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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 47.03 (-0.29% today). The market cap for Novo Nordisk A/S is 96374.44, and is in the sector Healthcare, and Drug Manufacturers – Other industry. The target price for Novo Nordisk A/S is 57. Currently Novo Nordisk A/S is trading with a P/E of 22.3, and a forward P/E of 19.23. Average volume for Novo Nordisk A/S is 2027.9 and so far today it is 943132.

Performance in the last year for Novo Nordisk A/S has been -17.31%. For EPS growth, Novo Nordisk A/S has seen a growth of 34.30%, and is looking to grow in the next year to 7.82%. 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 1.50%, with EPS growth quarter over quarter at 21.50%. The 20-day simple moving average is -10.69%, with the 200-day simple moving average coming to -11.93%.

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 -16.56%. With Novo Nordisk A/S trading at 47.03, the dividend yield is 2.99%, and the EPS is 2.12.

So could Novo Nordisk A/S, be undervalued? Well as said before P/E is 22.3. The PEG is 1.81, P/S is 5.83 and the P/B is at 18.79. The P/cash is 42.29, with P/free cash flow at 31.26.

Novo Nordisk A/S ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 0.9. 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 84.80%, an operating margin of 43.40% and a profit margin of 32.70%.Payout ratio for Novo Nordisk A/S is 45.20%. Return on assets come to 41.50% with return on investment coming to 85.00%.

Insider ownership for Novo Nordisk A/S, is at 26.40% and institutional ownership comes to 10.30%. Outstanding shares are at 2043.13. While shares float is 1356.68. The float short is currently 0.16%, and short ratio is 1.09.

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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