Overview Dividends

(NVS) Novartis - Ratings and Ratios

Exchange: NYSE • Country: Switzerland • Currency: USD • Type: Common Stock • ISIN: US66987V1098

Pharmaceuticals, HeartFailure, Cancer, Psoriasis, CholesterolReduction

NVS EPS (Earnings per Share)

EPS Growth (3Y CAGR): -88.14%
EPS Trend (3Y Correlation): -33.7%

NVS Revenue

Revenue Growth (3Y CAGR): 3.93%
Revenue Trend (3Y Correlation): 30.8%

Description: NVS Novartis

Novartis AG is a multinational pharmaceutical company that develops, manufactures, and markets a diverse portfolio of medicines across various therapeutic areas, including cardiovascular, renal and metabolic, immunology, neuroscience, oncology, and hematology. The companys product portfolio includes several key drugs, such as Entresto for heart failure, Cosentyx for autoimmune diseases, and Kisqali for certain types of cancers.

From a strategic perspective, Novartis has a strong focus on innovation, with a significant presence in the research and development of new treatments. The company has a collaboration agreement with Alnylam Pharmaceuticals to develop and commercialize Leqvio, a therapy aimed at reducing LDL cholesterol. Additionally, Novartis has a diverse pipeline of products, including Zolgensma for spinal muscular atrophy and Pluvicto for prostate cancer.

To evaluate Novartis performance, we can consider key performance indicators (KPIs) such as revenue growth, product sales, and return on equity (ROE). With a ROE of 30.71%, Novartis demonstrates a strong ability to generate profits from shareholder equity. The companys market capitalization stands at approximately $248.7 billion, indicating its significant presence in the global pharmaceutical market.

Further analysis of Novartis financials reveals that its price-to-earnings (P/E) ratio is 19.39, suggesting that the stock may be fairly valued relative to its earnings. The forward P/E ratio is 14.73, indicating potential for earnings growth. These metrics, combined with the companys diversified product portfolio and strategic partnerships, provide a comprehensive view of Novartis investment potential.

NVS Stock Overview

Market Cap in USD	234,625m
Sub-Industry	Pharmaceuticals
IPO / Inception	1991-11-18

NVS Stock Ratings

Growth Rating	68.0%
Fundamental	77.9%
Dividend Rating	62.8%
Return 12m vs S&P 500	-7.20%
Analyst Rating	2.85 of 5

NVS Dividends

Dividend Yield 12m	3.36%
Yield on Cost 5y	6.01%
Annual Growth 5y	4.42%
Payout Consistency	96.4%
Payout Ratio	45.7%

NVS Growth Ratios

Growth Correlation 3m	35.9%
Growth Correlation 12m	56.6%
Growth Correlation 5y	89.2%
CAGR 5y	13.80%
CAGR/Max DD 5y	0.68
Sharpe Ratio 12m	-0.05
Alpha	0.64
Beta	0.351
Volatility	18.25%
Current Volume	677.9k
Average Volume 20d	1279.2k
Stop Loss	122.6 (-3.1%)
Signal	-0.66

Piotroski VR‑10 (Strict, 0-10) 9.0

Net Income (9.62b TTM) > 0 and > 6% of Revenue (6% = 3.28b TTM)

FCFTA 0.16 (>2.0%) and ΔFCFTA 4.08pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -10.57% (prev -3.98%; Δ -6.59pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.20 (>3.0%) and CFO 20.79b > Net Income 9.62b (YES >=105%, WARN >=100%)

Net Debt (25.98b) to EBITDA (16.63b) ratio: 1.56 <= 3.0 (WARN <= 3.5)

Current Ratio 0.82 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (1.96b) change vs 12m ago -4.20% (target <= -2.0% for YES)

Gross Margin 82.08% (prev 74.10%; Δ 7.98pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 54.12% (prev 49.44%; Δ 4.67pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 14.15 (EBITDA TTM 16.63b / Interest Expense TTM 840.3m) >= 6 (WARN >= 3)

Altman Z'' 2.43

(A) -0.06 = (Total Current Assets 25.94b - Total Current Liabilities 31.71b) / Total Assets 104.39b

(B) 0.40 = Retained Earnings (Balance) 41.53b / Total Assets 104.39b

(D) 0.67 = Book Value of Equity 42.02b / Total Liabilities 62.34b

Total Rating: 2.43 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 77.85

1. Piotroski 9.0pt = 4.0

2. FCF Yield 6.49% = 3.24

3. FCF Margin 30.76% = 7.50

4. Debt/Equity 0.74 = 2.24

5. Debt/Ebitda 1.87 = 0.26

6. ROIC - WACC 8.01% = 10.01

7. RoE 22.94% = 1.91

8. Rev. Trend 30.75% = 1.54

9. Rev. CAGR 3.93% = 0.49

10. EPS Trend -33.66% = -0.84

11. EPS CAGR -88.14% = -2.50

What is the price of NVS shares?

