NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis

NYSE:NVS • US66987V1098

168.62 USD
+3.11 (+1.88%)
At close: Feb 27, 2026
168.62 USD
0 (0%)
After Hours: 2/27/2026, 8:23:28 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

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 correct valuation and a medium growth rate. NVS also has an excellent dividend rating. With these ratings, NVS could be worth investigating further for dividend and quality investing!.


Dividend Valuation Growth Profitability Health

9

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.
  • NVS had a positive operating cash flow in each of the past 5 years.
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

  • NVS has a Return On Assets of 12.60%. This is amongst the best in the industry. NVS outperforms 93.78% of its industry peers.
  • The Return On Equity of NVS (30.31%) is better than 94.30% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.32%, NVS belongs to the best of the industry, outperforming 95.85% 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 12.93%.
  • The last Return On Invested Capital (19.32%) for NVS is above the 3 year average (17.15%), which is a sign of increasing profitability.
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

  • With an excellent Profit Margin value of 24.83%, NVS belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
  • NVS's Profit Margin has improved in the last couple of years.
  • NVS's Operating Margin of 33.18% is amongst the best of the industry. NVS outperforms 94.82% 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 82.90% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

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.
  • The debt/assets ratio for NVS is higher compared to a year ago.
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

  • An Altman-Z score of 4.67 indicates that NVS is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.67, NVS is in the better half of the industry, outperforming 75.13% 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.
  • Looking at the Debt to FCF ratio, with a value of 2.32, NVS belongs to the top of the industry, outperforming 94.82% 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.
  • NVS's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. NVS is outperformed by 67.36% 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 RankSector Rank
Debt/Equity 0.64
Debt/FCF 2.32
Altman-Z 4.67
ROIC/WACC4.08
WACC4.73%
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.
  • NVS's Current ratio of 1.12 is on the low side compared to the rest of the industry. NVS is outperformed by 80.83% 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.
  • The Quick ratio of NVS (0.89) is worse than 79.27% 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. 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.
  • 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.
  • Looking at the last year, NVS shows a quite strong growth in Revenue. The Revenue has grown by 8.91% in the last year.
  • The Revenue has been growing slightly by 2.45% on average over the past years.
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 Year2.84%
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.
  • 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.67 indicates a rather expensive valuation of NVS.
  • Compared to the rest of the industry, the Price/Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 85.49% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.07. NVS is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 17.98 indicates a rather expensive valuation of NVS.
  • Based on the Price/Forward Earnings ratio, NVS is valued cheaper than 81.35% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. NVS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 18.67
Fwd PE 17.98
NVS Price Earnings VS Forward Price EarningsNVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 83.94% of the companies in the same industry are more expensive than NVS, based on the Enterprise Value to EBITDA ratio.
  • 85.49% of the companies in the same industry are more expensive than NVS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.22
EV/EBITDA 14.46
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)4.83
PEG (5Y)2.03
EPS Next 2Y5.53%
EPS Next 3Y7.54%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • NVS has a Yearly Dividend Yield of 2.89%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.66, 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 RankSector Rank
Dividend Yield 2.89%

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.
  • 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
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

  • 55.91% 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 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%
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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Find the best dividend stocksShow peers with best dividend

NOVARTIS AG-SPONSORED ADR

NYSE:NVS (2/27/2026, 8:23:28 PM)

After market: 168.62 0 (0%)

168.62

+3.11 (+1.88%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-04
Earnings (Next)04-27
Inst Owners41.44%
Inst Owner Change0.18%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap323.55B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target156 (-7.48%)
Short Float %0.3%
Short Ratio2.69
Dividend
Industry RankSector Rank
Dividend Yield 2.89%
Yearly Dividend4.02
Dividend Growth(5Y)5.38%
DP55.91%
Div Incr Years5
Div Non Decr Years5
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)15.52%
PT rev (3m)15.52%
EPS NQ rev (1m)-5.91%
EPS NQ rev (3m)-13.56%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.12%
Valuation
Industry RankSector Rank
PE 18.67
Fwd PE 17.98
P/S 5.74
P/FCF 21.22
P/OCF 16.9
P/B 7.01
P/tB N/A
EV/EBITDA 14.46
EPS(TTM)9.03
EY5.36%
EPS(NY)9.38
Fwd EY5.56%
FCF(TTM)7.94
FCFY4.71%
OCF(TTM)9.98
OCFY5.92%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.83
PEG (5Y)2.03
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 4.67
F-Score8
WACC4.73%
ROIC/WACC4.08
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 Year12.17%
EBIT Next 3Y9.25%
EBIT Next 5Y7.39%
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%.