NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
NYSE:NVS • US66987V1098
167.11 USD
+2.41 (+1.46%)
At close: Feb 24, 2026
167.11 USD
0 (0%)
After Hours: 2/24/2026, 5:31:09 PM
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. Both the health and profitability get an excellent rating, making NVS a very profitable company, without any liquidiy or solvency issues. NVS is not valued too expensively and it also shows a decent growth rate. NVS also has an excellent dividend rating. These ratings would make NVS suitable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
- NVS had positive earnings in the past year.
- NVS had a positive operating cash flow in the past year.
- NVS had positive earnings in each of the past 5 years.
- In the past 5 years NVS always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 12.60%, NVS belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
- With an excellent Return On Equity value of 30.31%, NVS belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- NVS has a Return On Invested Capital of 19.32%. This is amongst the best in the industry. NVS outperforms 95.83% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NVS is above the industry average of 12.96%.
- 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 has a Profit Margin of 24.83%. This is amongst the best in the industry. NVS outperforms 92.19% of its industry peers.
- In the last couple of years the Profit Margin of NVS has grown nicely.
- NVS has a better Operating Margin (33.18%) than 94.79% of its industry peers.
- In the last couple of years the Operating Margin of NVS has grown nicely.
- NVS's Gross Margin of 75.82% is amongst the best of the industry. NVS outperforms 82.81% of its industry peers.
- 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. 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
- 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 4.60. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- NVS has a better Altman-Z score (4.60) than 74.48% of its industry peers.
- The Debt to FCF ratio of NVS is 2.32, which is a good value as it means it would take NVS, 2.32 years of fcf income to pay off all of its debts.
- NVS has a better Debt to FCF ratio (2.32) than 94.79% 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 worse Debt to Equity ratio (0.64) than 67.71% 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 | 4.6 |
ROIC/WACC3.83
WACC5.05%
2.3 Liquidity
- NVS has a Current Ratio of 1.12. This is a normal value and indicates that NVS is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.12, NVS is not doing good in the industry: 81.25% 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.
- Looking at the Quick ratio, with a value of 0.89, NVS is doing worse than 79.69% of the companies in the same industry.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.98% over the past year.
- The Earnings Per Share has been growing by 9.21% on average over the past years. This is quite good.
- The Revenue has grown by 8.91% in the past year. This is quite good.
- 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 6.28% on average over the next years.
- The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
EPS Next 5Y6.28%
Revenue Next Year2.84%
Revenue Next 2Y3.8%
Revenue Next 3Y4.37%
Revenue Next 5Y4.43%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 18.51, which indicates a rather expensive current valuation of NVS.
- Based on the Price/Earnings ratio, NVS is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
- NVS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
- With a Price/Forward Earnings ratio of 17.82, NVS is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 80.73% of the companies listed in the same industry.
- NVS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.75, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 17.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaply inside the industry as 83.85% 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 85.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.03 | ||
| EV/EBITDA | 14.14 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)4.78
PEG (5Y)2.01
EPS Next 2Y5.53%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
- NVS has a Yearly Dividend Yield of 2.93%. 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 1.07. NVS pays more dividend than 94.27% of the companies in the same industry.
- NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
- The dividend of NVS has a limited annual growth rate of 5.38%.
- 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)5.38%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 55.91% of the earnings are spent on dividend by NVS. This is a bit on the high side, but may be sustainable.
- NVS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP55.91%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
167.11
+2.41 (+1.46%)
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 Owners41.44%
Inst Owner Change0.15%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap320.65B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target149.84 (-10.33%)
Short Float %0.3%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)10.96%
PT rev (3m)10.96%
EPS NQ rev (1m)-4.26%
EPS NQ rev (3m)-12.04%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 17.82 | ||
| P/S | 5.69 | ||
| P/FCF | 21.03 | ||
| P/OCF | 16.75 | ||
| P/B | 6.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.14 |
EPS(TTM)9.03
EY5.4%
EPS(NY)9.38
Fwd EY5.61%
FCF(TTM)7.94
FCFY4.75%
OCF(TTM)9.98
OCFY5.97%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.78
PEG (5Y)2.01
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 | 4.6 |
F-Score8
WACC5.05%
ROIC/WACC3.83
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 Y3.87%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
EPS Next 5Y6.28%
Revenue 1Y (TTM)8.91%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%1.39%
Revenue Next Year2.84%
Revenue Next 2Y3.8%
Revenue Next 3Y4.37%
Revenue Next 5Y4.43%
EBIT growth 1Y14.46%
EBIT growth 3Y22.35%
EBIT growth 5Y8.7%
EBIT Next Year12.01%
EBIT Next 3Y13.21%
EBIT Next 5Y7.34%
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%.