Novonesis (NVZMY) AI Stock Analysis

• Market Cap: $27.37B
• Dividend Yield: 1.53%
• Average Volume (3M): 1.56K
• Price to Earnings (P/E): 81.3
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 10,582
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.47
• Shares Outstanding: 414,555,050
• 10 Day Avg. Volume: 2,114
• 30 Day Avg. Volume: 1,559
• PEG Ratio: -15.01
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 29.52
• P/FCF Ratio: 171.45
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: 10.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $64.00 ▲(1.60% Upside)

Novonesis's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in emerging markets. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Emerging Markets Growth

Strong growth in emerging markets indicates successful strategic positioning and potential for sustained revenue expansion in these regions.

Innovative Product Launches

The launch of new products showcases Novonesis's commitment to innovation, enhancing its competitive edge and supporting long-term growth.

EBITDA Margin Improvement

Improved EBITDA margins reflect operational efficiency and profitability, providing a strong foundation for future financial stability.

Negative Factors

Modest Revenue Growth

Modest revenue growth suggests limited market expansion, which could constrain the company's ability to capitalize on new opportunities.

Inconsistent Cash Flow Growth

Inconsistent cash flow growth may hinder Novonesis's capacity to reinvest in its business, potentially affecting long-term strategic initiatives.

Currency Headwinds

Currency headwinds can erode profitability and create financial uncertainty, impacting Novonesis's international operations and margins.

Novonesis Business Overview & Revenue Model

Company Description

Novozymes A/S produces and sells industrial enzymes, microorganisms, and probiotics in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company offers baking, beverages, dairy, starch, and protein solutions for the food and beverage industry; laundry, dishwashing, and professional cleaning solutions for the household care industry; agriculture solutions, including crop production, and animal health and nutrition solutions; bioyield and biocontrol solutions for crops; and grain and technical processing solutions, as well as bio energy solutions for liquefaction, saccharifaction, fermentation, fiber conversion, and biomass conversion. It also provides textile solutions, such as biopreparation, biopolishing, bleach clean-up, denim abrasion and finishing, and desizing solutions. In addition, the company offers solutions for pulp & paper, including fiber modification, bleach boosting, deposit control, starch modification, and deinking; leather solutions comprising acid bating, area expansion, bating, degreasing, soaking, and unhairing and liming; and water and waste management solutions, which consist of bioaugmentation, biogas, and sludge management. Further, it provides pharmaceutical solutions, including lipases, immobilized lipases, and proteases for biocatalysis, as well as rTrypsin for cell culture; and human health and protein solutions. The company was founded in 1925 and is headquartered in Bagsvaerd, Denmark.

How the Company Makes Money

Novonesis generates revenue through multiple streams, primarily by selling its proprietary biotechnology products and services to healthcare providers, research institutions, and pharmaceutical companies. Key revenue streams include direct sales of its advanced drug delivery systems and diagnostic tools, as well as licensing agreements for its patented technologies. Additionally, Novonesis may enter into strategic partnerships with larger pharmaceutical companies for collaborative research and development projects, which can provide significant financial backing and shared revenue opportunities. The company's focus on personalized medicine also opens up avenues for reimbursement from healthcare payers, further enhancing its revenue potential.

Novonesis Financial Statement Overview

Summary

Novonesis demonstrates strong profitability and a solid balance sheet with efficient operations. However, modest revenue growth and inconsistent cash flow growth limit its potential for expansion.

Income Statement

Novonesis has demonstrated robust profitability with a strong gross profit margin and consistent net profit margin over the years. However, the revenue growth rate has been modest, indicating a stable but not rapidly expanding business. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is satisfactory, showcasing effective use of equity capital. However, the equity ratio suggests a high reliance on equity financing, which may limit leverage benefits.

Cash Flow

Novonesis exhibits stable cash flow generation with a positive free cash flow trend. The operating cash flow to net income ratio is strong, indicating good cash conversion. However, the free cash flow growth rate has been inconsistent, which could pose challenges for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.02B	3.83B	17.90B	17.55B	14.95B	14.01B
Gross Profit	6.75B	1.81B	9.72B	9.58B	8.62B	7.85B
EBITDA	3.51B	8.07B	5.47B	6.12B	5.40B	4.82B
Net Income	1.47B	305.80M	3.02B	3.68B	3.15B	2.83B
Balance Sheet
Total Assets	16.40B	15.20B	28.39B	27.98B	24.77B	20.51B
Cash, Cash Equivalents and Short-Term Investments	365.40M	284.00M	1.12B	1.12B	1.04B	1.30B
Total Debt	3.32B	1.80B	7.73B	411.00M	482.00M	3.78B
Total Liabilities	5.66B	4.02B	14.04B	13.76B	12.56B	9.27B
Stockholders Equity	10.74B	11.18B	13.98B	13.84B	11.83B	11.23B
Cash Flow
Free Cash Flow	1.64B	660.10M	2.10B	1.12B	2.82B	3.42B
Operating Cash Flow	2.75B	1.02B	4.15B	4.01B	4.06B	4.36B
Investing Cash Flow	-2.26B	-199.70M	-2.13B	-2.67B	-2.75B	-1.52B
Financing Cash Flow	-351.91M	-703.20M	-1.89B	-1.25B	-1.59B	-2.31B

Novonesis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.99
• 50DMA: Positive
• 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 NVZMY, the sentiment is Positive. The current price of 62.99 is above the 20-day moving average (MA) of 62.89, above the 50-day MA of 62.24, and below the 200-day MA of 64.27, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVZMY.

Novonesis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	76 Outperform	$13.50B	19.66	24.05%	1.97%	3.09%	12.25%
PPG	67 Neutral	$22.67B	18.03	16.31%	2.75%	-12.98%	-11.34%
NVZMY	64 Neutral	$27.37B	81.34	21.63%	1.53%	―	―
DD	62 Neutral	$16.97B	―	-0.46%	1.76%	2.42%	-196.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$17.20B	―	-2.84%	2.38%	-3.01%	82.30%
LYB	54 Neutral	$13.95B	―	-10.44%	12.57%	-19.65%	-157.13%

Novonesis Corporate Events

Novonesis A/S’s Promising Study on Gut Health Supplement: Market Implications

Novonesis A/S – Adr (NVZMY) is conducting a clinical study titled A Randomized, Double-Blind, Placebo-Controlled Decentralized Trial to Assess the Effect and Tolerability of Limosilactobacillus Reuteri DSM 17648 Supplement in Healthy Adults Reporting Upper Gastrointestinal Discomfort. The study aims to evaluate the effectiveness of the Limosilactobacillus reuteri DSM 17648 supplement in alleviating symptoms of upper gastrointestinal discomfort, improving quality of life, and assessing its impact on gut microbiota.

Novonesis A/S – Adr Reports Strong 2025 Earnings

The recent earnings call from Novonesis A/S – Adr revealed a solid performance in the first half of 2025, characterized by strong organic sales growth and improved EBITDA margins. Despite facing challenges such as currency headwinds and softness in the Beverages segment, the company’s positive outlook and strategic plans for future growth contributed to a balanced sentiment.

Novonesis A/S Reports Strong H1 2025 Growth

Novonesis A/S, a key player in the biosolutions industry, specializes in providing innovative solutions across food, health, and planetary health sectors, leveraging its strong market presence and strategic acquisitions to drive growth.