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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 46 (0.44% today). The market cap for Novo Nordisk A/S is 93186.8, 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 21.64, and a forward P/E of 18.91. Average volume for Novo Nordisk A/S is 2160.57 and so far today it is 3208500.

Performance in the last year for Novo Nordisk A/S has been -12.98%. For EPS growth, Novo Nordisk A/S has seen a growth of 34.30%, and is looking to grow in the next year to 6.76%. More long term stats show that EPS growth has been 22.40% over the last five years and could be 10.60% 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 -10.20%, with the 200-day simple moving average coming to -13.32%.

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 -18.63%. With Novo Nordisk A/S trading at 46, the dividend yield is 3.07%, and the EPS is 2.13.

So could Novo Nordisk A/S, be undervalued? Well as said before P/E is 21.64. The PEG is 2.04, P/S is 5.61 and the P/B is at 18.18. The P/cash is 40.68, with P/free cash flow at 30.07.

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 10.00%. Outstanding shares are at 2025.8. While shares float is 1356.68. The float short is currently 0.15%, and short ratio is 0.94.

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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