NOVARTIS AG-SPONSORED ADR (NVS) Fundamental Analysis & Valuation
NYSE:NVS • US66987V1098
Current stock price
154.03 USD
-1.05 (-0.68%)
At close:
154.03 USD
0 (0%)
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This NVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. NVS Profitability Analysis
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
- NVS's Return On Assets of 12.60% is amongst the best of the industry. NVS outperforms 93.75% of its industry peers.
- NVS's Return On Equity of 30.31% is amongst the best of the industry. NVS outperforms 94.27% of its industry peers.
- NVS has a Return On Invested Capital of 19.32%. This is amongst the best in the industry. NVS outperforms 95.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NVS is above the industry average of 13.06%.
- 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 better Profit Margin (24.83%) than 92.71% of its industry peers.
- NVS's Profit Margin has improved in the last couple of years.
- NVS's Operating Margin of 33.18% is amongst the best of the industry. NVS outperforms 95.31% of its industry peers.
- In the last couple of years the Operating Margin of NVS has grown nicely.
- NVS has a better Gross Margin (75.82%) than 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. NVS Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVS is creating value.
- The number of shares outstanding for NVS has been reduced compared to 1 year ago.
- Compared to 5 years ago, NVS has less shares outstanding
- Compared to 1 year ago, NVS has a worse debt to assets ratio.
2.2 Solvency
- NVS has an Altman-Z score of 4.41. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.41, NVS is in the better half of the industry, outperforming 74.48% of the companies in the same industry.
- 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's Debt to FCF ratio of 2.32 is amongst the best of the industry. NVS outperforms 93.75% 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.
- With a Debt to Equity ratio value of 0.64, NVS is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
- 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 | 4.41 |
ROIC/WACC4
WACC4.83%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that NVS should not have too much problems paying its short term obligations.
- The Current ratio of NVS (1.12) is worse than 81.77% of its industry peers.
- 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.
- With a Quick ratio value of 0.89, NVS is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
- 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.
- The Earnings Per Share has been growing by 9.21% 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 8.91%.
- 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.
- The Revenue is expected to grow by 4.99% on average over the next years.
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
- Based on the Price/Earnings ratio of 17.06, the valuation of NVS can be described as rather expensive.
- NVS's Price/Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 84.90% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 25.60. NVS is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 16.94 indicates a correct valuation of NVS.
- Based on the Price/Forward Earnings ratio, NVS is valued cheaper than 81.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.84. NVS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 16.94 |
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 83.85% of the companies listed in the same industry.
- NVS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVS is cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | 13.29 |
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.
- The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)24.55
PEG (5Y)1.85
EPS Next 2Y4.79%
EPS Next 3Y5.96%
5. NVS Dividend Analysis
5.1 Amount
- NVS has a Yearly Dividend Yield of 3.10%.
- Compared to an average industry Dividend Yield of 0.68, NVS pays a better dividend. On top of this NVS pays more dividend than 94.27% 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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.
- As NVS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
- NVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP55.91%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
NVS Fundamentals: All Metrics, Ratios and Statistics
154.03
-1.05 (-0.68%)
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 Cap295.55B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts70.59
Price Target156 (1.28%)
Short Float %0.44%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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)0%
PT rev (3m)15.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.29%
EPS NY rev (1m)-3.05%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 16.94 | ||
| P/S | 5.25 | ||
| P/FCF | 19.39 | ||
| P/OCF | 15.44 | ||
| P/B | 6.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.29 |
EPS(TTM)9.03
EY5.86%
EPS(NY)9.09
Fwd EY5.9%
FCF(TTM)7.94
FCFY5.16%
OCF(TTM)9.98
OCFY6.48%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)24.55
PEG (5Y)1.85
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 | 4.41 |
F-Score8
WACC4.83%
ROIC/WACC4
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 Fundamental Analysis 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.
Can you provide the profitability details for NOVARTIS AG-SPONSORED ADR?
NOVARTIS AG-SPONSORED ADR (NVS) has a profitability rating of 9 / 10.
What is the financial health of NOVARTIS AG-SPONSORED ADR (NVS) stock?
The financial health rating of NOVARTIS AG-SPONSORED ADR (NVS) is 7 / 10.
Can you provide the expected EPS growth for NVS stock?
The Earnings per Share (EPS) of NOVARTIS AG-SPONSORED ADR (NVS) is expected to grow by 0.69% in the next year.