NOVARTIS AG-REG (1NOVN.MI) Stock Fundamental Analysis
Europe - BIT:1NOVN - CH0012005267 - Common Stock
113 EUR
-4 (-3.42%)
Taking everything into account, 1NOVN scores 6 out of 10 in our fundamental rating. 1NOVN was compared to 52 industry peers in the Pharmaceuticals industry. 1NOVN has an excellent profitability rating, but there are some minor concerns on its financial health. 1NOVN is not valued too expensively and it also shows a decent growth rate.
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.
1NOVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NOVN's Return On Assets of 13.08% is amongst the best of the industry. 1NOVN outperforms 81.13% of its industry peers.
With a decent Return On Equity value of 32.52%, 1NOVN is doing good in the industry, outperforming 79.25% of the companies in the same industry.
1NOVN has a Return On Invested Capital of 18.93%. This is amongst the best in the industry. 1NOVN outperforms 83.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1NOVN is below the industry average of 15.23%.
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 79.25% of its industry peers.
In the last couple of years the Profit Margin of 1NOVN has remained more or less at the same level.
1NOVN's Operating Margin of 33.45% is fine compared to the rest of the industry. 1NOVN outperforms 79.25% of its industry peers.
1NOVN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 76.12%, 1NOVN is in the better half of the industry, outperforming 73.58% of the companies in the same industry.
1NOVN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NOVN is creating value.
1NOVN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1NOVN has been reduced compared to 5 years ago.
Compared to 1 year ago, 1NOVN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.03 indicates that 1NOVN is not in any danger for bankruptcy at the moment.
1NOVN has a Altman-Z score (4.03) which is in line with its industry peers.
1NOVN has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.93, 1NOVN belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that 1NOVN is somewhat dependend on debt financing.
1NOVN has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: 1NOVN outperforms 58.49% of its industry peers.
Although 1NOVN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 4.03 |
ROIC/WACC4.07
WACC4.65%
2.3 Liquidity
1NOVN has a Current Ratio of 0.82. This is a bad value and indicates that 1NOVN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.82, 1NOVN is not doing good in the industry: 81.13% 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.
Looking at the Quick ratio, with a value of 0.62, 1NOVN is doing worse than 81.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
1NOVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.58%, which is quite impressive.
The Earnings Per Share has been growing by 8.14% on average over the past years. This is quite good.
The Revenue has grown by 12.24% in the past year. This is quite good.
The Revenue has been growing slightly by 1.24% on average over the past years.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.01% yearly.
Based on estimates for the next years, 1NOVN will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y16.18%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
EPS Next 5Y8.01%
Revenue Next Year9.59%
Revenue Next 2Y6.01%
Revenue Next 3Y5%
Revenue Next 5Y4.8%
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
1NOVN is valuated correctly with a Price/Earnings ratio of 15.01.
62.26% of the companies in the same industry are more expensive than 1NOVN, based on the Price/Earnings ratio.
1NOVN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.90 indicates a correct valuation of 1NOVN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NOVN is on the same level as its industry peers.
1NOVN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1NOVN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NOVN indicates a somewhat cheap valuation: 1NOVN is cheaper than 69.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 11.48 |
4.3 Compensation for Growth
1NOVN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1NOVN may justify a higher PE ratio.
PEG (NY)0.93
PEG (5Y)1.84
EPS Next 2Y9.92%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
1NOVN has a Yearly Dividend Yield of 3.35%.
Compared to an average industry Dividend Yield of 2.98, 1NOVN pays a bit more dividend than its industry peers.
1NOVN's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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
1NOVN pays out 57.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1NOVN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.26%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
BIT:1NOVN (10/23/2025, 7:00:00 PM)
113
-4 (-3.42%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.6%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap218.75B
Revenue(TTM)54.84B
Net Income(TTM)13.65B
Analysts68.75
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend3.27
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)3.6%
Min EPS beat(2)0.61%
Max EPS beat(2)6.59%
EPS beat(4)4
Avg EPS beat(4)4.26%
Min EPS beat(4)0.61%
Max EPS beat(4)6.59%
EPS beat(8)7
Avg EPS beat(8)2.76%
EPS beat(12)10
Avg EPS beat(12)3.62%
EPS beat(16)12
Avg EPS beat(16)2.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-1.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-2.84%
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)0.85%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)4.37%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)1.29%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)1.72%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 13.9 | ||
| P/S | 4.63 | ||
| P/FCF | 15.11 | ||
| P/OCF | 12.22 | ||
| P/B | 6.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.48 |
EPS(TTM)7.53
EY6.66%
EPS(NY)8.13
Fwd EY7.19%
FCF(TTM)7.48
FCFY6.62%
OCF(TTM)9.25
OCFY8.18%
SpS24.4
BVpS18.68
TBVpS-5.7
PEG (NY)0.93
PEG (5Y)1.84
Graham Number56.25
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%
ROICexgc growth 3Y14.29%
ROICexgc 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 | 4.03 |
F-Score6
WACC4.65%
ROIC/WACC4.07
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 Y16.18%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
EPS Next 5Y8.01%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
Revenue Next Year9.59%
Revenue Next 2Y6.01%
Revenue Next 3Y5%
Revenue Next 5Y4.8%
EBIT growth 1Y44.75%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year34.89%
EBIT Next 3Y12.7%
EBIT Next 5Y11.36%
FCF growth 1Y32.64%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y35.29%
OCF growth 3Y5.34%
OCF growth 5Y5.28%
NOVARTIS AG-REG / 1NOVN.MI FAQ
What is the ChartMill fundamental rating of NOVARTIS AG-REG (1NOVN.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1NOVN.MI.
What is the valuation status of NOVARTIS AG-REG (1NOVN.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to NOVARTIS AG-REG (1NOVN.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for NOVARTIS AG-REG?
NOVARTIS AG-REG (1NOVN.MI) has a profitability rating of 8 / 10.
Can you provide the financial health for 1NOVN stock?
The financial health rating of NOVARTIS AG-REG (1NOVN.MI) is 7 / 10.
What is the expected EPS growth for NOVARTIS AG-REG (1NOVN.MI) stock?
The Earnings per Share (EPS) of NOVARTIS AG-REG (1NOVN.MI) is expected to grow by 16.18% in the next year.