NOVARTIS AG-SPONSORED ADR (NVS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NVS - US66987V1098 - ADR
139.29 USD
+0.11 (+0.08%)
Taking everything into account, NVS scores 7 out of 10 in our fundamental rating. NVS was compared to 191 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on NVS. Finally NVS also has an excellent dividend rating. These ratings could make NVS a good candidate for value and 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.
In the past 5 years NVS has always been profitable.
NVS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NVS has a Return On Assets of 13.42%. This is amongst the best in the industry. NVS outperforms 94.24% of its industry peers.
NVS has a Return On Equity of 32.47%. This is amongst the best in the industry. NVS outperforms 94.24% of its industry peers.
NVS's Return On Invested Capital of 22.36% is amongst the best of the industry. NVS outperforms 97.38% of its industry peers.
NVS had an Average Return On Invested Capital over the past 3 years of 14.58%. This is in line with the industry average of 12.85%.
The last Return On Invested Capital (22.36%) for NVS is above the 3 year average (14.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.42% | ||
| ROE | 32.47% | ||
| ROIC | 22.36% |
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)14.58%
ROIC(5y)12.83%
1.3 Margins
NVS has a better Profit Margin (25.69%) than 92.15% of its industry peers.
In the last couple of years the Profit Margin of NVS has remained more or less at the same level.
NVS has a Operating Margin of 33.11%. This is amongst the best in the industry. NVS outperforms 94.76% of its industry peers.
In the last couple of years the Operating Margin of NVS has grown nicely.
The Gross Margin of NVS (76.10%) is better than 82.20% of its industry peers.
NVS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.11% | ||
| PM (TTM) | 25.69% | ||
| GM | 76.1% |
OM growth 3Y8.17%
OM growth 5Y6.25%
PM growth 3Y-24.95%
PM growth 5Y-0.88%
GM growth 3Y0.5%
GM growth 5Y1.06%
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.
NVS has less shares outstanding than it did 1 year ago.
NVS has less shares outstanding than it did 5 years ago.
NVS has a worse debt/assets ratio than last year.
2.2 Solvency
NVS has an Altman-Z score of 4.16. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
NVS has a Altman-Z score of 4.16. This is in the better half of the industry: NVS outperforms 71.20% of its industry peers.
NVS has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
NVS's Debt to FCF ratio of 1.87 is amongst the best of the industry. NVS outperforms 94.24% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that NVS is somewhat dependend on debt financing.
NVS has a worse Debt to Equity ratio (0.55) than 65.44% 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 | 0.55 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 4.16 |
ROIC/WACC4.72
WACC4.74%
2.3 Liquidity
NVS has a Current Ratio of 0.88. This is a bad value and indicates that NVS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.88, NVS is not doing good in the industry: 86.91% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that NVS may have some problems paying its short term obligations.
The Quick ratio of NVS (0.68) is worse than 86.91% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.33% 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 8.14% on average per year.
Looking at the last year, NVS shows a quite strong growth in Revenue. The Revenue has grown by 12.18% in the last year.
NVS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.24% yearly.
EPS 1Y (TTM)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%8.47%
3.2 Future
The Earnings Per Share is expected to grow by 9.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.35% on average over the next years.
EPS Next Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y9.35%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.43, NVS is valued correctly.
NVS's Price/Earnings ratio is rather cheap when compared to the industry. NVS is cheaper than 85.34% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. NVS is valued slightly cheaper when compared to this.
NVS is valuated correctly with a Price/Forward Earnings ratio of 14.76.
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.
NVS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
84.29% of the companies in the same industry are more expensive than NVS, based on the Enterprise Value to EBITDA ratio.
86.39% 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 | 15.67 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
NVS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NVS may justify a higher PE ratio.
PEG (NY)0.92
PEG (5Y)1.89
EPS Next 2Y9.31%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
NVS has a Yearly Dividend Yield of 3.18%.
NVS's Dividend Yield is rather good when compared to the industry average which is at 0.61. NVS pays more dividend than 95.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, NVS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of NVS has a limited annual growth rate of 5.49%.
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)5.49%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
54.32% 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 more than its dividend. This makes the dividend growth sustainable.
