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Novonesis
(OTC:NVZMY)
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Rating:62Neutral
Price Target:
$75.00
â–²(6.37% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by solid operating performance and strong cash generation, supported by constructive technical momentum and a generally positive earnings update with raised guidance and capital returns. These positives are tempered by earnings volatility (including a TTM net loss), balance-sheet inconsistency in leverage readings, and a relatively expensive valuation (high P/E and low yield).
Positive Factors
Organic Growth
Broad-based organic growth and upgraded guidance indicate continued customer adoption across food, household care, agriculture and industrial markets. Volume-led expansion, pricing and sales synergies support a durable revenue trajectory.
Negative Factors
Earnings Volatility
The divergence between strong operating performance and a TTM net loss reduces confidence in earnings quality and repeatability. Continued volatility could limit the reliability of profitability as a funding source for long-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Growth
Broad-based organic growth and upgraded guidance indicate continued customer adoption across food, household care, agriculture and industrial markets. Volume-led expansion, pricing and sales synergies support a durable revenue trajectory.
Read all positive factors
Novonesis (NVZMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.01B
Dividend Yield0.23%
Average Volume (3M)24.20K
Price to Earnings (P/E)43.1
Beta (1Y)0.10
Revenue Growth12.46%
EPS Growth19.92%
CountryUS
Employees11,641
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.39
Shares Outstanding414,555,050
10 Day Avg. Volume25,619
30 Day Avg. Volume24,202
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)15.45
Price to Sales (P/S)40.34
P/FCF Ratio223.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.39
Revenue Forecast (FY)$5.20B
Novonesis Business Overview & Revenue Model
Company Description
Novozymes A/S is a global biotechnology firm that specializes in the creation and distribution of industrial enzymes, microorganisms, and probiotics. Its operational footprint spans across Europe, the Middle East, Africa, North America, Latin Amer...
How the Company Makes Money
Novonesis makes money primarily by selling biosolutions—especially enzymes and microbial/fermentation-based ingredients—to business customers (B2B) under commercial supply agreements. Revenue is generated from product sales where customers pay for...
Novonesis Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented strong, broad-based organic growth, margin expansion, robust cash generation and clear capital allocation actions (EUR 1bn buyback, bolt‑on M&A, capacity investments). These positives were balanced by notable headwinds — currency effects, country exits, a softer Human Health outlook, one-off inventory timing and a temporary elevation in CapEx and operating costs. On balance the company appears to be executing well and is confident in sustainable demand and returns, but investors should monitor H2 effects from tariff reimbursements, the normalization of the Q1 inventory benefit and the near-term impact of elevated CapEx.Positive Updates
Strong top-line growth
Organic sales grew 8% in H1 2026 (9% in Q2). Reported euro sales rose 7% in H1 and 10% in Q2. Pricing contributed ~2 percentage points and sales synergies ~1 percentage point to growth.
Negative Updates
Currency headwinds
Currency movements were a material drag: currencies provided a ~4 percentage-point headwind to organic growth in H1 (and ~1 percentage point in Q2), partially offsetting margin gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong top-line growth
Organic sales grew 8% in H1 2026 (9% in Q2). Reported euro sales rose 7% in H1 and 10% in Q2. Pricing contributed ~2 percentage points and sales synergies ~1 percentage point to growth.
Read all positive updates
Company Guidance
Novonesis raised its 2026 organic sales guidance to 7–8%, expecting growth to be mainly volume-driven and supported by roughly 1 percentage point each from pricing and sales synergies while including close to a 1 pp drag from exiting certain countries; the outlook also factors a minor H2 headwind from U.S. tariff reimbursements (up to ~40 bps), a softer Human Health H2 and high Q3 comparables. Management now expects adjusted EBITDA margin at the higher end of the 37–38% range (~38%) and net debt/EBITDA of ~1.8x at year‑end, with 2026 CapEx stepped up to 12–14% of sales (normalizing to high single‑digits by 2030). They announced a EUR 1bn buyback through 2029, an interim dividend of DKK 2.35, and reiterated the target to double adjusted ROIC (ex‑goodwill) to 16% by 2030; H1 metrics included operating cash flow EUR 523.3m, free cash flow before acquisitions EUR 307.6m and adjusted EPS (ex PPA) EUR 1.09 (+9% y/y).Novonesis Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.33B | 4.16B | 513.65M | 17.90B | 17.55B | 14.95B |
| Gross Profit | 2.38B | 2.24B | 242.45M | 9.72B | 9.58B | 8.62B |
| EBITDA | 1.45B | 1.39B | 1.08B | 5.47B | 6.12B | 5.40B |
| Net Income | -250.86M | 583.60M | 40.97M | 3.02B | 3.68B | 3.15B |
Balance Sheet | ||||||
| Total Assets | 16.63B | 16.35B | 15.20B | 28.39B | 27.98B | 24.77B |
| Cash, Cash Equivalents and Short-Term Investments | 313.47M | 295.60M | 284.00M | 1.16B | 1.11B | 1.04B |
| Total Debt | 3.07B | 22.45B | 1.80B | 7.73B | 6.95B | 482.00M |
| Total Liabilities | 5.48B | 5.49B | 4.02B | 14.04B | 13.76B | 12.56B |
| Stockholders Equity | 11.15B | 10.86B | 11.18B | 13.98B | 13.84B | 11.83B |
Cash Flow | ||||||
| Free Cash Flow | 3.20B | 750.70M | 660.10M | 2.10B | 1.12B | 2.82B |
| Operating Cash Flow | 4.32B | 1.22B | 1.02B | 4.15B | 4.01B | 4.06B |
| Investing Cash Flow | -2.09B | -1.97B | -199.70M | -2.13B | -2.67B | -2.75B |
| Financing Cash Flow | -2.55B | 753.30M | -703.20M | -1.89B | -1.25B | -1.59B |
Novonesis Technical Analysis
Positive
70.51
Price Trends
65.56
Positive
62.46
Positive
61.36
Positive
Market Momentum
1.82
Negative
59.44
Neutral
17.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVZMY, the sentiment is Positive. The current price of 70.51 is above the 20-day moving average (MA) of 67.96, above the 50-day MA of 65.56, and above the 200-day MA of 61.36, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 17.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVZMY.
Novonesis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $80.41B | 30.34 | 62.12% | 1.00% | 5.76% | 7.42% | |
62 Neutral | $33.01B | 43.06 | 5.79% | 0.73% | 12.46% | 19.92% | |
62 Neutral | $1.41B | -519.83 | -0.22% | 2.73% | 7.63% | -104.57% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $8.25B | 18.29 | 7.42% | 4.91% | -4.30% | -46.24% | |
60 Neutral | $24.74B | 15.78 | 19.47% | 2.45% | 1.47% | 23.56% | |
60 Neutral | $8.39B | 47.58 | 6.57% | 0.85% | 26.61% | -25.95% |
* Basic Materials Sector Average
NVZMY
Novonesis
70.05
7.43
11.87%
EMN
Eastman Chemical
70.77
5.43
8.30%
PPG
PPG Industries
110.75
3.91
3.66%
SHW
Sherwin-Williams Company
332.26
-30.08
-8.30%
SCL
Stepan Company
62.38
14.36
29.91%
ESI
Element Solutions
34.98
9.52
37.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.