NOVARTIS AG-REG (NOT.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:NOT • CH0012005267

127.7 EUR
+2.36 (+1.88%)
Last: Feb 2, 2026, 07:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NOT. NOT was compared to 55 industry peers in the Pharmaceuticals industry. NOT scores excellent on profitability, but there are some minor concerns on its financial health. NOT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • NOT had positive earnings in the past year.
  • In the past year NOT had a positive cash flow from operations.
  • Each year in the past 5 years NOT has been profitable.
  • Each year in the past 5 years NOT had a positive operating cash flow.
NOT.DE Yearly Net Income VS EBIT VS OCF VS FCFNOT.DE 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 5B 10B 15B 20B

1.2 Ratios

  • NOT has a Return On Assets of 13.42%. This is amongst the best in the industry. NOT outperforms 81.82% of its industry peers.
  • NOT has a better Return On Equity (32.47%) than 74.55% of its industry peers.
  • NOT has a Return On Invested Capital of 17.35%. This is in the better half of the industry: NOT outperforms 78.18% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NOT is below the industry average of 14.23%.
  • The 3 year average ROIC (11.31%) for NOT is below the current ROIC(17.35%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.42%
ROE 32.47%
ROIC 17.35%
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)11.31%
ROIC(5y)9.96%
NOT.DE Yearly ROA, ROE, ROICNOT.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • The Profit Margin of NOT (25.69%) is better than 81.82% of its industry peers.
  • NOT's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 33.11%, NOT is in the better half of the industry, outperforming 76.36% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NOT has grown nicely.
  • NOT has a better Gross Margin (76.10%) than 72.73% of its industry peers.
  • In the last couple of years the Gross Margin of NOT has remained more or less at the same level.
Industry RankSector Rank
OM 33.11%
PM (TTM) 25.69%
GM 76.1%
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%
NOT.DE Yearly Profit, Operating, Gross MarginsNOT.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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6

2. Health

2.1 Basic Checks

  • NOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • NOT has less shares outstanding than it did 1 year ago.
  • NOT has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for NOT is higher compared to a year ago.
NOT.DE Yearly Shares OutstandingNOT.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
NOT.DE Yearly Total Debt VS Total AssetsNOT.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B

2.2 Solvency

  • NOT has an Altman-Z score of 4.38. This indicates that NOT is financially healthy and has little risk of bankruptcy at the moment.
  • NOT has a Altman-Z score (4.38) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of NOT is 1.87, which is an excellent value as it means it would take NOT, only 1.87 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.87, NOT belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
  • A Debt/Equity ratio of 0.55 indicates that NOT is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.55, NOT is in line with its industry, outperforming 60.00% of the companies in the same industry.
  • Although NOT 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 1.87
Altman-Z 4.38
ROIC/WACC3.66
WACC4.74%
NOT.DE Yearly LT Debt VS Equity VS FCFNOT.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.88 indicates that NOT may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.88, NOT is doing worse than 81.82% of the companies in the same industry.
  • NOT has a Quick Ratio of 0.88. This is a bad value and indicates that NOT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • NOT has a Quick ratio of 0.68. This is in the lower half of the industry: NOT underperforms 78.18% of its industry peers.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.68
NOT.DE Yearly Current Assets VS Current LiabilitesNOT.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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6

3. Growth

3.1 Past

  • NOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, which is quite impressive.
  • Measured over the past years, NOT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.14% on average per year.
  • NOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.18%.
  • The Revenue has been growing slightly by 1.24% on average over the past years.
EPS 1Y (TTM)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%5.6%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
  • NOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y16.8%
EPS Next 2Y9.28%
EPS Next 3Y8.59%
EPS Next 5Y8.79%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.27%

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.
NOT.DE Yearly Revenue VS EstimatesNOT.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
NOT.DE Yearly EPS VS EstimatesNOT.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 16.94, NOT is valued correctly.
  • NOT's Price/Earnings ratio is a bit cheaper when compared to the industry. NOT is cheaper than 63.64% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.41. NOT is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 16.21, NOT is valued correctly.
  • 69.09% of the companies in the same industry are more expensive than NOT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, NOT is valued a bit cheaper.
Industry RankSector Rank
PE 16.94
Fwd PE 16.21
NOT.DE Price Earnings VS Forward Price EarningsNOT.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • NOT's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, NOT is valued a bit cheaper than 74.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.01
EV/EBITDA 13.04
NOT.DE Per share dataNOT.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • NOT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NOT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)2.08
EPS Next 2Y9.28%
EPS Next 3Y8.59%

