Market Cap
CHF195.6b
Last Updated
2021/01/21 01:59 UTC
Data Sources
Company Financials +
Executive Summary
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Novartis's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NOVN is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NOVN's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
3.0%
NOVN
2.4%
CH Pharmaceuticals
0.1%
CH Market
1 Year Return
-6.3%
NOVN
-5.7%
CH Pharmaceuticals
-1.0%
CH Market
Return vs Industry: NOVN underperformed the Swiss Pharmaceuticals industry which returned -5.7% over the past year.
Return vs Market: NOVN underperformed the Swiss Market which returned -1% over the past year.
Shareholder returns
| NOVN | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.0% | 2.4% | 0.1% |
| 30 Day | 9.5% | 6.7% | 4.7% |
| 90 Day | 12.5% | 9.1% | 8.0% |
| 1 Year | -2.8%-6.3% | -2.5%-5.7% | 2.5%-1.0% |
| 3 Year | 23.8%-1.4% | 37.1%17.2% | 19.7%4.6% |
| 5 Year | 50.1%11.1% | 39.7%12.4% | 50.5%25.7% |
Long-Term Price Volatility Vs. Market
How volatile is Novartis's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Does It Make Sense To Buy Novartis AG (VTX:NOVN) For Its Yield?3 weeks ago | Simply Wall St
How Does Novartis' (VTX:NOVN) CEO Pay Compare With Company Performance?1 month ago | Simply Wall St
Are Novartis's (VTX:NOVN) Statutory Earnings A Good Guide To Its Underlying Profitability?Valuation
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 (CHF86.01) is trading below our estimate of fair value (CHF174.7)
Significantly Below Fair Value: NOVN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NOVN is poor value based on its PE Ratio (31x) compared to the XE Pharmaceuticals industry average (23x).
PE vs Market: NOVN is poor value based on its PE Ratio (31x) compared to the Swiss market (24x).
Price to Earnings Growth Ratio
PEG Ratio: NOVN is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: NOVN is overvalued based on its PB Ratio (4x) compared to the CH Pharmaceuticals industry average (3.4x).
Next Steps
Future Growth
How is Novartis forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
11.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVN's forecast earnings growth (11.1% per year) is above the savings rate (-0.3%).
Earnings vs Market: NOVN's earnings (11.1% per year) are forecast to grow slower than the Swiss market (13.1% per year).
High Growth Earnings: NOVN's earnings are forecast to grow, but not significantly.
Revenue vs Market: NOVN's revenue (3.7% per year) is forecast to grow slower than the Swiss market (4.6% per year).
High Growth Revenue: NOVN's revenue (3.7% 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 (26.3%)
Next Steps
Past Performance
How has Novartis performed over the past 5 years?
4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOVN has a large one-off loss of $4.2B impacting its September 30 2020 financial results.
Growing Profit Margin: NOVN's current net profit margins (14.3%) are lower than last year (15.1%).
Past Earnings Growth Analysis
Earnings Trend: NOVN's earnings have grown by 4.2% per year over the past 5 years.
Accelerating Growth: NOVN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NOVN had negative earnings growth (-1.9%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (13.8%).
Return on Equity
High ROE: NOVN's Return on Equity (13%) is considered low.
Next Steps
Financial Health
How is Novartis's financial position?
Financial Position Analysis
Short Term Liabilities: NOVN's short term assets ($29.0B) do not cover its short term liabilities ($31.8B).
Long Term Liabilities: NOVN's short term assets ($29.0B) do not cover its long term liabilities ($43.3B).
Debt to Equity History and Analysis
Debt Level: NOVN's debt to equity ratio (66.4%) is considered high.
Reducing Debt: NOVN's debt to equity ratio has increased from 29.5% to 66.4% over the past 5 years.
Debt Coverage: NOVN's debt is well covered by operating cash flow (36.4%).
Interest Coverage: NOVN's interest payments on its debt are well covered by EBIT (21.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Novartis's current dividend yield, its reliability and sustainability?
3.10%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NOVN's dividend (3.1%) is higher than the bottom 25% of dividend payers in the Swiss market (1.59%).
High Dividend: NOVN's dividend (3.1%) is low compared to the top 25% of dividend payers in the Swiss market (3.79%).
