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Novo Nordisk (NVO)
NYSE:NVO
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Novo Nordisk
(NYSE:NVO)
Rating:73Outperform
Price Target:
$63.00
▲(14.82% Upside)
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Novo Nordisk's products, enhancing its market position and financial stability.
Product Innovation
Regulatory approval for new uses of existing drugs can expand market reach and drive long-term revenue growth.
Market Expansion
Significant growth in obesity care sales highlights Novo Nordisk's successful market expansion strategy, supporting future profitability.
Negative Factors
Lowered Growth Outlook
A reduced growth outlook reflects potential challenges in key markets, which may impact future revenue and profitability.
Decreased Free Cash Flow
A decline in free cash flow can limit Novo Nordisk's ability to invest in growth opportunities and manage financial obligations.
U.S. Market Challenges
Challenges in the U.S. market, such as compounding issues, can hinder sales growth and affect Novo Nordisk's competitive position.
Novo Nordisk (NVO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$243.08B
Dividend Yield3.07%
Average Volume (3M)17.85M
Price to Earnings (P/E)15.1
Beta (1Y)1.10
Revenue Growth21.52%
EPS Growth24.50%
CountryUS
Employees77,406
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.93
Shares Outstanding3,390,128,000
10 Day Avg. Volume12,632,277
30 Day Avg. Volume17,850,771
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit1.22
Enterprise Value/Ebitda1.87
Forecast
1Y Price Target
$67.71Price Target Upside23.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Novo Nordisk Business Overview & Revenue Model
Company DescriptionNovo Nordisk is a global healthcare company headquartered in Denmark, specializing in the development and manufacturing of pharmaceuticals for diabetes care, obesity management, and other chronic diseases. Established in 1923, the company operates primarily in the biopharmaceutical sector, focusing on insulin and GLP-1 receptor agonists for diabetes treatment, as well as hormone replacement therapy and treatments for hemophilia and growth disorders. Novo Nordisk is recognized for its commitment to innovation and sustainability within the healthcare industry.
How the Company Makes MoneyNovo Nordisk generates revenue primarily through the sale of its pharmaceutical products, with a strong focus on diabetes care, which constitutes a significant portion of its income. The company’s key revenue streams include insulin products, GLP-1 receptor agonists, and other diabetes-related medications. Additionally, Novo Nordisk earns revenue from its portfolio of products for obesity management, hemophilia treatments, and hormone replacement therapies. The company benefits from strong partnerships with healthcare providers and organizations, which facilitate product distribution and access. Furthermore, Novo Nordisk invests heavily in research and development, leading to new product launches that enhance its market position and profitability. The company's global presence and established brand reputation also contribute to its financial success.
Novo Nordisk Key Performance Indicators (KPIs)
Any
Revenue by Segment
Details revenue from various business segments, providing insight into Novo Nordisk's diverse income streams and strategic focus areas.
Details revenue from various business segments, providing insight into Novo Nordisk's diverse income streams and strategic focus areas.
Data provided by:
Main Street Data
Main Street DataNovo Nordisk Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
Novo Nordisk reported strong sales and profit growth in the first half of 2025, with significant expansion in obesity care and international operations. However, the company lowered its full-year outlook due to challenges in the U.S. market and decreased free cash flow, reflecting both positive achievements and areas of concern.Q2-2025 Updates
Positive Updates
Strong Sales and Profit Growth
In the first 6 months of 2025, Novo Nordisk delivered 18% sales growth and 29% operating profit growth at constant exchange rates.
Expansion in Obesity Care
Obesity care sales increased by 58%, driven by 36% growth in U.S. operations and 125% growth in international operations.
Increased Patient Reach
Novo Nordisk is now serving almost 46 million patients with diabetes and obesity treatments, an increase of more than 3.5 million compared to the first 6 months of 2024.
Progress in R&D
Ozempic received a positive opinion by the EMA for peripheral arterial disease treatment, and Novo Nordisk announced the advancement of amycretin into Phase III clinical development.
International Operations Growth
Sales in international operations grew by 19%, notably with a 335% growth rate in Wegovy sales alone.
Negative Updates
Lowered Full Year Outlook
Novo Nordisk lowered its full-year outlook for 2025 due to lower growth expectations for Wegovy in the U.S. obesity market and Ozempic in the U.S. GLP-1 diabetes market.
Challenges with Compounding in the U.S.
Wegovy sales growth has been partially countered by unsafe and unlawful mass compounding, with an estimated 1 million patients on compounded GLP-1s in the U.S.
Decreased Free Cash Flow
Free cash flow in the first 6 months of 2025 was DKK 33.6 billion compared to DKK 41.3 billion in the first 6 months of 2024, driven by increased capital expenditures.
Updated Guidance Reflects Lower Growth Expectations
Sales growth for 2025 is expected to be between 8% to 14% at constant exchange rates, reflecting lower-than-expected sales growth mainly driven by lower volume growth of GLP-1 treatment in the U.S.
