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Novonesis
(OTC:NVZMY)
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Rating:67Neutral
Price Target:
$72.00
▲(17.21% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid current financial performance (healthy margins and strong cash generation) and supportive technical trends (price above key moving averages with positive MACD). The latest earnings call reinforces the outlook with reiterated guidance and strong Q1 execution, while the main constraint is valuation (high P/E with a low dividend yield) alongside some historical volatility and mixed leverage signals in the annual data.
Positive Factors
Strong cash generation
TTM operating cash flow and free cash flow are robust and materially above net income, indicating durable cash conversion. That sustained cash generation supports capacity investments, integration of acquisitions, dividend/return choices and debt servicing, improving long-term financial flexibility.
Negative Factors
Historical volatility
Material swings in annual revenue, margins and cash flow reduce predictability of medium-term earnings. This volatility complicates capacity planning, forecasting and capital allocation, raising execution risk for multi-year investments and making near-term durability of trends less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
TTM operating cash flow and free cash flow are robust and materially above net income, indicating durable cash conversion. That sustained cash generation supports capacity investments, integration of acquisitions, dividend/return choices and debt servicing, improving long-term financial flexibility.
Read all positive factors
Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.63B
Dividend Yield0.68%
Average Volume (3M)1.56K
Price to Earnings (P/E)43.0
Beta (1Y)0.15
Revenue Growth11.79%
EPS Growth40.66%
CountryUS
Employees11,641
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.06
Shares Outstanding414,555,050
10 Day Avg. Volume2,114
30 Day Avg. Volume1,559
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)15.45
Price to Sales (P/S)40.34
P/FCF Ratio223.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.39
Revenue Forecast (FY)$5.12B
Novonesis Business Overview & Revenue Model
Company Description
Novozymes A/S is a global biotechnology firm that specializes in the creation and distribution of industrial enzymes, microorganisms, and probiotics. Its operational footprint spans across Europe, the Middle East, Africa, North America, Latin Amer...
How the Company Makes Money
Novonesis makes money primarily by selling biosolutions—especially enzymes and microbial/fermentation-based ingredients—to business customers (B2B) under commercial supply agreements. Revenue is generated from product sales where customers pay for...
Novonesis Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call conveys a positive operational and financial start to 2026: solid 7% organic growth, improved gross margin (+120 bps), strong cash flow and EPS (+8%), successful financing and ongoing integration synergies from the Feed Enzyme Alliance. Notable near-term headwinds include currency impacts, higher operating expenses and a temporary CapEx step-up, plus segment-specific softness in North American probiotics and timing-driven declines in tech/plant. Management maintains confident full-year guidance (5%–7% organic growth; 37%–38% adj. EBITDA margin) and reiterates medium-term targets, indicating that positives (growth, margins, cash, strategic M&A and product launches) materially outweigh the transitory negatives.Positive Updates
Strong Top-Line Growth
Group organic sales grew 7% in Q1 2026 (reported EUR sales +4%), driven by volume growth; sales synergies and pricing each contributed ~1 percentage point and M&A added +3%. The outlook for 2026 organic sales growth is maintained at 5%–7% (includes ~1 ppt effect from exiting certain countries).
Negative Updates
Currency Headwinds
Currency moves created a sizeable headwind: currencies reduced reported sales by ~6 percentage points in Q1 and the full-year EBITDA margin is expected to face ~0.5 ppt of FX headwind.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Group organic sales grew 7% in Q1 2026 (reported EUR sales +4%), driven by volume growth; sales synergies and pricing each contributed ~1 percentage point and M&A added +3%. The outlook for 2026 organic sales growth is maintained at 5%–7% (includes ~1 ppt effect from exiting certain countries).
