Novo Nordisk (NVO) AI Stock Analysis

• Market Cap: $221.22B
• Dividend Yield: 3.76%
• Average Volume (3M): 15.40M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.14
• Revenue Growth: 18.71%
• EPS Growth: 11.24%
• Country: US
• Employees: 77,406
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.69
• Shares Outstanding: 3,390,128,000
• 10 Day Avg. Volume: 23,398,807
• 30 Day Avg. Volume: 15,400,738
• PEG Ratio: 1.28
• Price to Book (P/B): 19.23
• Price to Sales (P/S): 9.50
• P/FCF Ratio: 39.62
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: 1.57
• 1Y Price Target: $61.20
• Price Target Upside: 21.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $56.00 ▲(11.42% Upside)

Novo Nordisk's strong financial performance and reasonable valuation are key strengths, supporting a solid overall score. However, bearish technical indicators and challenges highlighted in the earnings call, such as market share loss and restructuring, weigh on the score. The company's strategic focus on long-term growth and attractive dividend yield provide additional support.

Positive Factors

Revenue Growth

Consistent sales growth indicates strong market demand and effective product positioning, supporting long-term financial health.

Expansion in Obesity Care

Rapid growth in obesity care reflects successful product adoption and potential for sustained revenue expansion in a growing market.

Strategic Acquisitions

These acquisitions enhance Novo Nordisk's R&D capabilities, potentially leading to innovative treatments and maintaining competitive edge.

Negative Factors

Market Share Loss

Losing market share in a key segment could hinder growth prospects and weaken competitive positioning in the long term.

Restructuring and Job Cuts

While aiming for cost savings, large-scale job cuts may disrupt operations and affect employee morale, impacting productivity.

Pricing and Access Challenges

Pricing pressures can reduce margins and limit market access, potentially affecting long-term profitability and market expansion.

Novo Nordisk Business Overview & Revenue Model

Company Description

Novo Nordisk is a global healthcare company based in Denmark, specializing in the development and manufacturing of pharmaceutical products. The company primarily focuses on diabetes care, obesity care, hemophilia care, and hormone replacement therapy. Novo Nordisk is a leader in diabetes treatments, offering a range of insulin products and GLP-1 receptor agonists, as well as therapies for other chronic conditions such as growth disorders and hemophilia.

How the Company Makes Money

Novo Nordisk generates revenue primarily through the sale of its pharmaceutical products, particularly in the diabetes and obesity care segments. The company has a diverse portfolio of insulin products and GLP-1 receptor agonists, which are widely used to manage diabetes. Key revenue streams include the sales of these medications in various markets, with a significant presence in North America and Europe. Novo Nordisk also engages in partnerships and collaborations with other healthcare organizations and research institutions to develop new therapies, which can enhance its product offerings and market reach. Additionally, the company's strong focus on research and development enables it to introduce innovative products and maintain a competitive edge, further contributing to its earnings.

Novo Nordisk Financial Statement Overview

Summary

Novo Nordisk exhibits a robust financial position with strong profitability, efficient cash flow management, and a stable balance sheet. The company demonstrates impressive gross and net profit margins, effective market expansion, and operational efficiency.

Income Statement

Novo Nordisk demonstrates strong financial performance with impressive gross and net profit margins, consistently above 80% and 35% respectively. The company shows robust revenue growth, particularly in the TTM period, indicating effective market expansion and product demand. EBIT and EBITDA margins are also solid, reflecting efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet is strong with a moderate debt-to-equity ratio, suggesting prudent financial leverage. Return on equity is exceptionally high, indicating effective use of shareholder funds to generate profits. The equity ratio is stable, reflecting a solid capital structure and financial stability.

