A Business at a Glance
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NOVARTIS AG
NVS
$268.6B
Mkt Cap
$137.48
+0.00%
Item 4. Information on the Company 4.A History and development of Novartis Novartis AG Novartis AG was incorporated on February 29, 1996, under the laws of Switzerland as a stock corporation (“Aktiengesellschaft”) with an indefinite duration. On December 20, 1996, our predecessor companies, Ciba‑Geigy AG and Sandoz AG, merged into this new entity, creating Novartis. We are domiciled in and governed by the laws of Switzerland. Our registered office is located at the following address: Novartis AG Lichtstrasse 35 CH‑4056 Basel, Switzerland Telephone: +41‑61‑324‑1111 Website: www.novartis.com Novartis AG, our Swiss holding company, owns, directly or indirectly, all of our significant operating companies. For a list of our significant operating subsidiaries, see “Item 18. Financial Statements—Note 31. Novartis principal subsidiaries and associated companies.” For a description of important corporate developments since January 1, 2023, see “Item 18. Financial Statements—Note 2.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 0 | - | - | - | - | - |
| Net Income | 14.0B | 14.0B | 11.9B | 14.9B | 7.0B | 24.0B |
| EPS | $7.15 | $7.15 | $5.87 | $7.10 | $3.17 | $10.63 |
| Free Cash Flow | 17.6B | 17.6B | 16.3B | 13.4B |
| Metric | 2016 | 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||
| Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | 9.0B | 8.4B | 8.5B | 9.4B | 9.0B | 8.6B | 9.2B | 11.4B | 10.0B | 11.2B | 11.2B |
| SG&A | 14.2B | 12.5B | 13.7B | 14.4B | 14.2B | 12.8B | 12.2B | 12.5B | 12.6B | 13.2B | 13.2B |
| EBIT | 8.3B | 8.7B | 8.4B | 9.1B | 10.2B | 10.1B | 7.9B | 9.8B | 14.5B | 17.6B | 17.6B |
| Op. Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Net Income | 6.7B | 7.7B | 12.6B | 11.7B | 8.1B | 24.0B | 7.0B | 14.9B | 11.9B | 14.0B | 14.0B |
| Net Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||
| ROIC | 10.1% | 10.4% | 11.0% | 12.4% | 16.7% | 17.5% | 12.0% | 20.6% | 36.0% | 43.1% | 41.2% |
| ROE | 8.8% | 10.1% | 16.1% | 17.0% | 13.9% | 38.4% | 10.9% | 28.0% | 26.3% | 30.8% | 30.0% |
| ROA | N/A | 5.8% | 9.1% | 8.9% | 6.6% | 18.5% | 5.6% | 13.7% | 11.8% | 13.1% | 12.6% |
| Cash Flow | |||||||||||
| Op. Cash Flow | 11.5B | 12.6B | 14.3B | 13.6B | 13.7B | 15.1B | 14.2B | 14.5B | 17.6B | 19.1B | 19.1B |
| Free Cash Flow | 9.6B | 11.3B | 13.0B | 12.2B | 12.4B | 14.0B | 13.3B | 13.4B | 16.3B | 17.6B | 17.6B |
| Owner Earnings | 11.5B | 12.6B | 14.3B | 13.6B | 13.7B | 15.1B | 14.2B | 14.5B | 17.6B | 19.1B | 19.1B |
| CapEx | 1.9B | 1.3B | 1.3B | 1.4B | 1.3B | 1.1B | 916M | 1.1B | 1.4B | 1.5B | 1.5B |
| Maint. CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.5B |
