NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA - NYSE:NVS - US66987V1098 - ADR
125.21 USD
-3.93 (-3.04%)
Taking everything into account, NVS scores 7 out of 10 in our fundamental rating. NVS was compared to 192 industry peers in the Pharmaceuticals industry. NVS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVS is valued quite cheap, while showing a decent growth score. This is a good combination! NVS also has an excellent dividend rating. These ratings would make NVS suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NVS was profitable.
NVS had a positive operating cash flow in the past year.
In the past 5 years NVS has always been profitable.
Each year in the past 5 years NVS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NVS (13.08%) is better than 94.27% of its industry peers.
The Return On Equity of NVS (32.52%) is better than 95.83% of its industry peers.
NVS has a Return On Invested Capital of 22.91%. This is amongst the best in the industry. NVS outperforms 96.88% of its industry peers.
NVS had an Average Return On Invested Capital over the past 3 years of 14.58%. This is in line with the industry average of 15.41%.
The 3 year average ROIC (14.58%) for NVS is below the current ROIC(22.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 32.52% | ||
| ROIC | 22.91% |
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)14.58%
ROIC(5y)12.83%
1.3 Margins
NVS's Profit Margin of 24.90% is amongst the best of the industry. NVS outperforms 94.79% of its industry peers.
NVS's Profit Margin has been stable in the last couple of years.
The Operating Margin of NVS (33.45%) is better than 95.31% of its industry peers.
NVS's Operating Margin has improved in the last couple of years.
NVS's Gross Margin of 76.12% is amongst the best of the industry. NVS outperforms 82.81% of its industry peers.
NVS'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 NVS is creating value.
Compared to 1 year ago, NVS has less shares outstanding
Compared to 5 years ago, NVS has less shares outstanding
NVS has a worse debt/assets ratio than last year.
2.2 Solvency
NVS has an Altman-Z score of 4.00. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
NVS has a Altman-Z score of 4.00. This is in the better half of the industry: NVS outperforms 73.96% of its industry peers.
NVS 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.
NVS's Debt to FCF ratio of 1.93 is amongst the best of the industry. NVS outperforms 93.75% of its industry peers.
NVS has a Debt/Equity ratio of 0.57. This is a neutral value indicating NVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.57, NVS is doing worse than 64.58% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for NVS, 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 |
ROIC/WACC4.77
WACC4.8%
2.3 Liquidity
NVS has a Current Ratio of 0.82. This is a bad value and indicates that NVS is not financially healthy enough and could expect problems in meeting its short term obligations.
NVS has a worse Current ratio (0.82) than 87.50% of its industry peers.
NVS has a Quick Ratio of 0.82. This is a bad value and indicates that NVS is not financially healthy enough and could expect problems in meeting its short term obligations.
NVS has a worse Quick ratio (0.62) than 86.46% of its industry peers.
The current and quick ratio evaluation for NVS 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
NVS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.58%, which is quite impressive.
NVS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.14% yearly.
NVS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.24%.
NVS 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%12.32%
3.2 Future
NVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.01% yearly.
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
A Price/Earnings ratio of 14.15 indicates a correct valuation of NVS.
86.46% of the companies in the same industry are more expensive than NVS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.08. NVS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.10 indicates a correct valuation of NVS.
NVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 82.81% of the companies in the same industry.
NVS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
NVS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVS is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.42 | ||
| EV/EBITDA | 11.32 |
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.
The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)0.87
PEG (5Y)1.74
EPS Next 2Y9.92%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
NVS has a Yearly Dividend Yield of 3.35%. Purely for dividend investing, there may be better candidates out there.
NVS's Dividend Yield is rather good when compared to the industry average which is at 6.29. NVS pays more dividend than 94.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, NVS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of NVS has a limited annual growth rate of 5.49%.
NVS has been paying a dividend for at least 10 years, so it has a reliable track record.
As NVS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.49%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
NVS pays out 57.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.26%
EPS Next 2Y9.92%
EPS Next 3Y9.34%
NYSE:NVS (10/28/2025, 10:56:07 AM)
125.21
-3.93 (-3.04%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners39.6%
Inst Owner Change-0.05%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap242.39B
Revenue(TTM)54.84B
Net Income(TTM)13.65B
Analysts68.75
Price Target131.54 (5.06%)
Short Float %0.25%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend3.79
Dividend Growth(5Y)5.49%
DP57.26%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)1
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.36%
Revenue beat(12)3
Avg Revenue beat(12)-5.01%
Revenue beat(16)5
Avg Revenue beat(16)-3.81%
PT rev (1m)-2.73%
PT rev (3m)1.29%
EPS NQ rev (1m)0.7%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)0%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 13.1 | ||
| P/S | 4.42 | ||
| P/FCF | 14.42 | ||
| P/OCF | 11.66 | ||
| P/B | 5.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.32 |
EPS(TTM)8.85
EY7.07%
EPS(NY)9.55
Fwd EY7.63%
FCF(TTM)8.68
FCFY6.93%
OCF(TTM)10.74
OCFY8.58%
SpS28.33
BVpS21.69
TBVpS-6.62
PEG (NY)0.87
PEG (5Y)1.74
Graham Number65.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.08% | ||
| ROE | 32.52% | ||
| ROCE | 25.24% | ||
| ROIC | 22.91% | ||
| ROICexc | 25.24% | ||
| ROICexgc | 149.23% | ||
| 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)14.58%
ROIC(5y)12.83%
ROICexc(3y)17.82%
ROICexc(5y)15.74%
ROICexgc(3y)90.48%
ROICexgc(5y)78.58%
ROCE(3y)16.96%
ROCE(5y)14.93%
ROICexgc growth 3Y14.29%
ROICexgc 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 |
F-Score6
WACC4.8%
ROIC/WACC4.77
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%12.32%
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%
NOVARTIS AG-SPONSORED ADR / NVS FAQ
What is the ChartMill fundamental rating of NOVARTIS AG-SPONSORED ADR (NVS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to NVS.
Can you provide the valuation status for NOVARTIS AG-SPONSORED ADR?
ChartMill assigns a valuation rating of 7 / 10 to NOVARTIS AG-SPONSORED ADR (NVS). This can be considered as Undervalued.
How profitable is NOVARTIS AG-SPONSORED ADR (NVS) stock?
NOVARTIS AG-SPONSORED ADR (NVS) has a profitability rating of 9 / 10.
What are the PE and PB ratios of NOVARTIS AG-SPONSORED ADR (NVS) stock?
The Price/Earnings (PE) ratio for NOVARTIS AG-SPONSORED ADR (NVS) is 14.15 and the Price/Book (PB) ratio is 5.77.
What is the earnings growth outlook for NOVARTIS AG-SPONSORED ADR?
The Earnings per Share (EPS) of NOVARTIS AG-SPONSORED ADR (NVS) is expected to grow by 16.18% in the next year.