well-positioned company with a leading market position in diabetes care. The company's strong product pipeline, global reach, and commitment to innovation provide significant opportunities for future growth. However, the company faces competition from biosimilar manufacturers and needs to navigate potential supply chain disruptions.
Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.
Sources:
- Novo Nordisk Annual Report 2022: https://www.novonordisk.com/content/dam/Investor/documents/annual-reports/annual-report-2022/NVO-AR2022-EN-Full.pdf
- Novo Nordisk Investor Relations: https://www.novonordisk.com/investors.html
- Novo Nordisk Product Portfolio: https://www.novonordisk.com/products/all-products.html
- Statista: Diabetes Market Size: https://www.statista.com/statistics/616373/diabetes-market-size-value-worldwide/
I hope this detailed overview provides you with a comprehensive understanding of Novo Nordisk A/S's stock performance, competitive positioning, and future potential. This analysis considered various factors, including financial health, market position, and future prospects, to evaluate the stock's potential for investors.
Disclaimer:* This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.*
About Novo Nordisk A/S
Exchange NYSE | Headquaters - | ||
IPO Launch date 1982-01-04 | President, CEO & Member of Management Board Mr. Lars Fruergaard Jorgensen | ||
Sector Healthcare | Industry Drug Manufacturers - General | Full time employees 71880 | Website https://www.novonordisk.com |
Full time employees 71880 | Website https://www.novonordisk.com |
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. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. The Diabetes and Obesity care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides insulin pens, growth hormone pens, and injection needles. In addition, it offers smart solutions for diabetes treatment, such as smart insulin pens and Dose Check, an insulin dose guidance application. The company has a collaboration agreement with Aspen Pharmaceuticals to produce insulin products; and with Korro Bio, Inc. for the discovery and development of new genetic medicines to treat cardiometabolic diseases; and with Valo Health, Inc. to discover and develop novel treatments for obesity, type 2 diabetes, and cardiovascular disease. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.