NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVS - US66987V1098 - ADR
144.34 USD
+1.19 (+0.83%)
144.34 USD
0 (0%)
Taking everything into account, NVS scores 7 out of 10 in our fundamental rating. NVS was compared to 191 industry peers in the Pharmaceuticals industry. NVS gets an excellent profitability rating and is at the same time showing great financial health properties. NVS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. NVS also has an excellent dividend rating. These ratings could make NVS a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
- NVS had positive earnings in the past year.
- In the past year NVS had a positive cash flow from operations.
- NVS had positive earnings in each of the past 5 years.
- Each year in the past 5 years NVS had a positive operating cash flow.
1.2 Ratios
- NVS has a better Return On Assets (13.42%) than 94.27% of its industry peers.
- Looking at the Return On Equity, with a value of 32.47%, NVS belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
- The Return On Invested Capital of NVS (22.36%) is better than 97.40% 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 12.84%.
- The 3 year average ROIC (14.58%) for NVS is below the current ROIC(22.36%), indicating increased profibility in the last year.
| 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
- The Profit Margin of NVS (25.69%) is better than 92.19% of its industry peers.
- In the last couple of years the Profit Margin of NVS has remained more or less at the same level.
- NVS has a better Operating Margin (33.11%) than 94.79% of its industry peers.
- NVS's Operating Margin has improved in the last couple of years.
- NVS has a Gross Margin of 76.10%. This is amongst the best in the industry. NVS outperforms 82.29% 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.
- NVS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NVS has less shares outstanding
- The debt/assets ratio for NVS is higher compared to a year ago.
2.2 Solvency
- NVS has an Altman-Z score of 4.26. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.26, NVS is doing good in the industry, outperforming 70.83% of the companies in the same industry.
- NVS has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.87, NVS belongs to the top of the industry, outperforming 94.27% of the companies in the same industry.
- NVS has a Debt/Equity ratio of 0.55. This is a neutral value indicating NVS is somewhat dependend on debt financing.
- NVS has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: NVS underperforms 65.63% of its industry peers.
- 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 | 0.55 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 4.26 |
ROIC/WACC4.71
WACC4.75%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that NVS may have some problems paying its short term obligations.
- With a Current ratio value of 0.88, NVS is not doing good in the industry: 86.98% of the companies in the same industry are doing better.
- A Quick Ratio of 0.68 indicates that NVS may have some problems paying its short term obligations.
- NVS's Quick ratio of 0.68 is on the low side compared to the rest of the industry. NVS is outperformed by 86.98% of its industry peers.
- NVS 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 | 0.88 | ||
| 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.
- Measured over the past years, NVS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.14% on average per year.
- The Revenue has grown by 12.18% in the past year. This is quite good.
- 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 8.79% on average per year.
- Based on estimates for the next years, NVS will show a small growth in Revenue. The Revenue will grow by 5.27% on average per year.
EPS Next Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y8.79%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.27%
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
- The Price/Earnings ratio is 15.98, which indicates a correct valuation of NVS.
- Based on the Price/Earnings ratio, NVS is valued cheaper than 86.46% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. NVS is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.30, NVS is valued correctly.
- Based on the Price/Forward Earnings ratio, NVS is valued cheaper than 81.77% 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 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
- NVS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVS is cheaper than 84.38% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 86.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.24 | ||
| EV/EBITDA | 12.49 |
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)0.95
PEG (5Y)1.96
EPS Next 2Y9.31%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.06%, NVS has a reasonable but not impressive dividend return.
- NVS's Dividend Yield is rather good when compared to the industry average which is at 0.40. NVS pays more dividend than 94.27% of the companies in the same industry.
- NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
- The dividend of NVS has a limited annual growth rate of 5.49%.
- NVS has paid a dividend for at least 10 years, which is a reliable track record.
- NVS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y9.31%
EPS Next 3Y8.66%
144.34
+1.19 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners41.44%
Inst Owner Change-0.08%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap276.96B
Revenue(TTM)56.02B
Net Income(TTM)14.39B
Analysts71.25
Price Target135.04 (-6.44%)
Short Float %0.31%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend3.79
Dividend Growth(5Y)5.49%
DP54.32%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.75%
Min EPS beat(2)-2.1%
Max EPS beat(2)0.61%
EPS beat(4)3
Avg EPS beat(4)2.79%
Min EPS beat(4)-2.1%
Max EPS beat(4)6.59%
EPS beat(8)6
Avg EPS beat(8)2.02%
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)0%
PT rev (3m)2.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.89%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 15.3 | ||
| P/S | 4.94 | ||
| P/FCF | 16.24 | ||
| P/OCF | 13.14 | ||
| P/B | 6.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)9.03
EY6.26%
EPS(NY)9.44
Fwd EY6.54%
FCF(TTM)8.89
FCFY6.16%
OCF(TTM)10.98
OCFY7.61%
SpS29.2
BVpS23.1
TBVpS-5.35
PEG (NY)0.95
PEG (5Y)1.96
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 | 4.26 |
F-Score7
WACC4.75%
ROIC/WACC4.71
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 Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y8.79%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%8.47%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.27%
EBIT growth 1Y21.58%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year36.14%
EBIT Next 3Y13.19%
EBIT Next 5Y13.01%
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.
What is the valuation status for NVS stock?
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.
How financially healthy is NOVARTIS AG-SPONSORED ADR?
The financial health rating of NOVARTIS AG-SPONSORED ADR (NVS) is 7 / 10.
Is the dividend of NOVARTIS AG-SPONSORED ADR sustainable?
The dividend rating of NOVARTIS AG-SPONSORED ADR (NVS) is 7 / 10 and the dividend payout ratio is 54.32%.