NOVARTIS AG-REG (1NOVN.MI) Stock Fundamental Analysis
BIT:1NOVN - Euronext Milan - CH0012005267 - Common Stock - Currency: EUR
1NOVN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 53 industry peers in the Pharmaceuticals industry. 1NOVN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1NOVN may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, 1NOVN could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
1NOVN had positive earnings in the past year.
In the past year 1NOVN had a positive cash flow from operations.
In the past 5 years 1NOVN has always been profitable.
Each year in the past 5 years 1NOVN had a positive operating cash flow.
1.2 Ratios
1NOVN has a better Return On Assets (13.08%) than 86.79% of its industry peers.
1NOVN has a Return On Equity of 32.52%. This is amongst the best in the industry. 1NOVN outperforms 84.91% of its industry peers.
1NOVN's Return On Invested Capital of 18.93% is amongst the best of the industry. 1NOVN outperforms 81.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1NOVN is below the industry average of 14.71%.
The last Return On Invested Capital (18.93%) for 1NOVN is above the 3 year average (12.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 32.52% | ||
| ROIC | 18.93% |
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)12.05%
ROIC(5y)10.61%
1.3 Margins
1NOVN has a better Profit Margin (24.90%) than 88.68% of its industry peers.
1NOVN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 33.45%, 1NOVN belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NOVN has grown nicely.
1NOVN's Gross Margin of 76.12% is fine compared to the rest of the industry. 1NOVN outperforms 77.36% of its industry peers.
In the last couple of years the Gross Margin of 1NOVN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.45% | ||
| PM (TTM) | 24.9% | ||
| GM | 76.12% |
OM growth 3Y8.17%
OM growth 5Y6.25%
PM growth 3Y-24.95%
PM growth 5Y-0.88%
GM growth 3Y0.5%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NOVN is creating value.
Compared to 1 year ago, 1NOVN has less shares outstanding
Compared to 5 years ago, 1NOVN has less shares outstanding
Compared to 1 year ago, 1NOVN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.77 indicates that 1NOVN is not in any danger for bankruptcy at the moment.
1NOVN has a Altman-Z score (3.77) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1NOVN is 1.93, which is an excellent value as it means it would take 1NOVN, only 1.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1NOVN (1.93) is better than 88.68% of its industry peers.
1NOVN has a Debt/Equity ratio of 0.57. This is a neutral value indicating 1NOVN is somewhat dependend on debt financing.
The Debt to Equity ratio of 1NOVN (0.57) is better than 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 3.77 |
ROIC/WACC4.04
WACC4.69%
2.3 Liquidity
A Current Ratio of 0.82 indicates that 1NOVN may have some problems paying its short term obligations.
With a Current ratio value of 0.82, 1NOVN is not doing good in the industry: 79.25% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that 1NOVN may have some problems paying its short term obligations.
1NOVN has a worse Quick ratio (0.62) than 79.25% of its industry peers.
1NOVN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.58% over the past year.
The Earnings Per Share has been growing by 8.14% on average over the past years. This is quite good.
Looking at the last year, 1NOVN shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
1NOVN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.24% yearly.
EPS 1Y (TTM)22.58%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%22.84%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
3.2 Future
1NOVN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
1NOVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y11.31%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
EPS Next 5Y6.52%
Revenue Next Year7.74%
Revenue Next 2Y4.8%
Revenue Next 3Y4.01%
Revenue Next 5Y3.39%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.42, which indicates a correct valuation of 1NOVN.
71.70% of the companies in the same industry are more expensive than 1NOVN, based on the Price/Earnings ratio.
1NOVN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.91.
Based on the Price/Forward Earnings ratio of 12.94, the valuation of 1NOVN can be described as correct.
Based on the Price/Forward Earnings ratio, 1NOVN is valued a bit cheaper than 69.81% of the companies in the same industry.
1NOVN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 12.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NOVN is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.
