NOVARTIS AG-REG (1NOVN.MI) Stock Fundamental Analysis
Europe - BIT:1NOVN - CH0012005267 - Common Stock
113 EUR
+13 (+13%)
We assign a fundamental rating of 7 out of 10 to 1NOVN. 1NOVN was compared to 51 industry peers in the Pharmaceuticals industry. 1NOVN gets an excellent profitability rating and is at the same time showing great financial health properties. 1NOVN has a decent growth rate and is not valued too expensively. These ratings could make 1NOVN a good candidate 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.
1NOVN had positive earnings in each of the past 5 years.
1NOVN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NOVN has a Return On Assets of 13.08%. This is amongst the best in the industry. 1NOVN outperforms 86.79% of its industry peers.
The Return On Equity of 1NOVN (32.52%) is better than 84.91% of its industry peers.
1NOVN has a Return On Invested Capital of 18.93%. This is amongst the best in the industry. 1NOVN outperforms 81.13% of its industry peers.
1NOVN had an Average Return On Invested Capital over the past 3 years of 12.05%. This is below the industry average of 15.09%.
The 3 year average ROIC (12.05%) for 1NOVN is below the current ROIC(18.93%), indicating increased profibility in the last year.
| 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 Profit Margin of 24.90%. This is amongst the best in the industry. 1NOVN outperforms 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.
The Gross Margin of 1NOVN (76.12%) is better than 77.36% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 3.77 indicates that 1NOVN is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NOVN (3.77) 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.
1NOVN's Debt to FCF ratio of 1.93 is amongst the best of the industry. 1NOVN outperforms 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.
1NOVN has a better Debt to Equity ratio (0.57) 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
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: 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 Quick ratio of 0.62. This is in the lower half of the industry: 1NOVN underperforms 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
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.
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
The Earnings Per Share is expected to grow by 6.52% on average over the next years.
The Revenue is expected to grow by 3.39% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.17, 1NOVN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1NOVN indicates a somewhat cheap valuation: 1NOVN is cheaper than 71.70% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. 1NOVN is valued slightly cheaper when compared to this.
1NOVN is valuated correctly with a Price/Forward Earnings ratio of 14.62.
Based on the Price/Forward Earnings ratio, 1NOVN is valued a bit cheaper than 69.81% of the companies in the same industry.
1NOVN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
1NOVN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1NOVN is cheaper than 62.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1NOVN is valued cheaply inside the industry as 81.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.26 | ||
| 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.
1NOVN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)1.86
EPS Next 2Y7.7%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
1NOVN has a Yearly Dividend Yield of 3.76%.
Compared to an average industry Dividend Yield of 3.01, 1NOVN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 1NOVN pays a better dividend.
| 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
1NOVN pays out 57.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
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.
DP57.26%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
BIT:1NOVN (10/3/2025, 7:00:00 PM)
113
+13 (+13%)
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 Cap218.75B
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 | 15.17 | ||
| Fwd PE | 14.62 | ||
| P/S | 4.68 | ||
| P/FCF | 15.26 | ||
| P/OCF | 12.34 | ||
| P/B | 6.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)7.45
EY6.59%
EPS(NY)7.73
Fwd EY6.84%
FCF(TTM)7.4
FCFY6.55%
OCF(TTM)9.16
OCFY8.11%
SpS24.16
BVpS18.5
TBVpS-5.64
PEG (NY)1.34
PEG (5Y)1.86
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%