Novo Nordisk (NVO) AI Stock Analysis

• Market Cap: $215.35B
• Dividend Yield: 3.83%
• Average Volume (3M): 12.88M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.11
• Revenue Growth: 21.52%
• EPS Growth: 24.50%
• Country: US
• Employees: 77,406
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.83
• Shares Outstanding: 3,390,128,000
• 10 Day Avg. Volume: 12,094,774
• 30 Day Avg. Volume: 12,875,004
• PEG Ratio: 0.19
• Price to Book (P/B): 19.23
• Price to Sales (P/S): 9.50
• P/FCF Ratio: 39.62
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.22
• Enterprise Value/Ebitda: 1.87
• 1Y Price Target: $60.50
• Price Target Upside: 25.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $55.00 ▲(13.99% Upside)

Novo Nordisk's overall stock score is driven by strong financial performance and attractive valuation. However, technical analysis indicates bearish momentum, and the earnings call revealed challenges in the U.S. market that could impact future growth. Despite these concerns, the company's strategic focus on R&D and international expansion supports a positive long-term outlook.

Positive Factors

Strong Profitability

High profit margins indicate efficient operations and strong pricing power, supporting sustained financial health and competitive advantage.

Expansion in Obesity Care

Significant growth in obesity care reflects strong demand and successful market penetration, enhancing long-term revenue potential.

International Operations Growth

Robust international sales growth diversifies revenue streams and reduces reliance on any single market, strengthening global market position.

Negative Factors

Lowered Full Year Outlook

Lowered growth outlook indicates potential challenges in market expansion and competitive pressures, affecting future revenue projections.

Decreased Free Cash Flow

Declining free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Cost-Cutting and Job Reductions

Cost-cutting measures, including job reductions, may impact employee morale and operational capacity, potentially affecting long-term growth.

Novo Nordisk Business Overview & Revenue Model

Company Description

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. The Diabetes and Obesity care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides insulin pens, growth hormone pens, and injection needles. In addition, it offers smart solutions for diabetes treatment, such as smart insulin pens and Dose Check, an insulin dose guidance application. The company has a collaboration agreement with UNICEF to tackle childhood obesity; and with Valo Health, Inc. to discover and develop novel drug programmes for cardiometabolic space. Novo Nordisk A/S was founded in 1923 and is headquartered in Bagsvaerd, Denmark.

How the Company Makes Money

Novo Nordisk generates revenue primarily through the sale of its pharmaceutical products, with a strong focus on diabetes care, which constitutes a significant portion of its income. The company’s key revenue streams include insulin products, GLP-1 receptor agonists, and other diabetes-related medications. Additionally, Novo Nordisk earns revenue from its portfolio of products for obesity management, hemophilia treatments, and hormone replacement therapies. The company benefits from strong partnerships with healthcare providers and organizations, which facilitate product distribution and access. Furthermore, Novo Nordisk invests heavily in research and development, leading to new product launches that enhance its market position and profitability. The company's global presence and established brand reputation also contribute to its financial success.

Novo Nordisk Financial Statement Overview

Summary

Novo Nordisk demonstrates strong profitability with high margins and consistent revenue growth. The balance sheet is stable with prudent leverage, but a decline in free cash flow growth is a concern. Overall, the company is well-positioned financially.