Company Guidance
During the Q2 2025 Novo Nordisk Earnings Conference Call, the company reported an 18% increase in sales and a 29% rise in operating profit for the first half of 2025. However, Novo Nordisk adjusted its full-year sales growth outlook to 8-14% due to lower-than-expected growth for Wegovy in the U.S. and Ozempic in the U.S. GLP-1 diabetes market, as well as lower penetration for Wegovy in select international operations. The gross margin decreased to 83.4%, with sales and distribution costs rising by 15%. Obesity care sales surged by 58%, driven by a 36% increase in U.S. operations and 125% in international operations. The company continues to expand its product offerings, initiating new clinical trials and partnerships to meet the extensive unmet needs in diabetes and obesity markets. The call also highlighted strategic changes, with Maziar Mike Doustdar stepping in as the new CEO, focusing on execution and operational efficiency.Novo Nordisk Financial Statement Overview
Summary
Novo Nordisk exhibits strong financial performance with high profitability and efficient operations. The company maintains a stable balance sheet with prudent leverage levels. However, the recent decline in free cash flow growth is a concern.Income Statement
Novo Nordisk demonstrates strong profitability with a high gross profit margin of 83.95% and a net profit margin of 35.61% for the TTM. The company has shown consistent revenue growth, with a recent TTM growth rate of 2.90%. EBIT and EBITDA margins are robust at 47.74% and 49.49%, respectively, indicating efficient operations and cost management.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.59. Return on equity is impressive at 77.86%, showcasing effective use of equity to generate profits. The equity ratio stands at 34.86%, indicating a solid equity base relative to total assets.78
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 17.07% in the TTM, which could be a concern. However, the operating cash flow to net income ratio is healthy at 0.59, and the free cash flow to net income ratio is 0.51, suggesting adequate cash generation relative to net income.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 311.94B | 290.40B | 232.26B | 176.95B | 140.80B | 126.95B |
| Gross Profit | 261.87B | 245.88B | 196.50B | 148.51B | 117.14B | 106.01B |
| EBITDA | 171.27B | 137.38B | 113.33B | 76.41B | 64.83B | 58.56B |
| Net Income | 111.07B | 100.99B | 83.68B | 55.52B | 47.76B | 42.14B |
Balance Sheet | ||||||
| Total Assets | 482.15B | 465.80B | 314.49B | 241.26B | 194.51B | 144.92B |
| Cash, Cash Equivalents and Short-Term Investments | 18.93B | 26.31B | 30.23B | 23.57B | 17.48B | 12.76B |
| Total Debt | 99.27B | 102.79B | 27.01B | 25.78B | 26.64B | 10.36B |
| Total Liabilities | 314.09B | 322.31B | 207.93B | 157.77B | 123.76B | 81.60B |
| Stockholders Equity | 168.07B | 143.49B | 106.56B | 83.49B | 70.75B | 63.33B |
Cash Flow | ||||||
| Free Cash Flow | 61.99B | 69.66B | 70.01B | 64.13B | 47.62B | 29.87B |
| Operating Cash Flow | 121.53B | 120.97B | 108.91B | 78.89B | 55.00B | 51.95B |
| Investing Cash Flow | -133.04B | -128.90B | -43.89B | -24.92B | -31.61B | -22.44B |
| Financing Cash Flow | -22.34B | 8.73B | -63.16B | -51.80B | -25.49B | -32.24B |
Novo Nordisk Technical Analysis
Negative
54.87
Price Trends
57.92
Negative
63.34
Negative
73.41
Negative
Market Momentum
-0.51
Negative
47.10
Neutral
38.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVO, the sentiment is Negative. The current price of 54.87 is below the 20-day moving average (MA) of 55.23, below the 50-day MA of 57.92, and below the 200-day MA of 73.41, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVO.
Novo Nordisk Risk Analysis
Novo Nordisk disclosed 17 risk factors in its most recent earnings report. Novo Nordisk reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Novo Nordisk Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $428.83B | 19.04 | 30.21% | 2.85% | 4.69% | 34.88% | |
73 Outperform | $243.08B | 15.09 | 75.95% | 3.07% | 21.52% | 24.50% | |
73 Outperform | $135.71B | 12.69 | 12.16% | 7.16% | 14.72% | ― | |
72 Outperform | $115.39B | 11.69 | 8.39% | 4.70% | -9.32% | 120.62% | |
68 Neutral | $94.04B | 18.64 | 29.31% | 5.32% | 2.57% | ― | |
68 Neutral | $142.13B | 22.79 | 33.26% | 2.74% | 3.69% | 501.26% | |
51 Neutral | $7.93B | -0.35 | -43.30% | 2.25% | 22.54% | -2.22% |
* Healthcare Sector Average
Performance Comparison
NVO
Novo Nordisk
54.87
-79.35
-59.12%
BMY
Bristol-Myers Squibb
46.20
-1.54
-3.23%
GILD
Gilead Sciences
114.55
33.24
40.88%
JNJ
Johnson & Johnson
178.06
16.30
10.08%
PFE
Pfizer
23.87
-4.23
-15.05%
SNY
Sanofi
47.03
-8.53
-15.35%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.