NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
NYSE:NVS • US66987V1098
167.11 USD
+2.41 (+1.46%)
At close: Feb 24, 2026
166.79 USD
-0.32 (-0.19%)
Pre-Market: 2/25/2026, 8:23:18 AM
NVS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 192 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 decent growth rate and is not valued too expensively. Finally NVS also has an excellent dividend rating. With these ratings, NVS could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
- NVS had positive earnings in the past year.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 12.60%, NVS belongs to the top of the industry, outperforming 92.71% of the companies in the same industry.
- With an excellent Return On Equity value of 30.31%, NVS belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- NVS has a better Return On Invested Capital (19.32%) than 95.83% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NVS is above the industry average of 12.96%.
- 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 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.
- NVS has a better Operating Margin (33.18%) 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.
- 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. Health
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
- 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.
2.2 Solvency
- An Altman-Z score of 4.64 indicates that NVS is not in any danger for bankruptcy at the moment.
- The Altman-Z score of NVS (4.64) is better than 73.96% of its industry peers.
- 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.
- 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.
- 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.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 4.64 |
ROIC/WACC3.83
WACC5.04%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that NVS should not have too much problems paying its short term obligations.
- NVS has a Current ratio of 1.12. This is amonst the worse of the industry: NVS underperforms 81.25% of its industry peers.
- A Quick Ratio of 0.89 indicates that NVS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.89, NVS is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.89 |
3. Growth
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.
- NVS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.91%.
- 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
- NVS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.28% yearly.
- 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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.51, NVS is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of NVS indicates a rather cheap valuation: NVS is cheaper than 84.90% of the companies listed in the same industry.
- NVS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 17.82, which indicates a rather expensive current valuation of NVS.
- NVS's Price/Forward Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 81.25% of the companies in the same industry.
- NVS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 17.82 |
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.
- Based on the Price/Free Cash Flow ratio, NVS is valued cheaper than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.03 | ||
| EV/EBITDA | 14.33 |
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)4.78
PEG (5Y)2.01
EPS Next 2Y5.53%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
- NVS has a Yearly Dividend Yield of 2.93%.
- NVS's Dividend Yield is rather good when compared to the industry average which is at 1.07. NVS pays more dividend than 94.27% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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.
- 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%
167.11
+2.41 (+1.46%)
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 Cap320.65B
Revenue(TTM)56.33B
Net Income(TTM)13.98B
Analysts71.76
Price Target149.84 (-10.33%)
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 | 18.51 | ||
| Fwd PE | 17.82 | ||
| P/S | 5.69 | ||
| P/FCF | 21.03 | ||
| P/OCF | 16.75 | ||
| P/B | 6.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.33 |
EPS(TTM)9.03
EY5.4%
EPS(NY)9.38
Fwd EY5.61%
FCF(TTM)7.94
FCFY4.75%
OCF(TTM)9.98
OCFY5.97%
SpS29.36
BVpS24.04
TBVpS-4.61
PEG (NY)4.78
PEG (5Y)2.01
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 | 4.64 |
F-Score8
WACC5.04%
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%.