Income Statement

Novo Nordisk demonstrates strong profitability with a high gross profit margin of 83.95% and a net profit margin of 35.61% for the TTM. The company has shown consistent revenue growth, with a recent TTM growth rate of 2.90%. EBIT and EBITDA margins are robust at 47.74% and 49.49%, respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.59. Return on equity is impressive at 77.86%, showcasing effective use of equity to generate profits. The equity ratio stands at 34.86%, indicating a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 17.07% in the TTM, which could be a concern. However, the operating cash flow to net income ratio is healthy at 0.59, and the free cash flow to net income ratio is 0.51, suggesting adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	311.94B	290.40B	232.26B	176.95B	140.80B	126.95B
Gross Profit	261.87B	245.88B	196.50B	148.51B	117.14B	106.01B
EBITDA	171.27B	137.38B	113.33B	76.41B	64.83B	58.56B
Net Income	111.07B	100.99B	83.68B	55.52B	47.76B	42.14B
Balance Sheet
Total Assets	482.15B	465.80B	314.49B	241.26B	194.51B	144.92B
Cash, Cash Equivalents and Short-Term Investments	18.93B	26.31B	30.23B	23.57B	17.48B	12.76B
Total Debt	99.27B	102.79B	27.01B	25.78B	26.64B	10.36B
Total Liabilities	314.09B	322.31B	207.93B	157.77B	123.76B	81.60B
Stockholders Equity	168.07B	143.49B	106.56B	83.49B	70.75B	63.33B
Cash Flow
Free Cash Flow	61.99B	69.66B	70.01B	64.13B	47.62B	29.87B
Operating Cash Flow	121.53B	120.97B	108.91B	78.89B	55.00B	51.95B
Investing Cash Flow	-133.04B	-128.90B	-43.89B	-24.92B	-31.61B	-22.44B
Financing Cash Flow	-22.34B	8.73B	-63.16B	-51.80B	-25.49B	-32.24B

Novo Nordisk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVO, the sentiment is Negative. The current price of 48.25 is below the 20-day moving average (MA) of 53.99, below the 50-day MA of 55.86, and below the 200-day MA of 66.21, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 23.67 is Positive, neither overbought nor oversold. The STOCH value of 11.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVO.

Novo Nordisk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JNJ	78 Outperform	$450.20B	18.03	33.62%	2.72%	5.08%	71.07%
SNY	76 Outperform	$120.93B	12.21	8.39%	4.50%	-9.32%	120.62%
GILD	75 Outperform	$151.44B	18.92	40.62%	2.62%	2.71%	6407.19%
NVO	71 Outperform	$215.35B	13.27	75.95%	3.83%	21.52%	24.50%
BMY	69 Neutral	$92.81B	15.39	33.84%	5.44%	1.26%	―
PFE	68 Neutral	$138.16B	12.93	12.16%	7.04%	14.72%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Novo Nordisk Corporate Events

Novo Nordisk Proposes Acquisition of Metsera to Expand Diabetes Portfolio

On October 30, 2025, Novo Nordisk announced its proposal to acquire Metsera, Inc., aiming to enhance its portfolio with Metsera’s incretin and non-incretin analogue peptide programs. This acquisition aligns with Novo Nordisk’s strategy to develop innovative medicines for obesity and diabetes. The proposal includes acquiring all outstanding shares of Metsera at $56.50 per share in cash, with contingent value rights up to $21.25 per share, subject to Metsera’s board review.

Novo Nordisk to Convene Extraordinary General Meeting for Board Election

On October 21, 2025, Novo Nordisk announced plans to hold an Extraordinary General Meeting on November 14, 2025, to elect new members to its Board of Directors. This decision follows a disagreement with the Novo Nordisk Foundation over the board’s composition, with the Foundation seeking a more extensive reconfiguration. The current Chair, Helge Lund, and several independent board members will not stand for re-election, while some members, including Kasim Kutay and employee-elected board members, will remain. This move aims to clarify the future governance of the company, considering the Foundation’s significant voting influence.

Novo Nordisk Announces Extraordinary General Meeting for Board Elections

On October 21, 2025, Novo Nordisk announced an Extraordinary General Meeting to be held on November 14, 2025, to elect new members to its Board of Directors. The meeting will be conducted fully electronically, allowing shareholders to participate virtually or via live webcast. The agenda includes the election of a new Chair, Vice Chair, and other board members, with several current members not standing for re-election. This move is part of the company’s ongoing governance strategy, potentially impacting its leadership dynamics and stakeholder engagement.

