| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 2/6 |
| Dividends | 6/6 |
NOVN Overview
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide.
Novartis Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CHF76.93 |
| 52 Week High | CHF70.42 |
| 52 Week Low | CHF86.92 |
| Beta | 0.55 |
| 1 Month Change | -0.66% |
| 3 Month Change | -7.40% |
| 1 Year Change | -2.56% |
| 3 Year Change | -11.62% |
| 5 Year Change | 2.71% |
| Change since IPO | 106.80% |
Recent News & Updates
Is Novartis (VTX:NOVN) Using Too Much Debt?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| NOVN | CH Pharmaceuticals | CH Market | |
|---|---|---|---|
| 7D | 0.4% | 0.1% | 2.1% |
| 1Y | -2.6% | 8.1% | 18.8% |
Return vs Industry: NOVN underperformed the Swiss Pharmaceuticals industry which returned 8.1% over the past year.
Return vs Market: NOVN underperformed the Swiss Market which returned 18.8% over the past year.
Price Volatility
| NOVN volatility | |
|---|---|
| NOVN Beta | 0.55 |
| Industry Beta | 0.40 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1996 | 109,000 | Vas Narasimhan | https://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
| NOVN fundamental statistics | |
|---|---|
| Market Cap | US$186.33b |
| Earnings (TTM) | US$8.98b |
| Revenue (TTM) | US$51.56b |
20.7x
P/E Ratio3.6x
P/S RatioIs NOVN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NOVN income statement (TTM) | |
|---|---|
| Revenue | US$51.56b |
| Cost of Revenue | US$14.84b |
| Gross Profit | US$36.72b |
| Expenses | US$27.74b |
| Earnings | US$8.98b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 26, 2021
| Earnings per share (EPS) | 4.02 |
| Gross Margin | 71.22% |
| Net Profit Margin | 17.42% |
| Debt/Equity Ratio | 62.6% |
How did NOVN perform over the long term?
See historical performance and comparisonDividends
3.8%
Current Dividend Yield86%
Payout RatioValuation
Is Novartis undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NOVN (CHF76.93) is trading below our estimate of fair value (CHF232.44)
Significantly Below Fair Value: NOVN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NOVN is good value based on its PE Ratio (20.7x) compared to the European Pharmaceuticals industry average (26.2x).
PE vs Market: NOVN is good value based on its PE Ratio (20.7x) compared to the Swiss market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: NOVN is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: NOVN is good value based on its PB Ratio (3.4x) compared to the CH Pharmaceuticals industry average (3.7x).
Future Growth
How is Novartis forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVN's forecast earnings growth (6.3% per year) is above the savings rate (-0.3%).
Earnings vs Market: NOVN's earnings (6.3% per year) are forecast to grow slower than the Swiss market (9.5% per year).
High Growth Earnings: NOVN's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOVN's revenue (2.6% per year) is forecast to grow slower than the Swiss market (5.2% per year).
High Growth Revenue: NOVN's revenue (2.6% 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 (26.7%)
Past Performance
How has Novartis performed over the past 5 years?
2.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOVN has a large one-off loss of $2.8B impacting its June 30 2021 financial results.
Growing Profit Margin: NOVN's current net profit margins (17.4%) are higher than last year (14.6%).
Past Earnings Growth Analysis
Earnings Trend: NOVN's earnings have grown by 2.4% per year over the past 5 years.
Accelerating Growth: NOVN's earnings growth over the past year (24.6%) exceeds its 5-year average (2.4% per year).
Earnings vs Industry: NOVN earnings growth over the past year (24.6%) exceeded the Pharmaceuticals industry 10.2%.
Return on Equity
High ROE: NOVN's Return on Equity (16.6%) is considered low.
Financial Health
How is Novartis's financial position?
Financial Position Analysis
Short Term Liabilities: NOVN's short term assets ($23.8B) do not cover its short term liabilities ($29.6B).
Long Term Liabilities: NOVN's short term assets ($23.8B) do not cover its long term liabilities ($40.3B).
Debt to Equity History and Analysis
Debt Level: NOVN's debt to equity ratio (62.6%) is considered high.
Reducing Debt: NOVN's debt to equity ratio has increased from 36.3% to 62.6% over the past 5 years.
Debt Coverage: NOVN's debt is well covered by operating cash flow (39.6%).
Interest Coverage: NOVN's interest payments on its debt are well covered by EBIT (19x coverage).
Balance Sheet
Dividend
What is Novartis's current dividend yield, its reliability and sustainability?
3.82%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NOVN's dividend (3.82%) is higher than the bottom 25% of dividend payers in the Swiss market (1.39%).
High Dividend: NOVN's dividend (3.82%) is in the top 25% of dividend payers in the Swiss market (3.65%)
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.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (85.6%), NOVN's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NOVN's dividends in 3 years are forecast to be well covered by earnings (47.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Vas Narasimhan (45 yo)
3.67yrs
Tenure
US$11,734,153
Compensation
Dr. Vasant Narasimhan, also known as Vas, M.D., serves as Chief Executive Officer of Novartis AG at Novartis India Ltd. Dr. Narasimhan has been Chief Executive Officer of Novartis AG since February 1, 2018...
CEO Compensation Analysis
Compensation vs Market: Vas's total compensation ($USD11.73M) is above average for companies of similar size in the Swiss market ($USD5.42M).
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 (3.4 years average tenure).
Board Members
Experienced Board: NOVN's board of directors are considered experienced (8.8 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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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
- Market Cap: CHF172.072b
- Shares outstanding: 2.24b
- Website: https://www.novartis.com
Number of Employees
Location
- Novartis AG
- Lichtstrasse 35
- Basel
- Basel-Stadt
- 4056
- Switzerland
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/17 17:05 |
| End of Day Share Price | 2021/10/15 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.