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

NYSE:NVS • US66987V1098

Current stock price

146.87 USD
-0.98 (-0.66%)
Last:

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.
  • 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.
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 better Return On Assets (11.42%) than 92.15% of its industry peers.
  • NVS's Return On Equity of 35.14% is amongst the best of the industry. NVS outperforms 95.29% of its industry peers.
  • With an excellent Return On Invested Capital value of 17.76%, NVS belongs to the best of the industry, outperforming 94.76% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for NVS is above the industry average of 13.07%.
  • The last Return On Invested Capital (17.76%) for NVS is above the 3 year average (17.15%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.42%
ROE 35.14%
ROIC 17.76%
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 better Profit Margin (24.06%) than 92.15% of its industry peers.
  • NVS's Profit Margin has improved in the last couple of years.
  • NVS has a Operating Margin of 31.82%. This is amongst the best in the industry. NVS outperforms 95.29% of its industry peers.
  • NVS's Operating Margin has improved in the last couple of years.
  • NVS's Gross Margin of 75.41% is amongst the best of the industry. NVS outperforms 82.72% of its industry peers.
  • In the last couple of years the Gross Margin of NVS has remained more or less at the same level.
Industry RankSector Rank
OM 31.82%
PM (TTM) 24.06%
GM 75.41%
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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5

2. NVS Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NVS is creating value.
  • Compared to 1 year ago, NVS has less shares outstanding
  • The number of shares outstanding for NVS has been reduced compared to 5 years ago.
  • NVS has a worse debt/assets ratio than last year.
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 3.50 indicates that NVS is not in any danger for bankruptcy at the moment.
  • NVS's Altman-Z score of 3.50 is fine compared to the rest of the industry. NVS outperforms 67.54% of its industry peers.
  • NVS has a debt to FCF ratio of 2.94. This is a good value and a sign of high solvency as NVS would need 2.94 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 2.94, NVS belongs to the best of the industry, outperforming 91.10% of the companies in the same industry.
  • NVS has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.02, NVS is not doing good in the industry: 76.96% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 2.94
Altman-Z 3.5
ROIC/WACC3.76
WACC4.72%
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 0.85 indicates that NVS may have some problems paying its short term obligations.
  • With a Current ratio value of 0.85, NVS is not doing good in the industry: 89.53% of the companies in the same industry are doing better.
  • NVS has a Quick Ratio of 0.85. 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 Quick ratio of 0.65. This is amonst the worse of the industry: NVS underperforms 89.53% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.65
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

4

3. NVS Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.83% 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 been growing slightly by 5.77% in the past year.
  • The Revenue has been growing slightly by 2.45% on average over the past years.
EPS 1Y (TTM)4.83%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%-12.72%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%-0.91%

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 7.49% on average per year.
  • NVS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y-0.14%
EPS Next 2Y4.63%
EPS Next 3Y6.15%
EPS Next 5Y7.49%
Revenue Next Year2.49%
Revenue Next 2Y3.87%
Revenue Next 3Y4.58%
Revenue Next 5Y5.35%

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.
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

  • A Price/Earnings ratio of 16.92 indicates a correct valuation of NVS.
  • 85.86% of the companies in the same industry are more expensive than NVS, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, NVS is valued a bit cheaper.
  • NVS is valuated correctly with a Price/Forward Earnings ratio of 14.96.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 81.68% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of NVS to the average of the S&P500 Index (21.75), we can say NVS is valued slightly cheaper.
Industry RankSector Rank
PE 16.92
Fwd PE 14.96
NVS Price Earnings VS Forward Price EarningsNVS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • NVS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NVS is cheaper than 82.72% of the companies in the same industry.
  • 85.34% 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 17.66
EV/EBITDA 13.89
NVS Per share dataNVS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

  • The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.84
EPS Next 2Y4.63%
EPS Next 3Y6.15%

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

7

5. NVS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.26%, NVS has a reasonable but not impressive dividend return.
  • NVS's Dividend Yield is rather good when compared to the industry average which is at 0.73. NVS pays more dividend than 94.76% of the companies in the same industry.
  • NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.26%

