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NOVN

Novartis SWX:NOVN Stock Report

Last Price

CHF74.39

Market Cap

CHF162.4b

7D

-1.8%

1Y

-3.7%

Updated

28 Sep, 2022

Data

Company Financials +
NOVN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance6/6
Financial Health5/6
Dividends5/6

NOVN Stock Overview

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide.

Novartis Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Novartis
Historical stock prices
Current Share PriceCHF74.39
52 Week HighCHF88.42
52 Week LowCHF72.84
Beta0.49
1 Month Change-6.98%
3 Month Change-7.99%
1 Year Change-3.68%
3 Year Change-11.60%
5 Year Change-11.65%
Change since IPO99.97%

Recent News & Updates

Aug 28
Here's Why Novartis (VTX:NOVN) Can Manage Its Debt Responsibly

Here's Why Novartis (VTX:NOVN) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

NOVNCH PharmaceuticalsCH Market
7D-1.8%-1.7%-3.1%
1Y-3.7%-0.7%-15.7%

Return vs Industry: NOVN underperformed the Swiss Pharmaceuticals industry which returned -0.7% over the past year.

Return vs Market: NOVN exceeded the Swiss Market which returned -15.7% over the past year.

Price Volatility

Is NOVN's price volatile compared to industry and market?
NOVN volatility
NOVN Average Weekly Movement2.1%
Pharmaceuticals Industry Average Movement5.5%
Market Average Movement4.3%
10% most volatile stocks in CH Market7.5%
10% least volatile stocks in CH Market2.2%

Stable Share Price: NOVN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: NOVN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996108,000Vas Narasimhanhttps://www.novartis.com

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers.

Novartis Fundamentals Summary

How do Novartis's earnings and revenue compare to its market cap?
NOVN fundamental statistics
Market CapCHF162.38b
Earnings (TTM)CHF22.52b
Revenue (TTM)CHF51.73b

7.2x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOVN income statement (TTM)
RevenueUS$52.79b
Cost of RevenueUS$14.99b
Gross ProfitUS$37.80b
Other ExpensesUS$14.82b
EarningsUS$22.98b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)10.53
Gross Margin71.61%
Net Profit Margin43.54%
Debt/Equity Ratio46.5%

How did NOVN perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

33%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NOVN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOVN?

Other financial metrics that can be useful for relative valuation.

NOVN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.4x
Enterprise Value/EBITDA9.6x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does NOVN's PE Ratio compare to its peers?

NOVN PE Ratio vs Peers
The above table shows the PE ratio for NOVN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.6x
ROG Roche Holding
17.5x7.6%CHF257.2b
VIFN Vifor Pharma
78.8x42.3%CHF11.6b
COPN Cosmo Pharmaceuticals
21.7x48.8%CHF725.0m
LONN Lonza Group
36.3x16.9%CHF33.0b
NOVN Novartis
7.2x3.9%CHF162.4b

Price-To-Earnings vs Peers: NOVN is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (38.6x).


Price to Earnings Ratio vs Industry

How does NOVN's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

Price-To-Earnings vs Industry: NOVN is good value based on its Price-To-Earnings Ratio (7.2x) compared to the European Pharmaceuticals industry average (17.5x)


Price to Earnings Ratio vs Fair Ratio

What is NOVN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOVN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio38.8x

Price-To-Earnings vs Fair Ratio: NOVN is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (38.8x).


Share Price vs Fair Value

What is the Fair Price of NOVN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOVN (CHF74.39) is trading below our estimate of fair value (CHF203)

Significantly Below Fair Value: NOVN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Novartis forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOVN's forecast earnings growth (3.9% per year) is above the savings rate (-0.2%).

Earnings vs Market: NOVN's earnings (3.9% per year) are forecast to grow slower than the Swiss market (9.1% per year).

High Growth Earnings: NOVN's earnings are forecast to grow, but not significantly.

Revenue vs Market: NOVN's revenue (1.8% per year) is forecast to grow slower than the Swiss market (4.4% per year).

