NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVS - US66987V1098 - ADR
132.377 USD
+1.19 (+0.9%)
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 191 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! Finally NVS also has an excellent dividend rating. This makes NVS very considerable 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.
Each year in the past 5 years NVS has been profitable.
In the past 5 years NVS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.42%, NVS belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
NVS has a Return On Equity of 32.47%. This is amongst the best in the industry. NVS outperforms 94.24% of its industry peers.
NVS's Return On Invested Capital of 22.36% is amongst the best of the industry. NVS outperforms 97.38% 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 12.85%.
The last Return On Invested Capital (22.36%) for NVS is above the 3 year average (14.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.42% | ||
| ROE | 32.47% | ||
| ROIC | 22.36% |
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 has a better Profit Margin (25.69%) than 92.15% of its industry peers.
NVS's Profit Margin has been stable in the last couple of years.
NVS has a Operating Margin of 33.11%. This is amongst the best in the industry. NVS outperforms 94.76% of its industry peers.
In the last couple of years the Operating Margin of NVS has grown nicely.
The Gross Margin of NVS (76.10%) is better than 82.20% of its industry peers.
NVS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.11% | ||
| PM (TTM) | 25.69% | ||
| GM | 76.1% |
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
The number of shares outstanding for NVS has been reduced compared to 5 years ago.
Compared to 1 year ago, NVS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.02 indicates that NVS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.02, NVS is in the better half of the industry, outperforming 72.25% of the companies in the same industry.
The Debt to FCF ratio of NVS is 1.87, which is an excellent value as it means it would take NVS, only 1.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NVS (1.87) is better than 94.24% of its industry peers.
NVS has a Debt/Equity ratio of 0.55. This is a neutral value indicating NVS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, NVS is doing worse than 64.40% of the companies in the same industry.
Although NVS 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 | 0.55 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 4.02 |
ROIC/WACC4.73
WACC4.73%
2.3 Liquidity
NVS has a Current Ratio of 0.88. This is a bad value and indicates that NVS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NVS (0.88) is worse than 87.43% of its industry peers.
A Quick Ratio of 0.68 indicates that NVS may have some problems paying its short term obligations.
NVS has a Quick ratio of 0.68. This is amonst the worse of the industry: NVS underperforms 87.43% 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 | 0.88 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
NVS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.33%, 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.
Looking at the last year, NVS shows a quite strong growth in Revenue. The Revenue has grown by 12.18% in the last year.
The Revenue has been growing slightly by 1.24% on average over the past years.
EPS 1Y (TTM)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%8.47%
3.2 Future
Based on estimates for the next years, NVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.35% on average per year.
NVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y16.69%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y9.35%
Revenue Next Year9.86%
Revenue Next 2Y6.25%
Revenue Next 3Y5.47%
Revenue Next 5Y5.35%
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 stable.
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
NVS is valuated correctly with a Price/Earnings ratio of 14.66.
Based on the Price/Earnings ratio, NVS is valued cheaply inside the industry as 86.91% of the companies are valued more expensively.
NVS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 13.98, NVS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 81.15% of the companies listed in the same industry.
NVS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
84.29% of the companies in the same industry are more expensive than NVS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NVS is valued cheaper than 86.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.89 | ||
| EV/EBITDA | 11.43 |
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.
NVS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)1.8
EPS Next 2Y9.51%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
NVS has a Yearly Dividend Yield of 3.27%.
Compared to an average industry Dividend Yield of 6.46, NVS pays a better dividend. On top of this NVS pays more dividend than 94.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, NVS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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 54.32% of its income as dividend. This is a bit on the high side, but may be sustainable.
NVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.32%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
NYSE:NVS (12/11/2025, 3:20:56 PM)
132.377
+1.19 (+0.9%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners41.28%
Inst Owner Change0.44%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap254.00B
Revenue(TTM)56.02B
Net Income(TTM)14.39B
Analysts70.32
Price Target135.04 (2.01%)
Short Float %0.31%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend3.79
Dividend Growth(5Y)5.49%
DP54.32%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.71%
Min EPS beat(2)-2.03%
Max EPS beat(2)0.61%
EPS beat(4)3
Avg EPS beat(4)2.81%
Min EPS beat(4)-2.03%
Max EPS beat(4)6.59%
EPS beat(8)6
Avg EPS beat(8)2.03%
EPS beat(12)10
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-2.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.48%
Revenue beat(12)3
Avg Revenue beat(12)-3.77%
Revenue beat(16)4
Avg Revenue beat(16)-4.02%
PT rev (1m)1.58%
PT rev (3m)3.97%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 13.98 | ||
| P/S | 4.53 | ||
| P/FCF | 14.89 | ||
| P/OCF | 12.05 | ||
| P/B | 5.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.43 |
EPS(TTM)9.03
EY6.82%
EPS(NY)9.47
Fwd EY7.15%
FCF(TTM)8.89
FCFY6.72%
OCF(TTM)10.98
OCFY8.3%
SpS29.2
BVpS23.1
TBVpS-5.35
PEG (NY)0.88
PEG (5Y)1.8
Graham Number68.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.42% | ||
| ROE | 32.47% | ||
| ROCE | 24.64% | ||
| ROIC | 22.36% | ||
| ROICexc | 25.65% | ||
| ROICexgc | 152.58% | ||
| OM | 33.11% | ||
| PM (TTM) | 25.69% | ||
| GM | 76.1% | ||
| FCFM | 30.45% |
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-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 74.31% | ||
| Cap/Sales | 7.16% | ||
| Interest Coverage | 18.85 | ||
| Cash Conversion | 87.98% | ||
| Profit Quality | 118.52% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 4.02 |
F-Score7
WACC4.73%
ROIC/WACC4.73
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)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
EPS Next Y16.69%
EPS Next 2Y9.51%
EPS Next 3Y8.79%
EPS Next 5Y9.35%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%8.47%
Revenue Next Year9.86%
Revenue Next 2Y6.25%
Revenue Next 3Y5.47%
Revenue Next 5Y5.35%
EBIT growth 1Y21.58%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year36.14%
EBIT Next 3Y13.19%
EBIT Next 5Y13.76%
FCF growth 1Y33.72%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y37.07%
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 14.66 and the Price/Book (PB) ratio is 5.73.
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 16.69% in the next year.