NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
NYSE:NVS • US66987V1098
165.38 USD
-0.79 (-0.48%)
At close: Feb 18, 2026
165.44 USD
+0.06 (+0.04%)
After Hours: 2/18/2026, 4:05:33 PM
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 191 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 has a correct valuation and a medium growth rate. NVS also has an excellent dividend rating. These ratings could make NVS a good candidate 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.
- NVS had positive earnings in each of the past 5 years.
- Each year in the past 5 years NVS had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 12.60%, NVS belongs to the best of the industry, outperforming 92.67% of the companies in the same industry.
- NVS has a better Return On Equity (30.31%) than 93.72% of its industry peers.
- NVS has a better Return On Invested Capital (19.32%) than 96.34% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NVS is above the industry average of 12.64%.
- The last Return On Invested Capital (19.32%) for NVS is above the 3 year average (17.15%), which is a sign of increasing profitability.
| 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 92.15% of its industry peers.
- In the last couple of years the Profit Margin of NVS has grown nicely.
- NVS's Operating Margin of 33.18% is amongst the best of the industry. NVS outperforms 94.76% of its industry peers.
- In the last couple of years the Operating Margin of NVS has grown nicely.
- NVS has a Gross Margin of 75.82%. This is amongst the best in the industry. NVS outperforms 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 | 33.18% | ||
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVS is creating value.
- NVS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for NVS has been reduced compared to 5 years ago.
- Compared to 1 year ago, NVS has a worse debt to assets ratio.
2.2 Solvency
- NVS has an Altman-Z score of 4.62. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- NVS has a better Altman-Z score (4.62) than 74.35% of its industry peers.
- 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.
- With an excellent Debt to FCF ratio value of 2.32, NVS belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
- NVS has a Debt/Equity ratio of 0.64. This is a neutral value indicating NVS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.64, NVS is doing worse than 68.59% of the companies in the same industry.
- 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 | 4.62 |
ROIC/WACC3.86
WACC5.01%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that NVS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.12, NVS is not doing good in the industry: 82.20% of the companies in the same industry are doing better.
- 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.
- NVS has a worse Quick ratio (0.89) than 80.63% 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 | 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.
- Measured over the past years, NVS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.21% on average per year.
- NVS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
- NVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
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
- NVS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.28% yearly.
- Based on estimates for the next years, NVS will show a small growth in Revenue. The Revenue will grow by 4.43% on average per year.
EPS Next Y3.87%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
EPS Next 5Y6.28%
Revenue Next Year2.69%
Revenue Next 2Y3.41%
Revenue Next 3Y4.05%
Revenue Next 5Y4.43%
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 decreasing.
- 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
- The Price/Earnings ratio is 18.31, which indicates a rather expensive current valuation of NVS.
- NVS's Price/Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 85.34% of the companies in the same industry.
- NVS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.16, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 17.64 indicates a rather expensive valuation of NVS.
- NVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 81.15% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NVS to the average of the S&P500 Index (28.10), we can say NVS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 17.64 |
4.2 Price Multiples
- NVS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVS is cheaper than 83.77% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.82 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- NVS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.74
PEG (5Y)1.99
EPS Next 2Y5.53%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
- NVS has a Yearly Dividend Yield of 2.99%.
- Compared to an average industry Dividend Yield of 1.18, NVS pays a better dividend. On top of this NVS pays more dividend than 94.24% 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 | 2.99% |
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
- 55.91% of the earnings are spent on dividend by NVS. This is a bit on the high side, but may be sustainable.
- NVS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP55.91%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
165.38
-0.79 (-0.48%)
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 Change1.26%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap317.33B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target149.84 (-9.4%)
Short Float %0.3%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend4.02
Dividend Growth(5Y)5.38%
DP55.91%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)13.59%
EPS NQ rev (1m)-6.68%
EPS NQ rev (3m)-12.04%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-3.13%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 17.64 | ||
| P/S | 5.63 | ||
| P/FCF | 20.82 | ||
| P/OCF | 16.58 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.26 |
EPS(TTM)9.03
EY5.46%
EPS(NY)9.38
Fwd EY5.67%
FCF(TTM)7.94
FCFY4.8%
OCF(TTM)9.98
OCFY6.03%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.74
PEG (5Y)1.99
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 | 4.62 |
F-Score8
WACC5.01%
ROIC/WACC3.86
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 Year2.69%
Revenue Next 2Y3.41%
Revenue Next 3Y4.05%
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%.