Novo Nordisk A/S Common Stock (NVO)

FairStock Score: 82/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business and the price. Novo Nordisk makes medicines for diabetes, obesity, cardiovascular and rare diseases; the supplied latest quarter, fiscal Q2 2026, shows revenue of $78.5B and net income of $21.0B, a 26.74% net margin. That is a productive business: FairStock calculations show ROE of 59.81% and ROCE of 18.73%. Cash generation is substantial—TTM free cash flow of $48.9B and a FairStock FCF yield of 28.7%—which supports the quality of reported profits. The balance sheet has D/E of 0.63, not alarming, though FairStock's Altman Z-Score of 1.02 is a weak solvency signal and its Piotroski F-Score of 6/9 is middling. Its moat is suggested by high returns and cash flow, but the supplied growth figures—revenue growth of 2.12% and profit growth of -20.81%, with no period labeled in the data—make me question durability. At the 2026-10-26 close of $39.13, FairStock's P/E is 9.71 and P/B is 5.07; its Graham Number is $67.34, implying a 42.01% margin of safety, and EV/EBITDA is 1.65. On those calculations the price looks cheap versus earnings and cash flow, but the high P/B and weak Altman score argue for caution. I see a financially productive but decelerating company priced as if trouble is already here; the key question is whether cash flow and returns hold while profit growth recovers. FairStock's Lynch category is none because only 0 years of filed results are available and three are needed.

In plain English: Novo Nordisk makes medicines for diabetes, obesity and rare diseases. The business still earns high returns and turns a large amount of sales into cash, but profits have fallen recently. Based on the provided numbers, the shares look cheap compared with earnings and cash flow, though weak balance-sheet and profit signals are cautions.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer