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Novozymes A/S

NSIS-B.CO
66
Chemicals - Specialty · Basic Materials
Price
kr 456.40
+5.80 (+1.29%)
Market Cap
kr 212.79B
Exchange
NASDAQ Copenhagen
Winston Score
66
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 24, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Good
Dividends
Weak

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)

Winston Score History

The full picture

Novozymes is a Danish company that makes enzymes and microorganisms used across many industries. Its products help detergent makers clean clothes at lower temperatures, food companies produce better bread and beer, and biofuel producers turn crops into energy. It is one of the world's largest industrial enzyme producers, holding a leading share of the global market.

Novozymes earns revenue by selling biological solutions to business customers, primarily in household care, food and beverages, bioenergy, and agriculture. The company operates globally with customers in over 100 countries and is headquartered in Copenhagen, Denmark. Its deep expertise in protein engineering and a vast library of proprietary microorganisms give it a strong competitive moat. In 2024, Novozymes merged with Chr. Hansen to form Novonesis, broadening its reach into probiotics and natural colors, though integrating the two businesses and sustaining growth across a wider portfolio remains a key challenge ahead.

Growth Profile

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

Revenue Growth

+9.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+27.6% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

€463M/ year

Rising (+12% vs prior year)

11.2% of revenue

3.7x the sector average (3%)

Investing heavily in future products and technology

Insider Activity

26.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

€352M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth context

Novozymes A/S is growing revenue at 10% 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
55.7%
Premium pricing power — 55.7% gross margin
Profit after running costs
Operating Margin
23.0%
Excellent — 23.0% operating margin
Return on the money invested
ROCE
6.4%
Weak — 6.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+5.4%
Slow sales growth (+5.4% YoY)
Profit growth
EPS YoY
+23.9%
Earnings growing fast (+23.9% YoY)

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

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
209%
Turns 209% of profit into real cash
Spare cash per sale
FCF Margin
19.0%
Converts sales into free cash efficiently (19.0%)

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
0.28
Conservative — low debt load (0.28)
Covers its interest
Interest Cover
10.86x
Comfortably covers interest (10.9x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
43.6x
Pricey — P/E 43.6

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

Cheaper or dearer next year
P/E vs Forward
+20.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (43.6 → 23.4)

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Dividends

Dividend
Dividend Yield
1.86%
Small dividend — 1.86% yield

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

Dividend record
Dividend Growth
-28.2%
Dividend cut (-28.2% YoY) — warning sign

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