NOVARTIS AG-SPONSORED ADR (NVS) Fundamental Analysis & Valuation

NYSE:NVS • US66987V1098

Current stock price

154.03 USD
-1.05 (-0.68%)
At close:
154.03 USD
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This NVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. NVS Profitability Analysis

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.
  • In the past 5 years NVS always reported a positive cash flow from operatings.
NVS Yearly Net Income VS EBIT VS OCF VS FCFNVS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

1.2 Ratios

  • The Return On Assets of NVS (12.60%) is better than 93.75% of its industry peers.
  • NVS's Return On Equity of 30.31% is amongst the best of the industry. NVS outperforms 94.27% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.32%, NVS belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
  • NVS had an Average Return On Invested Capital over the past 3 years of 17.15%. This is above the industry average of 13.06%.
  • The 3 year average ROIC (17.15%) for NVS is below the current ROIC(19.32%), indicating increased profibility in the last year.
Industry RankSector 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%
NVS Yearly ROA, ROE, ROICNVS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • NVS has a Profit Margin of 24.83%. This is amongst the best in the industry. NVS outperforms 92.71% of its industry peers.
  • In the last couple of years the Profit Margin of NVS has grown nicely.
  • NVS has a Operating Margin of 33.18%. This is amongst the best in the industry. NVS outperforms 95.31% of its industry peers.
  • In the last couple of years the Operating Margin of NVS has grown nicely.
  • With an excellent Gross Margin value of 75.82%, NVS belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
  • NVS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
NVS Yearly Profit, Operating, Gross MarginsNVS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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7

2. NVS Health Analysis

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
  • Compared to 5 years ago, NVS has less shares outstanding
  • Compared to 1 year ago, NVS has a worse debt to assets ratio.
NVS Yearly Shares OutstandingNVS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
NVS Yearly Total Debt VS Total AssetsNVS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B

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.
  • The Altman-Z score of NVS (4.41) is better than 73.44% of its industry peers.
  • 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.
  • NVS has a Debt to FCF ratio of 2.32. This is amongst the best in the industry. NVS outperforms 93.75% of its industry peers.
  • A Debt/Equity ratio of 0.64 indicates that NVS is somewhat dependend on debt financing.
  • NVS has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: NVS underperforms 67.71% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.64
Debt/FCF 2.32
Altman-Z 4.41
ROIC/WACC4
WACC4.83%
NVS Yearly LT Debt VS Equity VS FCFNVS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 1.12 indicates that NVS should not have too much problems paying its short term obligations.
  • The Current ratio of NVS (1.12) is worse than 81.25% of its industry peers.
  • A Quick Ratio of 0.89 indicates that NVS may have some problems paying its short term obligations.
  • NVS has a worse Quick ratio (0.89) than 80.21% 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 RankSector Rank
Current Ratio 1.12
Quick Ratio 0.89
NVS Yearly Current Assets VS Current LiabilitesNVS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. NVS Growth Analysis

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.
  • The Revenue has grown by 8.91% in the past year. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 7.48% on average over the next years.
  • 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 Year2.53%
Revenue Next 2Y3.82%
Revenue Next 3Y4.55%
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.
NVS Yearly Revenue VS EstimatesNVS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B
NVS Yearly EPS VS EstimatesNVS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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6

4. NVS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.06, the valuation of NVS can be described as rather expensive.
  • NVS's Price/Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 84.90% of the companies in the same industry.
  • NVS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.60.
  • The Price/Forward Earnings ratio is 16.94, which indicates a correct valuation of NVS.
  • Based on the Price/Forward Earnings ratio, NVS is valued cheaper than 81.25% of the companies in the same industry.
  • NVS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.06
Fwd PE 16.94
NVS Price Earnings VS Forward Price EarningsNVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NVS is valued cheaper than 83.85% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 84.90% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 19.39
EV/EBITDA 13.29
NVS Per share dataNVS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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)24.55
PEG (5Y)1.85
EPS Next 2Y4.79%
EPS Next 3Y5.96%

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7

5. NVS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.11%, NVS has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.64, NVS pays a better dividend. On top of this NVS pays more dividend than 94.27% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, NVS pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.11%

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 Years6
Div Non Decr Years6
NVS Yearly Dividends per shareNVS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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.
  • 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 Yearly Income VS Free CF VS DividendNVS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B
NVS Dividend Payout.NVS Dividend Payout, showing the Payout Ratio.NVS Dividend Payout.PayoutRetained Earnings

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NVS Fundamentals: All Metrics, Ratios and Statistics

NOVARTIS AG-SPONSORED ADR

NYSE:NVS (4/2/2026, 8:04:00 PM)

After market: 154.03 0 (0%)

154.03

-1.05 (-0.68%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners41.7%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap295.55B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts70.59
Price Target156 (1.28%)
Short Float %0.44%
Short Ratio3.02
Dividend
Industry RankSector Rank
Dividend Yield 3.11%
Yearly Dividend4.02
Dividend Growth(5Y)5.38%
DP55.91%
Div Incr Years6
Div Non Decr Years6
Ex-Date03-11
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)0%
PT rev (3m)15.52%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)-7.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-3.07%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 17.06
Fwd PE 16.94
P/S 5.25
P/FCF 19.39
P/OCF 15.44
P/B 6.41
P/tB N/A
EV/EBITDA 13.29
EPS(TTM)9.03
EY5.86%
EPS(NY)9.09
Fwd EY5.9%
FCF(TTM)7.94
FCFY5.16%
OCF(TTM)9.98
OCFY6.48%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)24.55
PEG (5Y)1.85
Graham Number69.89
Profitability
Industry RankSector 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 RankSector 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
WACC4.83%
ROIC/WACC4
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 Year2.53%
Revenue Next 2Y3.82%
Revenue Next 3Y4.55%
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 Fundamental Analysis 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.


Can you provide the profitability details for NOVARTIS AG-SPONSORED ADR?

NOVARTIS AG-SPONSORED ADR (NVS) has a profitability rating of 9 / 10.


What is the financial health of NOVARTIS AG-SPONSORED ADR (NVS) stock?

The financial health rating of NOVARTIS AG-SPONSORED ADR (NVS) is 7 / 10.


Can you provide the expected EPS growth for NVS stock?

The Earnings per Share (EPS) of NOVARTIS AG-SPONSORED ADR (NVS) is expected to grow by 0.69% in the next year.