Novo Nordisk A/S(NVO)
NASDAQ

Fundamental Analysis & Financials

$47.42
-1.03 (-2.13%)

Valuation Snapshot

What the multiples imply about expectations

The market considers the company to be a large-cap player with a significant market presence. At current multiples, it trades moderately valued—balancing growth expectations with current fundamentals.

Valuation Metrics

Ratios and multiples

Forward P/E
14.18
EV/Revenue (TTM)1.04
Price/FCF (TTM)572.96

Financial Health

Liquidity and leverage

ROE (TTM)60.70%
ROA (TTM)17.43%
Debt/Equity (MRQ)67.49

The company's financial health appears excellent. High ROE and strong ROA reflect highly efficient capital use. Debt is elevated but represents structural leverage for shareholder return strategy (buybacks) rather than operational stress.

Valuation Multiples

Current valuation metrics

P/E Ratio13.27
P/B Ratio7.01
P/S Ratio0.70
EV/EBITDA2.11
PEG Ratio4.13

Quarterly Earnings History

Recent quarterly financial performance and trends

Latest Quarter
Q4 2025
Revenue (TTM)
$79.14B
Net Income (TTM)
$26.89B
EPS (Diluted)
$6.04
QuarterRevenueNet IncomeGross ProfitEPS (Basic)EPS (Diluted)Gross MarginNet Margin
Q4 2025(Latest)$79.14B$26.89B$64.00B$6.06$6.0480.9%34.0%
Q3 2025$74.98B$20.01B$57.07B$4.50$4.5076.1%26.7%
Q2 2025$76.86B$26.50B$64.01B$5.96$5.9683.3%34.5%
Q1 2025$78.09B$29.03B$65.20B$6.54$6.5383.5%37.2%

Key Insights:

  • Revenue increased by 5.6% from previous quarter
  • Net margin of 34.0% indicates strong profitability
  • EPS improved by 34.2% quarter-over-quarter

Financial Efficiency

Utilization and collections performance

Asset Turnover 0.57 indicates moderate efficiency. Receivables Turnover 4.36 and DSO 83.68 reflect poor collections. Working Capital Turnover -7.15 is moderately efficient (negative due to negative working capital model). ROIC 32.4% highlights strong capital returns.

Efficiency Metrics

Asset Turnover0.57
Receivables Turnover4.36
Working Capital Turnover-7.15
Days Sales Outstanding83.68
Days Inventory Outstanding308.10
ROIC (TTM)32.4%
Inventory Turnover1.18
Cash Conversion Cycle-558.83

* Negative working capital indicates the company operates efficiently with vendors funding operations

Profitability & Growth

Margins and earnings power

Revenue (TTM)
$309.06B
-7.60 YoY
Profit Margin (TTM)
33.14%
Operating Margin (TTM)
44.53%
Gross Profit (TTM)
$254.69B
Gross Margin 82.41%
EBITDA (TTM)
$153.29B
EBITDA Margin 49.60%
Net Income (TTM)
$102.43B
Earnings -4.70% YoY

Efficiency Performance Matrix

4-quadrant analysis of operational efficiency vs profitability

Efficiency vs Profitability Quadrants

High Efficiency
High Margin
High Efficiency
Low Margin
Low Efficiency
High Margin
Low Efficiency
Low Margin

Efficiency Analysis

Asset Turnover
Efficiency:0.57x
Margin:82.4%
Quadrant:Margin-Driven
Receivables Turnover
Efficiency:4.36x
Margin:44.5%
Quadrant:Margin-Driven
Working Capital
Efficiency:-7.15x(abs: -7.15x)
Margin:33.1%
Quadrant:Margin-Driven
Overall Efficiency Score

Profit-focused operations with efficiency opportunities

⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.

• Bubble size represents ROIC magnitude

• Green (Optimal): Excellent efficiency-profitability balance

• Blue (Efficiency-Driven): High turnover, room to improve margins

• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency

• Red (Weak Operations): Areas needing improvement on both dimensions

Market Data & Share Structure

Comprehensive valuation metrics and ownership breakdown

Market Data & Capitalization

Market Cap
$215.93B
Mega-cap: Premium liquidity & institutional favorite
Enterprise Value
$322.77B
EV 49% > Market Cap: Net debt position
Next Earnings Date
02/03/2026
Earnings date has passed - awaiting update

Share Statistics & Ownership

Shares Outstanding
N/A
Total shares issued and held by all shareholders
Shares Float
N/A
Shares available for public trading
Institutional Ownership
N/A
Held by funds, pensions, endowments
Insider Ownership
N/A
Held by executives and board members
Shares Short
N/A
Shares sold short - bearish bets
Implied Shares Outstanding
N/A
Calculated from market cap and price

Profitability Margin Pyramid

Hierarchical view of margin compression from revenue to net income

Margin Hierarchy by Profitability Level

100.0%
Revenue
$309.06B
82.4%
Gross Profit
$254.69B
49.6%
EBITDA
$153.29B
33.1%
Net Income
$102.43B
Margin Profile:
Revenue100.0% margin (Top line revenue generation)
Gross Profit82.4% margin (Revenue minus cost of goods sold)
EBITDA49.6% margin (Earnings before interest, taxes, depreciation, and amortization)
Net Income33.1% margin (Bottom line profitability after all expenses)

Margin Analysis

Total Revenue

Amount:$309.06B
Margin:100.0%
Top line revenue generation

Gross Profit

Amount:$254.69B
Margin:82.4%
Revenue minus cost of goods sold

EBITDA

Amount:$153.29B
Margin:49.6%
Earnings before interest, taxes, depreciation, and amortization

Net Income

Amount:$102.43B
Margin:33.1%
Bottom line profitability after all expenses

Margin Quality Assessment

Excellent margin structure with strong bottom-line profitability

• Larger circles represent higher dollar amounts

• Margin percentages show profitability at each level

• Blue: Revenue base

• Green: Gross profitability

• Yellow: Operating performance

• Red: Net profitability

Operating Cash & Liquidity

Core cash generation and short-term solvency

Cash Flow Analysis

Operating Cash Flow (TTM)

$119.10B

Cash from core operations

Free Cash Flow (TTM)

$376.88M

Available after capex

Financial Position & Liquidity

Current Ratio

0.80

Concerning

Quick Ratio

0.54

Weak

Net Cash

$-104.00B

Net debtor

Total Cash

$26.96B

Balance sheet cash

Total Debt

$130.96B

Outstanding borrowings

Dividends & Shareholder Returns

Policy stance and implications

The company pays dividends but dividend sustainability is at risk (FCF coverage: 0.0x). The payout ratio of 50.4% indicates potential risk - monitor cash flows and earnings closely.

Payout Ratio
50.42%
Trailing Dividend Rate
11.7
Trailing Dividend Yield
0.24%
5 Year Avg Dividend Yield
1.62%
Forward Annual Dividend Rate
1.86
Forward Annual Dividend Yield
3.92%
Ex-Dividend Date
03/30/2026
Last Split
09/20/2023 (2.00)