Novozymes A/S
Novozymes A/S Fundamental Analysis
Novozymes A/S (NVZMY) shows weak financial fundamentals with a PE ratio of 36.82, profit margin of 5.30%, and ROE of 5.35%. The company generates $12.5B in annual revenue with weak year-over-year growth of -78.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -54.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NVZMY's fundamental strength across five key dimensions:
Efficiency Score
WeakNVZMY struggles to generate sufficient returns from assets.
Valuation Score
ModerateNVZMY shows balanced valuation metrics.
Growth Score
WeakNVZMY faces weak or negative growth trends.
Financial Health Score
WeakNVZMY carries high financial risk with limited liquidity.
Profitability Score
WeakNVZMY struggles to sustain strong margins.
Key Financial Metrics
Is NVZMY Expensive or Cheap?
P/E Ratio
NVZMY trades at 36.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NVZMY's PEG of -6.11 indicates potential undervaluation.
Price to Book
The market values Novozymes A/S at 1.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.68 times EBITDA. This is generally considered low.
How Well Does NVZMY Make Money?
Net Profit Margin
For every $100 in sales, Novozymes A/S keeps $5.30 as profit after all expenses.
Operating Margin
Core operations generate 19.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.35 in profit for every $100 of shareholder equity.
ROA
Novozymes A/S generates $3.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Novozymes A/S generates strong operating cash flow of $4.78B, reflecting robust business health.
Free Cash Flow
Novozymes A/S generates strong free cash flow of $3.56B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.56 in free cash annually.
FCF Yield
NVZMY converts 12.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How NVZMY Stacks Against Its Sector Peers
| Metric | NVZMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.82 | 23.91 | Worse (Expensive) |
| ROE | 5.35% | 887.00% | Weak |
| Net Margin | 5.30% | -114589.00% (disorted) | Weak |
| Debt/Equity | 2.07 | 0.55 | Weak (High Leverage) |
| Current Ratio | 0.72 | 5.05 | Weak Liquidity |
| ROA | 3.57% | -6361.00% (disorted) | Weak |
NVZMY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Novozymes A/S's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-72.51%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
-90.01%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-67.10%
Industry Style: Cyclical, Commodity, Value
Declining