A Business at a Glance
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ITEM 4 INFORMATION ON THE COMPANY A. HISTORY AND DEVELOPMENT OF THE COMPANY Novo Nordisk A/S was formed in 1989 by a merger of two Danish companies, Nordisk Gentofte A/S and Novo Industri A/S. Novo Industri A/S was the continuing company and its name was changed to Novo Nordisk A/S. The business activities of Nordisk Gentofte were established in 1923 by August Krogh, H. C. Hagedorn and A. Kongsted, and the business activities of Novo Industri A/S were established in 1925 by Harald and Thorvald Pedersen. From the beginning, the business of both companies was the production and sale of insulin for the treatment of diabetes. Novo Nordisk’s B shares are listed on Nasdaq Copenhagen (NOVO-B). Its ADRs are listed on the New York Stock Exchange (NVO).
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 46.9B | 46.9B | 42.1B | 33.8B | 25.0B | 22.3B |
| Net Income | 15.5B | 15.5B | 14.6B | 12.2B | 7.9B | 7.6B |
| EPS | $4.61 | $4.61 | $4.33 | $3.58 | $2.28 | $2.17 |
| Free Cash Flow | 8.9B | 8.9B | 10.7B | 12.1B | 9.4B | 7.7B |
| ROIC | 34.7% | 38.9% | 58.9% | 75.9% | 65.3% | 60.8% |
| Gross Margin | 81.0% | 81.0% | 84.7% | 84.6% | 83.9% | 83.2% |
| Debt/Equity | 0.74 | 0.74 | 0.81 | 0.31 | 0.33 | 0.57 |
| Dividends/Share | $2.33 | $2.33 | $1.89 | $1.36 | $1.04 | $0.98 |
| Operating Income | 20.8B | 20.8B | 19.5B | 15.4B | 10.6B | 9.8B |
| Operating Margin | 44.4% | 44.4% | 46.3% | 45.4% | 42.4% | 43.7% |
| ROE | 52.8% | 60.7% | 80.8% | 88.1% | 72.0% | 71.2% |
| Shares Outstanding | 3,369M | 3,369M | 3,380M | 3,404M | 3,441M | 3,488M |
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | TTM | ||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 18.3B | 19.6B | 22.3B | 25.0B | 33.8B | 42.1B | 46.9B | 46.9B |
| Gross Margin | 83.5% | 83.5% | 83.2% | 83.9% | 84.6% | 84.7% | 81.0% | 81.0% |
| R&D | 2.1B | 2.4B | 2.8B | 3.4B | 4.7B | 7.0B | 7.9B | 7.9B |
| SG&A | 4.8B | 5.1B | 5.9B | 6.5B | 8.3B | 9.0B | 9.8B | 9.8B |
| EBIT | 7.9B | 8.6B | 9.8B | 10.6B | 15.4B | 19.5B | 20.8B | 20.8B |
| Op. Margin | 43.1% | 43.9% | 43.7% | 42.4% | 45.4% | 46.3% | 44.4% | 44.4% |
| Net Income | 5.8B | 6.5B | 7.6B | 7.9B | 12.2B | 14.6B | 15.5B | 15.5B |
| Net Margin | 31.9% | 33.2% | 33.9% | 31.4% | 36.0% | 34.8% | 33.1% | 33.1% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||||
| ROIC | 77.0% | 73.1% | 60.8% | 65.3% | 75.9% | 58.9% | 38.9% | 34.7% |
| ROE | 71.2% | 69.7% | 71.2% | 72.0% | 88.1% | 80.8% | 60.7% | 52.8% |
| ROA | N/A | N/A | 24.6% | 25.5% | 30.1% | 25.9% | 20.3% | 18.9% |
| Cash Flow | ||||||||
| Op. Cash Flow | 7.0B | 8.0B | 8.7B | 11.2B | 15.9B | 17.5B | 18.1B | 18.1B |