Cash Flow

Cash flow analysis reveals healthy free cash flow growth and a strong operating cash flow to net income ratio, indicating efficient cash generation. The free cash flow to net income ratio is consistently above 50%, showcasing the company's ability to convert earnings into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	315.60B	290.40B	232.26B	176.95B	140.80B	126.95B
Gross Profit	258.94B	245.88B	196.50B	148.51B	117.14B	106.01B
EBITDA	163.70B	137.38B	114.63B	76.80B	65.39B	59.27B
Net Income	103.77B	100.99B	83.68B	55.52B	47.76B	42.14B
Balance Sheet
Total Assets	512.29B	465.80B	314.49B	241.26B	194.51B	144.92B
Cash, Cash Equivalents and Short-Term Investments	32.58B	26.31B	30.23B	23.57B	17.48B	12.76B
Total Debt	101.21B	102.79B	27.01B	25.78B	26.64B	10.36B
Total Liabilities	342.39B	322.31B	207.93B	157.77B	123.76B	81.60B
Stockholders Equity	169.90B	143.49B	106.56B	83.49B	70.75B	63.33B
Cash Flow
Free Cash Flow	62.74B	69.66B	70.01B	64.13B	47.62B	29.87B
Operating Cash Flow	123.78B	120.97B	108.91B	78.89B	55.00B	51.95B
Investing Cash Flow	-127.56B	-128.90B	-43.89B	-24.92B	-31.61B	-22.44B
Financing Cash Flow	-21.04B	8.73B	-63.16B	-51.80B	-25.49B	-32.24B

Novo Nordisk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 50.26 is below the 20-day moving average (MA) of 50.64, below the 50-day MA of 54.69, and below the 200-day MA of 65.01, indicating a bearish trend. The MACD of -2.07 indicates Negative momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 82.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVO.

Novo Nordisk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JNJ	78 Outperform	$468.34B	18.76	33.62%	2.60%	5.08%	71.07%
GILD	77 Outperform	$153.10B	19.11	40.53%	2.62%	2.76%	6407.19%
SNY	76 Outperform	$127.38B	12.91	8.39%	4.23%	-9.32%	120.62%
NVO	73 Outperform	$221.22B	14.62	68.30%	3.76%	18.71%	11.24%
BMY	69 Neutral	$99.91B	16.57	33.84%	5.10%	1.26%	―
PFE	68 Neutral	$147.09B	15.08	10.59%	6.67%	4.44%	128.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Novo Nordisk Corporate Events

Novo Nordisk Executives Report Share Transactions Amidst Strategic Moves

On November 11, 2025, Novo Nordisk announced transactions involving its shares by board members, executives, and associated persons, as per market abuse regulations. Notably, David Moore, Executive Vice President of US Operations, acquired 18,634 shares at no cost as part of a recruitment package and sold 8,160 shares at a price of DKK 297.95 each, totaling DKK 2,431,301.74. These transactions, reported on November 10, 2025, reflect internal movements within the company’s leadership and may influence stakeholder perceptions of executive confidence in the company’s future.

Novo Nordisk to Lower Drug Prices in U.S. Starting 2026

On November 6, 2025, Novo Nordisk announced an agreement with the U.S. Administration to reduce the prices of its semaglutide medicines, including Wegovy® and Ozempic®, starting in 2026. This initiative aims to expand access to these obesity treatments through U.S. Medicare Part D and Medicaid, as well as direct-to-patient cash channels. The agreement includes a pilot program for Medicare Part D coverage, expected to cover a majority of beneficiaries, and a three-year tariff exemption for Novo Nordisk. The company anticipates a low single-digit negative impact on its global sales growth in 2026 due to these changes.

Novo Nordisk Reports Strong Sales Growth Amid Restructuring Costs

Novo Nordisk reported a 12% increase in sales in Danish kroner and a 15% rise at constant exchange rates (CER) for the first nine months of 2025. Despite a 5% increase in operating profit, the company faced one-off restructuring costs of approximately DKK 9 billion, which impacted its profit growth. Novo Nordisk’s diabetes and obesity care segments showed significant growth, with obesity care sales rising by 37% in Danish kroner. The company also made strategic advancements in its R&D pipeline, including FDA approval for Wegovy® for MASH treatment and the acquisition of Akero Therapeutics. However, the company narrowed its full-year 2025 sales and operating profit growth expectations due to lower growth forecasts for its GLP-1 treatments. Additionally, Novo Nordisk announced an extraordinary general meeting to elect new board members on November 14, 2025.

