NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVS - US66987V1098 - ADR
138.14 USD
+0.27 (+0.2%)
Overall NVS gets a fundamental rating of 7 out of 10. We evaluated NVS against 191 industry peers in the Pharmaceuticals industry. NVS gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on NVS. 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
In the past year NVS was profitable.
NVS had a positive operating cash flow in the past year.
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 13.42% is amongst the best of the industry. NVS outperforms 94.24% of its industry peers.
With an excellent Return On Equity value of 32.47%, NVS belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 22.36%, NVS belongs to the top of the industry, outperforming 97.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NVS is in line with the industry average of 12.85%.
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 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
NVS's Profit Margin of 25.69% is amongst the best of the industry. NVS outperforms 92.15% of its industry peers.
In the last couple of years the Profit Margin of NVS has remained more or less at the same level.
With an excellent Operating Margin value of 33.11%, NVS belongs to the best of the industry, outperforming 94.76% of the companies in the same industry.
In the last couple of years the Operating Margin of NVS has grown nicely.
The Gross Margin of NVS (76.10%) is better than 82.20% 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 | 33.11% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVS is creating value.
Compared to 1 year ago, NVS has less shares outstanding
The number of shares outstanding for NVS has been reduced compared to 5 years ago.
The debt/assets ratio for NVS is higher compared to a year ago.
2.2 Solvency
NVS has an Altman-Z score of 4.14. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
NVS's Altman-Z score of 4.14 is fine compared to the rest of the industry. NVS outperforms 72.25% 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.
A Debt/Equity ratio of 0.55 indicates that NVS is somewhat dependend on debt financing.
NVS has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: NVS underperforms 65.44% 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 | 4.14 |
ROIC/WACC4.72
WACC4.74%
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.
A Quick Ratio of 0.68 indicates that NVS may have some problems paying its short term obligations.
NVS has a worse Quick ratio (0.68) than 86.91% of its industry peers.
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 | 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.
Measured over the past years, NVS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.14% on average per year.
Looking at the last year, NVS shows a quite strong growth in Revenue. The Revenue has grown by 12.18% in the last year.
Measured over the past years, NVS shows a small growth in Revenue. The Revenue has been growing by 1.24% on average per year.
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
NVS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.35% yearly.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y9.35%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.35%
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
A Price/Earnings ratio of 15.30 indicates a correct valuation of NVS.
Based on the Price/Earnings ratio, NVS is valued cheaper than 85.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, NVS is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.64, which indicates a correct valuation of NVS.
NVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 82.20% of the companies in the same industry.
NVS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
NVS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVS is cheaper than 84.29% of the companies in the same industry.
86.91% of the companies in the same industry are more expensive than NVS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.54 | ||
| EV/EBITDA | 11.97 |
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.
NVS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)1.88
EPS Next 2Y9.31%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, NVS has a reasonable but not impressive dividend return.
NVS's Dividend Yield is rather good when compared to the industry average which is at 0.61. NVS pays more dividend than 95.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, NVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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.
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
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.
The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP54.32%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
NYSE:NVS (1/2/2026, 3:02:04 PM)
138.14
+0.27 (+0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners41.28%
Inst Owner Change0.44%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap265.06B
Revenue(TTM)56.02B
Net Income(TTM)14.39B
Analysts70.32
Price Target135.04 (-2.24%)
Short Float %0.31%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)-0.14%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.64 | ||
| P/S | 4.73 | ||
| P/FCF | 15.54 | ||
| P/OCF | 12.58 | ||
| P/B | 5.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.97 |
EPS(TTM)9.03
EY6.54%
EPS(NY)9.44
Fwd EY6.83%
FCF(TTM)8.89
FCFY6.44%
OCF(TTM)10.98
OCFY7.95%
SpS29.2
BVpS23.1
TBVpS-5.35
PEG (NY)0.91
PEG (5Y)1.88
Graham Number68.51
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.14 |
F-Score7
WACC4.74%
ROIC/WACC4.72
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)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
EPS Next Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y9.35%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%8.47%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.35%
EBIT growth 1Y21.58%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year36.14%
EBIT Next 3Y13.19%
EBIT Next 5Y13.76%
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 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%.