NOVARTIS AG-REG (NOT.DE) Stock Fundamental Analysis
FRA:NOT - CH0012005267 - Common Stock
108.34 EUR
-0.66 (-0.61%)
Taking everything into account, NOT scores 7 out of 10 in our fundamental rating. NOT was compared to 50 industry peers in the Pharmaceuticals industry. NOT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NOT has a correct valuation and a medium growth rate. These ratings could make NOT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
NOT had positive earnings in the past year.
NOT had a positive operating cash flow in the past year.
Each year in the past 5 years NOT has been profitable.
NOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.08%, NOT belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 32.52%, NOT belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
NOT has a better Return On Invested Capital (17.77%) than 82.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOT is below the industry average of 15.89%.
The 3 year average ROIC (11.31%) for NOT is below the current ROIC(17.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 32.52% | ||
| ROIC | 17.77% |
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)11.31%
ROIC(5y)9.96%
1.3 Margins
NOT has a better Profit Margin (24.90%) than 80.00% of its industry peers.
NOT's Profit Margin has been stable in the last couple of years.
The Operating Margin of NOT (33.45%) is better than 84.00% of its industry peers.
In the last couple of years the Operating Margin of NOT has grown nicely.
The Gross Margin of NOT (76.12%) is better than 76.00% of its industry peers.
NOT'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 NOT is creating value.
The number of shares outstanding for NOT has been reduced compared to 1 year ago.
NOT has less shares outstanding than it did 5 years ago.
NOT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.94 indicates that NOT is not in any danger for bankruptcy at the moment.
NOT has a Altman-Z score (3.94) which is in line with its industry peers.
NOT 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.
With an excellent Debt to FCF ratio value of 1.93, NOT belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that NOT is somewhat dependend on debt financing.
NOT's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. NOT outperforms 58.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for NOT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 3.94 |
ROIC/WACC3.81
WACC4.66%
2.3 Liquidity
NOT has a Current Ratio of 0.82. 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's Current ratio of 0.82 is on the low side compared to the rest of the industry. NOT is outperformed by 82.00% of its industry peers.
A Quick Ratio of 0.62 indicates that NOT may have some problems paying its short term obligations.
NOT has a worse Quick ratio (0.62) than 82.00% of its industry peers.
The current and quick ratio evaluation for NOT 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 | 0.82 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
NOT 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.
NOT 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
Based on estimates for the next years, NOT will show a small growth in Earnings Per Share. The EPS will grow by 7.33% on average per year.
NOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.26% yearly.
EPS Next Y16.29%
EPS Next 2Y9.95%
EPS Next 3Y9.26%
EPS Next 5Y7.33%
Revenue Next Year9.54%
Revenue Next 2Y5.95%
Revenue Next 3Y4.97%
Revenue Next 5Y4.26%
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.
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
Based on the Price/Earnings ratio of 14.45, the valuation of NOT can be described as correct.
NOT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, NOT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.38, the valuation of NOT can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as NOT.
NOT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NOT is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.55 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
NOT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NOT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)1.77
EPS Next 2Y9.95%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
NOT has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 3.01, NOT pays a bit more dividend than its industry peers.
NOT's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
5.3 Sustainability
57.26% of the earnings are spent on dividend by NOT. This is a bit on the high side, but may be sustainable.
The dividend of NOT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.26%
EPS Next 2Y9.95%
EPS Next 3Y9.26%
FRA:NOT (8/29/2025, 7:00:00 PM)
108.34
-0.66 (-0.61%)
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 Cap209.73B
Analysts69.03
Price Target111.85 (3.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend3.25
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)-0.06%
PT rev (3m)-0.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.67%
EPS NY rev (1m)4.47%
EPS NY rev (3m)4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.7%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.45 | ||
| Fwd PE | 13.38 | ||
| P/S | 4.46 | ||
| P/FCF | 14.55 | ||
| P/OCF | 11.76 | ||
| P/B | 5.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.09 |
EPS(TTM)7.5
EY6.92%
EPS(NY)8.1
Fwd EY7.48%
FCF(TTM)7.45
FCFY6.87%
OCF(TTM)9.21
OCFY8.5%
SpS24.3
BVpS18.6
TBVpS-5.68
PEG (NY)0.89
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 32.52% | ||
| ROCE | 25.24% | ||
| ROIC | 17.77% | ||
| ROICexc | 19.58% | ||
| ROICexgc | 115.77% | ||
| 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)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%
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 | 3.94 |
F-Score6
WACC4.66%
ROIC/WACC3.81
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 Y16.29%
EPS Next 2Y9.95%
EPS Next 3Y9.26%
EPS Next 5Y7.33%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
Revenue Next Year9.54%
Revenue Next 2Y5.95%
Revenue Next 3Y4.97%
Revenue Next 5Y4.26%
EBIT growth 1Y44.75%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year30.73%
EBIT Next 3Y11.41%
EBIT Next 5Y9.41%
FCF growth 1Y32.64%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y35.29%
OCF growth 3Y5.34%
OCF growth 5Y5.28%