NOVARTIS AG-REG (NOT.DE) Stock Fundamental Analysis
FRA:NOT - Deutsche Boerse Ag - CH0012005267 - Common Stock - Currency: EUR
Taking everything into account, NOT scores 6 out of 10 in our fundamental rating. NOT was compared to 959 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.
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.
1.2 Ratios
NOT has a better Return On Assets (12.87%) than 81.13% of its industry peers.
With a decent Return On Equity value of 33.51%, NOT is doing good in the industry, outperforming 79.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.98%, NOT belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NOT is in line with the industry average of 11.64%.
The last Return On Invested Capital (17.98%) for NOT is above the 3 year average (11.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 33.51% | ||
| ROIC | 17.98% |
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's Profit Margin of 24.15% is amongst the best of the industry. NOT outperforms 81.13% of its industry peers.
In the last couple of years the Profit Margin of NOT has remained more or less at the same level.
NOT's Operating Margin of 32.76% is amongst the best of the industry. NOT outperforms 81.13% of its industry peers.
In the last couple of years the Operating Margin of NOT has grown nicely.
With a decent Gross Margin value of 75.69%, NOT is doing good in the industry, outperforming 71.70% 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 | 32.76% | ||
| PM (TTM) | 24.15% | ||
| GM | 75.69% |
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.
Compared to 1 year ago, NOT has less shares outstanding
Compared to 5 years ago, NOT has less shares outstanding
The debt/assets ratio for NOT is higher compared to a year ago.
2.2 Solvency
NOT has an Altman-Z score of 3.82. This indicates that NOT is financially healthy and has little risk of bankruptcy at the moment.
NOT has a Altman-Z score of 3.82. This is comparable to the rest of the industry: NOT outperforms 58.49% of its industry peers.
NOT has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as NOT would need 2.10 years to pay back of all of its debts.
NOT has a better Debt to FCF ratio (2.10) than 83.02% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that NOT is somewhat dependend on debt financing.
NOT has a better Debt to Equity ratio (0.61) than 62.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 3.82 |
ROIC/WACC3.1
WACC5.79%
2.3 Liquidity
NOT has a Current Ratio of 0.79. This is a bad value and indicates that NOT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.79, NOT is doing worse than 83.02% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that NOT may have some problems paying its short term obligations.
NOT has a Quick ratio of 0.61. This is amonst the worse of the industry: NOT underperforms 83.02% 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 | 0.79 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
NOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.60%, which is quite good.
NOT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.14% yearly.
The Revenue has grown by 11.57% 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)18.6%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%26.67%
Revenue 1Y (TTM)11.57%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
3.2 Future
The Earnings Per Share is expected to grow by 4.47% on average over the next years.
NOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y11.31%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
EPS Next 5Y4.47%
Revenue Next Year7.74%
Revenue Next 2Y4.8%
Revenue Next 3Y4.01%
Revenue Next 5Y2.73%
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 decreasing.
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
The Price/Earnings ratio is 14.26, which indicates a correct valuation of NOT.
Based on the Price/Earnings ratio, NOT is valued a bit cheaper than the industry average as 66.04% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.52. NOT is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.05, which indicates a correct valuation of NOT.
67.92% of the companies in the same industry are more expensive than NOT, based on the Price/Forward Earnings ratio.
NOT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.05 |
4.2 Price Multiples
NOT's Enterprise Value to EBITDA is on the same level as the industry average.
NOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOT is cheaper than 64.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.73 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NOT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.75
EPS Next 2Y7.7%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
NOT has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
NOT's Dividend Yield is a higher than the industry average which is at 2.85.
NOT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
60.27% of the earnings are spent on dividend by NOT. This is not a sustainable payout ratio.
The dividend of NOT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.27%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
FRA:NOT (6/6/2025, 7:00:00 PM)
103.52
+0.54 (+0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners38.54%
Inst Owner ChangeN/A
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap204.46B
Analysts68.13
Price Target111.96 (8.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend3.35
Dividend Growth(5Y)5.49%
DP60.27%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.32%
Min EPS beat(2)6.06%
Max EPS beat(2)6.59%
EPS beat(4)4
Avg EPS beat(4)4.92%
Min EPS beat(4)3.24%
Max EPS beat(4)6.59%
EPS beat(8)7
Avg EPS beat(8)3.4%
EPS beat(12)10
Avg EPS beat(12)3.74%
EPS beat(16)12
Avg EPS beat(16)3.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)0.78%
Revenue beat(4)3
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)2.08%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)6
Avg Revenue beat(12)0.67%
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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.05 | ||
| P/S | 4.39 | ||
| P/FCF | 15.73 | ||
| P/OCF | 12.29 | ||
| P/B | 6.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)7.26
EY7.01%
EPS(NY)7.93
Fwd EY7.66%
FCF(TTM)6.58
FCFY6.36%
OCF(TTM)8.42
OCFY8.13%
SpS23.61
BVpS17.01
TBVpS-6.24
PEG (NY)1.26
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.87% | ||
| ROE | 33.51% | ||
| ROCE | 25.54% | ||
| ROIC | 17.98% | ||
| ROICexc | 20.07% | ||
| ROICexgc | 140.46% | ||
| OM | 32.76% | ||
| PM (TTM) | 24.15% | ||
| GM | 75.69% | ||
| FCFM | 27.88% |
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 | 0.61 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 70.27% | ||
| Cap/Sales | 7.8% | ||
| Interest Coverage | 18.56 | ||
| Cash Conversion | 81.35% | ||
| Profit Quality | 115.46% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 3.82 |
F-Score6
WACC5.79%
ROIC/WACC3.1
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)18.6%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%26.67%
EPS Next Y11.31%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
EPS Next 5Y4.47%
Revenue 1Y (TTM)11.57%
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 5Y2.73%
EBIT growth 1Y54.44%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year30.73%
EBIT Next 3Y11.41%
EBIT Next 5Y8.66%
FCF growth 1Y11.95%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y22.23%
OCF growth 3Y5.34%
OCF growth 5Y5.28%