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Novonesis (NVZMY)
OTHER OTC:NVZMY
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Novonesis
(OTC:NVZMY)
Rating:66Neutral
Price Target:
$75.00
▲(13.33% Upside)
Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.08B
Dividend Yield1.38%
Average Volume (3M)1.49K
Price to Earnings (P/E)91.5
Beta (1Y)0.35
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10,582
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.47
Shares Outstanding414,555,050
10 Day Avg. Volume964
30 Day Avg. Volume1,486
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue2.89
Enterprise Value/Gross Profit6.36
Enterprise Value/Ebitda15.58
Forecast
1Y Price Target
$77.00Price Target Upside16.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Novonesis Business Overview & Revenue Model
Company DescriptionNovozymes 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 MoneyNovonesis generates revenue primarily through the sale of its proprietary products to manufacturers in multiple sectors such as electronics and healthcare. Key revenue streams include direct sales of advanced materials, licensing agreements for its patented technologies, and collaborations with research institutions and industrial partners for product development. The company also benefits from strategic partnerships that enhance its market reach and innovation capabilities, allowing it to tap into new markets and customer bases, thus contributing to its overall earnings.
Novonesis Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 2.04%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to 2025 with robust organic sales growth and profitability improvements, despite challenges from market exits and currency headwinds. The company's diversified portfolio and strategic acquisitions position it well for future growth.Q1-2025 Updates
Positive Updates
Strong Organic Sales Growth
Novonesis achieved an 11% organic sales growth in Q1 2025, with 15% growth in emerging markets and 9% in developed markets.
Adjusted EBITDA Margin Improvement
The adjusted EBITDA margin increased to 38.3%, a 3.1% rise compared to the previous year, driven by strong sales growth and cost synergies.
Successful Product Launches
Six new biosolutions were launched, primarily in household care and food, with expectations for further launches in the coming quarters.
Strategic Acquisition
The acquisition of dsm-firmenich’s part of the Feed Enzyme Alliance is expected to close in Q2 2025, enhancing Novonesis's position in animal biosolutions.
Strong Performance in Human Health
Human health delivered 13% organic sales growth, driven by dietary supplements and advanced protein solutions in North America and Europe.
Negative Updates
Impact of Russian and Belarusian Market Exit
Novonesis expects a 1 percentage point negative effect on organic sales growth from exiting Russia and Belarus.
Challenges in Agricultural Segment
Growth in the agricultural sector was impacted by timing issues, particularly affecting animal biosolutions.
Currency Headwinds
Recent currency fluctuations are expected to impact the adjusted EBITDA margin, although the company maintains its guidance.
Company Guidance
During the Novonesis conference call for the first quarter of 2025, the company reported an 11% organic sales growth, with a 10% growth in volume and a 1% increase in pricing. Emerging markets exhibited a robust 15% growth, while developed markets grew by 9%. The company launched six new biosolutions, contributing to the sales growth. The adjusted EBITDA margin for the quarter was 38.3%, a 3.1 percentage point increase from the previous year. Novonesis maintained its full-year guidance, expecting 5% to 8% organic sales growth, accounting for a 1 percentage point negative impact from exiting Russia and Belarus. The adjusted EBITDA margin is anticipated to remain between 37% and 38%, despite currency headwinds. The company's diversified portfolio, strong customer focus, and innovation capabilities were highlighted as key drivers for sustained growth and margin expansion in 2025.Novonesis Financial Statement Overview
