GSSSB Senior Clerk Answer Key

The long-term trend of the EPS is a vital number as it helps understand the future potential of Novo Nordisk A/S. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which is 6.12%. Growth in EPS is an important measure of administration performance because it shows how much money Novo Nordisk A/S is making for it’s investors or shareholders.



Novo Nordisk A/S is part of the biotechnology industry and is in the healthcare sector. The company CEO is Lars Fruergaard Jorgensen. Novo Nordisk A/S is a healthcare company. It is engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The company’s business segments include, diabetes and obesity care, and biopharmaceuticals.

Previous Intraday Performance:

The NVO shares had a previous change of 1.10% which opened at 48.73 and closed at 48.87. It moved to an intraday high of 48.95 and a low of 48.65.

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Historical Performance:

Over the last five trading days, NVO shares returned 3.60% and in the past 30 trading days it returned 5.85%. Over three months, it changed 14.99%. In one year it has changed -8.55% and within that year its 52-week high was 58.37 and its 52-week low was 41.23. NVO stock is 18.53% above its 52 Week Low.

Our calculations result in a 200 day moving average of 46.80 and a 50 day moving average of 45.12. Right now, NVO stock is trading 4.41% above its 200 day moving average and may be a good opportunity to buy.

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Liquidity:

The company has a market cap of $117.0b with 2.4b shares outstanding and a float of 2.4b shares. Trading volume was 1,368,893 shares and has experienced an average volume of 1,655,882 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for Novo Nordisk A/S was 2.48 which ended on 31st of December 2017, which according to the previous close, that is a PE of 19.71. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.59. The trailing twelve month EPS is 2.52, which comes to a trailing twelve month PE of 19.39. Historically, the PE high was 36.90 and the PE low was 15.50. If the stock reached its PE low, that would represent a price of 39.07, which is a decrease of -20.06%.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.58
06-30-2018:  0.68
03-31-2018:  0.73
12-31-2017:  0.53

The dividend per share is currently 0.92, which is a dividend yield of 1.89%. Also, the payout ratio is 36.69%, therefore the dividend is safe according to our calculations.



Indicators Also to Watch:

Based on the latest filings, there is 8.70% of institutional ownership. Short-interest was 3,367,312, which was 0.14% of shares outstanding. The short-interest ratio or days-to-cover ratio was 2.09. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.74

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 81.18%, return on assets is 38.38%, profit margin is 37.50%, price-to-sales is 1.06 and price-to-book is 15.64.

Company Score Card:

Results are out of six:
 2  : Growth Expectations Result
 6  : Financial Safety Result
 3  : Past Performance Result
 0  : Valuation Result
 4  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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