Is NVO a high-quality business?

AlphaMadera's AlphaQuality grade scores Novo Nordisk A/S on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how NVO compares to a Buffett-style quality bar.

What is Novo Nordisk A/S's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to NVO based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes NVO a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

NVO - Novo Nordisk A/S

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $47.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

High-Growth Software

AlphaQuality — archetype-weighted quantitative grade

A 91.3 / 100 composite

Composite Grade

Composite of six pillars weighted for high-growth software businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

A- 86.5

5yr Avg ROIC 24.0% 98/100
Operating Margin Trend +0.12 pp/yr 59/100

Capital Efficiency

Weight: 15%

A 92.3

5yr Avg ROE 40.2% 100/100
5yr Share-Count CAGR -0.9% 78/100

Growth Quality

Weight: 35%

A+ 99.0

5yr Revenue CAGR 21.7% 100/100
5yr EPS CAGR 22.1% 97/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

A 88.8

5yr FCF Margin 26.7% 97/100
5yr FCF/NI Conversion 0.79x 79/100

Balance Sheet

Weight: 10%

A+ 93.6

Net Debt / EBITDA 0.66x 88/100
Interest Coverage (EBIT/Int) 32.03x 100/100
Altman Z-Score 4.10 96/100

Stability

Weight: 5%

C 54.8

EPS Volatility (σ/μ) 0.51 29/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

2 of 3 gurus held; 2 added; 2 full exits.

Holders: 2 -1
Avg Δ position: +228.0%
New buys: 0
Full exits: 2

Dalio sold -100%
Greenblatt sold -100%
Wood increased +403%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (35%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.