Summary
Novonesis demonstrates financial stability with strong profit margins and efficient cash flow management. Despite a downturn in revenue and free cash flow in 2024, cost management and a solid equity position indicate resilience. Increased leverage requires monitoring to ensure financial health.Income Statement
Novonesis has shown robust revenue growth over the years, with significant improvements in gross profit margin and net profit margin. Although there was a notable drop in revenue from 2023 to 2024, the margins remained relatively stable, indicating effective cost management. The EBIT and EBITDA margins have been consistently strong, supporting profitability.72
Positive
Balance Sheet
The company maintains a solid equity position with a high equity ratio, suggesting financial stability. However, the debt-to-equity ratio increased in 2024, indicating higher leverage, which could pose risks if not managed properly. Return on equity remains strong, reflecting effective use of shareholder funds.68
Positive
Cash Flow
Novonesis has demonstrated strong operating cash flow generation, consistently exceeding net income, which is a positive indicator of cash-generating efficiency. The free cash flow growth has been impressive over the years, although it saw a decline in 2024, which could impact future flexibility.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.91B | 3.83B | 17.90B | 17.55B | 14.95B | 14.01B |
| Gross Profit | 4.50B | 1.81B | 9.72B | 9.58B | 8.62B | 7.85B |
| EBITDA | 1.84B | 659.00M | 5.47B | 6.12B | 5.20B | 4.85B |
| Net Income | 666.22M | 305.80M | 3.02B | 3.68B | 3.15B | 2.83B |
Balance Sheet | ||||||
| Total Assets | 15.06B | 15.20B | 28.39B | 27.98B | 24.77B | 20.51B |
| Cash, Cash Equivalents and Short-Term Investments | 256.50M | 284.00M | 1.12B | 1.12B | 1.04B | 1.30B |
| Total Debt | 1.70B | 1.80B | 7.73B | 411.00M | 482.00M | 3.78B |
| Total Liabilities | 3.83B | 4.02B | 14.04B | 13.76B | 12.56B | 9.27B |
| Stockholders Equity | 11.23B | 11.18B | 13.98B | 13.84B | 11.83B | 11.23B |
Cash Flow | ||||||
| Free Cash Flow | 1.80B | 660.10M | 2.10B | 1.12B | 2.82B | 3.42B |
| Operating Cash Flow | 2.57B | 1.02B | 4.15B | 4.01B | 4.06B | 4.36B |
| Investing Cash Flow | -387.85M | -199.70M | -2.13B | -2.67B | -2.75B | -1.52B |
| Financing Cash Flow | -1.82B | -703.20M | -1.89B | -1.25B | -1.59B | -2.31B |
Novonesis Technical Analysis
Neutral
66.18
Price Trends
70.81
Negative
66.72
Negative
62.47
Positive
Market Momentum
-1.47
Positive
36.39
Neutral
18.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVZMY, the sentiment is Neutral. The current price of 66.18 is below the 20-day moving average (MA) of 68.31, below the 50-day MA of 70.81, and above the 200-day MA of 62.47, indicating a neutral trend. The MACD of -1.47 indicates Positive momentum. The RSI at 36.39 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NVZMY.
Novonesis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.40B | 22.42 | 25.42% | 1.71% | 0.51% | 17.21% | |
66 Neutral | $31.08B | 91.54 | 21.63% | 1.38% | ― | ― | |
63 Neutral | $7.05B | 8.62 | 14.52% | 5.39% | 1.60% | -3.97% | |
61 Neutral | $30.38B | 40.24 | 0.31% | 2.23% | 4.51% | -121.68% | |
58 Neutral | $16.72B | 68.19 | 1.08% | 10.74% | -14.12% | -89.22% | |
55 Neutral | $23.85B | 18.74 | 16.88% | 2.56% | -10.59% | -7.79% | |
44 Neutral | AU$1.47B | -5.90 | -41.17% | 4.23% | -3.35% | -41.14% |
* Basic Materials Sector Average
Performance Comparison
NVZMY
Novonesis
66.18
3.97
6.38%
EMN
Eastman Chemical
61.27
-30.42
-33.18%
LYB
LyondellBasell
50.17
-39.97
-44.34%
PPG
PPG Industries
106.12
-10.39
-8.92%
RPM
RPM International
119.09
6.66
5.92%
DD
DuPont de Nemours
70.88
-6.09
-7.91%
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.