Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin34.5%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin26.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt6.7 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$152.2B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$30.4B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
A
Margin of Safety52.6%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book0.60x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
C
Free Cash Flow$42.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income61.0%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$44.1B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Novo Nordisk A/S
Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products. It operates through two segments, Obesity and Diabetes Care, and Rare Disease. The Obesity and Diabetes care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides NovoPen 6 and NovoPen Echo Plus, smart insulin pens; Dose Check, an insulin dose guidance application; growth hormone pens and injection needles; and Wegovy pill an oral glucagon-like peptide-1 (GLP-1) receptor agonist therapy for weight management. The company has a collaboration with Anthropic accelerate the development of new medicines and advance AI-driven software development. It operates in Europe, Canada, the United States, Japan, Korea, Oceania, Southeast Asia, Mainland China, Hong Kong and Taiwan, Latin America, the Middle East, and Africa. It has a strategic collaboration with Orbis Medicines to discover and develop oral macrocycle therapeutics for cardiometabolic diseases. The company was formerly known as Novo Industri A/S and changed its name to Novo Nordisk A/S in April 1989. The company was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products. It operates through two segments, Obesity and Diabetes Care, and Rare Disease. The Obesity and Diabetes care segment provides products for diabetes, obesity, cardiovascular, and other emerging therapy areas. The Rare Disease segment offers products in the areas of rare blood disorders, rare endocrine disorders, and hormone replacement therapy. The company also provides NovoPen 6 and NovoPen Echo Plus, smart insulin pens; Dose Check, an insulin dose guidance application; growth hormone pens and injection needles; and Wegovy pill an oral glucagon-like peptide-1 (GLP-1) receptor agonist therapy for weight management. The company has a collaboration with Anthropic accelerate the development of new medicines and advance AI-driven software development. It operates in Europe, Canada, the United States, Japan, Korea, Oceania, Southeast Asia, Mainland China, Hong Kong and Taiwan, Latin America, the Middle East, and Africa. It has a strategic collaboration with Orbis Medicines to discover and develop oral macrocycle therapeutics for cardiometabolic diseases. The company was formerly known as Novo Industri A/S and changed its name to Novo Nordisk A/S in April 1989. The company was founded in 1923 and is headquartered in Bagsvaerd, Denmark.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Novo Nordisk A/S at $39.80.
The business passes 4 of 6 of Graham's defensive criteria — adequate but not exceptional.
At $39.80, the stock trades below its Graham Number of $84.02 — suggesting a margin of safety exists.
The margin of safety of 52.6% exceeds Graham's recommended 33% threshold — a rare opportunity.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.
Showing Key Metrics
Income Highlights
Metric
Q2 2026
Q4 2025
Gross Profit %
78.2%▼
80.9%
Operating Margin %
34.5%▼
40.1%
Net Income %
26.7%▼
34.0%
Diluted EPS
4.74▼
6.04
Balance Sheet Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Total Assets
$594.9B
$542.9B
N/A
Total Debt
$140.1B▲
$131.0B•
N/A
Working Capital
-$30.4B▲
-$43.2B•
N/A
Years to Pay Debt
6.68
4.87
N/A
Cash Flow Highlights
Metric
Q2 2026
Q4 2025
Q4 2024
Free Cash Flow
$42.4B▲
-$36.2B•
N/A
Owner Earnings
$44.1B
$69.0B
N/A
CapEx % of Net Income
61.0%
163.0%
N/A
Income Statement
2026
2025
Tax Rate For Calcs
0
0
Normalized EBITDA
28,375,000
31,736,000
Net Income From Continuing Operation Net Minority Interest
20,989,000
26,891,000
Reconciled Depreciation
10,304,000
-1,754,000
Reconciled Cost Of Revenue
17,100,000
15,148,000
EBITDA
28,375,000
31,736,000
EBIT
28,375,000
31,736,000
Net Interest Income
-186,000
2,449,000
Interest Expense
1,500,000
-4,406,000
Interest Income
1,314,000
2,449,000
Normalized Income
20,989,000
26,891,000
Net Income From Continuing And Discontinued Operation
20,989,000
26,891,000
Total Expenses
51,427,000
47,408,000
Total Operating Income As Reported
27,061,000
31,736,000
Diluted Average Shares
4,435,800
4,449,400
Basic Average Shares
4,428,059
4,443,600
Diluted EPS
0
0
Basic EPS
0
0
Diluted NI Availto Com Stockholders
20,989,000
26,891,000
Net Income Common Stockholders