81.13% of the companies in the same industry are more expensive than 1NOVN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 10.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1NOVN may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)1.65
EPS Next 2Y7.7%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
1NOVN has a Yearly Dividend Yield of 3.76%.
1NOVN's Dividend Yield is a higher than the industry average which is at 3.03.
1NOVN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of 1NOVN has a limited annual growth rate of 5.49%.
Dividend Growth(5Y)5.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
57.26% of the earnings are spent on dividend by 1NOVN. This is a bit on the high side, but may be sustainable.
The dividend of 1NOVN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP57.26%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
BIT:1NOVN (7/17/2025, 7:00:00 PM)
100
-1 (-0.99%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners34.27%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap193.59B
Analysts68.75
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend3.24
Dividend Growth(5Y)5.49%
DP57.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.43%
Min EPS beat(2)0.27%
Max EPS beat(2)6.59%
EPS beat(4)4
Avg EPS beat(4)4.17%
Min EPS beat(4)0.27%
Max EPS beat(4)6.59%
EPS beat(8)7
Avg EPS beat(8)2.72%
EPS beat(12)10
Avg EPS beat(12)3.59%
EPS beat(16)12
Avg EPS beat(16)2.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)-1.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)1.37%
Revenue beat(8)5
Avg Revenue beat(8)0.34%
Revenue beat(12)5
Avg Revenue beat(12)-5.04%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)4.67%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)6.7%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 12.94 | ||
| P/S | 4.14 | ||
| P/FCF | 13.5 | ||
| P/OCF | 10.92 | ||
| P/B | 5.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)7.45
EY7.45%
EPS(NY)7.73
Fwd EY7.73%
FCF(TTM)7.4
FCFY7.4%
OCF(TTM)9.16
OCFY9.16%
SpS24.16
BVpS18.5
TBVpS-5.64
PEG (NY)1.19
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 32.52% | ||
| ROCE | 25.24% | ||
| ROIC | 18.93% | ||
| ROICexc | 20.86% | ||
| ROICexgc | 123.34% | ||
| OM | 33.45% | ||
| PM (TTM) | 24.9% | ||
| GM | 76.12% | ||
| FCFM | 30.64% |
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)12.05%
ROIC(5y)10.61%
ROICexc(3y)14.73%
ROICexc(5y)13.01%
ROICexgc(3y)74.78%
ROICexgc(5y)64.95%
ROCE(3y)16.96%
ROCE(5y)14.93%
ROICexcg growth 3Y14.29%
ROICexcg growth 5Y25.26%
ROICexc growth 3Y20.9%
ROICexc growth 5Y13.17%
OM growth 3Y8.17%
OM growth 5Y6.25%
PM growth 3Y-24.95%
PM growth 5Y-0.88%
GM growth 3Y0.5%
GM growth 5Y1.06%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 66.33% | ||
| Cap/Sales | 7.26% | ||
| Interest Coverage | 19.66 | ||
| Cash Conversion | 85.38% | ||
| Profit Quality | 123.09% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.77 |
F-Score6
WACC4.69%
ROIC/WACC4.04
Cap/Depr(3y)51.13%
Cap/Depr(5y)48.4%
Cap/Sales(3y)6.48%
Cap/Sales(5y)6.27%
Profit Quality(3y)120.24%
Profit Quality(5y)109.63%
High Growth Momentum
Growth
EPS 1Y (TTM)22.58%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%22.84%
EPS Next Y11.31%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
EPS Next 5Y6.52%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
Revenue Next Year7.74%
Revenue Next 2Y4.8%
Revenue Next 3Y4.01%
Revenue Next 5Y3.39%
EBIT growth 1Y44.75%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year30.73%
EBIT Next 3Y11.41%
EBIT Next 5Y9.7%
FCF growth 1Y32.64%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y35.29%
OCF growth 3Y5.34%
OCF growth 5Y5.28%