NOVARTIS AG-SPONSORED ADR (NVS) Fundamental Analysis & Valuation

NYSE:NVS • US66987V1098

Current stock price

146.57 USD
-1.28 (-0.87%)
At close:
146.57 USD
0 (0%)
After Hours:

This NVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

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.
  • Each year in the past 5 years NVS had a positive operating cash flow.
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 2025 5B 10B 15B 20B

1.2 Ratios

  • NVS has a better Return On Assets (11.42%) than 92.15% of its industry peers.
  • NVS has a Return On Equity of 35.14%. This is amongst the best in the industry. NVS outperforms 95.29% of its industry peers.
  • The Return On Invested Capital of NVS (17.76%) is better than 94.76% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NVS is above the industry average of 13.08%.
  • The last Return On Invested Capital (17.76%) for NVS is above the 3 year average (17.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.42%
ROE 35.14%
ROIC 17.76%
ROA(3y)13.05%
ROA(5y)12.66%
ROE(3y)29.75%
ROE(5y)27.29%
ROIC(3y)17.15%
ROIC(5y)14%
NVS Yearly ROA, ROE, ROICNVS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • With an excellent Profit Margin value of 24.06%, NVS belongs to the best of the industry, outperforming 92.15% of the companies in the same industry.
  • NVS's Profit Margin has improved in the last couple of years.
  • NVS's Operating Margin of 31.82% is amongst the best of the industry. NVS outperforms 95.29% of its industry peers.
  • In the last couple of years the Operating Margin of NVS has grown nicely.
  • NVS has a better Gross Margin (75.41%) than 82.72% of its industry peers.
  • NVS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 31.82%
PM (TTM) 24.06%
GM 75.41%
OM growth 3Y12.14%
OM growth 5Y6.09%
PM growth 3Y15.69%
PM growth 5Y8.94%
GM growth 3Y0.74%
GM growth 5Y1.28%
NVS Yearly Profit, Operating, Gross MarginsNVS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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5

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.
  • Compared to 1 year ago, NVS has less shares outstanding
  • NVS has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, NVS has a worse debt to assets ratio.
NVS Yearly Shares OutstandingNVS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 50B 100B

2.2 Solvency

  • An Altman-Z score of 3.50 indicates that NVS is not in any danger for bankruptcy at the moment.
  • NVS has a better Altman-Z score (3.50) than 67.54% of its industry peers.
  • The Debt to FCF ratio of NVS is 2.94, which is a good value as it means it would take NVS, 2.94 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.94, NVS belongs to the top of the industry, outperforming 91.10% of the companies in the same industry.
  • A Debt/Equity ratio of 1.02 is on the high side and indicates that NVS has dependencies on debt financing.
  • NVS's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. NVS is outperformed by 76.96% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 2.94
Altman-Z 3.5
ROIC/WACC3.75
WACC4.73%
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 2025 20B 40B 60B

2.3 Liquidity

  • NVS has a Current Ratio of 0.85. 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 Current ratio (0.85) than 89.53% of its industry peers.
  • NVS has a Quick Ratio of 0.85. 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 (0.65) than 89.53% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.65
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 2025 10B 20B 30B 40B

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4

3. NVS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.83% over the past year.
  • NVS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.21% yearly.
  • NVS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.77%.
  • The Revenue has been growing slightly by 2.45% on average over the past years.
EPS 1Y (TTM)4.83%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%-12.72%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%-0.91%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.49% on average over the next years.
  • Based on estimates for the next years, NVS will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y-0.14%
EPS Next 2Y4.63%
EPS Next 3Y6.15%
EPS Next 5Y7.49%
Revenue Next Year2.49%
Revenue Next 2Y3.87%
Revenue Next 3Y4.58%
Revenue Next 5Y5.35%

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 stable.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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6

4. NVS Valuation Analysis

4.1 Price/Earnings Ratio

  • NVS is valuated correctly with a Price/Earnings ratio of 16.89.
  • Compared to the rest of the industry, the Price/Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 85.86% of the companies listed in the same industry.
  • NVS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 14.93, NVS is valued correctly.
  • Based on the Price/Forward Earnings ratio, NVS is valued cheaper than 81.68% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. NVS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 16.89
Fwd PE 14.93
NVS Price Earnings VS Forward Price EarningsNVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaper than 82.72% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NVS is valued cheaper than 85.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.62
EV/EBITDA 13.89
NVS Per share dataNVS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • NVS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y4.63%
EPS Next 3Y6.15%

