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Novo Nordisk A/S ADR NVO

Morningstar Rating
$142.50 +0.01 (< 0.01%)
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Company Report

Novo Nordisk's Cardiometabolic Innovation Supports a Wide Moat

As a pioneer in diabetes care, Novo has been in the business for over 85 years and claims 34% of the $50 billion-plus diabetes treatment market and roughly half of the more than $15 billion insulin market. Diabetes' prevalence is expected to soar in coming decades as a result of an increasingly overweight and aging population, and we expect Novo to maintain its wide moat as it continues to dominate in diabetes and obesity therapy innovation.

Price vs Fair Value

NVO is trading at a 625% premium.
Price
$142.50
Fair Value
$23.00
Uncertainty
High
1-Star Price
$942.80
5-Star Price
$67.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Novo's new obesity therapy Wegovy is significantly expanding the obesity treatment market given its strong efficacy and is poised to remain a key drug in the market until patent expiration in 2032.

Bears

Tresiba's strong profile in the long-acting insulin market hasn't been enough to defend it from U.S. pricing pressure due to competition from Sanofi and Lilly, and biosimilar insulins have weighed on category pricing since 2017.

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News

Trading Information

Previous Close Price
$142.49
Day Range
$141.89143.18
52-Week Range
$75.56144.50
Bid/Ask
$141.85 / $142.61
Market Cap
$634.73 Bil
Volume/Avg
2.8 Mil / 3.8 Mil

Key Statistics

Price/Earnings (Normalized)
49.20
Price/Sales
17.98
Dividend Yield (Trailing)
0.96%
Dividend Yield (Forward)
0.96%
Total Yield
0.96%

Company Profile

With roughly one third of the global branded diabetes treatment market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments such as GLP-1 therapy, oral antidiabetic agents, and obesity treatments. Novo also has a biopharmaceutical segment (constituting roughly 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Large Growth
Total Number of Employees
66,015

Competitors

Valuation

Metric
NVO
LLY
SNY
Price/Earnings (Normalized)
49.2093.9410.15
Price/Book Value
65.161.52
Price/Sales
17.9822.092.29
Price/Cash Flow
42.1191.7911.31
Price/Earnings
NVO
LLY
SNY

Financial Strength

Metric
NVO
LLY
SNY
Quick Ratio
0.490.680.83
Current Ratio
0.701.351.27
Interest Coverage
45.8214.118.40
Quick Ratio
NVO
LLY
SNY

Profitability

Metric
NVO
LLY
SNY
Return on Assets (Normalized)
30.91%11.20%
Return on Equity (Normalized)
95.22%57.69%
Return on Invested Capital (Normalized)
73.76%20.65%
Return on Assets
NVO
LLY
SNY
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