Novonesis (NVZMY) AI Stock Analysis

• Market Cap: $32.86B
• Dividend Yield: 1.73%
• Average Volume (3M): 1.16K
• Price to Earnings (P/E): 98.1
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 10,582
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals - Specialty
• EPS (TTM): 0.47
• Shares Outstanding: 414,555,050
• 10 Day Avg. Volume: 2,392
• 30 Day Avg. Volume: 1,164
• PEG Ratio: -65.33
• Price to Book (P/B): 8.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $82.00
• Price Target Upside: 17.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $78.00 ▲(11.67%Upside)

Novonesis's overall stock score is driven by its strong financial performance and positive earnings call, indicating robust sales growth and profitability improvements. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals with potential oversold conditions. The company's solid balance sheet and strategic focus on innovation and market expansion support its growth prospects.

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 the sale of its proprietary software solutions and services. The company's primary revenue streams include software licensing fees, subscription-based models for its cloud-based analytics platforms, and consulting services to help businesses integrate and maximize the use of their data solutions. Additionally, Novonesis has formed strategic partnerships with leading technology firms to expand its reach and enhance its product offerings, contributing significantly to its earnings. These partnerships often involve joint ventures or co-development of tailored solutions, which helps in tapping into new markets and customer bases.

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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 69.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 69.85 is below the 20-day moving average (MA) of 72.14, below the 50-day MA of 70.65, and above the 200-day MA of 62.55, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 7.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NVZMY.

Novonesis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LYB	72 Outperform	$20.26B	19.50	7.19%	8.69%	-6.53%	-50.08%
RPM	71 Outperform	$14.48B	22.58	25.53%	1.81%	-0.61%	15.06%
NVZMY	70 Outperform	$32.86B	98.14	21.63%	1.73%	―	―
EMN	69 Neutral	$9.11B	10.05	16.16%	4.21%	2.78%	1.50%
PPG	64 Neutral	$26.63B	19.87	18.47%	2.34%	-7.67%	-0.58%
DD	63 Neutral	$31.33B	40.24	0.06%	2.19%	4.51%	-121.68%
Sector *	44 Neutral	C$978.68M	-6.65	-13.73%	2.44%	17.55%	-32.57%