(NVS) Novartis - Overview
Sector: Healthcare | Industry: Drug Manufacturers - General | Exchange: NYSE (USA) | Market Cap: 289.572m USD | Total Return: 38.4% in 12m
Avg Turnover: 191M
EPS Trend: 96.1%
Qual. Beats: -1
Rev. Trend: 96.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Novartis AG is a global pharmaceutical company headquartered in Basel, Switzerland, specializing in the development and commercialization of prescription medicines. Its portfolio targets high-prevalence therapeutic areas including cardiovascular, renal, metabolic, immunology, neuroscience, oncology, and hematology. Key revenue drivers include Entresto for heart failure, Cosentyx for inflammatory conditions, and various oncology treatments such as Kisqali and Pluvicto.
The company operates within the patent-protected pharmaceutical sector, where business models rely heavily on high research and development (R&D) investment to secure market exclusivity for novel therapies. Novartis utilizes strategic collaborations, such as its agreement with Alnylam Pharmaceuticals for the cholesterol treatment Leqvio, to expand its pipeline and leverage external biotechnological advancements.
Reviewing the underlying fundamentals on ValueRay can help clarify how these clinical assets translate into long-term valuation.
In addition to traditional small-molecule drugs, Novartis has expanded into advanced therapy platforms, including gene therapies like Zolgensma for spinal muscular atrophy and radioligand therapies like Lutathera. This diversification into complex biologics and genetic medicines serves as a barrier to entry against generic competition following patent expirations.
- Entresto and Cosentyx revenue growth sustains core cardiovascular and immunology market share
- Radioligand therapy expansion led by Pluvicto drives high-margin oncology segment performance
- Strategic pivot to pure-play innovative medicines improves long-term operational margins
- Patent expiration risks for key blockbusters threaten mid-term generic competition revenue
- FDA pipeline approvals for R&D candidates determine future pharmaceutical sales trajectory
| Net Income: 13.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -1.06 > 1.0 |
| NWC/Revenue: -8.50% < 20% (prev -12.23%; Δ 3.73% < -1%) |
| CFO/TA 0.16 > 3% & CFO 19.2b > Net Income 13.5b |
| Net Debt (42.0b) to EBITDA (22.4b): 1.87 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.92b) vs 12m ago -3.18% < -2% |
| Gross Margin: 75.27% > 18% (prev 0.76%; Δ 7.45k% > 0.5%) |
| Asset Turnover: 51.31% > 50% (prev 53.25%; Δ -1.94% > 0%) |
| Interest Coverage Ratio: 13.92 > 6 (EBITDA TTM 22.4b / Interest Expense TTM 1.22b) |
| A: -0.04 (Total Current Assets 26.6b - Total Current Liabilities 31.4b) / Total Assets 119b |
| B: 0.31 (Retained Earnings 37.3b / Total Assets 119b) |
| C: 0.16 (EBIT TTM 17.0b / Avg Total Assets 109b) |
| D: 0.48 (Book Value of Equity 38.6b / Total Liabilities 79.6b) |
| Altman-Z'' = 2.32 = BBB |
| DSRI: 1.04 (Receivables 9.60b/8.72b, Revenue 56.1b/53.2b) |
| GMI: 1.01 (GM 75.27% / 75.65%) |
| AQI: 1.05 (AQ_t 0.67 / AQ_t-1 0.64) |
| SGI: 1.05 (Revenue 56.1b / 53.2b) |
| TATA: -0.05 (NI 13.5b - CFO 19.2b) / TA 119b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 152.01 with a total of 1,265,217 shares traded.
Over the past week, the price has changed by +2.65%,
over one month by +4.50%,
over three months by -6.27% and
over the past year by +38.36%.
Novartis has received a consensus analysts rating of 2.85. Therefore, it is recommended to hold NVS.
- StrongBuy: 0
- Buy: 2
- Hold: 9
- Sell: 0
- StrongSell: 2
| Analysts Target Price | 153.9 | 1.2% |
P/E Trailing = 21.7421
P/E Forward = 16.9779
P/S = 5.1181
P/B = 7.519
P/EG = 2.6509
Revenue TTM = 56.1b USD
EBIT TTM = 17.0b USD
EBITDA TTM = 22.4b USD
Long Term Debt = 37.4b USD (from longTermDebt, last quarter)
Short Term Debt = 7.89b USD (from shortTermDebt, last quarter)
Debt = 48.9b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.93b
Net Debt = 42.0b USD (calculated: Debt 48.9b - CCE 6.98b)
Enterprise Value = 332b USD (290b + Debt 48.9b - CCE 6.98b)
Interest Coverage Ratio = 13.92 (Ebit TTM 17.0b / Interest Expense TTM 1.22b)
EV/FCF = 20.27x (Enterprise Value 332b / FCF TTM 16.4b)
FCF Yield = 4.93% (FCF TTM 16.4b / Enterprise Value 332b)
FCF Margin = 29.18% (FCF TTM 16.4b / Revenue TTM 56.1b)
Net Margin = 24.14% (Net Income TTM 13.5b / Revenue TTM 56.1b)
Gross Margin = 75.27% ((Revenue TTM 56.1b - Cost of Revenue TTM 13.9b) / Revenue TTM)
Gross Margin QoQ = 74.42% (prev 73.44%)
Tobins Q-Ratio = 2.80 (Enterprise Value 332b / Total Assets 119b)
Interest Expense / Debt = 2.50% (Interest Expense 1.22b / Debt 48.9b)
Taxrate = 17.79% (683.0m / 3.84b)
NOPAT = 14.0b (EBIT 17.0b * (1 - 17.79%))
Current Ratio = 0.85 (Total Current Assets 26.6b / Total Current Liabilities 31.4b)
Debt / Equity = 1.27 (Debt 48.9b / totalStockholderEquity, last quarter 38.5b)
Debt / EBITDA = 1.87 (Net Debt 42.0b / EBITDA 22.4b)
Debt / FCF = 2.56 (Net Debt 42.0b / FCF TTM 16.4b)
Total Stockholder Equity = 42.7b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.39% (Net Income 13.5b / Total Assets 119b)
RoE = 31.67% (Net Income TTM 13.5b / Total Stockholder Equity 42.7b)
RoCE = 21.20% (EBIT 17.0b / Capital Employed (Equity 42.7b + L.T.Debt 37.4b))
RoIC = 14.72% (NOPAT 14.0b / Invested Capital 94.9b)
WACC = 5.79% (E(290b)/V(339b) * Re(6.42%) + D(48.9b)/V(339b) * Rd(2.50%) * (1-Tc(0.18)))
Discount Rate = 6.42% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -3.27%
[DCF] Terminal Value 76.68% ; FCFF base≈15.8b ; Y1≈17.1b ; Y5≈21.4b
[DCF] Fair Price = 149.2 (EV 327b - Net Debt 42.0b = Equity 285b / Shares 1.91b; r=8.35% [WACC [floored]]; 5y FCF grow 10.18% → 2.50% )
EPS Correlation: 96.08 | EPS CAGR: 13.56% | SUE: -0.97 | # QB: -1
Revenue Correlation: 96.66 | Revenue CAGR: 8.41% | SUE: 0.07 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.11 | Chg30d=-5.02% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=2.16 | Chg30d=-7.06% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=8.89 | Chg30d=-0.47% | Revisions=-14% | GrowthEPS=-1.0% | GrowthRev=+0.8%
EPS next Year (2027-12-31): EPS=9.95 | Chg30d=+1.27% | Revisions=+14% | GrowthEPS=+12.0% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -20%