| Free Cash Flow | 5.7B | 7.1B | 7.7B | 9.4B | 12.1B | 10.7B | 8.9B | 8.9B |
| Owner Earnings | 6.2B | 7.1B | 7.8B | 10.1B | 14.5B | 14.8B | 14.7B | 14.7B |
| CapEx | 1.3B | 897M | 1.0B | 1.7B | 3.8B | 6.8B | 9.1B | 9.1B |
| Maint. CapEx | 849M | 886M | 956M | 1.0B | 1.4B | 2.8B | 3.3B | 3.3B |
| Growth CapEx | 490M | 11M | 49M | 677M | 2.4B | 4.1B | 5.8B | 5.8B |
| D&A | 849M | 886M | 956M | 1.0B | 1.4B | 2.8B | 3.3B | 3.3B |
| CapEx/OCF | 19.1% | 11.2% | 11.5% | 15.4% | 23.7% | 39.0% | 50.5% | 50.5% |
| Capital Allocation | ||||||||
| Dividends Paid | 2.9B | 3.1B | 3.4B | 3.6B | 4.6B | 6.4B | 7.9B | 7.9B |
| Dividend Yield | N/A | N/A | 2.4% | 2.0% | 1.7% | 1.6% | 3.6% | 6.1% |
| Share Buybacks | 0 | 0 | 3.1B | 3.4B | 4.4B | 2.9B | 211M | 211M |
| Buyback Yield | N/A | N/A | 1.7% | 1.6% | 1.3% | 1.0% | 0.1% | 0.2% |
| Stock-Based Comp | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt Repayment | 123M | 146M | 1.1B | 1.9B | 214M | 918M | 12.0B | 12.0B |
| Balance Sheet | ||||||||
| Net Debt | N/A | N/A | 4.7B | 2.1B | 2.8B | 14.5B | 17.7B | 17.7B |
| Cash & Equiv. | N/A | N/A | 1.7B | 1.8B | 2.1B | 2.3B | 4.0B | 4.0B |
| Long-Term Debt | N/A | N/A | 2.1B | 3.4B | 3.0B | 13.0B | 18.0B | 18.0B |
| Debt/Equity | -1.00 | -1.00 | 0.57 | 0.33 | 0.31 | 0.81 | 0.74 | 0.74 |
| Interest Coverage | 13.2 | 21.2 | 25.1 | 12.5 | 124.9 | 18.3 | 20.3 | 20.3 |
| Equity | 8.6B | 9.8B | 11.2B | 11.8B | 15.5B | 20.8B | 29.4B | 29.4B |
| Total Assets | 0 | 0 | 30.9B | 34.1B | 45.8B | 67.4B | 82.3B | 82.3B |
| Total Liabilities | -8.6B | -9.8B | 19.6B | 22.3B | 30.3B | 46.7B | 52.9B | 52.9B |
| Intangibles | N/A | N/A | N/A | N/A | 650M | 2.9B | 3.0B | 3.0B |
| Retained Earnings | N/A | N/A | 11.4B | 11.4B | 15.3B | 20.9B | 29.6B | 29.6B |
| Working Capital | N/A | N/A | -2.2B | -1.8B | -4.4B | -8.2B | -6.6B | -6.6B |
| Current Assets | N/A | N/A | 13.6B | 15.3B | 20.3B | 23.3B | 26.2B | 26.2B |
| Current Liabilities | N/A | N/A | 15.8B | 17.1B | 24.7B | 31.5B | 32.7B | 32.7B |
| Per Share Data | ||||||||
| EPS | 1.62 | 1.83 | 2.17 | 2.28 | 3.58 | 4.33 | 4.61 | 4.61 |
| Owner EPS | N/A | N/A | 2.23 | 2.94 | 4.25 | 4.36 | 4.37 | 4.37 |
| Book Value | N/A | N/A | 3.22 | 3.43 | 4.56 | 6.15 | 8.74 | 8.74 |
| Cash Flow/Share | N/A | N/A | 2.50 | 3.24 | 4.66 | 5.18 | 5.36 | 5.60 |
| Dividends/Share | N/A | N/A | 0.98 | 1.04 | 1.36 | 1.89 | 2.33 | 2.33 |
| Shares Out. | N/A | N/A | 3.5B | 3.4B | 3.4B | 3.4B | 3.4B | 3.4B |
| Valuation | ||||||||
| P/E Ratio | 16.1 | 17.6 | 23.9 | 27.8 | 27.8 | 19.6 | 11.4 | 8.2 |
| P/FCF | N/A | N/A | 23.4 | 23.1 | 28.0 | 26.9 | 19.7 | 14.3 |
| EV/EBIT | N/A | N/A | 19.0 | 20.8 | 22.3 | 15.5 | 9.3 | 7.0 |
| Price/Book | N/A | N/A | 16.1 | 18.5 | 21.9 | 13.8 | 6.0 | 4.3 |
