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Novo Nordisk A/S

NVO
70
Drug Manufacturers - General · Healthcare
Exchange
New York Stock Exchange
Winston Score
70
Winston is happy
A high-quality business with solid fundamentals.

Novo Nordisk is a Danish pharmaceutical company that makes medicines for people with diabetes and obesity. Its most well-known products are insulin treatments and the GLP-1 drugs Ozempic and Wegovy, which are used by millions of patients worldwide. It is one of the largest makers of diabetes medication in the world and supplies roughly half of the global insulin market.

The company earns money by selling prescription drugs to patients through hospitals, pharmacies, and healthcare systems across more than 170 countries. Its strong patent protections, deep manufacturing expertise in biological drugs, and decades of brand trust in diabetes care give it a durable competitive position. The biggest growth driver is surging global demand for GLP-1 weight-loss and diabetes drugs, though the main risk is that patents will eventually expire and biosimilar competitors, along with potential drug pricing pressure from governments, could squeeze future revenues.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+24.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+67.1% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

28.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$23.9B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Novo Nordisk A/S is a rare growth stock that's already generating positive cash flow while growing at 24%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
86.0%
Premium pricing power — 86.0% gross margin
Operating Margin
61.6%
Excellent — 61.6% operating margin
ROCE
17.1%
Strong — 17.1% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY
+8.1%
Steady sales growth (8.1% YoY)
EPS YoY
+16.8%
Earnings growing fast (16.8% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
97%
Turns 97% of profit into real cash
FCF Margin
9.5%
Modest free cash flow (9.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.72
Moderate — manageable debt (0.72)
Interest Cover
17.56x
Comfortably covers interest (17.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
1.8x
no trend
Attractive valuation — P/E 1.8

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-0.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
3.56%
no trend
Moderate income — 3.56% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
-2.9%
no trend
Dividend cut (-2.9% YoY) — warning sign

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