Novo Nordisk(NVO) Forbes·2024-12-24 05:15Company Performance and Financials - Novo Nordisk's operating margin expanded from 42.6% to 43.7% over the recent period, driven by higher revenues and margin expansion [2] - The company's bottom line improved significantly, with earnings per share reaching 21.20 DKK for the last twelve months, compared to 9.01 DKK in 2020 [2] - Revenue more than doubled from 127 billion DKK in 2020 to 271 billion DKK for the last twelve-month period, primarily due to the success of its diabetes and obesity drugs, Wegovy and Ozempic [16] - Ozempic's sales increased 4.5x from 21.2 billion DKK in 2020 to 95.7 billion DKK in 2023, while Wegovy's sales surged to 31.3 billion DKK in 2023 since its launch in 2021 [16] - Total debt increased from 10 billion DKK in 2020 to 57 billion DKK, while cash reserves grew from 13 billion DKK to 75 billion DKK over the same period [23] - The company generated 118 billion DKK in cash flows from operations in the last twelve months, indicating a strong financial position [23] Stock Performance and Market Comparison - Novo Nordisk ADR (NYSE: NVO) currently trades at 145 seen in June 2023 [5] - NVO stock has outperformed the S&P 500, rising 60% from 89, compared to a 45% gain for the S&P 500 during the same period [5] - The stock has generated better returns than the broader market in each of the last three years, with returns of 63% in 2021, 23% in 2022, and 55% in 2023 [18] - During the 2007/2008 crisis, NVO stock declined by 40% from 3.20 in early March 2009, but recovered by 56% to around 123, reflecting a 45% upside potential from its current level [12] Historical Context - During the 2007/2008 crisis, the S&P 500 Index declined by 51% from 1,540 in September 2007 to 757 in March 2009, before rallying 48% to 1,124 by January 2010 [15] - The timeline of the 2007/2008 crisis highlights key events such as the Lehman bankruptcy filing and the subsequent market recovery [11][14]