NOVN Stock Overview
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide.
No risks detected for NOVN from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||CHF74.39|
|52 Week High||CHF88.42|
|52 Week Low||CHF72.84|
|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 IPO||99.97%|
Recent News & Updates
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...
|NOVN||CH Pharmaceuticals||CH Market|
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.
|NOVN Average Weekly Movement||2.1%|
|Pharmaceuticals Industry Average Movement||5.5%|
|Market Average Movement||4.3%|
|10% most volatile stocks in CH Market||7.5%|
|10% least volatile stocks in CH Market||2.2%|
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
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|
Is NOVN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NOVN income statement (TTM)|
|Cost of Revenue||US$14.99b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 25, 2022
|Earnings per share (EPS)||10.53|
|Net Profit Margin||43.54%|
How did NOVN perform over the long term?See historical performance and comparison
4.1%Current Dividend Yield
Is NOVN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is NOVN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does NOVN's PE Ratio compare to its peers?
|NOVN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ROG Roche Holding
VIFN Vifor Pharma
COPN Cosmo Pharmaceuticals
LONN Lonza Group
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.
|Current PE Ratio||7.2x|
|Fair PE Ratio||38.8x|
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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How is Novartis forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Novartis performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
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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How is Novartis's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
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).
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What is Novartis's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Novartis Dividend Yield vs Market|
|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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Vas Narasimhan (46 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$12m||US$2m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$12m||US$2m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$12m||US$2m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$10m||US$2m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$5m||US$864k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$4m||US$753k|
Compensation vs Market: Vas's total compensation ($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.
Experienced Management: NOVN's management team is considered experienced (3.8 years average tenure).
Experienced Board: NOVN's board of directors are considered experienced (7.1 years average tenure).
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.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Novartis AG's employee growth, exchange listings and data sources
- 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
- Novartis AG
- Lichtstrasse 35
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NVS||NYSE (New York Stock Exchange)||ADR EACH REPR 1 CHF0.50(REGD)(EUR)||US||USD||Nov 1991|
|NVS N||BMV (Bolsa Mexicana de Valores)||ADR EACH REPR 1 CHF0.50(REGD)(EUR)||MX||MXN||Nov 1991|
|NOTA||DB (Deutsche Boerse AG)||ADR EACH REPR 1 CHF0.50(REGD)(EUR)||DE||EUR||Nov 1991|
|0K9E||LSE (London Stock Exchange)||ADR EACH REPR 1 CHF0.50(REGD)(EUR)||GB||USD||Nov 1991|
|NVSE.F||OTCPK (Pink Sheets LLC)||Yes||Common Stock||US||USD||Dec 1996|
|NOVN||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||Dec 1996|
|0QLR||LSE (London Stock Exchange)||Yes||Common Stock||GB||CHF||Dec 1996|
|NOVN N||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Dec 1996|
|NVS||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 4 REP 1||AR||ARS||Dec 2003|
|NVSD||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 4 REP 1||AR||USD||Dec 2003|
|NOVNEE||SWX (SIX Swiss Exchange)||CHF0.50 (2ND BUYBACK LINE)||CH||CHF||Mar 2008|
|N1VS34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 10 REPR 1 ADR||BR||BRL||Sep 2022|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.