Novo Nordisk AS ADR NVO

Morningstar Rating
$49.07 −0.21 (0.43%)
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Company Report

Novo Nordisk Is Losing Share, but We Still See Its Portfolio and Pipeline Supporting a Wide Moat

A pioneer in diabetes care, Novo Nordisk has been in the business for over 85 years. It claims 30% of the $100 billion diabetes treatment market and roughly half of the more than $15 billion insulin market. Diabetes' prevalence is expected to soar in the 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 innovate in both diabetes and obesity therapies.

Price vs Fair Value

NVO is trading at a LOCK|Vb<RWwd premium.
Price
$49.07
Fair Value
Y%
Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Novo's Wegovy and Wegovy pill are expanding the obesity treatment market with strong efficacy and convenience, and are poised to remain key drugs until patent expiration in 2032.

Bears

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

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Trading Information

Previous Close Price
$49.28
Day Range
$48.2949.27
52-Week Range
$35.1271.80
Bid/Ask
$49.01 / $49.04
Shares Outstanding
4.42B
Market Cap
$217.08B
Volume/Avg
53,245 / 14M

Key Statistics

Price/Earnings (Normalized)
12.17
Price/Sales
4.29
Dividend Yield (Trailing)
3.67%
Dividend Yield (Forward)
3.67%
Total Yield
3.84%

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 (contributing less than 10% of revenue) that specializes in protein therapies for hemophilia and other disorders.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Core
Total Number of Employees
68,794

Competitors

Valuation

Metric
NVO
LLY
RHHBY
Price/Earnings (Normalized)
12.1739.1815.77
Price/Book Value
6.9933.017.48
Price/Sales
4.2914.334.23
Price/Cash Flow
10.6838.5213.86
Price/Earnings
NVO
LLY
RHHBY

Financial Strength

Metric
NVO
LLY
RHHBY
Quick Ratio
0.540.721.10
Current Ratio
0.791.501.38
Interest Coverage
13.46
Quick Ratio
NVO
LLY
RHHBY

Profitability

Metric
NVO
LLY
RHHBY
Return on Assets (Normalized)
22.35%24.73%15.77%
Return on Equity (Normalized)
66.15%114.33%49.73%
Return on Invested Capital (Normalized)
37.39%40.96%23.68%
Return on Assets
NVO
LLY
RHHBY

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