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Novo Nordisk A/S (NYSE: NVO) – Is this large market cap stock undervalued?

Novo Nordisk A/S (NYSE: NVO), is firmly in the large market cap category with market cap of 87535.55. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Novo Nordisk A/S is 43.74 (with a change from open of -0.41%), this in conjunction with a target price of 57. Volume today has so far reached 2916100, with an average volume of about 2538.29. The GAP for this stock, is 0.16%.

The P/E ratio is 20.55, bringing the forward P/E to a value of 17.9. The current EPS for Novo Nordisk A/S, is 2.13, with a EPS growth for this year coming to a value of 34.30%. Performance has been interesting with performance year to date coming to -22.63%.

Looking further into the growth statistics for Novo Nordisk A/S, EPS is looking like it will grow 6.49% in the next year. Looking even further it is projected to be 10.90%. Quarter over quarter is 21.50% for EPS growth and for sales growth quarter over quarter it is 1.50%. Looking at past EPS growth statistics we see that for the past five years it has been 22.40%. Sales growth for the past five years has in fact been 12.20%.

Looking at the ownership, we see that the insider ownership is at 26.40% and institutional ownership is 10.00%. Shares outstanding is 2001.27, while shares float is at a value of 1356.68. Float short for Novo Nordisk A/S is 0.15% and the short ratio is 0.81.

In terms of debt, long term debt/equity is 0, while the total debt/equity comes to 0.01. The ability to meet these debts, means that the current ratio is 1.3, and the quick ratio is 0.9. The most recent gross margin is 84.80% and their operating margin is 43.40%. The profit margin is 32.70%.

Novo Nordisk A/S has seen returns on assets of 41.50%, and on investment, 85.00%. Return on equity is 84.90%. Price/Earnings to growth ratio is 1.89. Price/Sales ratio is at a value of 5.27, with Price/book ratio coming to 17.29 and Price/cash is 38.19, and finally Price/Free cash Flow is 28.23.

The simple moving averages are -10.17% and -16.51% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -23.83% and the 52 week low is 0.90%.

Novo Nordisk A/S has a dividend yield of 3.22%, with a current price of 43.74. The ability to pay this means the payout ratio is 45.20%. This is in an industry, Drug Manufacturers – Other, with equally high dividends from other companies in this sector, which it is Healthcare. Novo Nordisk A/S is based in Denmark.

Performance in the Drug Manufacturers – Other industry means that Novo Nordisk A/S has seen performance for the past week of -5.00%, with performance for the month coming to -7.04%. Looking at the data for the quarter it is at a value of -16.70%, and for the half year the performance is -15.88%. Volatility for this week is 1.25% and for the month this is 1.32%.

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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Tony Dabbs

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