NOVARTIS AG-REG (1NOVN.MI) Fundamental Analysis & Valuation

BIT:1NOVN • CH0012005267

Current stock price

131.94 EUR
+3.94 (+3.08%)
Last:

This 1NOVN.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. 1NOVN.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1NOVN was profitable.
  • 1NOVN had a positive operating cash flow in the past year.
  • 1NOVN had positive earnings in each of the past 5 years.
  • Each year in the past 5 years 1NOVN had a positive operating cash flow.
1NOVN.MI Yearly Net Income VS EBIT VS OCF VS FCF1NOVN.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 12.60%, 1NOVN is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
  • The Return On Equity of 1NOVN (30.31%) is better than 76.47% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.32%, 1NOVN is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
  • 1NOVN had an Average Return On Invested Capital over the past 3 years of 17.15%. This is above the industry average of 13.99%.
  • The 3 year average ROIC (17.15%) for 1NOVN is below the current ROIC(19.32%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.6%
ROE 30.31%
ROIC 19.32%
ROA(3y)13.05%
ROA(5y)12.66%
ROE(3y)29.75%
ROE(5y)27.29%
ROIC(3y)17.15%
ROIC(5y)14%
1NOVN.MI Yearly ROA, ROE, ROIC1NOVN.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • 1NOVN's Profit Margin of 24.83% is amongst the best of the industry. 1NOVN outperforms 84.31% of its industry peers.
  • 1NOVN's Profit Margin has improved in the last couple of years.
  • 1NOVN has a Operating Margin of 33.18%. This is amongst the best in the industry. 1NOVN outperforms 82.35% of its industry peers.
  • 1NOVN's Operating Margin has improved in the last couple of years.
  • 1NOVN has a Gross Margin of 75.82%. This is in the better half of the industry: 1NOVN outperforms 76.47% of its industry peers.
  • 1NOVN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 33.18%
PM (TTM) 24.83%
GM 75.82%
OM growth 3Y12.14%
OM growth 5Y6.09%
PM growth 3Y15.69%
PM growth 5Y8.94%
GM growth 3Y0.74%
GM growth 5Y1.28%
1NOVN.MI Yearly Profit, Operating, Gross Margins1NOVN.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

7

2. 1NOVN.MI Health Analysis

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.
  • Compared to 5 years ago, 1NOVN has less shares outstanding
  • 1NOVN has a worse debt/assets ratio than last year.
1NOVN.MI Yearly Shares Outstanding1NOVN.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
1NOVN.MI Yearly Total Debt VS Total Assets1NOVN.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B

2.2 Solvency

  • 1NOVN has an Altman-Z score of 4.69. This indicates that 1NOVN is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.69, 1NOVN is doing good in the industry, outperforming 70.59% of the companies in the same industry.
  • The Debt to FCF ratio of 1NOVN is 2.32, which is a good value as it means it would take 1NOVN, 2.32 years of fcf income to pay off all of its debts.
  • 1NOVN has a Debt to FCF ratio of 2.32. This is in the better half of the industry: 1NOVN outperforms 74.51% of its industry peers.
  • 1NOVN has a Debt/Equity ratio of 0.64. This is a neutral value indicating 1NOVN is somewhat dependend on debt financing.
  • 1NOVN has a Debt to Equity ratio (0.64) which is comparable to the rest of the industry.
  • Although 1NOVN's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.64
Debt/FCF 2.32
Altman-Z 4.69
ROIC/WACC4
WACC4.83%
1NOVN.MI Yearly LT Debt VS Equity VS FCF1NOVN.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 1.12 indicates that 1NOVN should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.12, 1NOVN is doing worse than 60.78% of the companies in the same industry.
  • 1NOVN has a Quick Ratio of 1.12. 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's Quick ratio of 0.89 is in line compared to the rest of the industry. 1NOVN outperforms 41.18% 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 RankSector Rank
Current Ratio 1.12
Quick Ratio 0.89
1NOVN.MI Yearly Current Assets VS Current Liabilites1NOVN.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

5

3. 1NOVN.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 14.98% over the past year.
  • Measured over the past years, 1NOVN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.21% on average per year.
  • The Revenue has grown by 8.91% in the past year. This is quite good.
  • The Revenue has been growing slightly by 2.45% on average over the past years.
EPS 1Y (TTM)14.98%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%2.53%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%1.39%

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 7.48% on average per year.
  • 1NOVN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y0.69%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
EPS Next 5Y7.48%
Revenue Next Year2.53%
Revenue Next 2Y3.82%
Revenue Next 3Y4.55%
Revenue Next 5Y4.99%

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.
  • 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.
1NOVN.MI Yearly Revenue VS Estimates1NOVN.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
1NOVN.MI Yearly EPS VS Estimates1NOVN.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

4

4. 1NOVN.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 17.20, which indicates a rather expensive current valuation of 1NOVN.
  • 1NOVN's Price/Earnings ratio is a bit cheaper when compared to the industry. 1NOVN is cheaper than 60.78% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of 1NOVN to the average of the S&P500 Index (26.86), we can say 1NOVN is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 17.09, which indicates a rather expensive current valuation of 1NOVN.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1NOVN.
  • The average S&P500 Price/Forward Earnings ratio is at 37.39. 1NOVN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 17.2
Fwd PE 17.09
1NOVN.MI Price Earnings VS Forward Price Earnings1NOVN.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1NOVN.
  • 1NOVN's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 21.41
EV/EBITDA 14.57
1NOVN.MI Per share data1NOVN.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of 1NOVN may justify a higher PE ratio.
PEG (NY)24.76
PEG (5Y)1.87
EPS Next 2Y4.79%
EPS Next 3Y5.96%

