NOVARTIS AG-REG (NOT.DE) Stock Fundamental Analysis
FRA:NOT - Deutsche Boerse Ag - CH0012005267 - Common Stock - Currency: EUR
Overall NOT gets a fundamental rating of 7 out of 10. We evaluated NOT against 51 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 could make NOT a good candidate for quality investing.
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.
NOT had positive earnings in each of the past 5 years.
Each year in the past 5 years NOT had a positive operating cash flow.
1.2 Ratios
NOT's Return On Assets of 12.87% is amongst the best of the industry. NOT outperforms 86.27% of its industry peers.
With an excellent Return On Equity value of 33.51%, NOT belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
NOT has a Return On Invested Capital of 17.98%. This is amongst the best in the industry. NOT outperforms 84.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOT is below the industry average of 15.21%.
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 has a better Profit Margin (24.15%) than 88.24% of its industry peers.
NOT's Profit Margin has been stable in the last couple of years.
NOT has a better Operating Margin (32.76%) than 86.27% 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 74.51% 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.
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.
The debt/assets ratio for NOT is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.59 indicates that NOT is not in any danger for bankruptcy at the moment.
NOT's Altman-Z score of 3.59 is fine compared to the rest of the industry. NOT outperforms 60.78% of its industry peers.
The Debt to FCF ratio of NOT is 2.10, which is a good value as it means it would take NOT, 2.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOT (2.10) is better than 86.27% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that NOT is somewhat dependend on debt financing.
NOT's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. NOT outperforms 58.82% of its industry peers.
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 | 0.61 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 3.59 |
ROIC/WACC3.75
WACC4.79%
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.
The Current ratio of NOT (0.79) is worse than 84.31% of its industry peers.
A Quick Ratio of 0.61 indicates that NOT may have some problems paying its short term obligations.
The Quick ratio of NOT (0.61) is worse than 82.35% 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 | 0.79 | ||
| 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.
Looking at the last year, NOT shows a quite strong growth in Revenue. The Revenue has grown by 11.57% in the last year.
The Revenue has been growing slightly by 1.24% on average over the past years.
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
NOT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.47% yearly.
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.
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 12.73, the valuation of NOT can be described as correct.
NOT's Price/Earnings ratio is a bit cheaper when compared to the industry. NOT is cheaper than 78.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.85. NOT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.65, the valuation of NOT can be described as very reasonable.
72.55% of the companies in the same industry are more expensive than NOT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.89. NOT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
NOT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOT is cheaper than 60.78% of the companies in the same industry.
NOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOT is cheaper than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.04 | ||
| EV/EBITDA | 9.97 |
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)1.13
PEG (5Y)1.56
EPS Next 2Y7.7%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
NOT has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.18, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
The dividend of NOT has a limited annual growth rate of 5.49%.
Dividend Growth(5Y)5.49%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
NOT pays out 60.27% of its income as dividend. This is not a sustainable payout ratio.
NOT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.27%
EPS Next 2Y7.7%
EPS Next 3Y7.64%
FRA:NOT (5/14/2025, 7:00:00 PM)
94.97
-0.18 (-0.19%)
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 Cap187.57B
Analysts68.13
Price Target111.96 (17.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend3.37
Dividend Growth(5Y)5.49%
DP60.27%
Div Incr YearsN/A
Div Non Decr YearsN/A
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 | 12.73 | ||
| Fwd PE | 11.65 | ||
| P/S | 3.91 | ||
| P/FCF | 14.04 | ||
| P/OCF | 10.97 | ||
| P/B | 5.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.97 |
EPS(TTM)7.46
EY7.86%
EPS(NY)8.15
Fwd EY8.58%
FCF(TTM)6.76
FCFY7.12%
OCF(TTM)8.66
OCFY9.12%
SpS24.27
BVpS17.48
TBVpS-6.41
PEG (NY)1.13
PEG (5Y)1.56
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 | 3.59 |
F-Score6
WACC4.79%
ROIC/WACC3.75
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 Year30.47%
EBIT Next 3Y12.19%
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%