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: With its high payout ratio (97.5%), NOVN's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NOVN's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Vas Narasimhan (44 yo)
2.92yrs
Tenure
US$11,809,622
Compensation
Dr. Vasant Narasimhan, also known as Vas, M.D., serves as Chief Executive Officer of Novartis AG at Novartis India Ltd. Dr. Narasimhan has been Chief Executive Officer of Novartis AG since February 1, 2018...
CEO Compensation Analysis
Compensation vs Market: Vas's total compensation ($USD11.81M) is above average for companies of similar size in the Swiss market ($USD5.93M).
Compensation vs Earnings: Vas's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 2.92yrs | US$11.81m | 0.012% $ 23.2m | |
| Chief Financial Officer | 7.67yrs | US$6.28m | 0.011% $ 21.6m | |
| Global Head of Technical Operations | 3.75yrs | US$3.25m | 0.0047% $ 9.3m | |
| Chief Legal Officer | 2.58yrs | US$3.74m | 0.0031% $ 6.1m | |
| Chief Ethics | 2.08yrs | US$2.19m | 0.00066% $ 1.3m | |
| Chief People & Organization Officer | 6.92yrs | US$4.14m | 0.0060% $ 11.7m | |
| Chief Digital Officer | 3yrs | US$2.66m | 0.0014% $ 2.7m | |
| Head of Global Drug Development & Chief Medical Officer | 2.67yrs | US$4.84m | 0.0024% $ 4.6m | |
| Head of Novartis Business Services | 2.58yrs | US$2.46m | 0.00085% $ 1.7m | |
| President of Novartis Oncology | 2yrs | US$4.73m | 0.0047% $ 9.3m | |
| Chief Executive Officer of Sandoz | 1.5yrs | US$3.27m | 0.00048% $ 939.0k | |
| President of Novartis Institutes for Biomedical Research | 4.83yrs | US$6.31m | 0.0076% $ 14.8m |
2.8yrs
Average Tenure
51.5yo
Average Age
Experienced Management: NOVN's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairperson & President of Advanced Accelerator Applications | no data | no data | no data | |
| Honorary Chairman | no data | no data | no data | |
| Honorary Chairman | no data | US$3.34m | no data | |
| Independent Non Executive Director | 12.92yrs | US$413.01k | 0.00062% $ 1.2m | |
| Independent Non Executive Director | 14.92yrs | US$479.48k | 0.0071% $ 13.9m | |
| Independent Non Executive Chairman | 7.42yrs | US$3.93m | 0.025% $ 48.5m | |
| Independent Non Executive Director | 18yrs | US$474.97k | 0.0018% $ 3.6m | |
| Independent Non Executive Director | 8yrs | US$364.83k | 0.00080% $ 1.6m | |
| Independent Non Executive Director | 8yrs | US$371.71k | 0.00048% $ 939.0k | |
| Independent Non Executive Vice Chairman | 7.92yrs | US$550.87k | 0.0012% $ 2.3m | |
| Independent Non Executive Director | 5.92yrs | US$371.71k | 0.00032% $ 626.0k | |
| Independent Non-Executive Director | 4.92yrs | US$464.64k | 0.00030% $ 586.9k |
8.0yrs
Average Tenure
64.5yo
Average Age
Experienced Board: NOVN's board of directors are considered experienced (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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Novartis AG
- Ticker: NOVN
- Exchange: SWX
- Founded: 1895
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: CHF195.630b
- Shares outstanding: 2.27b
- Website: https://www.novartis.com
Number of Employees
Location
- Novartis AG
- Lichtstrasse 35
- Basel
- Basel-Stadt
- 4056
- Switzerland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NVS | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Nov 1991 | |
| NVS N | BMV (Bolsa Mexicana de Valores) | SPONSORED ADR | MX | MXN | Nov 1991 | |
| NOTA | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Nov 1991 | |
| 0K9E | LSE (London Stock Exchange) | SPONSORED ADR | 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 |
| NOT | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1996 |
| NOT | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Dec 1996 |
| NVS | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP 0.5 ADR | AR | ARS | Dec 2003 | |
| NOVNEE | SWX (SIX Swiss Exchange) | CHF0.50 (2ND BUYBACK LINE) | CH | CHF | Mar 2008 | |
| 0QM7 | LSE (London Stock Exchange) | CHF0.50 (2ND BUYBACK LINE) | GB | CHF | Mar 2008 |
Biography
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. Its Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also prov...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 01:59 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.