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NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis

USA - NYSE:NVS - US66987V1098 - ADR

125.21 USD
-3.93 (-3.04%)
Last: 10/28/2025, 10:56:07 AM
Fundamental Rating

7

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!


Dividend Valuation Growth Profitability Health

9

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.
NVS Yearly Net Income VS EBIT VS OCF VS FCFNVS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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 RankSector 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%
NVS Yearly ROA, ROE, ROICNVS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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 RankSector 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%
NVS Yearly Profit, Operating, Gross MarginsNVS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

7

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.
NVS Yearly Shares OutstandingNVS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
NVS Yearly Total Debt VS Total AssetsNVS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B

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 RankSector Rank
Debt/Equity 0.57
Debt/FCF 1.93
Altman-Z 4
ROIC/WACC4.77
WACC4.8%
NVS Yearly LT Debt VS Equity VS FCFNVS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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 RankSector Rank
Current Ratio 0.82
Quick Ratio 0.62
NVS Yearly Current Assets VS Current LiabilitesNVS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

6

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.
NVS Yearly Revenue VS EstimatesNVS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B
NVS Yearly EPS VS EstimatesNVS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

7

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 RankSector Rank
PE 14.15
Fwd PE 13.1
NVS Price Earnings VS Forward Price EarningsNVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 14.42
EV/EBITDA 11.32
NVS Per share dataNVS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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%

7

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 RankSector 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
NVS Yearly Dividends per shareNVS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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%
NVS Yearly Income VS Free CF VS DividendNVS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B
NVS Dividend Payout.NVS Dividend Payout, showing the Payout Ratio.NVS Dividend Payout.PayoutRetained Earnings

NOVARTIS AG-SPONSORED ADR

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)07-17 2025-07-17/bmo
Earnings (Next)10-28 2025-10-28/bmo
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 RankSector Rank
Dividend Yield 3.35%
Yearly Dividend3.79
Dividend Growth(5Y)5.49%
DP57.26%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-12 2025-03-12 (3.99399)
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 RankSector 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 RankSector 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 RankSector 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.