Novo Nordisk to Acquire Akero Therapeutics to Expand MASH Portfolio

On October 9, 2025, Novo Nordisk announced its acquisition of Akero Therapeutics, a clinical-stage company specializing in treatments for serious metabolic diseases, for approximately $4.7 billion. This acquisition aims to enhance Novo Nordisk’s portfolio in treating metabolic dysfunction-associated steatohepatitis (MASH), a prevalent obesity-related comorbidity. The acquisition aligns with Novo Nordisk’s strategy to expand its offerings in diabetes and obesity-related conditions, potentially positioning efruxifermin as a cornerstone therapy for MASH. The transaction is expected to close around the turn of the year, with financial implications including a negative impact on Novo Nordisk’s 2025 free cash flow outlook and increased R&D costs in 2026.

Novo Nordisk Announces Major Transformation to Boost Growth in Diabetes and Obesity

On September 10, 2025, Novo Nordisk announced a significant transformation plan aimed at streamlining operations and reallocating resources to enhance growth opportunities in diabetes and obesity. This initiative includes reducing the global workforce by approximately 9,000 positions, resulting in expected annual savings of DKK 8 billion by the end of 2026. The restructuring is intended to address organizational complexity and cost issues while enabling the company to invest more in science, commercial capabilities, and manufacturing to meet rising global demand. Despite the one-off restructuring costs of DKK 8 billion, the company expects a full-year 2025 operating profit growth of 4-10% at constant exchange rates, reflecting its commitment to long-term success and innovation in treating chronic diseases.

Novo Nordisk Announces Executive Share Transactions Amid Market Confidence

On August 19, 2025, Novo Nordisk announced transactions involving its shares by board members, executives, and associated persons, in compliance with market abuse regulations. The transactions, which involved the purchase of 2,350 ADRs on the New York Stock Exchange, reflect internal confidence in the company’s market position and could influence stakeholder perceptions.

Novo Nordisk Announces Executive Share Transactions

On August 8, 2025, Novo Nordisk disclosed transactions involving the sale of shares by board members and executives, including Executive Vice President Ludovic Helfgott, as part of regulatory compliance with market abuse regulations. The transaction involved the sale of 12,000 shares at a price of DKK 326.00 each, totaling DKK 3,912,000. This announcement reflects the company’s adherence to transparency and regulatory requirements, potentially impacting investor perceptions and market dynamics.

Novo Nordisk Executive Share Sale Disclosed

On August 7, 2025, Novo Nordisk reported a transaction involving the sale of 28,710 shares by Executive Vice President Ludovic Helfgott at a price of DKK 295.00 per share, totaling DKK 8,469,450.00. This disclosure, made in accordance with market abuse regulations, highlights the ongoing trading activities of the company’s board members and executives, potentially impacting stakeholder perceptions and market dynamics.

Novo Nordisk Discloses Executive Share Transactions Amidst Market Regulations

On August 7, 2025, Novo Nordisk disclosed trading activities involving its shares by board members, executives, and associated persons, in compliance with market abuse regulations. The transactions, including significant sales by Executive Vice President Martin Holst Lange, were reported to the company and involved a total of 14,024 shares sold at prices of DKK 316.75 and DKK 316.48, amounting to a total value of DKK 4,438,337.93. This disclosure is part of Novo Nordisk’s commitment to transparency in its operations, potentially impacting investor perceptions and market dynamics.

Novo Nordisk Reports Strong H1 2025 Growth but Lowers Full-Year Outlook

Novo Nordisk reported a 16% increase in sales in Danish kroner and an 18% increase at constant exchange rates for the first half of 2025, driven by significant growth in obesity care and diabetes treatments. Despite strong performance, the company lowered its full-year outlook due to slower-than-expected market expansion and competition, particularly in the US GLP-1 diabetes and obesity markets. The company is advancing its R&D efforts with new developments in weight management and has announced leadership changes effective August 7, 2025.

Novo Nordisk Receives Unsolicited Mini-Tender Offer from TRC Capital

On August 4, 2025, Novo Nordisk A/S received an unsolicited ‘mini-tender’ offer from TRC Capital Investment Corporation to purchase up to 2,000,000 American Depositary Shares, representing less than 0.045% of its total share capital. Novo Nordisk remains neutral on the offer, advising shareholders to consult financial advisors and exercise caution. The company does not endorse the offer and highlights that such mini-tender offers are not subject to the same SEC disclosure requirements as larger offers, potentially offering less investor protection.