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Can Novo Nordisk A/S (CPSE:NOVO B) Turn Up the Heat? ROA of 0.392110 in Focus

Taking a look at some key metrics and ratios for Novo Nordisk A/S (CPSE:NOVO B), we note that the ROA or Return on Assets stands at 0.392110. Return on Assets shows how many dollars of earnings result from each dollar of assets the company controls. Return on assets gives an indication of the capital intensity of the company, which will also depend on the type of industry.

As investors gear up for the stretch run towards the end of the year, the focus will be on which way stock market momentum seems to be shifting. Investors may be taking note of various economic reports and keeping a close eye on global political news. There are many factors that can affect the price of a stock. Tracking the markets from different angles may help to put together the bigger investing picture. Investors may be wondering if they have missed the boat as stocks have cooled off a bit recently. It may be wise to remember that there are always plenty of market opportunities to take advantage of. Diving into the fray may not be necessary until all the boxes are ticked off on the investor’s checklist. 

In addition to ROA, there are a number of additional ratios and Quant signals available to investors in order to decipher if the shares are a good fit for their portfolio.  The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of Novo Nordisk A/S (CPSE:NOVO B) is 0.047227.  This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased.  Dividends are a common way that companies distribute cash to their shareholders.  Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too.  Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Novo Nordisk A/S CPSE:NOVO B is 0.04806.  This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The EBITDA Yield is a great way to determine a company’s profitability.  This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The EBITDA Yield for Novo Nordisk A/S (CPSE:NOVO B) is 0.069856. 

The Earnings to Price yield of Novo Nordisk A/S CPSE:NOVO B is 0.054103.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for Novo Nordisk A/S CPSE:NOVO B is 0.065804.  Earnings Yield helps investors measure the return on investment for a given company.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for Novo Nordisk A/S (CPSE:NOVO B) is 0.059345.

Often times, investors may become worried when the stock market is highly volatile. Being prepared for volatile situations can help ease the fears that come along with turbulence. Following a well-crafted plan might help ride out the ups and downs that are a normal part of dealing with the market. Investors should be prepared for market situations that provide ample opportunities. Although market downturns can be unsettling and cause panic, investors who are able to stay the course and keep calm may be able to spot good buying opportunities when the wider market is selling. 

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for Novo Nordisk A/S CPSE:NOVO B is 14.932130.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for Novo Nordisk A/S (CPSE:NOVO B) is 16.408904.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for Novo Nordisk A/S (CPSE:NOVO B) is 18.483101. This ratio is found by taking the current share price and dividing by earnings per share.


The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Novo Nordisk A/S (CPSE:NOVO B) is 4.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of Novo Nordisk A/S (CPSE:NOVO B) is 5.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

Investors may be combing through all the latest company earnings reports. They may be trying to figure out which companies look like they are going to be strong over the next few quarters. Earnings reports have the ability to cause dramatic stock price swings. Many investors will stay away from making any big trades around earnings announcements. When the dust settles, it may be much easier to determine whether a stock is worth buying or if it should be sold. Keeping a close eye on historical earnings results can provide some good insight. Companies that consistently produce solid earnings may be worth looking into further, especially if the investor is on the fence about getting into the name.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Novo Nordisk A/S (CPSE:NOVO B) is 4516.  The lower the ERP5 rank, the more undervalued a company is thought to be.

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Novo Nordisk A/S (CPSE:NOVO B) has an M-Score of -2.629645.  The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets.  A score higher than -1.78 is an indicator that the company might be manipulating their numbers.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Novo Nordisk A/S (CPSE:NOVO B) is 58.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Novo Nordisk A/S (CPSE:NOVO B) is 47.

Investors are constantly trying to set themselves up for success when dealing with the stock market. This may mean tracking the market from a variety of alternate angles. Keeping tabs on the overall economic climate can help provide valuable insight. Taking a look at the bigger picture can help investors filter down and sort out issues at the sector and individual company level. Making sense of the seemingly endless amount of data can be quite a challenge for the investor. Once investors become familiar with the data, they can start to devise a plan to help use the information to their advantage. Even though thousands of investors will have access to the same set of data, learning how to trade the data can be extremely important.