20,989,000
26,891,000
Net Income
20,989,000
26,891,000
Net Income Including Noncontrolling Interests
20,989,000
26,891,000
Net Income Continuous Operations
20,989,000
26,891,000
Tax Provision
5,886,000
7,294,000
Pretax Income
26,875,000
34,185,000
Net Non Operating Interest Income Expense
-186,000
2,449,000
Interest Expense Non Operating
1,500,000
-4,406,000
Interest Income Non Operating
1,314,000
2,449,000
Operating Income
27,061,000
31,736,000
Operating Expense
34,327,000
32,260,000
Other Operating Expenses
234,000
174,000
Research And Development
17,787,000
14,648,000
Selling General And Administration
16,306,000
17,438,000
Selling And Marketing Expense
14,997,000
15,889,000
General And Administrative Expense
1,309,000
1,549,000
Other Gand A
1,309,000
1,549,000
Gross Profit
61,388,000
63,996,000
Cost Of Revenue
17,100,000
15,148,000
Total Revenue
78,488,000
79,144,000
Operating Revenue
78,488,000
79,144,000
Balance Sheet
2026
2025
2024
Treasury Shares Number
40,194
21,521
23,660
Ordinary Shares Number
4,424,806
4,443,479
Share Issued
4,465,000
4,465,000
Net Debt
95,645,000
95,922,000
Total Debt
140,127,000
130,958,000
Tangible Book Value
99,220,000
63,994,000
Invested Capital
361,404,000
316,433,000
Working Capital
-30,387,000
-43,208,000
Net Tangible Assets
99,220,000
63,994,000
Capital Lease Obligations
8,572,000
6,766,000
Common Stock Equity
221,277,000
194,047,000
Total Capitalization
343,071,000
305,752,000
Total Equity Gross Minority Interest
221,277,000
194,047,000
Stockholders Equity
221,277,000
194,047,000
Gains Losses Not Affecting Retained Earnings
-3,329,000
-1,695,000
Other Equity Adjustments
-3,329,000
-1,695,000
Treasury Stock
4,000
2,000
Retained Earnings
224,164,000
195,298,000
Capital Stock
446,000
446,000
Common Stock
446,000
446,000
Total Liabilities Net Minority Interest
373,664,000
348,855,000
Total Non Current Liabilities Net Minority Interest
134,581,000
133,194,000
Other Non Current Liabilities
23,000
Employee Benefits
787,000
861,000
Non Current Pension And Other Postretirement Benefit Plans
787,000
861,000
Tradeand Other Payables Non Current
1,529,000
1,051,000
Non Current Deferred Liabilities
4,271,000
6,611,000
Non Current Deferred Taxes Liabilities
4,271,000
6,611,000
Long Term Debt And Capital Lease Obligation
121,794,000
118,941,000
Long Term Capital Lease Obligation
7,236,000
5,428,000
Long Term Debt
121,794,000
111,705,000
Long Term Provisions
6,200,000
5,730,000
Current Liabilities
239,083,000
215,661,000
Other Current Liabilities
43,621,000
41,747,000
Current Debt And Capital Lease Obligation
18,333,000
12,017,000
Current Capital Lease Obligation
1,336,000
1,338,000
Current Debt
18,333,000
10,681,000
Other Current Borrowings
18,333,000
9,753,000
Line Of Credit
183,000
449,000
Commercial Paper
745,000
5,343,000
Current Provisions
1,877,000
374,000
Payables And Accrued Expenses
175,252,000
161,523,000
Payables
175,252,000
161,523,000
Total Tax Payable
20,460,000
8,416,000
Accounts Payable
154,792,000
153,107,000
Total Assets
594,941,000
542,902,000
Total Non Current Assets
386,245,000
370,449,000
Non Current Deferred Assets
23,672,000
23,647,000
Non Current Deferred Taxes Assets
23,672,000
23,647,000
Non Current Accounts Receivable
6,428,000
5,864,000
Investments And Advances
2,330,000
2,507,000
Investmentin Financial Assets
2,123,000
2,141,000
Available For Sale Securities
2,123,000
2,141,000
Long Term Equity Investment
207,000
366,000
Investmentsin Associatesat Cost
207,000
366,000
Goodwill And Other Intangible Assets
122,057,000
130,053,000
Other Intangible Assets
102,167,000
110,208,000
Goodwill
19,890,000
19,845,000
20,017,000
Net PPE
231,758,000
208,378,000
Accumulated Depreciation
-58,936,000
-52,396,000
Gross PPE
267,314,000
214,076,000
Construction In Progress
130,622,000
85,497,000
Other Properties
11,113,000
10,166,000
Machinery Furniture Equipment
60,020,000
57,039,000
Properties
65,559,000
61,374,000
Current Assets
208,696,000
172,453,000
Hedging Assets Current
3,850,000
6,682,000
Inventory
51,352,000
49,623,000
Inventories Adjustments Allowances
-5,661,000
-3,728,000
Finished Goods
11,990,000
8,873,000
Work In Process
25,858,000
22,335,000
Raw Materials
17,436,000
13,369,000
Receivables
108,512,000
89,186,000
Other Receivables
14,611,000
13,482,000
Taxes Receivable
4,952,000
4,848,000
Accounts Receivable
88,949,000
70,856,000
Allowance For Doubtful Accounts Receivable
-1,987,000
-2,127,000
Gross Accounts Receivable
72,843,000
74,076,000
Cash Cash Equivalents And Short Term Investments
44,982,000
26,962,000
Other Short Term Investments
500,000
498,000
Cash And Cash Equivalents
44,482,000
26,464,000
Cash Financial
44,482,000
26,464,000
Cash Flow
2026
2025
2024
Free Cash Flow
42,398,000
-36,218,000
Repurchase Of Capital Stock
-3,499,000
0
Repayment Of Debt
-26,112,000
-1,153,000
Issuance Of Debt
