Uncovering Dividend Opportunities with NYSE:NVS.

Last update: Jan 27, 2025

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.

Understanding NYSE:NVS's Dividend Score

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:NVS has been assigned a 7 for dividend:

Compared to an average industry Dividend Yield of 4.30, NVS pays a better dividend. On top of this NVS pays more dividend than 94.09% of the companies listed in the same industry.
NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
NVS has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:NVS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:NVS has earned a 7 out of 10:

An Altman-Z score of 3.80 indicates that NVS is not in any danger for bankruptcy at the moment.
NVS's Altman-Z score of 3.80 is fine compared to the rest of the industry. NVS outperforms 76.34% of its industry peers.
NVS has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as NVS would need 2.07 years to pay back of all of its debts.
The Debt to FCF ratio of NVS (2.07) is better than 94.09% of its industry peers.
NVS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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.
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.

Exploring NYSE:NVS's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:NVS, the assigned 9 is noteworthy for profitability:

NVS has a better Return On Assets (18.66%) than 98.39% of its industry peers.
The Return On Equity of NVS (44.37%) is better than 96.77% of its industry peers.
The Return On Invested Capital of NVS (20.91%) is better than 96.24% of its industry peers.
The last Return On Invested Capital (20.91%) for NVS is above the 3 year average (11.23%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 35.25%, NVS belongs to the best of the industry, outperforming 97.31% of the companies in the same industry.
NVS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.55%, NVS belongs to the top of the industry, outperforming 94.09% of the companies in the same industry.
NVS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 74.99%, NVS belongs to the best of the industry, outperforming 81.72% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill 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.