NVONovo Nordisk A/S
Is the business good?
A genuinely good business: earnings fully cash-backed (1.2×) and elite returns on assets.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 53% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NVO?
Novo Nordisk A/S earns 33% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 24 points above what the capital costs: growth creates value
- Operating margin
- 41%
Operating margin · Drug Manufacturers - General median 24% · fiscal year to FY2025
- Cash conversion
- 1.19×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.34%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 43% |
| FY2021 | 42% |
| FY2022 | 42% |
| FY2023 | 44% |
| FY2024 | 44% |
| FY2025 | 41% |
Details›
- Gross marginfiscal year to FY2025
- 81%
- Operating marginfiscal year to FY2025
- 41%
- Net marginfiscal year to FY2025
- 33%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $309.1B
- Free cash flow, trailing twelve months
- $59.0B
- Net income, trailing twelve months
- $102.4B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 33%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Drug Manufacturers, General
Ranks #1 of 7 by RyuScore