(NOVN) Novartis - SW
Sector: Healthcare | Industry: Drug Manufacturers - General | Exchange: SW (Switzerland) | Market Cap: 232.940m CHF | Total Return: 28.5% in 12m
Avg Turnover: 303M
EPS Trend: 95.2%
Qual. Beats: -1
Rev. Trend: 96.1%
Qual. Beats: -1
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. The company maintains a diverse portfolio targeting high-prevalence therapeutic areas, including oncology, cardiovascular health, immunology, and neuroscience. Key revenue drivers include Entresto for heart failure, Cosentyx for inflammatory conditions, and Kisqali for cancer treatment.
The business model relies heavily on a research-driven pipeline and intellectual property protections, which grant exclusive marketing rights for a set period before generic competition enters the market. Novartis also utilizes strategic collaborations, such as its agreement with Alnylam Pharmaceuticals, to co-develop advanced therapies like Leqvio. This sector is characterized by high capital expenditures in R&D and a rigorous regulatory approval process through agencies like the FDA and EMA.
Investors may find additional valuation metrics and peer comparisons for Novartis by exploring the data on ValueRay. The company continues to transition toward a pure-play innovative medicines structure following the spin-off of its Sandoz generics division.
- Entresto and Cosentyx revenue growth drives core operating margins
- Pipeline execution in radioligand and RNA therapies expands oncology market share
- Strategic shift to pure-play innovative medicines improves capital allocation efficiency
- Patent expirations and generic competition threaten legacy product sales volume
| Net Income: 13.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -2.11 > 1.0 |
| NWC/Revenue: -8.62% < 20% (prev -12.23%; Δ 3.61% < -1%) |
| CFO/TA 0.16 > 3% & CFO 19.0b > Net Income 13.5b |
| Net Debt (42.1b) to EBITDA (22.3b): 1.89 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.92b) vs 12m ago -3.18% < -2% |
| Gross Margin: 75.13% > 18% (prev 75.65%; Δ -0.52% > 0.5%) |
| Asset Turnover: 50.69% > 50% (prev 53.25%; Δ -2.56% > 0%) |
| Interest Coverage Ratio: 13.87 > 6 (EBIT TTM 16.9b / Interest Expense TTM 1.22b) |
| A: -0.04 (Total Current Assets 26.7b - Total Current Liabilities 31.5b) / Total Assets 119b |
| B: 0.31 (Retained Earnings 37.4b / Total Assets 119b) |
| C: 0.15 (EBIT TTM 16.9b / Avg Total Assets 109b) |
| D: 0.48 (Book Value of Equity 38.6b / Total Liabilities 79.8b) |
| Altman-Z'' = 2.31 = BBB |
| DSRI: 1.06 (Receivables 9.63b/8.72b, Revenue 55.5b/53.2b) |
| GMI: 1.01 (GM 75.65% / 75.13%) |
| AQI: 1.05 (AQ_t 0.67 / AQ_t-1 0.64) |
| SGI: 1.04 (Revenue 55.5b / 53.2b) |
| TATA: -0.05 (NI 13.5b - CFO 19.0b) / TA 119b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of June 17, 2026, the stock is trading at CHF 119.70 with a total of 2,885,070 shares traded.
Over the past week, the price has changed by +2.45%,
over one month by +3.03%,
over three months by -1.00% and
over the past year by +28.54%.
Novartis has no consensus analysts rating.
Market Cap USD = 293b (233b CHF * 1.258 CHF.USD)
P/E Trailing = 21.8781
P/E Forward = 17.3913
P/S = 4.1171
P/B = 7.5601
P/EG = 4.1403
Revenue TTM = 55.5b USD
EBIT TTM = 16.9b USD
EBITDA TTM = 22.3b USD
Long Term Debt = 37.4b USD (from longTermDebt, last quarter)
Short Term Debt = 7.91b USD (from shortTermDebt, last quarter)
Debt = 49.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.93b
Net Debt = 42.1b USD (calculated: Debt 49.1b - CCE 7.00b)
Enterprise Value = 335b USD (293b + Debt 49.1b - CCE 7.00b)
Interest Coverage Ratio = 13.87 (Ebit TTM 16.9b / Interest Expense TTM 1.22b)
EV/FCF = 20.16x (Enterprise Value 335b / FCF TTM 16.6b)
FCF Yield = 4.96% (FCF TTM 16.6b / Enterprise Value 335b)
FCF Margin = 29.98% (FCF TTM 16.6b / Revenue TTM 55.5b)
Net Margin = 24.31% (Net Income TTM 13.5b / Revenue TTM 55.5b)
Gross Margin = 75.13% ((Revenue TTM 55.5b - Cost of Revenue TTM 13.8b) / Revenue TTM)
Gross Margin QoQ = 73.78% (prev 73.44%)
Tobins Q-Ratio = 2.82 (Enterprise Value 335b / Total Assets 119b)
Interest Expense / Debt = 2.49% (Interest Expense 1.22b / Debt 49.1b)
Taxrate = 14.38% (2.26b / 15.7b)
NOPAT = 14.5b (EBIT 16.9b * (1 - 14.38%))
Current Ratio = 0.85 (Total Current Assets 26.7b / Total Current Liabilities 31.5b)
Debt / Equity = 1.27 (Debt 49.1b / totalStockholderEquity, last quarter 38.6b)
Debt / EBITDA = 1.89 (Net Debt 42.1b / EBITDA 22.3b)
Debt / FCF = 2.53 (Net Debt 42.1b / FCF TTM 16.6b)
Total Stockholder Equity = 42.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.32% (Net Income 13.5b / Total Assets 119b)
RoE = 31.54% (Net Income TTM 13.5b / Total Stockholder Equity 42.8b)
RoCE = 21.12% (EBIT 16.9b / Capital Employed (Equity 42.8b + L.T.Debt 37.4b))
RoIC = 15.67% (NOPAT 14.5b / Invested Capital 92.6b)
WACC = 5.52% (E(293b)/V(342b) * Re(6.09%) + D(49.1b)/V(342b) * Rd(2.49%) * (1-Tc(0.14)))
Discount Rate = 6.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -3.27%
[DCF] Terminal Value 75.87% ; FCFF base≈16.4b ; Y1≈16.9b ; Y5≈19.0b
[DCF] Fair Price = 131.6 (EV 293b - Net Debt 42.1b = Equity 251b / Shares 1.91b; r=8.35% [WACC [floored]]; 5y FCF grow 3.36% → 2.50% )
EPS Correlation: 95.18 | EPS CAGR: 12.53% | SUE: -1.33 | # QB: -1
Revenue Correlation: 96.12 | Revenue CAGR: 8.26% | SUE: -1.44 | # QB: -1
EPS current Quarter (2026-06-30): EPS=2.14 | Chg30d=N/A | Revisions=-14% | Analysts=5
EPS next Quarter (2026-09-30): EPS=2.23 | Chg30d=N/A | Revisions=+14% | Analysts=5
EPS current Year (2026-12-31): EPS=8.75 | Chg30d=N/A | Revisions=-10% | GrowthEPS=-2.6% | GrowthRev=+0.7%
EPS next Year (2027-12-31): EPS=9.71 | Chg30d=-0.16% | Revisions=+33% | GrowthEPS=+11.0% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: +33%