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6

5. Dividend

5.1 Amount

  • NOT has a Yearly Dividend Yield of 3.06%.
  • NOT's Dividend Yield is a higher than the industry average which is at 1.95.
  • NOT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 3.06%

5.2 History

  • The dividend of NOT has a limited annual growth rate of 5.49%.
Dividend Growth(5Y)5.49%
Div Incr Years0
Div Non Decr Years0
NOT.DE Yearly Dividends per shareNOT.DE Yearly Dividends per shareYearly Dividends per share 2019 2025 1 2 3

5.3 Sustainability

  • 54.32% of the earnings are spent on dividend by NOT. This is a bit on the high side, but may be sustainable.
  • NOT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.32%
EPS Next 2Y9.28%
EPS Next 3Y8.59%
NOT.DE Yearly Income VS Free CF VS DividendNOT.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B
NOT.DE Dividend Payout.NOT.DE Dividend Payout, showing the Payout Ratio.NOT.DE Dividend Payout.PayoutRetained Earnings

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NOVARTIS AG-REG

FRA:NOT (2/2/2026, 7:00:00 PM)

127.7

+2.36 (+1.88%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-28
Earnings (Next)02-04
Inst Owners41.44%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap245.03B
Revenue(TTM)56.02B
Net Income(TTM)14.39B
Analysts71.25
Price Target116.52 (-8.75%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.06%
Yearly Dividend3.18
Dividend Growth(5Y)5.49%
DP54.32%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.75%
Min EPS beat(2)-2.1%
Max EPS beat(2)0.61%
EPS beat(4)3
Avg EPS beat(4)2.79%
Min EPS beat(4)-2.1%
Max EPS beat(4)6.59%
EPS beat(8)6
Avg EPS beat(8)2.02%
EPS beat(12)10
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-2.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)0.78%
Revenue beat(8)4
Avg Revenue beat(8)-0.11%
Revenue beat(12)5
Avg Revenue beat(12)-3.8%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)4%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 16.94
Fwd PE 16.21
P/S 5.18
P/FCF 17.01
P/OCF 13.77
P/B 6.54
P/tB N/A
EV/EBITDA 13.04
EPS(TTM)7.54
EY5.9%
EPS(NY)7.88
Fwd EY6.17%
FCF(TTM)7.51
FCFY5.88%
OCF(TTM)9.28
OCFY7.26%
SpS24.66
BVpS19.51
TBVpS-4.52
PEG (NY)1.01
PEG (5Y)2.08
Graham Number57.54
Profitability
Industry RankSector Rank
ROA 13.42%
ROE 32.47%
ROCE 24.64%
ROIC 17.35%
ROICexc 19.9%
ROICexgc 118.37%
OM 33.11%
PM (TTM) 25.69%
GM 76.1%
FCFM 30.45%
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)11.31%
ROIC(5y)9.96%
ROICexc(3y)13.83%
ROICexc(5y)12.21%
ROICexgc(3y)70.19%
ROICexgc(5y)60.96%
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-Score7
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 1.87
Debt/EBITDA 1.01
Cap/Depr 74.31%
Cap/Sales 7.16%
Interest Coverage 18.85
Cash Conversion 87.98%
Profit Quality 118.52%
Current Ratio 0.88
Quick Ratio 0.68
Altman-Z 4.38
F-Score7
WACC4.74%
ROIC/WACC3.66
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)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
EPS Next Y16.8%
EPS Next 2Y9.28%
EPS Next 3Y8.59%
EPS Next 5Y8.79%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%5.6%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.27%
EBIT growth 1Y21.58%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year36.14%
EBIT Next 3Y13.19%
EBIT Next 5Y13.01%
FCF growth 1Y33.72%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y37.07%
OCF growth 3Y5.34%
OCF growth 5Y5.28%

NOVARTIS AG-REG / NOT.DE FAQ

Can you provide the ChartMill fundamental rating for NOVARTIS AG-REG?

ChartMill assigns a fundamental rating of 6 / 10 to NOT.DE.


What is the valuation status of NOVARTIS AG-REG (NOT.DE) stock?

ChartMill assigns a valuation rating of 5 / 10 to NOVARTIS AG-REG (NOT.DE). This can be considered as Fairly Valued.


What is the profitability of NOT stock?

NOVARTIS AG-REG (NOT.DE) has a profitability rating of 7 / 10.


How financially healthy is NOVARTIS AG-REG?

The financial health rating of NOVARTIS AG-REG (NOT.DE) is 6 / 10.


What is the earnings growth outlook for NOVARTIS AG-REG?

The Earnings per Share (EPS) of NOVARTIS AG-REG (NOT.DE) is expected to grow by 16.8% in the next year.