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Novonesis (NVZMY)
OTHER OTC:NVZMY
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Novonesis
(OTC:NVZMY)
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Rating:64Neutral
Price Target:
$68.00
▲(8.01% Upside)
Novonesis demonstrates strong financial stability and profitability, supported by a positive earnings call with robust sales growth and strategic initiatives. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term weakness. The overall score reflects a balanced view of these factors.
Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.31B
Dividend Yield1.59%
Average Volume (3M)8.22K
Price to Earnings (P/E)85.1
Beta (1Y)0.29
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10,582
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.42
Shares Outstanding414,555,050
10 Day Avg. Volume2,564
30 Day Avg. Volume8,219
Financial Highlights & Ratios
PEG Ratio-6.48
Price to Book (P/B)2.23
Price to Sales (P/S)48.49
P/FCF Ratio281.59
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue3.84
Enterprise Value/Gross Profit16.84
Enterprise Value/Ebitda39.46
Forecast
1Y Price Target
$68.00Price Target Upside8.01% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 a subscription-based model for its software services, which includes monthly or annual fees for access to its EHR systems and analytics tools. Additionally, the company earns income from consulting services, offering implementation and training for healthcare organizations integrating their solutions. Key revenue streams also include partnerships with healthcare institutions and payers that may involve joint ventures or revenue-sharing agreements. Furthermore, Novonesis benefits from government contracts and grants aimed at enhancing digital health initiatives, which contribute to its financial stability.
Novonesis Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a solid performance in the first half of 2025 with strong organic sales growth and improved EBITDA margins. However, challenges such as currency headwinds and softness in the Beverages segment present some concerns. The company's positive outlook and strategic plans for future growth contribute to a balanced sentiment.Q2-2025 Updates
Positive Updates
Strong Organic Sales Growth
Novonesis achieved a 9% organic sales growth in the first half of 2025, with a volume increase of 8% and a pricing contribution of 1%. Emerging markets showed a particularly strong growth of 12%.
Adjusted EBITDA Margin Improvement
The adjusted EBITDA margin increased by 2.1 percentage points to 37.4% for the first half of the year despite weaker currencies.
Food & Health Biosolutions Performance
The division delivered a 10% organic sales growth in the first half of the year with an adjusted EBITDA margin increase of 2.1 percentage points.
Household Care Growth
Household Care achieved 8% organic sales growth in the first half of 2025, driven mainly by volume growth and solid performance in emerging markets.
2025 Outlook Upgraded
The company upgraded its full-year organic sales growth guidance to 6% to 8%, up from the previous 5% to 8%.
Negative Updates
Currency Headwinds Impact
Currency fluctuations provided a significant negative impact on euro sales in Q2, reducing the reported growth to 4% despite an 8% organic growth.
Softness in Beverage Segment
The Beverages segment experienced softness due to lower end-market volumes.
Exit from Russia and Belarus
The exit from Russia and Belarus is expected to impact the second half of the year, affecting full-year organic sales growth in Food & Beverages by around 3 percentage points.
Operational Cash Flow Decrease
Operating cash flow decreased by EUR 114.2 million compared to last year, partly due to a one-off payment received in the previous year.
Company Guidance
During the Novonesis Conference Call on August 21, 2025, the company provided guidance for the full year, forecasting organic sales growth of 6% to 8%, revised from a previous range of 5% to 8%. This guidance was based on strong first-half performance, which included 9% organic sales growth, with volumes up by 8% and prices up by 1%. Emerging markets exhibited robust growth at 12%, while developed markets grew by 8%. The adjusted EBITDA margin for the first half was 37.4%, bolstered by a 2.1 percentage point increase compared to the previous year, despite adverse currency impacts. The company's strategic initiatives also included the successful integration of the Feed Enzymes Alliance acquisition and achieving a 100% run rate in cost synergies one year ahead of schedule. The company maintained its expected adjusted EBITDA margin of 37% to 38% for the year.Novonesis Financial Statement Overview
Summary
Novonesis presents a stable financial profile with strong profitability and a solid balance sheet. While the company maintains efficient operations and prudent financial management, growth opportunities appear limited, and cash flow consistency could be improved.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.75
Positive
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.70
Positive
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.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.56B | 3.83B | 17.90B | 17.55B | 14.95B | 14.01B |
| Gross Profit | 2.18B | 1.81B | 9.72B | 9.58B | 8.62B | 7.85B |
| EBITDA | 931.00M | 8.07B | 5.47B | 6.12B | 5.20B | 4.85B |
| Net Income | 564.70M | 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 | 83.35B | 13.98B | 13.84B | 11.83B | 11.23B |
Cash Flow | ||||||
| Free Cash Flow | 568.80M | 660.10M | 2.10B | 1.12B | 2.82B | 3.42B |
| Operating Cash Flow | 918.30M | 1.02B | 4.15B | 4.01B | 4.06B | 4.36B |
| Investing Cash Flow | -1.72B | -199.70M | -2.13B | -2.67B | -2.75B | -1.52B |
| Financing Cash Flow | 877.50M | -703.20M | -1.89B | -1.25B | -1.59B | -2.31B |
Novonesis Technical Analysis
Negative
62.96
Price Trends
63.38
Negative
67.23
Negative
62.90
Negative
Market Momentum
-0.81
Negative
43.75
Neutral
70.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVZMY, the sentiment is Negative. The current price of 62.96 is above the 20-day moving average (MA) of 61.70, below the 50-day MA of 63.38, and above the 200-day MA of 62.90, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 70.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVZMY.
Novonesis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $14.64B | 21.81 | 24.05% | 1.75% | 3.09% | 12.25% | |
64 Neutral | $28.31B | 85.07 | 21.63% | 1.59% | ― | ― | |
64 Neutral | $33.84B | 40.24 | 0.31% | 1.99% | 4.55% | -130.25% | |
63 Neutral | $23.36B | 18.52 | 16.88% | 2.66% | -10.59% | -7.79% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $15.66B | 64.90 | 1.08% | 11.03% | -14.12% | -89.22% | |
50 Neutral | $15.76B | 83.39 | -2.74% | 2.60% | -0.07% | 83.36% |
* Basic Materials Sector Average
NVZMY
Novonesis
62.96
-5.70
-8.30%
IFF
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61.02
-39.26
-39.15%
LYB
LyondellBasell
49.13
-37.58
-43.34%
PPG
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101.70
-22.50
-18.12%
RPM
RPM International
112.75
-14.66
-11.51%
DD
DuPont de Nemours
78.88
-3.86
-4.67%
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.