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%)
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 190 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!
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.
1.2 Ratios
- With an excellent Return On Assets value of 13.42%, NVS belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
- With an excellent Return On Equity value of 32.47%, NVS belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
- NVS has a better Return On Invested Capital (22.36%) than 97.37% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NVS is in line with the industry average of 12.84%.
- The last Return On Invested Capital (22.36%) for NVS is above the 3 year average (14.58%), which is a sign of increasing profitability.
| 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
- NVS has a Profit Margin of 25.69%. This is amongst the best in the industry. NVS outperforms 92.11% of its industry peers.
- NVS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 33.11%, NVS belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of NVS has grown nicely.
- The Gross Margin of NVS (76.10%) is better than 82.11% 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
- NVS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, NVS has less shares outstanding
- The number of shares outstanding for NVS has been reduced compared to 5 years ago.
- The debt/assets ratio for NVS is higher compared to a year ago.
2.2 Solvency
- NVS has an Altman-Z score of 4.24. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.24, NVS is doing good in the industry, outperforming 71.05% of the companies in the same industry.
- The Debt to FCF ratio of NVS is 1.87, which is an excellent value as it means it would take NVS, only 1.87 years of fcf income to pay off 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 94.21% of the companies in the same industry.
- A Debt/Equity ratio of 0.55 indicates that NVS is somewhat dependend on debt financing.
- NVS has a worse Debt to Equity ratio (0.55) than 65.79% 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 | 4.24 |
ROIC/WACC4.64
WACC4.82%
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: 87.37% 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.
- The Quick ratio of NVS (0.68) is worse than 86.84% 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 | 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.
- The Earnings Per Share has been growing by 8.14% on average over the past years. This is quite good.
- NVS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.18%.
- NVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.24% yearly.
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
- The Earnings Per Share is expected to grow by 8.79% on average over the next years. This is quite good.
- 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
- 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. Valuation
4.1 Price/Earnings Ratio
- NVS is valuated correctly with a Price/Earnings ratio of 15.98.
- NVS's Price/Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 85.79% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, NVS is valued a bit cheaper.
- 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 81.58% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, NVS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
- 84.21% of the companies in the same industry are more expensive than NVS, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 86.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.24 | ||
| EV/EBITDA | 12.39 |
4.3 Compensation for Growth
- NVS's 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)0.95
PEG (5Y)1.96
EPS Next 2Y9.31%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
- NVS has a Yearly Dividend Yield of 3.06%.
- NVS's Dividend Yield is rather good when compared to the industry average which is at 0.35. NVS pays more dividend than 93.68% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, NVS pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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 Change0.01%
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)-0.6%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.73%
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 | 12.39 |
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 | 4.24 |
F-Score7
WACC4.82%
ROIC/WACC4.64
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 6 / 10 and the dividend payout ratio is 54.32%.