NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NVS • US66987V1098

153.95 USD
+1.04 (+0.68%)
At close: Feb 5, 2026
153.95 USD
0 (0%)
After Hours: 2/5/2026, 8:04:00 PM
Fundamental Rating

6

NVS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Pharmaceuticals industry. NVS scores excellent on profitability, but there are some minor concerns on its financial health. NVS has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally NVS also has an excellent dividend rating. With these ratings, NVS could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

8

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 4 of the past 5 years.
  • NVS had a positive operating cash flow in 4 of the past 5 years.
NVS Yearly Net Income VS EBIT VS OCF VS FCFNVS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 13.42%, NVS belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
  • The Return On Equity of NVS (32.47%) is better than 94.24% of its industry peers.
  • NVS has a Return On Invested Capital of 22.36%. This is amongst the best in the industry. NVS outperforms 97.38% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NVS is in line with the industry average of 12.87%.
  • 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 RankSector 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%
NVS Yearly ROA, ROE, ROICNVS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • NVS has a Profit Margin of 25.69%. This is amongst the best in the industry. NVS outperforms 92.15% of its industry peers.
  • NVS's Profit Margin has been stable in the last couple of years.
  • NVS has a Operating Margin of 33.11%. This is amongst the best in the industry. NVS outperforms 94.76% of its industry peers.
  • In the last couple of years the Operating Margin of NVS has grown nicely.
  • With an excellent Gross Margin value of 76.10%, NVS belongs to the best of the industry, outperforming 82.20% of the companies in the same industry.
  • NVS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NVS Yearly Profit, Operating, Gross MarginsNVS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • NVS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NVS Yearly Shares OutstandingNVS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
NVS Yearly Total Debt VS Total AssetsNVS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B

2.2 Solvency

  • An Altman-Z score of 4.42 indicates that NVS is not in any danger for bankruptcy at the moment.
  • NVS has a Altman-Z score of 4.42. This is in the better half of the industry: NVS outperforms 71.73% of its industry peers.
  • 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.
  • NVS's Debt to FCF ratio of 1.87 is amongst the best of the industry. NVS outperforms 94.24% of its industry peers.
  • NVS has a Debt/Equity ratio of 0.55. This is a neutral value indicating NVS is somewhat dependend on debt financing.
  • NVS's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. NVS is outperformed by 64.92% 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 1.87
Altman-Z 4.42
ROIC/WACC4.59
WACC4.87%
NVS Yearly LT Debt VS Equity VS FCFNVS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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: 86.91% of the companies in the same industry are doing better.
  • NVS has a Quick Ratio of 0.88. 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 (0.68) than 86.39% of its industry peers.
  • 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 RankSector Rank
Current Ratio 0.88
Quick Ratio 0.68
NVS Yearly Current Assets VS Current LiabilitesNVS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • NVS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.98%, which is quite good.
  • NVS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.21% yearly.
EPS 1Y (TTM)14.98%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%2.53%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.39%

3.2 Future

  • NVS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.40% yearly.
  • The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
EPS Next 5Y6.4%
Revenue Next Year2.69%
Revenue Next 2Y3.41%
Revenue Next 3Y4.05%
Revenue Next 5Y4.11%

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.
NVS Yearly Revenue VS EstimatesNVS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
NVS Yearly EPS VS EstimatesNVS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 16.95, NVS is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 84.29% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of NVS to the average of the S&P500 Index (27.67), we can say NVS is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 16.32, the valuation of NVS can be described as correct.
  • NVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 80.63% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. NVS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.95
Fwd PE 16.32
NVS Price Earnings VS Forward Price EarningsNVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 84.29% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, NVS is valued cheaply inside the industry as 87.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 17.32
EV/EBITDA 13.17
NVS Per share dataNVS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NVS does not grow enough to justify the current Price/Earnings ratio.
  • NVS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.38
PEG (5Y)1.84
EPS Next 2Y5.53%
EPS Next 3Y7.54%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • NVS has a Yearly Dividend Yield of 2.99%. 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 0.61. NVS pays more dividend than 94.24% 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 RankSector Rank
Dividend Yield 2.99%

5.2 History

  • The dividend of NVS has a limited annual growth rate of 5.49%.
  • 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)5.49%
Div Incr Years5
Div Non Decr Years5
NVS Yearly Dividends per shareNVS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP54.32%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
NVS Yearly Income VS Free CF VS DividendNVS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B
NVS Dividend Payout.NVS Dividend Payout, showing the Payout Ratio.NVS Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

NOVARTIS AG-SPONSORED ADR

NYSE:NVS (2/5/2026, 8:04:00 PM)

After market: 153.95 0 (0%)

153.95

+1.04 (+0.68%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners41.44%
Inst Owner Change-0.33%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap295.40B
Revenue(TTM)N/A
Net Income(TTM)14.39B
Analysts71.25
Price Target149.84 (-2.67%)
Short Float %0.32%
Short Ratio3.4
Dividend
Industry RankSector Rank
Dividend Yield 2.99%
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)1.58%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0.01%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE 16.95
Fwd PE 16.32
P/S 5.27
P/FCF 17.32
P/OCF 14.02
P/B 6.66
P/tB N/A
EV/EBITDA 13.17
EPS(TTM)9.08
EY5.9%
EPS(NY)9.43
Fwd EY6.13%
FCF(TTM)8.89
FCFY5.77%
OCF(TTM)10.98
OCFY7.13%
SpS29.2
BVpS23.1
TBVpS-5.35
PEG (NY)4.38
PEG (5Y)1.84
Graham Number68.7
Profitability
Industry RankSector 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 RankSector 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 4.42
F-Score7
WACC4.87%
ROIC/WACC4.59
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)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 5Y6.4%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.39%
Revenue Next Year2.69%
Revenue Next 2Y3.41%
Revenue Next 3Y4.05%
Revenue Next 5Y4.11%
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 6 / 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 8 / 10.


How financially healthy is NOVARTIS AG-SPONSORED ADR?

The financial health rating of NOVARTIS AG-SPONSORED ADR (NVS) is 6 / 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 54.32%.