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.
  • 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 64.15% of its income as dividend. This is not a sustainable payout ratio.
  • NVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.15%
EPS Next 2Y4.63%
EPS Next 3Y6.15%
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 (5/1/2026, 2:35:55 PM)

146.87

-0.98 (-0.66%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-28
Earnings (Next)07-21
Inst Owners43.85%
Inst Owner Change-3.59%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap281.81B
Revenue(TTM)56.26B
Net Income(TTM)13.53B
Analysts70.59
Price Target159.48 (8.59%)
Short Float %0.34%
Short Ratio2.74
Dividend
Industry RankSector Rank
Dividend Yield 3.26%
Yearly Dividend4.02
Dividend Growth(5Y)5.38%
DP64.15%
Div Incr Years6
Div Non Decr Years6
Ex-Date03-11
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.35%
Min EPS beat(2)-8.52%
Max EPS beat(2)-0.17%
EPS beat(4)1
Avg EPS beat(4)-2.55%
Min EPS beat(4)-8.52%
Max EPS beat(4)0.61%
EPS beat(8)5
Avg EPS beat(8)1.19%
EPS beat(12)8
Avg EPS beat(12)1.42%
EPS beat(16)11
Avg EPS beat(16)2.17%
Revenue beat(2)0
Avg Revenue beat(2)-5.35%
Min Revenue beat(2)-5.8%
Max Revenue beat(2)-4.89%
Revenue beat(4)0
Avg Revenue beat(4)-4.09%
Min Revenue beat(4)-5.8%
Max Revenue beat(4)-2.82%
Revenue beat(8)1
Avg Revenue beat(8)-2.35%
Revenue beat(12)3
Avg Revenue beat(12)-1.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.5%
PT rev (1m)4.64%
PT rev (3m)20.87%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-0.55%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE 16.92
Fwd PE 14.96
P/S 5.01
P/FCF 17.66
P/OCF 14.7
P/B 7.32
P/tB N/A
EV/EBITDA 13.89
EPS(TTM)8.68
EY5.91%
EPS(NY)9.82
Fwd EY6.68%
FCF(TTM)8.32
FCFY5.66%
OCF(TTM)9.99
OCFY6.8%
SpS29.32
BVpS20.07
TBVpS-14.86
PEG (NY)N/A
PEG (5Y)1.84
Graham Number62.6088 (-57.37%)
Profitability
Industry RankSector Rank
ROA 11.42%
ROE 35.14%
ROCE 20.54%
ROIC 17.76%
ROICexc 19.28%
ROICexgc 116.92%
OM 31.82%
PM (TTM) 24.06%
GM 75.41%
FCFM 28.37%
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-Score5
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 2.94
Debt/EBITDA 1.68
Cap/Depr 59.51%
Cap/Sales 5.71%
Interest Coverage 18.84
Cash Conversion 82.3%
Profit Quality 117.94%
Current Ratio 0.85
Quick Ratio 0.65
Altman-Z 3.5
F-Score5
WACC4.72%
ROIC/WACC3.76
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)4.83%
EPS 3Y13.63%
EPS 5Y9.21%
EPS Q2Q%-12.72%
EPS Next Y-0.14%
EPS Next 2Y4.63%
EPS Next 3Y6.15%
EPS Next 5Y7.49%
Revenue 1Y (TTM)5.77%
Revenue growth 3Y9.1%
Revenue growth 5Y2.45%
Sales Q2Q%-0.91%
Revenue Next Year2.49%
Revenue Next 2Y3.87%
Revenue Next 3Y4.58%
Revenue Next 5Y5.35%
EBIT growth 1Y3.01%
EBIT growth 3Y22.35%
EBIT growth 5Y8.7%
EBIT Next Year12.61%
EBIT Next 3Y8.86%
EBIT Next 5Y9.84%
FCF growth 1Y54.57%
FCF growth 3Y9.64%
FCF growth 5Y6.62%
OCF growth 1Y39.29%
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 6 / 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 5 / 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 decline by -0.14% in the next year.