High Growth Revenue: NOVN's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOVN's Return on Equity is forecast to be high in 3 years time (21.7%)


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Past Performance

How has Novartis performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


17.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOVN has high quality earnings.

Growing Profit Margin: NOVN's current net profit margins (43.5%) are higher than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: NOVN's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: NOVN's earnings growth over the past year (155.8%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: NOVN earnings growth over the past year (155.8%) exceeded the Pharmaceuticals industry 19.1%.


Return on Equity

High ROE: NOVN's Return on Equity (36.5%) is considered high.


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Financial Health

How is Novartis's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOVN's short term assets ($38.1B) exceed its short term liabilities ($27.6B).

Long Term Liabilities: NOVN's short term assets ($38.1B) exceed its long term liabilities ($32.3B).


Debt to Equity History and Analysis

Debt Level: NOVN's net debt to equity ratio (15.3%) is considered satisfactory.

Reducing Debt: NOVN's debt to equity ratio has increased from 43.6% to 46.5% over the past 5 years.

Debt Coverage: NOVN's debt is well covered by operating cash flow (48.5%).

Interest Coverage: NOVN's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet


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Dividend

What is Novartis's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.07%

Current Dividend Yield

Dividend Yield vs Market

Novartis Dividend Yield vs Market
How does Novartis dividend yield compare to the market?
SegmentDividend Yield
Company (Novartis)4.1%
Market Bottom 25% (CH)2.1%
Market Top 25% (CH)4.4%
Industry Average (Pharmaceuticals)3.0%
Analyst forecast in 3 Years (Novartis)4.5%

Notable Dividend: NOVN's dividend (4.07%) is higher than the bottom 25% of dividend payers in the Swiss market (2.12%).

High Dividend: NOVN's dividend (4.07%) is low compared to the top 25% of dividend payers in the Swiss market (4.42%).


Stability and Growth of Payments

Stable Dividend: NOVN's dividends per share have been stable in the past 10 years.

Growing Dividend: NOVN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.8%), NOVN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (58.3%), NOVN's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Vas Narasimhan (46 yo)

4.58yrs

Tenure

US$11,656,325

Compensation

Dr. Vasant Narasimhan, also known as Vas, M.D., serves as Chief Executive Officer of Novartis AG at Novartis India Ltd. Dr. Narasimhan has been Chief Executive Officer of Novartis AG since February 1, 2018...


CEO Compensation Analysis

Vas Narasimhan's Compensation vs Novartis Earnings
How has Vas Narasimhan's remuneration changed compared to Novartis's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$23b

Mar 31 2022n/an/a

US$24b

Dec 31 2021US$12mUS$2m

US$24b

Sep 30 2021n/an/a

US$10b

Jun 30 2021n/an/a

US$9b

Mar 31 2021n/an/a

US$8b

Dec 31 2020US$12mUS$2m

US$8b

Sep 30 2020n/an/a

US$7b

Jun 30 2020n/an/a

US$7b

Mar 31 2020n/an/a

US$7b

Dec 31 2019US$12mUS$2m

US$7b

Sep 30 2019n/an/a

US$7b

Jun 30 2019n/an/a

US$7b

Mar 31 2019n/an/a

US$13b

Dec 31 2018US$10mUS$2m

US$13b

Sep 30 2018n/an/a

US$14b

Jun 30 2018n/an/a

US$14b

Mar 31 2018n/an/a

US$8b

Dec 31 2017US$5mUS$864k

US$7b

Sep 30 2017n/an/a

US$7b

Jun 30 2017n/an/a

US$7b

Mar 31 2017n/an/a

US$6b

Dec 31 2016US$4mUS$753k

US$7b

Compensation vs Market: Vas's total compensation ($USD11.66M) is above average for companies of similar size in the Swiss market ($USD6.79M).