| Price/Sales | N/A | N/A | 6.4 | 7.1 | 8.2 | 9.6 | 4.6 | 2.7 |
| FCF Yield | N/A | N/A | 4.3% | 4.3% | 3.6% | 3.7% | 5.1% | 7.0% |
| Market Cap | N/A | N/A | 180.9B | 218.4B | 339.0B | 287.4B | 176.5B | 127.9B |
| Avg. Price | 22.74 | 29.48 | 41.02 | 51.67 | 81.16 | 119.71 | 64.27 | 37.98 |
| Year-End Price | 26.17 | 32.25 | 51.86 | 63.46 | 99.60 | 85.03 | 52.40 | 37.98 |
NOVO NORDISK A S passes 8 of 9 quality checks, indicating strong fundamentals.
NOVO NORDISK A S trades at 8.2x trailing earnings, compared to its 15-year median P/E of 19.6x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 14.3x vs a median of 23.4x. The company's 5-year average ROIC is 59.9% with a gross margin of 83.5%. Total shareholder yield (dividends + buybacks) is 6.3%. At current prices, the estimated annualized return to fair value is +7.0%.
NOVO NORDISK A S (NVO) has a current P/E ratio of 8.2, compared to its historical median P/E of 19.6. The stock is currently considered Cheap based on its historical valuation range.
NOVO NORDISK A S (NVO) has a 5-year average return on invested capital (ROIC) of 59.9%. This indicates strong capital allocation and a potential competitive advantage.
NOVO NORDISK A S (NVO) has a market capitalization of $127.9B. It is classified as a large-cap stock.
Yes, NOVO NORDISK A S (NVO) pays a dividend with a trailing twelve-month yield of 6.14%. The company also returns capital through share buybacks, with a buyback yield of 0.16%.
Based on historical P/E analysis, NOVO NORDISK A S (NVO) appears cheap. The current P/E of 8.2 is 58% below its historical median of 19.6. The estimated fair value CAGR (P/E method) is 12.7%.
NOVO NORDISK A S (NVO) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
NOVO NORDISK A S (NVO) reported annual revenue of $46.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
NOVO NORDISK A S (NVO) has a net profit margin of 33.1%. This is a strong margin indicating high profitability.
NOVO NORDISK A S (NVO) generated $8.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NOVO NORDISK A S (NVO) has a debt-to-equity ratio of 0.74. This indicates moderate leverage.
NOVO NORDISK A S (NVO) reported earnings per share (EPS) of $4.61 in its most recent fiscal year.
NOVO NORDISK A S (NVO) has a return on equity (ROE) of 60.7%. This indicates the company generates strong returns for shareholders.
NOVO NORDISK A S (NVO) has a 5-year average gross margin of 83.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 7 years of financial data for NOVO NORDISK A S (NVO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NOVO NORDISK A S (NVO) has a book value per share of $8.74, based on its most recent annual SEC filing.