DP54.32%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
NYSE:NVS (12/29/2025, 10:16:57 AM)
139.29
+0.11 (+0.08%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners41.28%
Inst Owner Change0.44%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap267.27B
Revenue(TTM)56.02B
Net Income(TTM)14.39B
Analysts70.32
Price Target135.04 (-3.05%)
Short Float %0.29%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend3.79
Dividend Growth(5Y)5.49%
DP54.32%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.75%
Min EPS beat(2)-2.1%
Max EPS beat(2)0.61%
EPS beat(4)3
Avg EPS beat(4)2.79%
Min EPS beat(4)-2.1%
Max EPS beat(4)6.59%
EPS beat(8)6
Avg EPS beat(8)2.02%
EPS beat(12)10
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-2.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)0.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.48%
Revenue beat(12)3
Avg Revenue beat(12)-3.77%
Revenue beat(16)4
Avg Revenue beat(16)-4.02%
PT rev (1m)0%
PT rev (3m)-0.14%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 14.76 | ||
| P/S | 4.77 | ||
| P/FCF | 15.67 | ||
| P/OCF | 12.68 | ||
| P/B | 6.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.07 |
EPS(TTM)9.03
EY6.48%
EPS(NY)9.44
Fwd EY6.77%
FCF(TTM)8.89
FCFY6.38%
OCF(TTM)10.98
OCFY7.88%
SpS29.2
BVpS23.1
TBVpS-5.35
PEG (NY)0.92
PEG (5Y)1.89
Graham Number68.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.42% | ||
| ROE | 32.47% | ||
| ROCE | 24.64% | ||
| ROIC | 22.36% | ||
| ROICexc | 25.65% | ||
| ROICexgc | 152.58% | ||
| OM | 33.11% | ||
| PM (TTM) | 25.69% | ||
| GM | 76.1% | ||
| FCFM | 30.45% |
ROA(3y)10.82%
ROA(5y)11.4%
ROE(3y)23.55%
ROE(5y)24.08%
ROIC(3y)14.58%
ROIC(5y)12.83%
ROICexc(3y)17.82%
ROICexc(5y)15.74%
ROICexgc(3y)90.48%
ROICexgc(5y)78.58%
ROCE(3y)16.96%
ROCE(5y)14.93%
ROICexgc growth 3Y14.29%
ROICexgc growth 5Y25.26%
ROICexc growth 3Y20.9%
ROICexc growth 5Y13.17%
OM growth 3Y8.17%
OM growth 5Y6.25%
PM growth 3Y-24.95%
PM growth 5Y-0.88%
GM growth 3Y0.5%
GM growth 5Y1.06%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 74.31% | ||
| Cap/Sales | 7.16% | ||
| Interest Coverage | 18.85 | ||
| Cash Conversion | 87.98% | ||
| Profit Quality | 118.52% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 4.16 |
F-Score7
WACC4.74%
ROIC/WACC4.72
Cap/Depr(3y)51.13%
Cap/Depr(5y)48.4%
Cap/Sales(3y)6.48%
Cap/Sales(5y)6.27%
Profit Quality(3y)120.24%
Profit Quality(5y)109.63%
High Growth Momentum
Growth
EPS 1Y (TTM)21.33%
EPS 3Y7.48%
EPS 5Y8.14%
EPS Q2Q%9.22%
EPS Next Y16.78%
EPS Next 2Y9.31%
EPS Next 3Y8.66%
EPS Next 5Y9.35%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.56%
Revenue growth 5Y1.24%
Sales Q2Q%8.47%
Revenue Next Year9.91%
Revenue Next 2Y6.24%
Revenue Next 3Y5.54%
Revenue Next 5Y5.35%
EBIT growth 1Y21.58%
EBIT growth 3Y14.18%
EBIT growth 5Y7.57%
EBIT Next Year36.14%
EBIT Next 3Y13.19%
EBIT Next 5Y13.76%
FCF growth 1Y33.72%
FCF growth 3Y4.49%
FCF growth 5Y3.96%
OCF growth 1Y37.07%
OCF growth 3Y5.34%
OCF growth 5Y5.28%
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.
Can you provide the valuation status for NOVARTIS AG-SPONSORED ADR?
ChartMill assigns a valuation rating of 7 / 10 to NOVARTIS AG-SPONSORED ADR (NVS). This can be considered as Undervalued.
How profitable is NOVARTIS AG-SPONSORED ADR (NVS) stock?
NOVARTIS AG-SPONSORED ADR (NVS) has a profitability rating of 9 / 10.
What are the PE and PB ratios of NOVARTIS AG-SPONSORED ADR (NVS) stock?
The Price/Earnings (PE) ratio for NOVARTIS AG-SPONSORED ADR (NVS) is 15.43 and the Price/Book (PB) ratio is 6.03.
What is the earnings growth outlook for NOVARTIS AG-SPONSORED ADR?
The Earnings per Share (EPS) of NOVARTIS AG-SPONSORED ADR (NVS) is expected to grow by 16.78% in the next year.