Compensation vs Earnings: Vas's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NOVN's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: NOVN's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of NOVN?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders2,127,2830.1%
Private Companies85,135,9603.9%
General Public958,410,40343.9%
Institutions1,137,114,94252.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 41.81% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.37%
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
270,072,400$20.1b0.01%8.37%
3.9%
Sandoz Family Office SA
85,135,960$6.3b0%no data
3.69%
The Vanguard Group, Inc.
80,519,664$6.0b1.51%0.14%
2.67%
UBS Asset Management
58,336,970$4.3b-0.97%0.86%
2.45%
Wellington Management Group LLP
53,473,512$4.0b1.11%0.74%
2.3%
Norges Bank Investment Management
50,212,891$3.7b0%0.51%
2.29%
Credit Suisse Asset Management (Switzerland)
50,012,984$3.7b0%3.56%
2.03%
Dodge & Cox
44,214,539$3.3b-12.83%1.96%
1.6%
Capital Research and Management Company
34,850,314$2.6b0.01%0.18%
0.81%
PRIMECAP Management Company
17,604,080$1.3b-1.02%1.23%
0.76%
Loomis Sayles & Company, L.P.
16,528,862$1.2b-0.22%2.34%
0.72%
Artisan Partners Limited Partnership
15,787,983$1.2b4.9%1.22%
0.69%
Geode Capital Management, LLC
14,970,929$1.1b1.75%0.15%
0.68%
Deutsche Asset & Wealth Management
14,744,883$1.1b0.02%0.48%
0.62%
Zürcher Kantonalbank, Investment Arm
13,497,985$1.0b0%10.03%
0.55%
Fisher Asset Management, LLC
12,062,613$897.3m4.01%0.68%
0.52%
Pictet Asset Management Limited
11,276,767$838.9m-0.45%0.76%
0.45%
Charles Schwab Investment Management, Inc.
9,839,164$731.9m0.42%0.2%
0.45%
Dimensional Fund Advisors LP
9,740,117$724.6m0.02%0.18%
0.44%
Ontario Teachers' Pension Plan Board
9,700,000$721.6m0%6.25%
0.4%
State Street Global Advisors, Inc.
8,669,829$644.9m0.07%0.04%
0.38%
Massachusetts Financial Services Company
8,208,491$610.6m-0.01%0.16%
0.37%
Franklin Resources, Inc.
8,135,657$605.2m-0.45%0.26%
0.37%
J.P. Morgan Asset Management, Inc.
7,988,815$594.3m-6.71%0.11%
0.32%
Boston Partners Global Investors, Inc.
7,039,702$523.7m-0.65%0.45%

Company Information

Novartis AG's employee growth, exchange listings and data sources


Key Information

  • Name: Novartis AG
  • Ticker: NOVN
  • Exchange: SWX
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: CHF162.378b
  • Shares outstanding: 2.18b
  • Website: https://www.novartis.com

Number of Employees


Location

  • Novartis AG
  • Lichtstrasse 35
  • Basel
  • Basel-Stadt
  • 4056
  • Switzerland


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVSNYSE (New York Stock Exchange)ADR EACH REPR 1 CHF0.50(REGD)(EUR)USUSDNov 1991
NVS NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 CHF0.50(REGD)(EUR)MXMXNNov 1991
NOTADB (Deutsche Boerse AG)ADR EACH REPR 1 CHF0.50(REGD)(EUR)DEEURNov 1991
0K9ELSE (London Stock Exchange)ADR EACH REPR 1 CHF0.50(REGD)(EUR)GBUSDNov 1991
NVSE.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 1996
NOVNSWX (SIX Swiss Exchange)YesCommon StockCHCHFDec 1996
0QLRLSE (London Stock Exchange)YesCommon StockGBCHFDec 1996
NOVN NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1996
NVSBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1ARARSDec 2003
NVSDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1ARUSDDec 2003
NOVNEESWX (SIX Swiss Exchange)CHF0.50 (2ND BUYBACK LINE)CHCHFMar 2008
N1VS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 ADRBRBRLSep 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.