Should I buy novo nordisk a/s shares
10/27/2024 10:43pm
**Novo Nordisk A/S (NVO) appears to be a strong investment candidate**, and here's why:
1. **Consistent Growth and Stability**: Novo Nordisk has demonstrated consistent growth in revenue and net income over the past three years, with a revenue CAGR of 26.82% and a net income CAGR of 30.71%. This indicates a strong and stable business model.
2. **Attractive Dividend**: The company offers a dividend yield of 1.27%, which is attractive, especially in comparison to the industry average. Novo Nordisk has a history of dividend growth, with a dividend growth duration of 4 years and a dividend continuous duration of 12 years.
3. **Share Buyback Program**: Novo Nordisk has an active share buyback program, with the company repurchasing shares worth up to DKK 20 billion over the past year. This demonstrates the company's confidence in its financial health and commitment to returning value to shareholders.
4. **Analyst Confidence**: The consensus rating for Novo Nordisk is "Buy" with an average price target of $159.5, indicating analyst confidence in the stock's future performance.
5. **Valuation Metrics**: The company's P/E ratio is 39.06, P/B ratio is 31.22, and P/S ratio is 13.17, which are all within reasonable ranges, suggesting that the stock may be undervalued.
In conclusion, Novo Nordisk A/S (NVO) shows promising signs of being a solid investment. Its consistent growth, attractive dividend, active share buyback program, and analyst confidence make it a stock worth considering. However, as with any investment, it's important to conduct your own due diligence and consider your investment goals and risk tolerance.