6

5. 1NOVN.MI Dividend Analysis

5.1 Amount

  • 1NOVN has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
  • 1NOVN's Dividend Yield is a higher than the industry average which is at 1.95.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1NOVN pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.11%

5.2 History

  • The dividend of 1NOVN has a limited annual growth rate of 5.38%.
Dividend Growth(5Y)5.38%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 55.91% 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, but earnings are growing more, so the dividend growth is sustainable.
DP55.91%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
1NOVN.MI Yearly Income VS Free CF VS Dividend1NOVN.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B
1NOVN.MI Dividend Payout.1NOVN.MI Dividend Payout, showing the Payout Ratio.1NOVN.MI Dividend Payout.PayoutRetained Earnings

1NOVN.MI Fundamentals: All Metrics, Ratios and Statistics

NOVARTIS AG-REG

BIT:1NOVN (4/9/2026, 7:00:00 PM)

131.94

+3.94 (+3.08%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners41.7%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap278.71B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts70.59
Price Target132.6 (0.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.11%
Yearly Dividend3.48
Dividend Growth(5Y)5.38%
DP55.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.14%
Min EPS beat(2)-2.1%
Max EPS beat(2)-0.17%
EPS beat(4)2
Avg EPS beat(4)1.23%
Min EPS beat(4)-2.1%
Max EPS beat(4)6.59%
EPS beat(8)6
Avg EPS beat(8)2.93%
EPS beat(12)9
Avg EPS beat(12)2.91%
EPS beat(16)11
Avg EPS beat(16)2.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-2.82%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-1.13%
Revenue beat(8)4
Avg Revenue beat(8)-0.49%
Revenue beat(12)5
Avg Revenue beat(12)-2.7%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)13.06%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-6.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.11%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.07%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 17.2
Fwd PE 17.09
P/S 5.79
P/FCF 21.41
P/OCF 17.05
P/B 7.08
P/tB N/A
EV/EBITDA 14.57
EPS(TTM)7.67
EY5.81%
EPS(NY)7.72
Fwd EY5.85%
FCF(TTM)6.16
FCFY4.67%
OCF(TTM)7.74
OCFY5.87%
SpS22.77
BVpS18.65
TBVpS-3.58
PEG (NY)24.76
PEG (5Y)1.87
Graham Number56.73
Profitability
Industry RankSector Rank
ROA 12.6%
ROE 30.31%
ROCE 22.34%
ROIC 19.32%
ROICexc 22.42%
ROICexgc 94.51%
OM 33.18%
PM (TTM) 24.83%
GM 75.82%
FCFM 27.06%
ROA(3y)13.05%
ROA(5y)12.66%
ROE(3y)29.75%
ROE(5y)27.29%
ROIC(3y)17.15%
ROIC(5y)14%
ROICexc(3y)20.47%
ROICexc(5y)17.14%
ROICexgc(3y)94.66%
ROICexgc(5y)84.88%
ROCE(3y)20.57%
ROCE(5y)16.8%
ROICexgc growth 3Y10.97%
ROICexgc growth 5Y16.26%
ROICexc growth 3Y23.26%
ROICexc growth 5Y13.82%
OM growth 3Y12.14%
OM growth 5Y6.09%
PM growth 3Y15.69%
PM growth 5Y8.94%
GM growth 3Y0.74%
GM growth 5Y1.28%
F-Score8
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 2.32
Debt/EBITDA 1.23
Cap/Depr 73.24%
Cap/Sales 6.92%
Interest Coverage 19.05
Cash Conversion 79.71%
Profit Quality 109.01%
Current Ratio 1.12
Quick Ratio 0.89
Altman-Z 4.69
F-Score8
WACC4.83%
ROIC/WACC4
Cap/Depr(3y)63.14%
Cap/Depr(5y)55.05%
Cap/Sales(3y)6.73%
Cap/Sales(5y)6.62%
Profit Quality(3y)101.15%
Profit Quality(5y)104.02%
High Growth Momentum
Growth
EPS 1Y (TTM)14.98%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%2.53%
EPS Next Y0.69%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
EPS Next 5Y7.48%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%1.39%
Revenue Next Year2.53%
Revenue Next 2Y3.82%
Revenue Next 3Y4.55%
Revenue Next 5Y4.99%
EBIT growth 1Y14.46%
EBIT growth 3Y22.35%
EBIT growth 5Y8.7%
EBIT Next Year11.91%
EBIT Next 3Y9.08%
EBIT Next 5Y8.66%
FCF growth 1Y10.42%
FCF growth 3Y9.64%
FCF growth 5Y6.62%
OCF growth 1Y8.66%
OCF growth 3Y10.38%
OCF growth 5Y7%

NOVARTIS AG-REG / 1NOVN.MI Fundamental Analysis 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 for 1NOVN stock?

ChartMill assigns a valuation rating of 5 / 10 to NOVARTIS AG-REG (1NOVN.MI). This can be considered as Fairly Valued.


What is the profitability of 1NOVN stock?

NOVARTIS AG-REG (1NOVN.MI) has a profitability rating of 8 / 10.


What is the financial health of NOVARTIS AG-REG (1NOVN.MI) stock?

The financial health rating of NOVARTIS AG-REG (1NOVN.MI) is 7 / 10.


Can you provide the dividend sustainability for 1NOVN stock?

The dividend rating of NOVARTIS AG-REG (1NOVN.MI) is 6 / 10 and the dividend payout ratio is 55.91%.