NVO

Novo Nordisk

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Drug Manufacturers - General

Exchange

NYSE

County of HQ

Denmark

Next Earnings Date

05/06/26

Business Summary

Novo Nordisk generates cash by developing and commercializing branded pharmaceutical therapies, leveraging intellectual property to command premium pricing in global markets. Its moat is built on high-margin drug portfolios, regulatory barriers, and entrenched relationships with healthcare systems. With a 52.80% operating margin and 36.70% ROIC, the company converts innovation into cash at an elite rate. The combination of scale, specialized manufacturing, and patent protection creates durable pricing power and recurring revenue streams that smaller competitors struggle to replicate.

VALUATION

P/E

10.5

Market Cap ($M USD)

$165,174

Forward P/E

1.7

PEG

0.1

PRICE TO SALES

3.5

PRICE TO BOOK

5.5

EV / EBITDA

7.5

5-Year Average P/E

DIVIDEND

Yield

4.80%

Annual Payout

$1.80

Payout Ratio

50.40%

Consecutive Years of Dividend Growth

6

5-Year Dividend Growth Rate

21.40%

Financial Health & Profitability

Earnings Per Share

$3.56

Next Year EPS Growth Estimate

$22.06

Next Year Revenue Growth Estimate

5.10%

Return on Equity (ROE)

52.80%

Operating Margin

41.30%

Debt-to-Equity

0.7

Piotroski F-Score

5

Altman Z-Score

3.6

Return on Invested Capital (ROIC)

36.70%%

Current Ratio

0.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 10.5x earnings with a 1.7 forward P/E and a microscopic 0.1 forward PEG, this stock is trading at what looks like a statistical anomaly rather than a fair valuation. The market cap of $165,174M against a 52.80% operating margin and 36.70% ROIC suggests a business with elite profitability priced like a no-growth cyclical. An Altman Z-Score of 3.6 indicates solid financial stability, so bankruptcy risk is not the issue; instead, the compression in multiples implies the market is aggressively discounting future earnings durability. If the forward P/E is even remotely accurate relative to current profitability, this is a severe mispricing scenario.

AI Exposure / Tech Reliance

As a Drug Manufacturer - General company in Healthcare, it operates in an industry where AI increasingly enhances drug discovery, trial design, and commercialization efficiency. High operating margins of 52.80% provide room to reinvest in advanced R&D infrastructure and data-driven platforms. The company’s profitability profile suggests it has the capital base to integrate AI rather than be disrupted by it.

The Bull Case

A 36.70% ROIC combined with a 52.80% operating margin is the signature of a capital-efficient compounder, not a distressed asset. Even with a Piotroski F-Score of 5 indicating neutrality rather than perfection, the balance between profitability and operational consistency is strong enough to support value accumulation. The 10.5 P/E and 3.5 Price/Sales ratio look conservative relative to the margin structure, while a 5.10% ROE paired with strong operating margins suggests earnings quality is rooted in core operations rather than leverage. Institutional ownership at 46.66% provides a stable shareholder base, and a 0.7 TTM yield with a 6% five-year average dividend profile signals ongoing capital return discipline. For a GARP investor, the 0.1 PEG forward ratio screams growth at a value price.

The Bear Case

The red flags are not subtle. A Debt/Equity ratio of 41.30% combined with a weak Current Ratio of 0.8 signals tighter short-term liquidity than a defensive healthcare name should carry. Short interest at 21.40% of float is elevated, indicating a meaningful cohort is betting against the sustainability of current earnings. The disconnect between EPS of 7.5 and EPS Next Year estimate of $3.56 implies a steep earnings contraction, which may explain the compressed forward multiple. Add in a Piotroski F-Score of only 5 and the market is clearly questioning the durability of profitability.

Market Sentiment & Smart Money

Short Interest %

0.80%

Analyst Consensus

2.91

Average Analyst Price Target

$46.66

Institutional Ownership %

9.50%

1-Year Beta

1.42

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

46.10%%

Distance to 52-Week Low

106.80%%