NOVARTIS AG-REG (1NOVN.MI) Stock Fundamental Analysis
BIT:1NOVN - Euronext Milan - CH0012005267 - Common Stock - Currency: EUR
Taking everything into account, 1NOVN scores 7 out of 10 in our fundamental rating. 1NOVN was compared to 52 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 is not valued too expensively and it also shows a decent growth rate. This makes 1NOVN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1NOVN had positive earnings in the past year.
1NOVN had a positive operating cash flow in the past year.
Each year in the past 5 years 1NOVN has been profitable.
1NOVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.87%, 1NOVN belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
1NOVN has a Return On Equity of 33.51%. This is amongst the best in the industry. 1NOVN outperforms 82.69% of its industry peers.
With an excellent Return On Invested Capital value of 19.15%, 1NOVN belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1NOVN is below the industry average of 15.20%.
The last Return On Invested Capital (19.15%) for 1NOVN is above the 3 year average (12.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 33.51% | ||
| ROIC | 19.15% |
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
With an excellent Profit Margin value of 24.15%, 1NOVN belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
In the last couple of years the Profit Margin of 1NOVN has remained more or less at the same level.
1NOVN has a Operating Margin of 32.76%. This is amongst the best in the industry. 1NOVN outperforms 84.62% of its industry peers.
In the last couple of years the Operating Margin of 1NOVN has grown nicely.
1NOVN has a Gross Margin of 75.69%. This is in the better half of the industry: 1NOVN outperforms 76.92% 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 | 32.76% | ||
| PM (TTM) | 24.15% | ||
| GM | 75.69% |
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.
The number of shares outstanding for 1NOVN has been reduced compared to 1 year ago.
The number of shares outstanding for 1NOVN has been reduced compared to 5 years ago.
1NOVN has a worse debt/assets ratio than last year.
2.2 Solvency
1NOVN has an Altman-Z score of 3.81. This indicates that 1NOVN is financially healthy and has little risk of bankruptcy at the moment.
1NOVN has a Altman-Z score (3.81) which is comparable to the rest of the industry.
1NOVN has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as 1NOVN would need 2.10 years to pay back of all of its debts.
1NOVN has a better Debt to FCF ratio (2.10) than 86.54% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 1NOVN is somewhat dependend on debt financing.
1NOVN has a Debt to Equity ratio (0.61) which is in line with 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 | 0.61 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 3.81 |
ROIC/WACC4.08
WACC4.69%
2.3 Liquidity
A Current Ratio of 0.79 indicates that 1NOVN may have some problems paying its short term obligations.
1NOVN has a Current ratio of 0.79. This is amonst the worse of the industry: 1NOVN underperforms 80.77% of its industry peers.
1NOVN has a Quick Ratio of 0.79. This is a bad value and indicates that 1NOVN is not financially healthy enough and could expect problems in meeting its short term obligations.
1NOVN has a Quick ratio of 0.61. This is amonst the worse of the industry: 1NOVN underperforms 80.77% of its industry peers.
The current and quick ratio evaluation for 1NOVN is rather negative, while it does have 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 | 0.79 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.60% over the past year.
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 11.57% 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)18.6%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%26.67%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
3.2 Future
Based on estimates for the next years, 1NOVN will show a small growth in Earnings Per Share. The EPS will grow by 6.52% on average per year.
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
1NOVN is valuated correctly with a Price/Earnings ratio of 14.10.
1NOVN's Price/Earnings ratio is a bit cheaper when compared to the industry. 1NOVN is cheaper than 67.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.53. 1NOVN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.91 indicates a correct valuation of 1NOVN.
Based on the Price/Forward Earnings ratio, 1NOVN is valued a bit cheaper than 65.38% of the companies in the same industry.
1NOVN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NOVN indicates a somewhat cheap valuation: 1NOVN is cheaper than 61.54% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NOVN indicates a somewhat cheap valuation: 1NOVN is cheaper than 71.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1NOVN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)1.73
EPS Next 2Y7.7%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.57%, 1NOVN has a reasonable but not impressive dividend return.
1NOVN's Dividend Yield is a higher than the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.34, 1NOVN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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
60.27% of the earnings are spent on dividend by 1NOVN. This is not a sustainable payout ratio.
1NOVN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.27%
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 Cap197.51B
Analysts68.13
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
Yearly Dividend3.3
Dividend Growth(5Y)5.49%
DP60.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.32%
Min EPS beat(2)6.06%
Max EPS beat(2)6.59%
EPS beat(4)4
Avg EPS beat(4)4.92%
Min EPS beat(4)3.24%
Max EPS beat(4)6.59%
EPS beat(8)7
Avg EPS beat(8)3.4%
EPS beat(12)10
Avg EPS beat(12)3.74%
EPS beat(16)12
Avg EPS beat(16)3.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)0.78%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)2.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.91 | ||
| P/S | 4.34 | ||
| P/FCF | 15.56 | ||
| P/OCF | 12.16 | ||
| P/B | 6.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.92 |
EPS(TTM)7.09
EY7.09%
EPS(NY)7.74
Fwd EY7.74%
FCF(TTM)6.43
FCFY6.43%
OCF(TTM)8.22
OCFY8.22%
SpS23.05
BVpS16.61
TBVpS-6.09
PEG (NY)1.25
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 33.51% | ||
| ROCE | 25.54% | ||
| ROIC | 19.15% | ||
| ROICexc | 21.39% | ||
| ROICexgc | 149.64% | ||
| OM | 32.76% | ||
| PM (TTM) | 24.15% | ||
| GM | 75.69% | ||
| FCFM | 27.88% |
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 | 0.61 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 70.27% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 18.56 | ||
| Cash Conversion | 81.35% | ||
| Profit Quality | 115.46% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.81 |
F-Score6
WACC4.69%
ROIC/WACC4.08
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)18.6%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%26.67%
EPS Next Y11.31%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
EPS Next 5Y6.52%
Revenue 1Y (TTM)11.57%
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 1Y54.44%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year30.73%
EBIT Next 3Y11.41%
EBIT Next 5Y9.7%
FCF growth 1Y11.95%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y22.23%
OCF growth 3Y5.34%
OCF growth 5Y5.28%