NOVARTIS AG-SPONSORED ADR (NVS) Fundamental Analysis & Valuation
NYSE:NVS • US66987V1098
160.12 USD
-0.89 (-0.55%)
At close: Mar 6, 2026
160.12 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
This NVS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall NVS gets a fundamental rating of 7 out of 10. We evaluated NVS against 193 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. These ratings would make NVS suitable for dividend and quality investing!
1. NVS Profitability Analysis
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.
- NVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NVS's Return On Assets of 12.60% is amongst the best of the industry. NVS outperforms 93.26% 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.
- NVS had an Average Return On Invested Capital over the past 3 years of 17.15%. This is above the industry average of 13.00%.
- 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 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 better Profit Margin (24.83%) than 92.75% of its industry peers.
- NVS's Profit Margin has improved in the last couple of years.
- NVS has a better Operating Margin (33.18%) than 94.82% of its industry peers.
- NVS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 75.82%, NVS belongs to the top of the industry, outperforming 82.90% of the companies in the same industry.
- In the last couple of years the Gross Margin of NVS has remained more or less at the same level.
| 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. NVS Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NVS is creating value.
- The number of shares outstanding for NVS has been reduced compared to 1 year ago.
- Compared to 5 years ago, NVS has less shares outstanding
- The debt/assets ratio for NVS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.53 indicates that NVS is not in any danger for 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 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.
- With an excellent Debt to FCF ratio value of 2.32, NVS belongs to the best of the industry, outperforming 94.82% of the companies in the same industry.
- A Debt/Equity ratio of 0.64 indicates that NVS is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.64, NVS is not doing good in the industry: 67.36% of the companies in the same industry are doing better.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 4.53 |
ROIC/WACC4.09
WACC4.72%
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'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.
- A Quick Ratio of 0.89 indicates that NVS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, NVS is doing worse than 79.27% of the companies in the same industry.
- 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. NVS Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 14.98% over the past year.
- The Earnings Per Share has been growing by 9.21% on average over the past years. This is quite good.
- 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
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. NVS Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 17.73, NVS is valued on the expensive side.
- 84.46% of the companies in the same industry are more expensive than NVS, based on the Price/Earnings ratio.
- NVS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- NVS is valuated rather expensively with a Price/Forward Earnings ratio of 17.08.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 81.87% of the companies listed in the same industry.
- NVS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 17.08 |
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 83.94% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NVS is valued cheaply inside the industry as 85.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.15 | ||
| EV/EBITDA | 13.85 |
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.
- The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)4.58
PEG (5Y)1.92
EPS Next 2Y5.53%
EPS Next 3Y7.54%
5. NVS Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.89%, NVS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.68, NVS pays a better dividend. On top of this NVS pays more dividend than 94.30% of the companies listed in the same industry.
- NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector 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.
- 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.
- The dividend of NVS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP55.91%
EPS Next 2Y5.53%
EPS Next 3Y7.54%
NVS Fundamentals: All Metrics, Ratios and Statistics
160.12
-0.89 (-0.55%)
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 Change0.18%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap307.24B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target156 (-2.57%)
Short Float %0.44%
Short Ratio3.55
Dividend
| Industry Rank | Sector 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 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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 17.08 | ||
| P/S | 5.45 | ||
| P/FCF | 20.15 | ||
| P/OCF | 16.05 | ||
| P/B | 6.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.85 |
EPS(TTM)9.03
EY5.64%
EPS(NY)9.38
Fwd EY5.86%
FCF(TTM)7.94
FCFY4.96%
OCF(TTM)9.98
OCFY6.23%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.58
PEG (5Y)1.92
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
WACC4.72%
ROIC/WACC4.09
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%.