Novartis AG (VTX:NOVN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NOVN, it is a dependable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Novartis here.
Established dividend payer and good value
NOVN’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if NOVN’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the pharmaceuticals industry, NOVN is also trading below its peers, relative to earnings generated. This further reaffirms that NOVN is potentially undervalued.
Income investors would also be happy to know that NOVN is a great dividend company, with a current yield standing at 3.2%. NOVN has also been regularly increasing its dividend payments to shareholders over the past decade.
For Novartis, I’ve put together three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for NOVN’s future growth? Take a look at our free research report of analyst consensus for NOVN’s outlook.
- Historical Performance: What has NOVN’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NOVN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.