| D&A | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx/OCF | 16.2% | 10.5% | 8.8% | 10.1% | 9.3% | 7.1% | 6.4% | 7.3% | 7.8% | 8.1% | 8.1% |
| Capital Allocation | |||||||||||
| Dividends Paid | 6.5B | 6.5B | 7.0B | 6.6B | 7.0B | 7.4B | 7.5B | 7.3B | 7.6B | 7.8B | 7.8B |
| Dividend Yield | 5.1% | 5.3% | 5.4% | 4.3% | 4.4% | 4.5% | 4.7% | 4.0% | 3.8% | 3.5% | 2.9% |
| Share Buybacks | 992M | 5.6B | 2.0B | 5.5B | 3.1B | 2.9B | 10.9B | 8.5B | 8.4B | 9.1B | 9.1B |
| Buyback Yield | 0.8% | 4.3% | 1.5% | 3.2% | 1.8% | 1.8% | 6.3% | 4.5% | 4.5% | 3.5% | 3.4% |
| Stock-Based Comp | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||
| Net Debt | N/A | -7.8B | -9.4B | -8.4B | -6.4B | -8.9B | -4.4B | -10.6B | -7.5B | -10.0B | -10.0B |
| Cash & Equiv. | 7.0B | 8.9B | 13.3B | 11.1B | 9.7B | 12.4B | 7.5B | 13.4B | 11.5B | 11.4B | 11.4B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.5B |
| Debt/Equity | N/A | 0.01 | 0.05 | 0.05 | 0.06 | 0.05 | 0.05 | 0.06 | 0.09 | 0.03 | 0.03 |
| Interest Coverage | 11.7 | 11.6 | 9.0 | 10.7 | 11.7 | 12.8 | 9.9 | 11.4 | 14.5 | 15.4 | 15.4 |
| Equity | 74.9B | 77.9B | 78.7B | 55.6B | 56.7B | 67.8B | 59.4B | 46.8B | 44.1B | 46.5B | 46.5B |
| Total Assets | N/A | 133.1B | 145.6B | 118.4B | 127.8B | 131.8B | 117.5B | 99.9B | 102.2B | 110.9B | 110.9B |
| Total Liabilities | N/A | 58.9B | 66.9B | 62.8B | 71.1B | 64.0B | 58.0B | 53.2B | 58.1B | 64.4B | 64.4B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Working Capital | N/A | 4.8B | 6.0B | 1.2B | -3.4B | 15.5B | 8.3B | 4.1B | 1.0B | 3.2B | 3.2B |
| Current Assets | N/A | 28.2B | 35.6B | 29.5B | 29.7B | 45.7B | 36.9B | 30.5B | 29.7B | 30.5B | 30.5B |
| Current Liabilities | N/A | 23.4B | 29.6B | 28.3B | 33.1B | 30.2B | 28.7B | 26.4B | 28.7B | 27.3B | 27.3B |
| Per Share Data | |||||||||||
| EPS | 2.51 | 3.25 | 5.38 | 5.06 | 3.52 | 10.63 | 3.17 | 7.10 | 5.87 | 7.15 | 7.15 |
| Owner EPS | 4.30 | 5.32 | 6.09 | 5.87 | 5.95 | 6.67 | 6.49 | 6.91 | 8.66 | 9.80 | 9.80 |
| Book Value | 28.05 | 32.86 | 33.56 | 23.95 | 24.71 | 30.02 | 27.08 | 22.35 | 21.70 | 23.83 | 23.83 |
| Cash Flow/Share | 4.30 | 5.32 | 6.09 | 5.87 | 5.95 | 6.67 | 6.49 | 6.91 | 8.66 | 9.80 | 7.15 |
| Dividends/Share | 2.43 | 2.74 | 2.97 | 2.86 | 3.05 | 3.26 | 3.42 | 3.47 | 3.75 | 4.00 | 4.00 |
| Shares Out. | 2.7B | 2.4B | 2.3B | 2.3B | 2.3B | 2.3B | 2.2B | 2.1B | 2.0B | 2.0B | 2.0B |
| Valuation | |||||||||||
| P/E Ratio | 17.7 | 16.7 | 10.6 | 14.5 | 20.7 | 6.9 | 24.8 | 12.7 | 15.7 | 18.9 | 19.2 |
| P/FCF | 12.4 | 11.4 | 10.3 | 13.9 | 13.5 | 11.8 | 12.9 | 14.1 | 11.5 | 15.0 | 15.3 |
| EV/EBIT | N/A | 13.9 | 14.8 | 17.8 | 15.8 | 15.5 | 21.1 | 18.2 | 12.4 | 14.4 | 14.7 |
| Price/Book | 1.6 | 1.7 | 1.7 | 3.1 | 2.9 | 2.4 | 2.9 | 4.0 | 4.2 | 5.7 | 5.8 |
| Price/Sales | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| FCF Yield | 8.1% | 8.8% | 9.8% | 7.2% | 7.4% | 8.5% | 7.7% | 7.1% | 8.7% | 6.7% | 6.6% |
