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Novo Nordisk A/S

NVO
73
Drug Manufacturers - General · Healthcare
Exchange
New York Stock Exchange
Winston Score
73
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Exceptional
Growth
Mixed
Cash Flow
Exceptional
Stability
Strong
Valuation
Good
Dividends
Mixed

Winston Score History

The full picture

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.

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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

+2.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-20.5% YoY

YoY Growth Rate

Earnings declining

Insider Activity

28.4%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$47.3B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth context

Novo Nordisk A/S is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

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Quality

Profit per sale
Gross Margin
78.2%
Premium pricing power — 78.2% gross margin
Profit after running costs
Operating Margin
34.5%
Excellent — 34.5% operating margin
Return on the money invested
ROCE
39.3%
Exceptional — 39.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+5.6%
Slow sales growth (+5.6% YoY)
Profit growth
EPS YoY
+5.0%
Modest earnings growth (+5.0% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
114%
Turns 114% of profit into real cash
Spare cash per sale
FCF Margin
14.8%
Converts sales into free cash efficiently (14.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.63
Moderate — manageable debt (0.63)
Covers its interest
Interest Cover
28.43x
Comfortably covers interest (28.4x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
11.5x
no trend
Attractive valuation — P/E 11.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-1.3
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
3.82%
no trend
Moderate income — 3.82% yield

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

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

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