Novolog (NVLG) AI Stock Analysis

• Market Cap: 644.72M
• Dividend Yield: 3.08%
• Average Volume (3M): 641.09K
• Price to Earnings (P/E): 51.9
• Beta (1Y): 0.68
• Revenue Growth: 22.79%
• EPS Growth: N/A
• Country: IL
• Employees: 936
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.80
• Shares Outstanding: 510,874,760
• 10 Day Avg. Volume: 285,794
• 30 Day Avg. Volume: 641,093
• PEG Ratio: -0.12
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 145.00 ▲(14.90% Upside)

Novolog's overall stock score reflects strong revenue growth but is tempered by declining profitability and cash flow issues. The technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation despite a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product adoption, supporting long-term business expansion.

Stable Balance Sheet

A stable balance sheet with manageable leverage supports financial resilience and the ability to invest in growth opportunities.

Cash Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in R&D and potential strategic acquisitions.

Negative Factors

Profitability Challenges

Declining profitability margins suggest operational inefficiencies, which may hinder long-term financial performance if not addressed.

Cash Flow Efficiency

Reduced cash flow efficiency can strain liquidity and limit the company's ability to fund operations and growth initiatives.

Return on Equity

A decline in return on equity indicates less effective use of shareholder funds, potentially impacting investor confidence and capital raising.

Novolog Business Overview & Revenue Model

Company Description

Novolog (NVLG) is a biotechnology company specializing in the development and commercialization of innovative pharmaceutical products, primarily focusing on treatments for diabetes and other metabolic disorders. The company operates in the healthcare sector, leveraging advanced research to create effective therapies that improve patient outcomes. Novolog’s core products include insulin formulations and delivery systems designed to enhance the management of blood glucose levels in diabetic patients.

How the Company Makes Money

Novolog generates revenue primarily through the sale of its pharmaceutical products, particularly its insulin formulations, which are marketed to hospitals, pharmacies, and healthcare providers. The company employs a direct sales force and collaborates with distributors to reach a broader market. Key revenue streams include prescription sales, partnerships with healthcare organizations for product distribution, and ongoing research and development collaborations that may lead to new product offerings. Additionally, Novolog may benefit from licensing agreements and government contracts that provide funding for specific health initiatives or product development, further contributing to its earnings.

Novolog Financial Statement Overview

Summary

Novolog demonstrates strong revenue growth but struggles with declining profitability margins and cash flow challenges. The balance sheet is stable with moderate leverage, but declining return on equity and cash flow metrics indicate areas for improvement.

Income Statement

Novolog has shown strong revenue growth, particularly in the TTM period with a 65.7% increase. However, profitability margins such as gross profit margin and net profit margin have declined over time, indicating pressure on profitability. The EBIT and EBITDA margins have also decreased, suggesting operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.52, indicating a balanced approach to leverage. However, the return on equity has decreased in the TTM period, reflecting reduced profitability. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Free cash flow has significantly declined in the TTM period, with a negative growth rate, raising concerns about cash generation. The operating cash flow to net income ratio is low, indicating potential issues in converting earnings to cash. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.12B	2.02B	1.64B	1.51B	1.26B	1.13B
Gross Profit	148.83M	180.78M	173.76M	176.15M	148.96M	129.29M
EBITDA	118.65M	149.39M	130.14M	138.53M	115.92M	104.05M
Net Income	10.97M	39.54M	-42.00M	47.51M	42.32M	40.07M
Balance Sheet
Total Assets	3.06B	3.04B	2.79B	2.43B	2.29B	2.19B
Cash, Cash Equivalents and Short-Term Investments	222.20M	247.60M	232.94M	172.81M	238.71M	176.44M
Total Debt	209.52M	198.47M	215.18M	212.77M	166.81M	154.24M
Total Liabilities	2.68B	2.65B	2.39B	1.97B	1.86B	1.89B
Stockholders Equity	372.01M	368.38M	371.08M	436.00M	424.37M	294.69M
Cash Flow
Free Cash Flow	46.63M	99.78M	129.06M	63.16M	52.75M	32.87M
Operating Cash Flow	73.66M	158.52M	200.01M	132.65M	83.39M	58.48M
Investing Cash Flow	-61.75M	-50.55M	-72.60M	-124.95M	-69.07M	-28.61M
Financing Cash Flow	-33.53M	-94.59M	-67.71M	-72.96M	47.49M	-39.85M

Novolog Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NVLG, the sentiment is Negative. The current price of 126.2 is below the 20-day moving average (MA) of 127.91, below the 50-day MA of 126.87, and below the 200-day MA of 139.62, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:NVLG.

Novolog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	73 Outperform	1.03B	44.75	10.95%	―	21.13%	251.25%
DANE	56 Neutral	2.71B	142.28	―	3.02%	5.94%	-52.48%
NVLG	56 Neutral	644.72M	51.93	―	3.08%	22.79%	―
SOFW	55 Neutral	989.91M	494.09	―	―	29.55%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%