# Novartis AG (NVS) — Stock CV

Novartis AG 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.

> Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, and cardiovascular, renal, and metabolic.

## Identity

- **Ticker**: NVS
- **Sector**: Healthcare
- **Industry**: Drug Manufacturers - General
- **Employees**: 75 267
- **Website**: https://www.novartis.com
- **Market cap**: $273B
- **Last price**: $143.75
- **Financial profile**: Solid

## Vitals (FY2025)

- **Revenue**: $56.7B
- **Net income**: $14.0B
- **Free cash flow**: $16.8B
- **Net debt**: $41.4B
- **P/E**: 20.3
- **Revenue growth (YoY)**: 9.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 64 |
| Growth | 37 |
| Profitability | 95 |
| Health | 61 |
| Quality | 92 |
| Moat | 100 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +9.6% YoY
- [x] Profitable — $14.0B FY2025
- [x] Profit growing — +31.2% YoY
- [x] Generates cash — $16.8B FY2025
- [x] Debt under control — ~2.5y of cash flow to repay
- [x] Established company — $273B market cap
- [x] Not printing shares — -13.4% shares over ~5y
- [x] Proven track record — 5/5 profitable years
- [x] Financially stable — Altman Z 3.5 — safe
- [x] Pays a dividend — yield 3.49%
- [x] Valuation not extreme — P/E 20.3

## Experience (career milestones)

- **FY2024** — Revenue crossed $50B: $51.7B for the year
- **FY2021** — Profitable every year on record: 5 consecutive profitable years in our data
- **FY2021** — Revenue already above $10B: $44.0B in first reported year
- **FY2021** — Positive free cash flow every year since: 5-year streak
- **FY2021** — Best year on record: $24.0B net income
- **2021** — With the unit having generated US$9.69 billion in 2021, the spin-off would create the biggest generic drugs company…
- **2018** — GlaxoSmithKline announced that it has reached an agreement with Novartis to acquire Novartis' 36.5…
- **2017** — Reuters announced that Novartis would acquire Advanced Accelerator Applications for $3.9…
- **2014** — Novartis purchased the rights to market Ophthotech's Fovista (an anti-PDGF aptamer, also being…
- **2012** — Also in 2012, Novartis became the biggest manufacturer of generic skin care medicine
- **2010** — Novartis offered to pay US$39.3 billion to fully acquire Alcon, the world's largest eye-care company,…
- **2006** — Also in 2006, Sandoz became the first company to have a biosimilar drug approved in Europe with its recombinant…
- **2005** — Novartis expanded its subsidiary Sandoz significantly through the US$8.29 billion acquisition of Hexal, one…
- **1997** — Clariant merged with the specialty chemicals business that was spun off from Hoechst AG in Germany
- **1996** — Novartis was created in March 1996 and began operations on 20 December from the merger of Ciba-Geigy and Sandoz…

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $44.0B | $24.0B | $13.3B |
| FY2022 | $43.5B | $6.96B | $13.4B |
| FY2023 | $46.7B | $14.8B | $16.3B |
| FY2024 | $51.7B | $11.9B | $17.6B |
| FY2025 | $56.7B | $14.0B | $16.8B |

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Source: https://stockcv.com/NVS — derived from company filings; may be delayed or incomplete. Information, not investment advice.