Uncovering Dividend Opportunities with NYSE:NVS.

Last update: Aug 23, 2024

Our stock screener has singled out NOVARTIS AG-SPONSORED ADR (NYSE:NVS) as a promising choice for dividend investors. NYSE:NVS not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Dividend Examination for NYSE:NVS

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:NVS was assigned a score of 7 for dividend:

NVS's Dividend Yield is rather good when compared to the industry average which is at 3.90. NVS pays more dividend than 94.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, NVS pays a bit more dividend than the S&P500 average.
NVS has paid a dividend for at least 10 years, which is a reliable track record.
29.69% of the earnings are spent on dividend by NVS. This is a low number and sustainable payout ratio.
The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:NVS

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:NVS has earned a 6 out of 10:

NVS has an Altman-Z score of 4.37. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVS (4.37) is better than 78.65% of its industry peers.
NVS has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as NVS would need 2.63 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.63, NVS belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
NVS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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.

Profitability Insights: NYSE:NVS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:NVS, the assigned 9 is a significant indicator of profitability:

NVS has a Return On Assets of 18.59%. This is amongst the best in the industry. NVS outperforms 97.92% of its industry peers.
NVS has a better Return On Equity (44.20%) than 95.31% of its industry peers.
With an excellent Return On Invested Capital value of 22.45%, NVS belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
The last Return On Invested Capital (22.45%) for NVS is above the 3 year average (11.23%), which is a sign of increasing profitability.
NVS's Profit Margin of 29.84% is amongst the best of the industry. NVS outperforms 95.31% of its industry peers.
NVS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 27.87%, NVS belongs to the top of the industry, outperforming 93.23% of the companies in the same industry.
NVS's Operating Margin has improved in the last couple of years.
The Gross Margin of NVS (74.29%) is better than 81.25% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of NVS for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.