Novo Nordisk A/S (NYSE:NVO), a leading player in the biotechnology industry, has been making waves in the stock market. As of August 15, 2023, the company’s stock price stands at $185.42, with a market cap of $415.11 billion. The stock has seen a gain of 3.33% today and a significant increase of 15.62% over the past four weeks. The company’s impressive performance is reflected in its GF Score of 92 out of 100, placing it in the highest outperformance potential category.
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five key aspects of valuation: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank. Each of these components is ranked, and the ranks have a positive correlation with the long-term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest. Stocks with a higher GF Score generally generate higher returns than those with lower GF Scores.
Financial Strength of Novo Nordisk
Novo Nordisk’s Financial Strength rank stands at 7 out of 10. This rank measures the robustness of a company’s financial situation. It considers factors such as interest coverage, debt to revenue ratio, and Altman Z score. Novo Nordisk’s strong financial health is evident in its low debt to revenue ratio of 0.13 and a high Altman Z-Score of 10.78.
Profitability Rank Analysis
The company’s Profitability Rank is a perfect 10 out of 10. This rank measures how profitable a company is and how likely the company’s business will stay that way. It considers factors such as Operating Margin, Piotroski F-Score, and the trend of the Operating Margin. Novo Nordisk’s high profitability is reflected in its impressive operating margin of 42.80% and a Piotroski F-Score of 6.