NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:NVS • US66987V1098
148.68 USD
-0.23 (-0.15%)
At close: Jan 30, 2026
145.08 USD
-3.6 (-2.42%)
After Hours: 1/30/2026, 7:11:35 PM
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 190 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 valued quite cheap, while showing a decent growth score. This is a good combination! Finally 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
- NVS had positive earnings in the past year.
- 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
- Looking at the Return On Assets, with a value of 13.42%, NVS belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
- The Return On Equity of NVS (32.47%) is better than 94.21% of its industry peers.
- NVS's Return On Invested Capital of 22.36% is amongst the best of the industry. NVS outperforms 97.37% 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 12.83%.
- The 3 year average ROIC (14.58%) for NVS is below the current ROIC(22.36%), indicating increased profibility in the last year.
| 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
- The Profit Margin of NVS (25.69%) is better than 92.11% of its industry peers.
- NVS's Profit Margin has been stable in the last couple of years.
- The Operating Margin of NVS (33.11%) is better than 94.74% of its industry peers.
- NVS's Operating Margin has improved in the last couple of years.
- NVS's Gross Margin of 76.10% is amongst the best of the industry. NVS outperforms 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
- 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
- NVS has less shares outstanding than it did 5 years ago.
- NVS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.34 indicates that NVS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.34, NVS is doing good in the industry, outperforming 71.05% of the companies in the same industry.
- NVS has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.87, NVS belongs to the best 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's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. NVS is outperformed by 65.26% 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 | 4.34 |
ROIC/WACC4.71
WACC4.75%
2.3 Liquidity
- A Current Ratio of 0.88 indicates that NVS may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.88, NVS is doing worse than 86.84% of the companies in the same industry.
- 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 Quick ratio of 0.68. This is amonst the worse of the industry: NVS underperforms 86.84% 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 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.
- NVS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.14% yearly.
- 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.
- NVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y16.8%
EPS Next 2Y9.28%
EPS Next 3Y8.59%
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.
- 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
- NVS is valuated correctly with a Price/Earnings ratio of 16.47.
- 84.74% of the companies in the same industry are more expensive than NVS, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, NVS is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.77, NVS is valued correctly.
- Based on the Price/Forward Earnings ratio, NVS is valued cheaper than 82.11% of the companies in the same industry.
- NVS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.47 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
- NVS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVS is cheaper than 83.68% of the companies in the same industry.
- NVS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVS is cheaper than 85.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.72 | ||
| EV/EBITDA | 12.85 |
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)0.98
PEG (5Y)2.02
EPS Next 2Y9.28%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.04%, NVS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.48, NVS pays a better dividend. On top of this NVS pays more dividend than 94.21% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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.
- As NVS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.49%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 54.32% of the earnings are spent on dividend by NVS. 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.
DP54.32%
EPS Next 2Y9.28%
EPS Next 3Y8.59%
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 7 / 10 and the dividend payout ratio is 54.32%.