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7

5. NVS Dividend Analysis

5.1 Amount

  • NVS has a Yearly Dividend Yield of 3.19%.
  • NVS's Dividend Yield is rather good when compared to the industry average which is at 0.73. NVS pays more dividend than 94.76% 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 RankSector Rank
Dividend Yield 3.19%

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.
  • 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 Years6
Div Non Decr Years6
NVS Yearly Dividends per shareNVS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

5.3 Sustainability

  • NVS pays out 64.15% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.15%
EPS Next 2Y4.63%
EPS Next 3Y6.15%
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 2025 5B 10B 15B 20B
NVS Dividend Payout.NVS Dividend Payout, showing the Payout Ratio.NVS Dividend Payout.PayoutRetained Earnings

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NVS Fundamentals: All Metrics, Ratios and Statistics

NOVARTIS AG-SPONSORED ADR

NYSE:NVS (5/1/2026, 8:04:00 PM)

After market: 146.57 0 (0%)

146.57

-1.28 (-0.87%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-28
Earnings (Next)07-21
Inst Owners43.85%
Inst Owner Change-3.59%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap281.24B
Revenue(TTM)56.26B
Net Income(TTM)13.53B
Analysts70.59
Price Target159.48 (8.81%)
Short Float %0.34%
Short Ratio2.74
Dividend
Industry RankSector Rank
Dividend Yield 3.19%
Yearly Dividend4.02
Dividend Growth(5Y)5.38%
DP64.15%
Div Incr Years6
Div Non Decr Years6
Ex-Date03-11
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.35%
Min EPS beat(2)-8.52%
Max EPS beat(2)-0.17%
EPS beat(4)1
Avg EPS beat(4)-2.55%
Min EPS beat(4)-8.52%
Max EPS beat(4)0.61%
EPS beat(8)5
Avg EPS beat(8)1.19%
EPS beat(12)8
Avg EPS beat(12)1.42%
EPS beat(16)11
Avg EPS beat(16)2.17%
Revenue beat(2)0
Avg Revenue beat(2)-5.35%
Min Revenue beat(2)-5.8%
Max Revenue beat(2)-4.89%
Revenue beat(4)0
Avg Revenue beat(4)-4.09%
Min Revenue beat(4)-5.8%
Max Revenue beat(4)-2.82%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)3
Avg Revenue beat(12)-1.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.5%
PT rev (1m)4.64%
PT rev (3m)20.87%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE 16.89
Fwd PE 14.93
P/S 5
P/FCF 17.62
P/OCF 14.67
P/B 7.3
P/tB N/A
EV/EBITDA 13.89
EPS(TTM)8.68
EY5.92%
EPS(NY)9.82
Fwd EY6.7%
FCF(TTM)8.32
FCFY5.68%
OCF(TTM)9.99
OCFY6.82%
SpS29.32
BVpS20.07
TBVpS-14.86
PEG (NY)N/A
PEG (5Y)1.83
Graham Number62.6088 (-57.28%)
Profitability
Industry RankSector Rank
ROA 11.42%
ROE 35.14%
ROCE 20.54%
ROIC 17.76%
ROICexc 19.28%
ROICexgc 116.92%
OM 31.82%
PM (TTM) 24.06%
GM 75.41%
FCFM 28.37%
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-Score5
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 2.94
Debt/EBITDA 1.68
Cap/Depr 59.51%
Cap/Sales 5.71%
Interest Coverage 18.84
Cash Conversion 82.3%
Profit Quality 117.94%
Current Ratio 0.85
Quick Ratio 0.65
Altman-Z 3.5
F-Score5
WACC4.73%
ROIC/WACC3.75
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)4.83%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%-12.72%
EPS Next Y-0.14%
EPS Next 2Y4.63%
EPS Next 3Y6.15%
EPS Next 5Y7.49%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%-0.91%
Revenue Next Year2.49%
Revenue Next 2Y3.87%
Revenue Next 3Y4.58%
Revenue Next 5Y5.35%
EBIT growth 1Y3.01%
EBIT growth 3Y22.35%
EBIT growth 5Y8.7%
EBIT Next Year12.61%
EBIT Next 3Y8.86%
EBIT Next 5Y9.84%
FCF growth 1Y54.57%
FCF growth 3Y9.64%
FCF growth 5Y6.62%
OCF growth 1Y39.29%
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 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.


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 5 / 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 decline by -0.14% in the next year.