NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
NYSE:NVS • US66987V1098
162.67 USD
-1.25 (-0.76%)
At close: Feb 20, 2026
162.93 USD
+0.26 (+0.16%)
Pre-Market: 2/23/2026, 7:58:56 AM
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. NVS gets an excellent profitability rating and is at the same time showing great financial health properties. NVS has a correct valuation and a medium 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
- In the past year NVS was profitable.
- 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.
1.2 Ratios
- NVS's Return On Assets of 12.60% is amongst the best of the industry. NVS outperforms 92.71% of its industry peers.
- 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's Return On Invested Capital of 19.32% is amongst the best of the industry. NVS outperforms 95.83% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NVS is above the industry average of 12.95%.
- 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.
- NVS's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 33.18%, NVS belongs to the top of the industry, outperforming 94.79% of the companies in the same industry.
- NVS's Operating Margin has improved in the last couple of years.
- 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
- NVS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, NVS has less shares outstanding
- Compared to 5 years ago, NVS has less shares outstanding
- The debt/assets ratio for NVS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.56 indicates that NVS is not in any danger for bankruptcy at the moment.
- NVS's Altman-Z score of 4.56 is fine compared to the rest of the industry. NVS outperforms 73.96% of its industry peers.
- NVS has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as NVS would need 2.32 years to pay back of all of its debts.
- NVS's Debt to FCF ratio of 2.32 is amongst the best of the industry. NVS outperforms 94.79% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that NVS is somewhat dependend on debt financing.
- The Debt to Equity ratio of NVS (0.64) is worse than 67.71% of its industry peers.
- Although NVS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 4.56 |
ROIC/WACC3.83
WACC5.05%
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 81.25% 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.
- 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
- 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.
- The Revenue has grown by 8.91% in the past year. This is quite good.
- Measured over the past years, NVS shows a small growth in Revenue. The Revenue has been growing by 2.45% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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. Valuation
4.1 Price/Earnings Ratio
- NVS is valuated rather expensively with a Price/Earnings ratio of 18.01.
- Based on the Price/Earnings ratio, NVS is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
- NVS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 17.35, the valuation of NVS can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, NVS is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.02, NVS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 17.35 |
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.
- Based on the Price/Free Cash Flow ratio, NVS is valued cheaper than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.48 | ||
| EV/EBITDA | 13.98 |
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)4.66
PEG (5Y)1.96
EPS Next 2Y5.53%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.93%, NVS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.07, 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 1.81.
| 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.
- The dividend of NVS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP55.91%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
162.67
-1.25 (-0.76%)
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 Cap312.13B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target149.84 (-7.89%)
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 | 18.01 | ||
| Fwd PE | 17.35 | ||
| P/S | 5.54 | ||
| P/FCF | 20.48 | ||
| P/OCF | 16.3 | ||
| P/B | 6.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.98 |
EPS(TTM)9.03
EY5.55%
EPS(NY)9.38
Fwd EY5.76%
FCF(TTM)7.94
FCFY4.88%
OCF(TTM)9.98
OCFY6.13%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.66
PEG (5Y)1.96
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 | 4.56 |
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%.