NOVARTIS AG-REG (NOT.DE) Stock Fundamental Analysis
Europe - FRA:NOT - CH0012005267 - Common Stock
104.68 EUR
+1.06 (+1.02%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. NOT has a decent growth rate and is not valued too expensively. These ratings would make NOT suitable 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.
NOT had positive earnings in each of the past 5 years.
In the past 5 years NOT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NOT (13.08%) is better than 82.00% of its industry peers.
NOT has a better Return On Equity (32.52%) than 84.00% of its industry peers.
NOT has a Return On Invested Capital of 17.77%. This is amongst the best in the industry. NOT outperforms 84.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOT is below the industry average of 15.33%.
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.
Looking at the Operating Margin, with a value of 33.45%, NOT belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
NOT's Operating Margin has improved in the last couple of years.
NOT has a better Gross Margin (76.12%) than 76.00% 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 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
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.
Compared to 5 years ago, NOT has less shares outstanding
Compared to 1 year ago, NOT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.88 indicates that NOT is not in any danger for bankruptcy at the moment.
NOT has a Altman-Z score (3.88) which is in line with its industry peers.
The Debt to FCF ratio of NOT is 1.93, which is an excellent value as it means it would take NOT, only 1.93 years of fcf income to pay off all of its debts.
NOT has a better Debt to FCF ratio (1.93) than 88.00% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that NOT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, NOT is in line with its industry, outperforming 56.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 3.88 |
ROIC/WACC3.82
WACC4.65%
2.3 Liquidity
A Current Ratio of 0.82 indicates that NOT may have some problems paying its short term obligations.
The Current ratio of NOT (0.82) is worse than 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's Quick ratio of 0.62 is on the low side compared to the rest of the industry. NOT is outperformed by 82.00% of its industry peers.
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
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.
Looking at the last year, NOT shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
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
NOT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.33% yearly.
Based on estimates for the next years, NOT will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y16.18%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
EPS Next 5Y7.33%
Revenue Next Year9.49%
Revenue Next 2Y5.95%
Revenue Next 3Y5%
Revenue Next 5Y4.26%
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
Based on the Price/Earnings ratio of 14.05, the valuation of NOT can be described as correct.
66.00% of the companies in the same industry are more expensive than NOT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.38. NOT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.02, the valuation of NOT can be described as correct.
Based on the Price/Forward Earnings ratio, NOT is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, NOT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 13.02 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOT indicates a somewhat cheap valuation: NOT is cheaper than 76.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.15 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
The 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)0.87
PEG (5Y)1.73
EPS Next 2Y9.92%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
NOT has a Yearly Dividend Yield of 3.62%.
Compared to an average industry Dividend Yield of 3.07, NOT pays a bit more dividend than its industry peers.
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 | 3.62% |
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 (9/19/2025, 7:00:00 PM)
104.68
+1.06 (+1.02%)
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 Cap202.65B
Analysts69.68
Price Target110.98 (6.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend3.23
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)0.22%
PT rev (3m)-0.88%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)6.61%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 13.02 | ||
| P/S | 4.34 | ||
| P/FCF | 14.15 | ||
| P/OCF | 11.44 | ||
| P/B | 5.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.82 |
EPS(TTM)7.45
EY7.12%
EPS(NY)8.04
Fwd EY7.68%
FCF(TTM)7.4
FCFY7.07%
OCF(TTM)9.15
OCFY8.74%
SpS24.14
BVpS18.48
TBVpS-5.64
PEG (NY)0.87
PEG (5Y)1.73
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 | 3.88 |
F-Score6
WACC4.65%
ROIC/WACC3.82
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 5Y7.33%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%9.18%
Revenue Next Year9.49%
Revenue Next 2Y5.95%
Revenue Next 3Y5%
Revenue Next 5Y4.26%
EBIT growth 1Y44.75%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year34.89%
EBIT Next 3Y12.7%
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%