NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
NYSE:NVS • US66987V1098
163.1 USD
+1.92 (+1.19%)
At close: Feb 13, 2026
163.04 USD
-0.06 (-0.04%)
After Hours: 2/13/2026, 5:32:11 PM
Taking everything into account, NVS scores 7 out of 10 in our fundamental rating. NVS was compared to 191 industry peers in the Pharmaceuticals industry. NVS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NVS has a decent growth rate and is not valued too expensively. Finally NVS also has an excellent dividend rating. This makes NVS very considerable for 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.
- NVS had positive earnings in each of the past 5 years.
- NVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NVS has a Return On Assets of 12.60%. This is amongst the best in the industry. NVS outperforms 92.67% of its industry peers.
- NVS's Return On Equity of 30.31% is amongst the best of the industry. NVS outperforms 93.72% of its industry peers.
- NVS's Return On Invested Capital of 19.32% is amongst the best of the industry. NVS outperforms 96.34% of its industry peers.
- NVS had an Average Return On Invested Capital over the past 3 years of 17.15%. This is above the industry average of 12.66%.
- 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 92.15% 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.
- NVS's Operating Margin has improved in the last couple of years.
- NVS has a better Gross Margin (75.82%) than 82.20% of its industry peers.
- NVS's Gross Margin has been stable in the last couple of years.
| 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
- NVS has less shares outstanding than it did 5 years ago.
- NVS has a worse debt/assets ratio than last year.
2.2 Solvency
- NVS has an Altman-Z score of 4.53. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.53, NVS is in the better half of the industry, outperforming 73.82% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.32, NVS belongs to the top 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.
- 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 | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 4.53 |
ROIC/WACC3.85
WACC5.02%
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.
- NVS has a Current ratio of 1.12. This is amonst the worse of the industry: NVS underperforms 82.20% 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.
- NVS has a worse Quick ratio (0.89) than 80.10% 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
- The Earnings Per Share has grown by an nice 14.98% 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 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%.
- 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
- Based on estimates for the next years, NVS will show a small growth in Earnings Per Share. The EPS will grow by 6.28% on average per year.
- NVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less 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 18.06, NVS is valued on the expensive side.
- 84.29% of the companies in the same industry are more expensive than NVS, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.67. NVS is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.39, the valuation of NVS can be described as rather expensive.
- 81.15% of the companies in the same industry are more expensive than NVS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 27.69. NVS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 17.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaper than 83.77% of the companies in the same industry.
- 85.86% 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 | 20.53 | ||
| EV/EBITDA | 13.86 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)4.67
PEG (5Y)1.96
EPS Next 2Y5.53%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
- NVS has a Yearly Dividend Yield of 3.01%. Purely for dividend investing, there may be better candidates out there.
- NVS's Dividend Yield is rather good when compared to the industry average which is at 0.93. NVS pays more dividend than 94.24% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, NVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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
- NVS pays out 55.91% of its income as dividend. 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%
163.1
+1.92 (+1.19%)
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 Change-0.27%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap312.95B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target149.84 (-8.13%)
Short Float %0.32%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.01% |
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)12.71%
EPS NQ rev (1m)-3.08%
EPS NQ rev (3m)-8.65%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-1.89%
Revenue NQ rev (3m)0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 17.39 | ||
| P/S | 5.56 | ||
| P/FCF | 20.53 | ||
| P/OCF | 16.35 | ||
| P/B | 6.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.86 |
EPS(TTM)9.03
EY5.54%
EPS(NY)9.38
Fwd EY5.75%
FCF(TTM)7.94
FCFY4.87%
OCF(TTM)9.98
OCFY6.12%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.67
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 | 4.53 |
F-Score8
WACC5.02%
ROIC/WACC3.85
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%.