Novo Nordisk Proposes Acquisition of Metsera to Expand Diabetes Portfolio

On October 30, 2025, Novo Nordisk announced its proposal to acquire Metsera, Inc., aiming to enhance its portfolio with Metsera’s incretin and non-incretin analogue peptide programs. This acquisition aligns with Novo Nordisk’s strategy to develop innovative medicines for obesity and diabetes. The proposal includes acquiring all outstanding shares of Metsera at $56.50 per share in cash, with contingent value rights up to $21.25 per share, subject to Metsera’s board review.

Novo Nordisk to Convene Extraordinary General Meeting for Board Election

On October 21, 2025, Novo Nordisk announced plans to hold an Extraordinary General Meeting on November 14, 2025, to elect new members to its Board of Directors. This decision follows a disagreement with the Novo Nordisk Foundation over the board’s composition, with the Foundation seeking a more extensive reconfiguration. The current Chair, Helge Lund, and several independent board members will not stand for re-election, while some members, including Kasim Kutay and employee-elected board members, will remain. This move aims to clarify the future governance of the company, considering the Foundation’s significant voting influence.

Novo Nordisk Announces Extraordinary General Meeting for Board Elections

On October 21, 2025, Novo Nordisk announced an Extraordinary General Meeting to be held on November 14, 2025, to elect new members to its Board of Directors. The meeting will be conducted fully electronically, allowing shareholders to participate virtually or via live webcast. The agenda includes the election of a new Chair, Vice Chair, and other board members, with several current members not standing for re-election. This move is part of the company’s ongoing governance strategy, potentially impacting its leadership dynamics and stakeholder engagement.

Novo Nordisk to Acquire Akero Therapeutics to Expand MASH Portfolio

On October 9, 2025, Novo Nordisk announced its acquisition of Akero Therapeutics, a clinical-stage company specializing in treatments for serious metabolic diseases, for approximately $4.7 billion. This acquisition aims to enhance Novo Nordisk’s portfolio in treating metabolic dysfunction-associated steatohepatitis (MASH), a prevalent obesity-related comorbidity. The acquisition aligns with Novo Nordisk’s strategy to expand its offerings in diabetes and obesity-related conditions, potentially positioning efruxifermin as a cornerstone therapy for MASH. The transaction is expected to close around the turn of the year, with financial implications including a negative impact on Novo Nordisk’s 2025 free cash flow outlook and increased R&D costs in 2026.

Novo Nordisk Announces Major Transformation to Boost Growth in Diabetes and Obesity

On September 10, 2025, Novo Nordisk announced a significant transformation plan aimed at streamlining operations and reallocating resources to enhance growth opportunities in diabetes and obesity. This initiative includes reducing the global workforce by approximately 9,000 positions, resulting in expected annual savings of DKK 8 billion by the end of 2026. The restructuring is intended to address organizational complexity and cost issues while enabling the company to invest more in science, commercial capabilities, and manufacturing to meet rising global demand. Despite the one-off restructuring costs of DKK 8 billion, the company expects a full-year 2025 operating profit growth of 4-10% at constant exchange rates, reflecting its commitment to long-term success and innovation in treating chronic diseases.

Novo Nordisk Announces Executive Share Transactions Amid Market Confidence

On August 19, 2025, Novo Nordisk announced transactions involving its shares by board members, executives, and associated persons, in compliance with market abuse regulations. The transactions, which involved the purchase of 2,350 ADRs on the New York Stock Exchange, reflect internal confidence in the company’s market position and could influence stakeholder perceptions.

Novo Nordisk Announces Executive Share Transactions

On August 8, 2025, Novo Nordisk disclosed transactions involving the sale of shares by board members and executives, including Executive Vice President Ludovic Helfgott, as part of regulatory compliance with market abuse regulations. The transaction involved the sale of 12,000 shares at a price of DKK 326.00 each, totaling DKK 3,912,000. This announcement reflects the company’s adherence to transparency and regulatory requirements, potentially impacting investor perceptions and market dynamics.