Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, and cardiovascular, renal, and metabolic.
It is a $273B healthcare company. Revenue grew 9.6% over the last year, it keeps 25¢ of every dollar of sales as profit, and its net debt equals ~2.5 years of free cash flow. It trades at 20.3× earnings — around the middle of its own history.
- Website
- novartis.com
- Employees
- 75 267
- Sector
- Healthcare
- Founded
- 1996
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, quality and moat; Growth lags behind.
Valuation64
- P/E vs own history55th pct · 12/25
- FCF yield6.1% · 20/25
- P/S4.6x · 20/25
- EV/EBITDA17.3x · 12/25
Growth37
- Revenue CAGR6.5% · 12/25
- Net income CAGR-12.7% · 0/25
- EPS CAGR ~5Y-9.4% · 0/25
- Fwd implied growth34.6% · 25/25
Profitability95
- ROIC16.8% · 20/25
- ROE29.9% · 25/25
- Net margin24.7% · 25/25
- Operating margin29.9% · 25/25
Health61
- Altman Z3.50 · 25/25
- Current ratio0.86 · 6/25
- Interest coverage16.4x · 25/25
- Net cash / debtD/A 34% · 5/25
Quality92
- Piotroski F7/9 · 22/25
- Beneish M-2.77 · 25/25
- FCF conversion120% · 25/25
- Margin stabilityσ 5.0% · 20/25
Moat100
- ROIC >12% years5/5 yrs · 25/25
- Median gross margin74.1% · 25/25
- FCF-positive years5/5 yrs · 25/25
- Worst-year net marginworst 16.0% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2024FinancialRevenue crossed $50B$51.7B for the year
- FY2021FinancialProfitable every year on record5 consecutive profitable years in our data
- FY2021FinancialRevenue already above $10B$44.0B in first reported year
- FY2021FinancialPositive free cash flow every year since5-year streak
- FY2021FinancialBest year on record$24.0B net income
- 2021MilestoneWith the unit having generated US$9.69 billion in 2021, the spin-off would create the biggest generic drugs company…
- 2018AcquisitionGlaxoSmithKline announced that it has reached an agreement with Novartis to acquire Novartis' 36.5…
- 2017AcquisitionReuters announced that Novartis would acquire Advanced Accelerator Applications for $3.9…
- 2014AcquisitionNovartis purchased the rights to market Ophthotech's Fovista (an anti-PDGF aptamer, also being…
- 2012MilestoneAlso in 2012, Novartis became the biggest manufacturer of generic skin care medicine
- 2010AcquisitionNovartis offered to pay US$39.3 billion to fully acquire Alcon, the world's largest eye-care company,…
- 2006MilestoneAlso in 2006, Sandoz became the first company to have a biosimilar drug approved in Europe with its recombinant…
- 2005AcquisitionNovartis expanded its subsidiary Sandoz significantly through the US$8.29 billion acquisition of Hexal, one…
- 1997AcquisitionClariant merged with the specialty chemicals business that was spun off from Hoechst AG in Germany
- 1996FoundedNovartis was created in March 1996 and began operations on 20 December from the merger of Ciba-Geigy and Sandoz…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (75.0%)
- Strongly profitable — 24.7% net margin
- Strong cash conversion — FCF is 29.6% of revenue
- Interest covered 16.4× by operating earnings
- High returns on invested capital (ROIC 16.8%)
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+9.6% YoY
- Profitable — makes more than it spends$14.0B FY2025
- Profit growing — earnings are higher than last year+31.2% YoY
- Generates cash — cash left after running and investing$16.8B FY2025
- Debt under control — could handle its obligations~2.5y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$273B market cap
- Not printing shares — share count not ballooning — you keep your slice-13.4% shares over ~5y
- Proven track record — years of profitability behind it5/5 profitable years
- Financially stable — balance sheet not near distressAltman Z 3.5 — safe
- Pays a dividend — returns cash to shareholdersyield 3.49%
- Valuation not extreme — price not wildly above earningsP/E 20.3
Peer comparisonNovartis AG vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| NVS this company | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| AZN AstraZeneca PLC | $246.9B | 23.4 | +8.6% | 17.4% | Solid |
Head-to-head: NVS vs LLY · NVS vs JNJ · NVS vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2021–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/NVS
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Deeper analysis of NVS on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $143.75 · market cap $273B.