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Novartis (NVS) Stock Analysis

This is a peer-relative look at Novartis (NVS): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.

Company Profile

Novartis (NVS) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Novartis (NVS)
Profile ItemNVS
NameNovartis AG Sponsored ADR
Country/RegionSwitzerland
GICS SectorHealth Care
GICS Industry GroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
GICS Sub-IndustryPharmaceuticals
Market Capitalization292.46 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateNovember 7, 1996
Security TypeADR

Price Performance

Cumulative Growth

NVS
GSPC
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Novartis (NVS) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Novartis (NVS) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Novartis (NVS) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
Total Return (1Y)38.91%47.89%
Total Return (3Y, Annualized)17.57%9.98%
Total Return (5Y, Annualized)15.45%-4.89%

Risk Profile

Drawdown History

NVS
GSPC
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Novartis (NVS) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Novartis (NVS) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
Volatility (1Y, Annualized)21.68%69.09%
Beta (5Y)0.470.91
Max Drawdown (5Y)-20.42%-82.64%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NVS is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
Sharpe Ratio (1Y)1.610.81
Sortino Ratio (1Y)2.491.37

Profitability

ROE (TTM)

Novartis (NVS) posts ROE of 34.93%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

34.93%

Group distribution
Max
99.40%
NVS
34.93%
Q3
2.50%
Median
-31.42%
Q1
-62.21%
Min
-157.07%
Largest peers
LLY
107.46%
NVO
71.40%
NVS
34.93%
AZN
23.48%
MRK
18.94%
JNJ
--
ABBV
--
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Where Novartis (NVS) stands on ROE within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Novartis (NVS) keeps 23.92% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

23.92%

Group distribution
NVS
23.92%
Max
11.75%
Q3
2.69%
Median
0.00%
Q1
-3.38%
Min
-11.53%
Largest peers
NVO
37.21%
LLY
34.99%
NVS
23.92%
JNJ
21.48%
AZN
17.19%
MRK
13.59%
ABBV
5.79%
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Where Novartis (NVS) stands on net margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Novartis (NVS) turns 30.48% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

30.48%

Group distribution
Max
100.30%
NVS
30.48%
Q3
4.66%
Median
0.00%
Q1
-121.08%
Min
-309.54%
Largest peers
NVO
61.57%
LLY
49.39%
MRK
38.60%
ABBV
32.16%
NVS
30.48%
JNJ
28.61%
AZN
27.94%
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Where Novartis (NVS) stands on operating margin within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
ROE (TTM)34.93%-31.42%
ROA (TTM)10.54%-15.76%
Net Margin (TTM)23.92%0.00%
Operating Margin (TTM)30.48%0.00%
Gross Margin (TTM)75.55%30.12%

Growth

Revenue Growth

Novartis (NVS) grew revenue 9.57%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Novartis (NVS): Revenue Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

EPS Growth

Novartis (NVS) grew earnings per share 21.81%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Novartis (NVS): EPS Growth across different time periods, set against Pharmaceuticals, Biotechnology & Life Sciences industry-group medians.

Growth Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
Revenue Growth (YoY)9.57%11.61%
Revenue Growth (3Y CAGR)9.25%10.74%
EPS Growth (YoY)21.81%1.77%
EPS Growth (3Y CAGR)31.14%3.04%

Financial Strength

Current Ratio (MRQ)

Novartis (NVS) has current ratio of 0.85, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.85

Group distribution
Max
26.16
Q3
12.33
Median
5.81
Q1
2.71
NVS
0.85
Min
0.28
Largest peers
LLY
1.50
MRK
1.30
AZN
0.91
NVS
0.85
ABBV
0.80
NVO
0.79
JNJ
--
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Where Novartis (NVS) stands on current ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Novartis (NVS) has debt-to-equity ratio of 1.21, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

1.21

Group distribution
Max
1.60
NVS
1.21
Q3
0.68
Median
0.15
Q1
0.02
Min
0.00
Largest peers
LLY
1.39
NVS
1.21
MRK
1.07
NVO
0.72
AZN
0.72
JNJ
0.68
ABBV
--
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Where Novartis (NVS) stands on debt-to-equity ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
Current Ratio (MRQ)0.855.81
Debt / Equity (MRQ)1.210.15
Net Debt / EBITDA1.751.05

Dividends

Dividend Yield (TTM)

Novartis (NVS) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

0.00%

Group distribution
NVS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
NVO
23.58%
ABBV
2.66%
MRK
2.64%
JNJ
2.11%
AZN
1.95%
LLY
0.54%
NVS
0.00%
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Where Novartis (NVS) stands on dividend yield within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Novartis (NVS) has payout ratio of 67.91%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

67.91%

Group distribution
NVS
67.91%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
ABBV
325.98%
MRK
93.52%
NVS
67.91%
JNJ
60.79%
AZN
47.70%
NVO
42.59%
LLY
22.13%
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Where Novartis (NVS) stands on payout ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)67.91%0.00%

Valuation

P/E Ratio (TTM)

Novartis (NVS) trades at P/E ratio of 21.40, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

21.40

Group distribution
Max
79.93
Q3
47.39
Median
25.31
NVS
21.40
Q1
15.26
Min
2.05
Largest peers
ABBV
123.72
LLY
40.81
MRK
35.07
JNJ
28.91
AZN
24.76
NVS
21.40
NVO
11.90
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Where Novartis (NVS) stands on P/E ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Novartis (NVS) trades at 5.17 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

5.17

Group distribution
Max
63.16
Q3
28.29
Median
8.07
NVS
5.17
Q1
3.52
Min
0.01
Largest peers
LLY
14.51
ABBV
7.20
JNJ
6.16
NVS
5.17
MRK
4.74
AZN
4.35
NVO
0.67
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Where Novartis (NVS) stands on P/S ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Novartis (NVS) trades at 7.62 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

NVS

Pharmaceuticals, Biotechnology & Life Sciences industry group

7.62

Group distribution
Max
16.09
NVS
7.62
Q3
7.48
Median
3.80
Q1
1.72
Min
-5.70
Largest peers
LLY
33.66
NVS
7.62
JNJ
7.43
NVO
7.08
MRK
6.80
AZN
5.54
ABBV
-67.99
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Where Novartis (NVS) stands on P/B ratio within its Pharmaceuticals, Biotechnology & Life Sciences peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Novartis (NVS) metric values compared with Pharmaceuticals, Biotechnology & Life Sciences industry-group medians
MetricCurrent stock: NVSIndustry group median
P/E Ratio (TTM)21.4025.31
P/S Ratio (TTM)5.178.07
P/B Ratio (MRQ)7.623.80
Free Cash Flow Yield (TTM)4.11%-2.02%