NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
NYSE:NVS • US66987V1098
165.51 USD
-1.34 (-0.8%)
At close: Feb 26, 2026
165.51 USD
0 (0%)
After Hours: 2/26/2026, 8:04:00 PM
We assign a fundamental rating of 7 out of 10 to NVS. NVS was compared to 192 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 is not valued too expensively and it also shows a decent growth rate. Finally NVS also has an excellent dividend rating. This makes NVS very considerable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
- NVS had positive earnings in the past year.
- 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
- NVS has a Return On Assets of 12.60%. This is amongst the best in the industry. NVS outperforms 92.71% of its industry peers.
- Looking at the Return On Equity, with a value of 30.31%, NVS belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 19.32%, NVS belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NVS is above the industry average of 12.96%.
- 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 92.19% of its industry peers.
- NVS's Profit Margin has improved in the last couple of years.
- The Operating Margin of NVS (33.18%) is better than 94.79% of its industry peers.
- In the last couple of years the Operating Margin of NVS has grown nicely.
- Looking at the Gross Margin, with a value of 75.82%, NVS belongs to the top 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 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.
- Compared to 1 year ago, NVS has less shares outstanding
- Compared to 5 years ago, NVS has less shares outstanding
- NVS has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.63 indicates that NVS is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.63, NVS is doing good in the industry, outperforming 73.44% 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.
- NVS has a better Debt to FCF ratio (2.32) than 94.79% 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.
- The Debt to Equity ratio of NVS (0.64) is worse than 67.71% of its industry peers.
- 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 | 4.63 |
ROIC/WACC3.83
WACC5.05%
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: 81.25% 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's Quick ratio of 0.89 is on the low side compared to the rest of the industry. NVS is outperformed by 79.69% of its industry peers.
- The current and quick ratio evaluation for NVS is rather negative, while it does have 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.
- The Earnings Per Share has been growing by 9.21% on average over the past years. This is quite good.
- 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.
- The Revenue is expected to grow by 4.43% on average over the next years.
EPS Next Y3.87%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
EPS Next 5Y6.28%
Revenue Next Year2.84%
Revenue Next 2Y3.8%
Revenue Next 3Y4.37%
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.
- 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
- A Price/Earnings ratio of 18.33 indicates a rather expensive valuation of NVS.
- Based on the Price/Earnings ratio, NVS is valued cheaply inside the industry as 85.94% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. NVS is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 17.65, the valuation of NVS can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, NVS is valued cheaply inside the industry as 80.73% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.13, NVS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 83.85% of the companies listed in the same industry.
- 85.42% 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 | 20.83 | ||
| EV/EBITDA | 14.31 |
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.
- 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 2.93%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.07, 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 1.80, NVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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.
- NVS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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%
165.51
-1.34 (-0.8%)
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 Change0.15%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap317.58B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target149.84 (-9.47%)
Short Float %0.3%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)10.96%
PT rev (3m)10.96%
EPS NQ rev (1m)-4.26%
EPS NQ rev (3m)-12.04%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 17.65 | ||
| P/S | 5.64 | ||
| P/FCF | 20.83 | ||
| P/OCF | 16.59 | ||
| P/B | 6.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
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 | 4.63 |
F-Score8
WACC5.05%
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 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 Year2.84%
Revenue Next 2Y3.8%
Revenue Next 3Y4.37%
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%.