NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVS - US66987V1098 - ADR
145.11 USD
+1.53 (+1.07%)
143.47 USD
-1.64 (-1.13%)
Overall NVS gets a fundamental rating of 7 out of 10. We evaluated NVS 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. NVS also has an excellent dividend rating. This makes NVS very considerable 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.
- Each year in the past 5 years NVS has been profitable.
- 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 13.42%, NVS belongs to the best of the industry, outperforming 94.24% of the companies in the same industry.
- 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.
- NVS's Return On Invested Capital of 22.36% is amongst the best of the industry. NVS outperforms 97.38% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NVS is in line with the industry average of 12.84%.
- The 3 year average ROIC (14.58%) for NVS is below the current ROIC(22.36%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 25.69%. This is amongst the best in the industry. NVS outperforms 92.15% of its industry peers.
- NVS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 33.11%, NVS belongs to the top 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.
- With an excellent Gross Margin value of 76.10%, NVS belongs to the best of the industry, outperforming 82.20% of the companies in the same industry.
- NVS's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVS is creating value.
- The number of shares outstanding for NVS has been reduced compared to 1 year ago.
- NVS has less shares outstanding than it did 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 4.24. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- NVS has a better Altman-Z score (4.24) than 70.16% of its industry peers.
- NVS has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
- NVS has a better Debt to FCF ratio (1.87) than 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 worse Debt to Equity ratio (0.55) than 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 | 4.24 |
ROIC/WACC4.71
WACC4.75%
2.3 Liquidity
- NVS has a Current Ratio of 0.88. This is a bad value and indicates that NVS is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of NVS (0.88) is worse than 86.91% of its industry peers.
- 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.
- 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 | 0.88 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 21.33% over the past year.
- 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.
- NVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.24% yearly.
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
- Based on estimates for the next years, NVS will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.79% on average per year.
- NVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y8.79%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.27%
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
- With a Price/Earnings ratio of 16.07, NVS is valued correctly.
- Based on the Price/Earnings ratio, NVS is valued cheaper than 86.39% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NVS to the average of the S&P500 Index (27.32), we can say NVS is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.38, which indicates a correct valuation of NVS.
- Based on the Price/Forward Earnings ratio, NVS is valued cheaply inside the industry as 81.68% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, NVS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaply inside the industry as 84.29% of the companies are valued more expensively.
- NVS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NVS is cheaper than 86.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.32 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)1.97
EPS Next 2Y9.31%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
- NVS has a Yearly Dividend Yield of 3.06%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.40, NVS pays a better dividend. On top of this NVS pays more dividend than 94.24% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.86, NVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
- The dividend of NVS has a limited annual growth rate of 5.49%.
- NVS has paid a dividend for at least 10 years, which is 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
- 54.32% 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 more than its dividend. This makes the dividend growth sustainable.
DP54.32%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
145.11
+1.53 (+1.07%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)10-28 2025-10-28/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners41.44%
Inst Owner Change-0.08%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap278.44B
Revenue(TTM)56.02B
Net Income(TTM)14.39B
Analysts71.25
Price Target135.04 (-6.94%)
Short Float %0.34%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)2.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.89%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.74%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.38 | ||
| P/S | 4.97 | ||
| P/FCF | 16.32 | ||
| P/OCF | 13.21 | ||
| P/B | 6.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.43 |
EPS(TTM)9.03
EY6.22%
EPS(NY)9.44
Fwd EY6.5%
FCF(TTM)8.89
FCFY6.13%
OCF(TTM)10.98
OCFY7.57%
SpS29.2
BVpS23.1
TBVpS-5.35
PEG (NY)0.96
PEG (5Y)1.97
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 | 4.24 |
F-Score7
WACC4.75%
ROIC/WACC4.71
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 5Y8.79%
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 5Y5.27%
EBIT growth 1Y21.58%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year36.14%
EBIT Next 3Y13.19%
EBIT Next 5Y13.01%
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%.