As of August 29, 2025, the stock is trading at USD 126.47 with a total of 677,900 shares traded.
Over the past week, the price has changed by -0.28%, over one month by +8.86%, over three months by +13.05% and over the past year by +9.20%.

Is Novartis a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Novartis (NYSE:NVS) is currently (August 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 77.85 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NVS is around 132.33 USD . This means that NVS is currently overvalued and has a potential downside of 4.63%.

Is NVS a buy, sell or hold?

Novartis has received a consensus analysts rating of 2.85. Therefor, it is recommend to hold NVS.

Strong Buy: 0
Buy: 2
Hold: 9
Sell: 0
Strong Sell: 2

What are the forecasts/targets for the NVS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	118.6	-6.3%
Analysts Target Price	112.6	-10.9%
ValueRay Target Price	144.9	14.5%

Last update: 2025-08-15 04:44

NVS Fundamental Data Overview

Market Cap USD = 234.63b (234.63b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 6.66b USD (last quarter)
P/E Trailing = 17.6676
P/E Forward = 13.7174
P/S = 4.2515
P/B = 5.5883
P/EG = 1.3198
Beta = 0.548
Revenue TTM = 54.63b USD
EBIT TTM = 11.89b USD
EBITDA TTM = 16.63b USD
Long Term Debt = 22.47b USD (from longTermDebt, last quarter)
Short Term Debt = 8.57b USD (from shortTermDebt, last quarter)
Debt = 31.04b USD (Calculated: Short Term 8.57b + Long Term 22.47b)
Net Debt = 25.98b USD (from netDebt column, last quarter)
Enterprise Value = 259.01b USD (234.63b + Debt 31.04b - CCE 6.66b)
Interest Coverage Ratio = 14.15 (Ebit TTM 11.89b / Interest Expense TTM 840.3m)
FCF Yield = 6.49% (FCF TTM 16.81b / Enterprise Value 259.01b)
FCF Margin = 30.76% (FCF TTM 16.81b / Revenue TTM 54.63b)
Net Margin = 17.60% (Net Income TTM 9.62b / Revenue TTM 54.63b)
Gross Margin = 82.08% ((Revenue TTM 54.63b - Cost of Revenue TTM 9.79b) / Revenue TTM)
Tobins Q-Ratio = 6.16 (Enterprise Value 259.01b / Book Value Of Equity 42.02b)
Interest Expense / Debt = 0.00% (Interest Expense 289.0k / Debt 31.04b)
Taxrate = 12.47% (from yearly Income Tax Expense: 1.70b / 13.64b)
NOPAT = 10.40b (EBIT 11.89b * (1 - 12.47%))
Current Ratio = 0.82 (Total Current Assets 25.94b / Total Current Liabilities 31.71b)
Debt / Equity = 0.74 (Debt 31.04b / last Quarter total Stockholder Equity 41.98b)
Debt / EBITDA = 1.87 (Net Debt 25.98b / EBITDA 16.63b)
Debt / FCF = 1.85 (Debt 31.04b / FCF TTM 16.81b)
Total Stockholder Equity = 41.93b (last 4 quarters mean)
RoA = 9.21% (Net Income 9.62b, Total Assets 104.39b )
RoE = 22.94% (Net Income TTM 9.62b / Total Stockholder Equity 41.93b)
RoCE = 18.46% (Ebit 11.89b / (Equity 41.93b + L.T.Debt 22.47b))
RoIC = 14.46% (NOPAT 10.40b / Invested Capital 71.93b)
WACC = 6.46% (E(234.63b)/V(265.67b) * Re(7.31%)) + (D(31.04b)/V(265.67b) * Rd(0.00%) * (1-Tc(0.12)))
Shares Correlation 5-Years: -100.0 | Cagr: -3.42%
Discount Rate = 7.31% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 79.06% ; FCFE base≈14.77b ; Y1≈15.60b ; Y5≈18.45b
Fair Price DCF = 166.9 (DCF Value 323.13b / Shares Outstanding 1.94b; 5y FCF grow 6.12% → 3.0% )
Revenue Correlation: 30.75 | Revenue CAGR: 3.93%
Rev Growth-of-Growth: 16.77
EPS Correlation: -33.66 | EPS CAGR: -88.14%
EPS Growth-of-Growth: -113.7

Additional Sources for NVS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle