NOVARTIS AG-SPONSORED ADR (NVS) Fundamental Analysis & Valuation
NYSE:NVS • US66987V1098
155.99 USD
-0.83 (-0.53%)
Last: Mar 11, 2026, 01:16 PM
This NVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall NVS gets a fundamental rating of 7 out of 10. We evaluated NVS against 193 industry peers in the Pharmaceuticals industry. NVS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVS has a decent growth rate and is not valued too expensively. NVS also has an excellent dividend rating. With these ratings, NVS could be worth investigating further for dividend and quality investing!.
1. NVS Profitability Analysis
1.1 Basic Checks
- In the past year NVS was profitable.
- In the past year NVS had a positive cash flow from operations.
- In the past 5 years NVS has always been profitable.
- In the past 5 years NVS always reported a positive cash flow from operatings.
1.2 Ratios
- NVS has a Return On Assets of 12.60%. This is amongst the best in the industry. NVS outperforms 93.26% of its industry peers.
- The Return On Equity of NVS (30.31%) is better than 94.30% of its industry peers.
- The Return On Invested Capital of NVS (19.32%) is better than 95.85% of its industry peers.
- NVS had an Average Return On Invested Capital over the past 3 years of 17.15%. This is above the industry average of 13.09%.
- The 3 year average ROIC (17.15%) for NVS is below the current ROIC(19.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.6% | ||
| ROE | 30.31% | ||
| ROIC | 19.32% |
ROA(3y)13.05%
ROA(5y)12.66%
ROE(3y)29.75%
ROE(5y)27.29%
ROIC(3y)17.15%
ROIC(5y)14%
1.3 Margins
- NVS's Profit Margin of 24.83% is amongst the best of the industry. NVS outperforms 92.75% of its industry peers.
- NVS's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 33.18%, NVS belongs to the best of the industry, outperforming 94.82% of the companies in the same industry.
- In the last couple of years the Operating Margin of NVS has grown nicely.
- With an excellent Gross Margin value of 75.82%, NVS belongs to the best of the industry, outperforming 82.38% of the companies in the same industry.
- In the last couple of years the Gross Margin of NVS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.18% | ||
| PM (TTM) | 24.83% | ||
| GM | 75.82% |
OM growth 3Y12.14%
OM growth 5Y6.09%
PM growth 3Y15.69%
PM growth 5Y8.94%
GM growth 3Y0.74%
GM growth 5Y1.28%
2. NVS Health Analysis
2.1 Basic Checks
- NVS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- NVS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for NVS has been reduced compared to 5 years ago.
- NVS has a worse debt/assets ratio than last year.
2.2 Solvency
- NVS has an Altman-Z score of 4.54. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- NVS's Altman-Z score of 4.54 is fine compared to the rest of the industry. NVS outperforms 74.09% of its industry peers.
- NVS has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as NVS would need 2.32 years to pay back of all of its debts.
- The Debt to FCF ratio of NVS (2.32) is better than 94.30% of its industry peers.
- NVS has a Debt/Equity ratio of 0.64. This is a neutral value indicating NVS is somewhat dependend on debt financing.
- NVS has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: NVS underperforms 65.80% 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 | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 4.54 |
ROIC/WACC3.84
WACC5.03%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that NVS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.12, NVS is not doing good in the industry: 79.79% of the companies in the same industry are doing better.
- NVS has a Quick Ratio of 1.12. 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 (0.89) than 78.24% 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 | 1.12 | ||
| Quick Ratio | 0.89 |
3. NVS Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 14.98% over the past year.
- NVS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.21% yearly.
- Looking at the last year, NVS shows a quite strong growth in Revenue. The Revenue has grown by 8.91% in the last year.
- The Revenue has been growing slightly by 2.45% on average over the past years.
EPS 1Y (TTM)14.98%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%2.53%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%1.39%
3.2 Future
- The Earnings Per Share is expected to grow by 7.48% on average over the next years.
- NVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y0.69%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
EPS Next 5Y7.48%
Revenue Next Year2.75%
Revenue Next 2Y3.82%
Revenue Next 3Y4.46%
Revenue Next 5Y4.99%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. NVS Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.27, which indicates a rather expensive current valuation of NVS.
- Based on the Price/Earnings ratio, NVS is valued cheaply inside the industry as 84.97% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.25, NVS is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 17.16, NVS is valued on the expensive side.
- 82.38% of the companies in the same industry are more expensive than NVS, based on the Price/Forward Earnings ratio.
- NVS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 17.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaply inside the industry as 83.94% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 84.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 13.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NVS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)24.86
PEG (5Y)1.88
EPS Next 2Y4.79%
EPS Next 3Y5.96%
5. NVS Dividend Analysis
5.1 Amount
- NVS has a Yearly Dividend Yield of 2.96%. 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 0.70. NVS pays more dividend than 94.30% of the companies in the same industry.
- NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
- The dividend of NVS has a limited annual growth rate of 5.38%.
- 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)5.38%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- NVS pays out 55.91% 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.
DP55.91%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
NVS Fundamentals: All Metrics, Ratios and Statistics
NYSE:NVS (3/11/2026, 1:16:56 PM)
155.99
-0.83 (-0.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)04-27 2026-04-27
Inst Owners41.7%
Inst Owner Change0.15%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap299.31B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts70.59
Price Target156 (0.01%)
Short Float %0.44%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend4.02
Dividend Growth(5Y)5.38%
DP55.91%
Div Incr Years5
Div Non Decr Years5
Ex-Date03-11 2026-03-11 (4.772961)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.14%
Min EPS beat(2)-2.1%
Max EPS beat(2)-0.17%
EPS beat(4)2
Avg EPS beat(4)1.23%
Min EPS beat(4)-2.1%
Max EPS beat(4)6.59%
EPS beat(8)6
Avg EPS beat(8)2.93%
EPS beat(12)9
Avg EPS beat(12)2.91%
EPS beat(16)11
Avg EPS beat(16)2.66%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-2.82%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-1.13%
Revenue beat(8)2
Avg Revenue beat(8)-1.5%
Revenue beat(12)3
Avg Revenue beat(12)-2.67%
Revenue beat(16)4
Avg Revenue beat(16)-0.2%
PT rev (1m)4.11%
PT rev (3m)15.52%
EPS NQ rev (1m)-5.37%
EPS NQ rev (3m)-8.29%
EPS NY rev (1m)-3.05%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 17.16 | ||
| P/S | 5.31 | ||
| P/FCF | 19.63 | ||
| P/OCF | 15.63 | ||
| P/B | 6.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.89 |
EPS(TTM)9.03
EY5.79%
EPS(NY)9.09
Fwd EY5.83%
FCF(TTM)7.94
FCFY5.09%
OCF(TTM)9.98
OCFY6.4%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)24.86
PEG (5Y)1.88
Graham Number69.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.6% | ||
| ROE | 30.31% | ||
| ROCE | 22.34% | ||
| ROIC | 19.32% | ||
| ROICexc | 22.42% | ||
| ROICexgc | 94.51% | ||
| OM | 33.18% | ||
| PM (TTM) | 24.83% | ||
| GM | 75.82% | ||
| FCFM | 27.06% |
ROA(3y)13.05%
ROA(5y)12.66%
ROE(3y)29.75%
ROE(5y)27.29%
ROIC(3y)17.15%
ROIC(5y)14%
ROICexc(3y)20.47%
ROICexc(5y)17.14%
ROICexgc(3y)94.66%
ROICexgc(5y)84.88%
ROCE(3y)20.57%
ROCE(5y)16.8%
ROICexgc growth 3Y10.97%
ROICexgc growth 5Y16.26%
ROICexc growth 3Y23.26%
ROICexc growth 5Y13.82%
OM growth 3Y12.14%
OM growth 5Y6.09%
PM growth 3Y15.69%
PM growth 5Y8.94%
GM growth 3Y0.74%
GM growth 5Y1.28%
F-Score8
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 73.24% | ||
| Cap/Sales | 6.92% | ||
| Interest Coverage | 19.05 | ||
| Cash Conversion | 79.71% | ||
| Profit Quality | 109.01% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 4.54 |
F-Score8
WACC5.03%
ROIC/WACC3.84
Cap/Depr(3y)63.14%
Cap/Depr(5y)55.05%
Cap/Sales(3y)6.73%
Cap/Sales(5y)6.62%
Profit Quality(3y)101.15%
Profit Quality(5y)104.02%
High Growth Momentum
Growth
EPS 1Y (TTM)14.98%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%2.53%
EPS Next Y0.69%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
EPS Next 5Y7.48%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%1.39%
Revenue Next Year2.75%
Revenue Next 2Y3.82%
Revenue Next 3Y4.46%
Revenue Next 5Y4.99%
EBIT growth 1Y14.46%
EBIT growth 3Y22.35%
EBIT growth 5Y8.7%
EBIT Next Year11.91%
EBIT Next 3Y9.08%
EBIT Next 5Y8.66%
FCF growth 1Y10.42%
FCF growth 3Y9.64%
FCF growth 5Y6.62%
OCF growth 1Y8.66%
OCF growth 3Y10.38%
OCF growth 5Y7%
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 6 / 10 to NOVARTIS AG-SPONSORED ADR (NVS). This can be considered as Fairly Valued.
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 55.91%.