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Novozymes A/S

NVZMY
55
Chemicals - Specialty · Basic Materials
Price
$64.82
-0.70 (-1.07%)
Market Cap
$30.22B
Exchange
Other OTC
Winston Score
55
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+66.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 280.2M (2021) → 466.9M (2025)

Novozymes is a Danish company that makes enzymes and microorganisms — tiny biological tools that help other industries do their work more efficiently. Its products are used in everyday things like laundry detergent, bread, biofuels, and animal feed. Novozymes is one of the largest enzyme producers in the world, supplying manufacturers across food, agriculture, and household products.

The company sells its enzymes and biological solutions directly to industrial customers, earning revenue through product sales rather than subscriptions or ads. It operates globally, with customers in over 130 countries and most revenue coming from North America, Europe, and Asia. Novozymes holds a strong competitive position because developing new enzymes requires years of specialized research, making it hard for new competitors to enter. The key growth driver is demand for biological alternatives to traditional chemicals, particularly in agriculture and sustainable fuels, though slower adoption of these newer applications remains a meaningful risk to growth.

Winston Score History

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Score breakdown

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Quality

Gross Margin
56.7%
Premium pricing power — 56.7% gross margin
Operating Margin
24.0%
Excellent — 24.0% operating margin
ROCE
1.9%
Weak — 1.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
N/A
Data not available
EPS YoY
+57.0%
Earnings growing fast (57.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

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

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
95.2%
Converts sales into free cash efficiently (95.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.29
Conservative — low debt load (0.29)
Interest Cover
17.05x
Comfortably covers interest (17.0x)

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

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Valuation

P/E Ratio (TTM)
61.2x
Expensive — P/E 61.2

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+57.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (61.2 → 3.5)

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Dividends

Dividend Yield
1.52%
Small dividend — 1.52% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
-47.3%
Dividend cut (-47.3% YoY) — warning sign

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