18,772,000
30,620,000
Capital Expenditure
-12,801,000
-43,837,000
End Cash Position
44,482,000
26,464,000
Beginning Cash Position
21,127,000
32,084,000
Effect Of Exchange Rate Changes
52,000
106,000
Changes In Cash
23,303,000
-5,726,000
Financing Cash Flow
-19,132,000
29,467,000
Cash Flow From Continuing Financing Activities
-19,132,000
29,467,000
Net Other Financing Charges
Interest Paid Cff
-1,818,000
Cash Dividends Paid
0
0
Net Common Stock Issuance
-3,499,000
0
Common Stock Payments
-3,499,000
0
Net Issuance Payments Of Debt
-7,340,000
29,467,000
Net Long Term Debt Issuance
-7,340,000
29,467,000
Long Term Debt Payments
-26,112,000
-1,153,000
Long Term Debt Issuance
18,772,000
30,620,000
Investing Cash Flow
-12,764,000
-42,812,000
Cash Flow From Continuing Investing Activities
-12,764,000
-42,812,000
Interest Received Cfi
80,000
Net Investment Purchase And Sale
-43,000
21,000
Sale Of Investment
51,000
21,000
Purchase Of Investment
-94,000
0
Net Business Purchase And Sale
0
1,004,000
Sale Of Business
0
Purchase Of Business
0
-81,495,000
Net Intangibles Purchase And Sale
-126,000
-25,408,000
Purchase Of Intangibles
-126,000
-25,408,000
Net PPE Purchase And Sale
-12,675,000
-18,429,000
Purchase Of PPE
-12,675,000
-18,429,000
Operating Cash Flow
55,199,000
7,619,000
Cash Flow From Continuing Operating Activities
55,199,000
7,619,000
Taxes Refund Paid
-1,365,000
-22,991,000
Interest Received Cfo
436,000
813,000
Interest Paid Cfo
-1,170,000
-253,000
Change In Working Capital
13,319,000
20,370,000
Other Non Cash Items
6,066,000
-28,773,000
Deferred Tax
5,886,000
7,294,000
Deferred Income Tax
5,886,000
7,294,000
Depreciation Amortization Depletion
10,304,000
-1,754,000
Depreciation And Amortization
10,304,000
-1,754,000
Depreciation
10,304,000
-8,283,000
Net Income From Continuing Operations
20,989,000
26,891,000
📊Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $76.9B▲ $78.5B+2.1%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 83.3%▼ 78.2%-5.1pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 35.2%▼ 34.5%-0.7pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 34.5%▼ 26.7%-7.7pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$78.5B/qtr (≈$314.0B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.87x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$42.4B
vs Positive
Operating Cash Flow
$55.2B
Latest quarter · Buffett's cash reality check
ROIC
6.0%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
0.6x
Net Assets: $221.3B
⚠️Net margin compressed 7.7pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry
No auto-detected peers for Drug Manufacturers - General. You can manually compare NVO against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.00%
Low — management has little skin in the game
Return on Equity (ROE)
9.5%
Adequate — returns are moderate
Return on Assets (ROA)
3.5%
Fair — average asset utilization
Share Buybacks (Latest Year)
$1.4B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
-4.3% YoY
Debt is declining — management is deleveraging
Leadership Team
Karsten Munk Knudsen
Executive VP, CFO & Member of the Management Board
Age 54
Pay: $2,640,578
0.013% of net income
Maziar Mike Doustdar
President, CEO & Member of the Management Board
Age 55
Elin Jager
SVP, Chief of Staff to CEO, Corporate Strategy & Sustainability and Member of Management Board
Age 39
Top Institutional Holders
Institution
% Owned
Shares
Dodge & Cox Inc.
0.60%
20,397,110
LOOMIS SAYLES & CO L P
0.55%
18,594,352
Franklin Resources, Inc.
0.38%
13,041,109
Price (T.Rowe) Associates Inc
0.35%
11,704,719
Morgan Stanley
0.34%
11,659,869
Bank of America Corporation
0.33%
11,176,712
Capital International Investors
0.29%
9,721,180
Folketrygdfondet
0.28%
9,522,383
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.34
Low volatility — more stable than the market
Short Interest
1.0% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.63x
Conservative balance sheet — low financial risk
Current Ratio
0.87x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $35.12Current: $39.80High: $64.16
Currently at 16% of 52-week range
Novo Nordisk A/S (NVO) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $84.02. Margin of safety: 52.6%. Gross profit margin: 78.2%. Operating margin: 34.5%. Net margin: 26.7%. Market cap: $175.8B. Sector: Healthcare. Industry: Drug Manufacturers - General. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
Disclaimer: 360investing is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice. All data is sourced from public third-party providers
and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
diligence and consult a qualified financial adviser before making any investment decision. Use of this tool constitutes acceptance that 360investing and its operators bear no liability for decisions made based on information presented here.