NOVARTIS AG-SPONSORED ADR (NVS) Fundamental Analysis & Valuation
NYSE:NVS • US66987V1098
153.44 USD
-0.81 (-0.53%)
At close: Mar 13, 2026
153.44 USD
0 (0%)
After Hours: 3/13/2026, 8:04:00 PM
This NVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 193 industry peers in the Pharmaceuticals industry. NVS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NVS has a decent growth rate and is not valued too expensively. Finally NVS also has an excellent dividend rating. These ratings would make NVS suitable for dividend and quality investing!
1. NVS Profitability Analysis
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.
- 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 93.26% of its industry peers.
- The Return On Equity of NVS (30.31%) is better than 94.30% of its industry peers.
- NVS's Return On Invested Capital of 19.32% is amongst the best of the industry. NVS outperforms 95.85% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NVS is above the industry average of 13.21%.
- 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
- Looking at the Profit Margin, with a value of 24.83%, NVS belongs to the top of the industry, outperforming 92.75% of the companies in the same industry.
- In the last couple of years the Profit Margin of NVS has grown nicely.
- Looking at the Operating Margin, with a value of 33.18%, NVS belongs to the top of the industry, outperforming 94.82% of the companies in the same industry.
- 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 82.38% 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
- 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.
- NVS has a worse debt/assets ratio than last year.
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.
- With a decent Altman-Z score value of 4.41, NVS is doing good in the industry, outperforming 73.58% 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 has a Debt to FCF ratio of 2.32. This is amongst the best in the industry. NVS outperforms 94.30% 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.
- Looking at the Debt to Equity ratio, with a value of 0.64, NVS is doing worse than 65.80% of the companies in the same industry.
- Although NVS's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 4.41 |
ROIC/WACC3.83
WACC5.04%
2.3 Liquidity
- NVS has a Current Ratio of 1.12. This is a normal value and indicates that NVS is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.12, NVS is not doing good in the industry: 79.79% of the companies in the same industry are doing better.
- A Quick Ratio of 0.89 indicates that NVS may have some problems paying its short term obligations.
- NVS has a Quick ratio of 0.89. This is in the lower half of the industry: NVS underperforms 78.24% 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. NVS Growth Analysis
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.
- 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 7.48% yearly.
- Based on estimates for the next years, NVS will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.
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
- 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.
4. NVS Valuation Analysis
4.1 Price/Earnings Ratio
- NVS is valuated correctly with a Price/Earnings ratio of 16.99.
- Compared to the rest of the industry, the Price/Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 84.97% of the companies listed in the same industry.
- NVS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 16.88, NVS is valued correctly.
- 82.38% of the companies in the same industry are more expensive than NVS, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of NVS to the average of the S&P500 Index (23.84), we can say NVS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
- NVS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVS is cheaper than 83.94% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NVS is valued cheaper than 84.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.31 | ||
| EV/EBITDA | 13.31 |
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)24.46
PEG (5Y)1.84
EPS Next 2Y4.79%
EPS Next 3Y5.96%
5. NVS Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.96%, NVS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.71, NVS pays a better dividend. On top of this NVS pays more dividend than 94.30% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, NVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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 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, but earnings are growing more, so the dividend growth is sustainable.
DP55.91%
EPS Next 2Y4.79%
EPS Next 3Y5.96%
NVS Fundamentals: All Metrics, Ratios and Statistics
153.44
-0.81 (-0.53%)
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 Cap294.42B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts70.59
Price Target156 (1.67%)
Short Float %0.44%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)4.11%
PT rev (3m)15.52%
EPS NQ rev (1m)-5.37%
EPS NQ rev (3m)-8.29%
EPS NY rev (1m)-3.05%
EPS NY rev (3m)-4.01%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.99 | ||
| Fwd PE | 16.88 | ||
| P/S | 5.23 | ||
| P/FCF | 19.31 | ||
| P/OCF | 15.38 | ||
| P/B | 6.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.31 |
EPS(TTM)9.03
EY5.89%
EPS(NY)9.09
Fwd EY5.92%
FCF(TTM)7.94
FCFY5.18%
OCF(TTM)9.98
OCFY6.5%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)24.46
PEG (5Y)1.84
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
WACC5.04%
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 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 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%.