Novo Nordisk (NVO) AI Stock Analysis

• Market Cap: $258.78B
• Dividend Yield: 2.99%
• Average Volume (3M): 16.87M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.10
• Revenue Growth: 21.52%
• EPS Growth: 24.50%
• Country: US
• Employees: 77,406
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.93
• Shares Outstanding: 3,390,128,000
• 10 Day Avg. Volume: 14,416,595
• 30 Day Avg. Volume: 16,874,144
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 1.22
• Enterprise Value/Ebitda: 1.87
• 1Y Price Target: $60.18
• Price Target Upside: -2.70% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: $63.00 ▲(1.86% Upside)

Novo Nordisk's overall stock score reflects strong financial performance and reasonable valuation, tempered by mixed technical indicators and a cautious outlook from the earnings call. The company's robust growth in international operations and obesity care is offset by challenges in the U.S. market and declining free cash flow.

Positive Factors

Revenue Growth

Strong revenue and profit growth indicate robust demand for Novo Nordisk's products, enhancing its market position and financial health.

Product Innovation

Regulatory progress for Ozempic in new indications showcases Novo Nordisk's commitment to innovation, potentially expanding its market reach.

International Expansion

Significant growth in international markets strengthens Novo Nordisk's global footprint and diversifies its revenue streams.

Negative Factors

Lowered Growth Outlook

A reduced growth outlook reflects challenges in key markets, potentially impacting future revenue and profit trajectories.

Regulatory Challenges

Regulatory scrutiny over marketing practices could affect Novo Nordisk's brand reputation and lead to potential legal challenges.

Workforce Reduction

Significant workforce reductions may impact company morale and operational efficiency, posing risks to long-term growth initiatives.

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 exhibits strong financial performance with high profitability and efficient operations. The company maintains a stable balance sheet with prudent leverage levels. However, the recent decline in free cash flow growth is a concern.

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: Neutral
• Last Price: 61.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVO, the sentiment is Neutral. The current price of 61.85 is above the 20-day moving average (MA) of 56.13, above the 50-day MA of 57.07, and below the 200-day MA of 72.51, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 69.34 is Neutral, neither overbought nor oversold. The STOCH value of 90.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NVO.

Novo Nordisk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JNJ	80 Outperform	426.76B	18.95	28.88%	2.92%	4.69%	34.88%
NVO	73 Outperform	$258.78B	16.01	75.95%	2.99%	21.52%	24.50%
PFE	73 Outperform	136.74B	12.79	12.10%	7.08%	14.72%	0.00%
SNY	72 Outperform	114.06B	11.68	7.17%	4.64%	-9.32%	120.62%
BMY	68 Neutral	93.94B	18.62	28.96%	5.39%	2.57%	0.00%
GILD	68 Neutral	139.29B	22.33	32.08%	2.76%	3.69%	501.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Novo Nordisk Corporate Events

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.

Novo Nordisk Lowers 2025 Sales and Profit Outlook Amid Market Challenges

On July 29, 2025, Novo Nordisk announced a revised sales and operating profit outlook for 2025, reflecting a decrease in expected growth due to challenges in the US obesity and diabetes markets. Despite an 18% increase in sales and a 29% rise in operating profit in the first half of 2025, the company lowered its full-year expectations due to slower market expansion and competition, particularly affecting Wegovy® and Ozempic® sales. The company is actively pursuing strategies to counteract the impact of unlawful mass compounding and competition, while continuing to invest in commercial activities and direct-to-patient initiatives.

Novo Nordisk Appoints New CEO Amid Strategic Restructuring

Novo Nordisk announced the appointment of Maziar Mike Doustdar as the new president and CEO, effective August 7, 2025, succeeding Lars Fruergaard Jørgensen. Doustdar, who has significantly contributed to the company’s growth in international operations, is expected to lead Novo Nordisk through its next growth phase, focusing on addressing market challenges and leveraging opportunities in diabetes and obesity. Additionally, the company is restructuring its R&D units under the leadership of Martin Holst Lange, aiming to enhance innovation and pipeline development.