NOVARTIS AG-REG (NOT.DE) Stock Fundamental Analysis
Europe - FRA:NOT - CH0012005267 - Common Stock
112.38 EUR
+0.64 (+0.57%)
Overall NOT gets a fundamental rating of 7 out of 10. We evaluated NOT against 54 industry peers in the Pharmaceuticals industry. Both the health and profitability get an excellent rating, making NOT a very profitable company, without any liquidiy or solvency issues. NOT has a decent growth rate and is not valued too expensively. With these ratings, NOT could be worth investigating further 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
The Return On Assets of NOT (13.08%) is better than 83.33% of its industry peers.
With an excellent Return On Equity value of 32.52%, NOT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
NOT has a better Return On Invested Capital (17.77%) than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOT is below the industry average of 14.71%.
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
With an excellent Profit Margin value of 24.90%, NOT belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
NOT's Profit Margin has been stable in the last couple of years.
NOT has a Operating Margin of 33.45%. This is amongst the best in the industry. NOT outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of NOT has grown nicely.
Looking at the Gross Margin, with a value of 76.12%, NOT is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NOT is creating value.
Compared to 1 year ago, NOT has less shares outstanding
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 4.03 indicates that NOT is not in any danger for bankruptcy at the moment.
The Altman-Z score of NOT (4.03) is better than 61.11% of 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.
NOT has a better Debt to FCF ratio (1.93) than 85.19% of its industry peers.
NOT has a Debt/Equity ratio of 0.57. This is a neutral value indicating NOT is somewhat dependend on debt financing.
NOT has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: NOT outperforms 55.56% 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 | 4.03 |
ROIC/WACC3.8
WACC4.68%
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.
With a Current ratio value of 0.82, NOT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that NOT may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, NOT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
NOT 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
The Earnings Per Share has grown by an impressive 22.58% over the past year.
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 12.24%.
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
The Earnings Per Share is expected to grow by 8.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.80% on average over the next years.
EPS Next Y16.18%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
EPS Next 5Y8.01%
Revenue Next Year9.59%
Revenue Next 2Y6.01%
Revenue Next 3Y5%
Revenue Next 5Y4.8%
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
With a Price/Earnings ratio of 14.98, NOT is valued correctly.
61.11% of the companies in the same industry are more expensive than NOT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NOT to the average of the S&P500 Index (27.40), we can say NOT is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.87 indicates a correct valuation of NOT.
NOT's Price/Forward Earnings is on the same level as the industry average.
NOT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
NOT's Enterprise Value to EBITDA ratio is in line with the industry average.
NOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOT is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 11.46 |
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)0.93
PEG (5Y)1.84
EPS Next 2Y9.92%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
NOT has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.04, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 2Y9.92%
EPS Next 3Y9.34%
FRA:NOT (10/16/2025, 7:00:00 PM)
112.38
+0.64 (+0.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.6%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap217.55B
Analysts68.75
Price Target112.04 (-0.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend3.28
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)0.96%
PT rev (3m)0.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.62%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 13.87 | ||
| P/S | 4.62 | ||
| P/FCF | 15.08 | ||
| P/OCF | 12.19 | ||
| P/B | 6.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.46 |
EPS(TTM)7.5
EY6.67%
EPS(NY)8.1
Fwd EY7.21%
FCF(TTM)7.45
FCFY6.63%
OCF(TTM)9.22
OCFY8.2%
SpS24.32
BVpS18.62
TBVpS-5.68
PEG (NY)0.93
PEG (5Y)1.84
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 | 4.03 |
F-Score6
WACC4.68%
ROIC/WACC3.8
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 Y16.18%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
EPS Next 5Y8.01%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
Revenue Next Year9.59%
Revenue Next 2Y6.01%
Revenue Next 3Y5%
Revenue Next 5Y4.8%
EBIT growth 1Y44.75%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year34.89%
EBIT Next 3Y12.7%
EBIT Next 5Y11.36%
FCF growth 1Y32.64%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y35.29%
OCF growth 3Y5.34%
OCF growth 5Y5.28%