| Market Cap | 118.8B | 128.6B | 133.5B | 170.2B | 166.7B | 165.1B | 172.2B | 188.6B | 187.2B | 263.8B | 268.6B |
| Avg. Price | 47.50 | 51.52 | 54.92 | 65.87 | 69.20 | 72.46 | 73.15 | 86.17 | 98.40 | 113.67 | 137.48 |
| Year-End Price | 44.52 | 54.27 | 56.94 | 73.38 | 72.71 | 73.09 | 78.49 | 90.13 | 92.06 | 135.07 | 137.48 |
NOVARTIS AG passes 6 of 9 quality checks, suggesting mixed fundamentals.
NOVARTIS AG trades at 19.2x trailing earnings, compared to its 15-year median P/E of 16.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 15.3x vs a median of 12.6x. The company's 5-year average ROIC is 25.9%. Total shareholder yield (dividends + buybacks) is 6.3%. At current prices, the estimated annualized return to fair value is +7.9%.
NOVARTIS AG (NVS) has a current P/E ratio of 19.2, compared to its historical median P/E of 16.2. The stock is currently considered Fair based on its historical valuation range.
NOVARTIS AG (NVS) has a 5-year average return on invested capital (ROIC) of 25.9%. This indicates strong capital allocation and a potential competitive advantage.
NOVARTIS AG (NVS) has a market capitalization of $268.6B. It is classified as a mega-cap stock.
Yes, NOVARTIS AG (NVS) pays a dividend with a trailing twelve-month yield of 2.91%. The company also returns capital through share buybacks, with a buyback yield of 3.40%.
Based on historical P/E analysis, NOVARTIS AG (NVS) appears fair. The current P/E of 19.2 is 19% above its historical median of 16.2. The estimated fair value CAGR (P/E method) is 5.9%.
NOVARTIS AG (NVS) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
NOVARTIS AG (NVS) generated $17.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
| 13.3B |
| 14.0B |
| ROIC | 41.2% | 43.1% | 36.0% | 20.6% | 12.0% | 17.5% |
|---|
| Gross Margin | - | - | - | - | - | - |
|---|
| Debt/Equity | 0.03 | 0.03 | 0.09 | 0.06 | 0.05 | 0.05 |
|---|
| Dividends/Share | $4.00 | $4.00 | $3.75 | $3.47 | $3.42 | $3.26 |
|---|
| Operating Income | 17.6B | 17.6B | 14.5B | 9.8B | 7.9B | 10.1B |
|---|
| Operating Margin | 0.0% | - | - | - | - | - |
|---|
| ROE | 30.0% | 30.8% | 26.3% | 28.0% | 10.9% | 38.4% |
|---|
| Shares Outstanding | 1,953M | 1,953M | 2,034M | 2,092M | 2,194M | 2,259M |
|---|
NOVARTIS AG (NVS) has a debt-to-equity ratio of 0.03. This indicates a conservatively financed balance sheet.
NOVARTIS AG (NVS) reported earnings per share (EPS) of $7.15 in its most recent fiscal year.
NOVARTIS AG (NVS) has a return on equity (ROE) of 30.8%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 10 years of financial data for NOVARTIS AG (NVS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NOVARTIS AG (NVS) has a book value per share of $23.83, based on its most recent annual SEC filing.