Read all positive updates
Company Guidance
Management reiterated full‑year guidance after a strong Q1 (organic sales +7%, reported sales -4%, adjusted EBITDA margin 37.8%, adjusted EPS €0.57, operating cash flow €167.1m, Q1 CapEx €93.1m/8.3% of sales, free cash flow before acquisitions €74m): they expect organic sales growth of 5–7% (including close to a 1 percentage‑point impact from exiting certain countries), driven mainly by volume with ~1 p.p. from sales synergies, a good ~1 p.p. from pricing (deferred revenue to add ~1 p.p. in Human Health), and an adjusted EBITDA margin of 37–38% (expanding versus 2025 while absorbing ~0.5 p.p. FX headwind and higher input costs; Feed Enzyme Alliance contributing ~50 bps), CapEx to step up to 12–14% of sales in 2026 (including ~1 p.p. annual ERP impact and investments to double U.S. dairy culture capacity and develop the Thailand facility), and year‑end net debt/EBITDA around 1.7x; the outlook is based on current trade tariffs and FX and assumes a smaller Q2 inventory timing benefit in Animal that is neutral for the full year.Novonesis Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.33B | 4.16B | 513.65M | 17.90B | 17.55B | 14.95B |
| Gross Profit | 1.82B | 2.24B | 242.45M | 9.72B | 9.58B | 8.62B |
| EBITDA | 1.06B | 1.39B | 1.08B | 5.47B | 6.12B | 5.40B |
| Net Income | -407.07M | 583.60M | 40.97M | 3.02B | 3.68B | 3.15B |
Balance Sheet | ||||||
| Total Assets | 16.54B | 16.35B | 15.20B | 28.39B | 27.98B | 24.77B |
| Cash, Cash Equivalents and Short-Term Investments | 329.74M | 295.60M | 284.00M | 1.16B | 1.11B | 1.04B |
| Total Debt | 3.22B | 22.45B | 1.80B | 7.73B | 6.95B | 482.00M |
| Total Liabilities | 5.61B | 5.49B | 4.02B | 14.04B | 13.76B | 12.56B |
| Stockholders Equity | 10.93B | 10.86B | 11.18B | 13.98B | 13.84B | 11.83B |
Cash Flow | ||||||
| Free Cash Flow | 3.17B | 750.70M | 660.10M | 2.10B | 1.12B | 2.82B |
| Operating Cash Flow | 4.28B | 1.22B | 1.02B | 4.15B | 4.01B | 4.06B |
| Investing Cash Flow | -3.45B | -1.97B | -199.70M | -2.13B | -2.67B | -2.75B |
| Financing Cash Flow | -1.03B | 753.30M | -703.20M | -1.89B | -1.25B | -1.59B |
Novonesis Technical Analysis
Positive
61.43
Price Trends
62.88
Positive
61.19
Positive
60.99
Positive
Market Momentum
0.53
Positive
57.22
Neutral
51.57
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 61.43 is below the 20-day moving average (MA) of 64.39, below the 50-day MA of 62.88, and above the 200-day MA of 60.99, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 51.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $14.54B | 21.93 | 20.93% | 2.02% | 6.66% | -3.58% | |
69 Neutral | $19.75B | 317.96 | 0.34% | 1.68% | -34.44% | ― | |
67 Neutral | $30.63B | 43.03 | 5.52% | 0.73% | 11.79% | 40.66% | |
66 Neutral | $21.48B | 77.23 | 2.05% | 2.11% | -11.72% | ― | |
62 Neutral | $25.37B | 16.25 | 30.22% | 2.45% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $20.60B | -56.93 | -3.36% | 6.83% | -11.13% | -245.92% |
* Basic Materials Sector Average
NVZMY
Novonesis
65.78
1.56
2.43%
IFF
International Flavors & Fragrances
84.18
20.41
32.01%
LYB
LyondellBasell
63.76
14.61
29.72%
PPG
PPG Industries
114.11
5.97
5.52%
RPM
RPM International
113.82
-6.90
-5.71%
DD
DuPont de Nemours
146.26
56.09
62.21%
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.