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Is this Large Market Cap Stock target price reasonable for Novo Nordisk A/S (NYSE:NVO)?

The company in question is, Novo Nordisk A/S (NYSE:NVO) currently with a stock price of 55.99 (-0.53% today). The market cap for Novo Nordisk A/S is 112370.04, and is in the sector Healthcare, and Drug Manufacturers – Other industry. The target price for Novo Nordisk A/S is 60.1. Currently Novo Nordisk A/S is trading with a P/E of 28.27, and a forward P/E of 22.88. Average volume for Novo Nordisk A/S is 1349.35 and so far today it is 1120901.

Performance in the last year for Novo Nordisk A/S has been -0.61%. For EPS growth, Novo Nordisk A/S has seen a growth of 34.30%, and is looking to grow in the next year to 9.09%. More long term stats show that EPS growth has been 22.40% over the last five years and could be 12.30% for the next five years. Novo Nordisk A/S has seen sales growth quarter over quarter at 8.00%, with EPS growth quarter over quarter at -2.20%. The 20-day simple moving average is 2.78%, with the 200-day simple moving average coming to 3.47%.

Since the IPO date for Novo Nordisk A/S on the 1/4/1982, Novo Nordisk A/S has seen performance year to date to be -1.37%. With Novo Nordisk A/S trading at 55.99, the dividend yield is 1.71%, and the EPS is 1.99.

So could Novo Nordisk A/S, be undervalued? Well as said before P/E is 28.27. The PEG is 2.3, P/S is 6.9 and the P/B is at 25.94. The P/cash is 85.68, with P/free cash flow at 40.6.

Novo Nordisk A/S ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.8. This is with long term debt/equity at 0, and total debt/equity at 0.01.

In terms of margins, Novo Nordisk A/S has a gross margin of 84.90%, an operating margin of 43.60% and a profit margin of 31.30%.Payout ratio for Novo Nordisk A/S is 47.50%. Return on assets come to 40.40% with return on investment coming to 85.00%.

Insider ownership for Novo Nordisk A/S, is at 26.40% and institutional ownership comes to 10.20%. Outstanding shares are at 1996.27. While shares float is 1356.68. The float short is currently 0.15%, and short ratio is 1.5.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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