NVS Healthcare

Novartis AG

$159.26-1.40%

Price as of close on Nov 3, 2026 · Financials updated Sep 30, 2026

Basics

Sector: Healthcare
Industry: Drug Manufacturers - General
Country: Switzerland
Market cap: 302.7B USD
Enterprise value: 304.6B USD
Full-time employees: 75,267

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.12 vs a peer median of 2.59) and more debt relative to equity (0.62× vs a peer median of 0.22×)higher risk: less liquidity (current ratio 1.12 vs peers 2.59) and more debt vs equity (0.62× vs peers 0.22×)
About average: growth

Ranks #291 of 1,157 healthcare companies (top 26%)

See how it ranks against its peers

Worth knowing

Share count shrinking. Shares outstanding down 10.0% from December 2022 to December 2025.
Novartis had 10.0% fewer shares at December 2025 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.
Financials may be out of date. Latest financial period ended 10 months ago.
The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.
Profit is backed by cash. Free cash flow is 126% of reported profit.
Novartis's free cash flow is 126% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.
Wide margins. Operating margin 31% (12 months to Dec 2025) vs a peer median of 7.1%.Operating margin 31% vs peers 7.1%.
Novartis keeps 31% of revenue as operating profit, more than 94% of peers (median 7.1%).

StockQuotient Score

63/ 100▲ 1 since Oct 27 close

Oct 5 63 → Nov 4 63

Valuation

Is the price right?

68/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Stronger than most peers on:

▲ Earnings yield
▲ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.6%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value30% base weight · Z-score 2.11Sector median: 0.0148 · MAD: 0.0148

EBITDA yield6.6%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score 0.64Sector median: 0.0401 · MAD: 0.0401

Free cash flow yield5.8%

SEC filings (IFRS mapped) · 12 months to Dec 2025 · operating cash flow − capital spendingReported value20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield15.2%

SEC filings (IFRS mapped) · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3716 · MAD: 0.2313

Growth

Is it growing?

57/100

Moderate▲ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Score 56 → 57

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Helped by:

▲ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth21.2%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 0.38Sector median: 0.0976 · MAD: 0.2991

3-year revenue growth9.3%

Yahoo Finance fallback · SEC figure unavailable or out of date · 3 fiscal years to Dec 2025Reported value33% base weight · Z-score 0.41Sector median: 0.0584 · MAD: 0.0840

Revenue growth9.6%

Yahoo Finance fallback · SEC figure unavailable or out of date · fiscal year to Dec 2025Reported value33% base weight · Z-score 0.36Sector median: 0.0609 · MAD: 0.0974

Profitability

Does it earn well?

94/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Operating margin
▲ ROA
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin31.1%

Yahoo Finance fallback · SEC operating income not reported in standard form · fiscal year to Dec 2025Reported value33% base weight · Z-score 1.98Sector median: 0.0706 · MAD: 0.1217

Return on assets12.6%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 2.04Sector median: 0.0166 · MAD: 0.0537

Return on invested capital22.0%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 1.72Sector median: 0.0471 · MAD: 0.1004

Other data (not scored)

Gross margin75.0%

Yahoo Finance fallback · SEC figure unavailable or out of date · trailing 12 monthsReported valueInformational · 0% composite weightSector median: 0.4697 · MAD: 0.2310

Return on equity30.3%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.0330 · MAD: 0.1225

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Current ratio
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.49

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.40Sector median: 0.6250 · MAD: 0.3380

Current ratio1.12×

SEC filings (IFRS mapped) · latest balance sheetReported value33% base weight · Z-score -1.06Sector median: 2.5860 · MAD: 1.3850

Debt / equity0.62×

SEC filings (IFRS mapped) · latest balance sheetReported value33% base weight · Z-score -1.97Sector median: 0.2215 · MAD: 0.2039

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Novartis

Is Novartis getting weaker?: Its latest SEC filing (Feb 4, 2026) showed no major changes. Its overall score is 63/100, up 1 since Oct 28, 2026.
How is Novartis valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 68/100 against 1,393 healthcare peers. Earnings yield 4.6% vs a peer median of 1.5% (stronger than 75% of peers).Earnings yield 4.6% vs peers 1.5% (stronger than 75% of peers).
Is Novartis growing?: At about the same pace as its peers. Growth scores 57/100 against 1,393 healthcare peers. Earnings per share growth 21.2% vs a peer median of 9.8% (stronger than 70% of peers).Earnings per share growth 21.2% vs peers 9.8% (stronger than 70% of peers).
How profitable is Novartis?: More profitable than most of its peers. Profitability scores 94/100 against 1,393 healthcare peers. Operating margin 31.1% vs a peer median of 7.1% (stronger than 94% of peers).Operating margin 31.1% vs peers 7.1% (stronger than 94% of peers).
How risky is Novartis?: Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Beta 0.49 vs a peer median of 0.63 (stronger than 62% of peers).Beta 0.49 vs peers 0.63 (stronger than 62% of peers). Current ratio 1.12× vs a peer median of 2.59× (weaker than 87% of peers).Current ratio 1.12× vs peers 2.59× (weaker than 87% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Dec 31, 2025 · filed Feb 4, 2026 · compared with the quarter ended Jun 30, 2025

No major changes

	Previous quarter	Latest quarter	Change
Net income (12 months)	13.7B USD	14.0B USD	+2.4%
Free cash flow (12 months)	19.3B USD	17.6B USD	−8.9%
Cash	6.7B USD	11.4B USD	+71.8%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Return on assets (ROA)	18.2%	5.9%	14.9%	11.7%	12.6%	▲ 0.9 pts
Return on equity (ROE)	35.5%	11.7%	31.8%	27.1%	30.3%	▲ 3.2 pts
Current ratio	1.51×	1.29×	1.16×	1.04×	1.12×	▲ 7.9%
Quick ratio	1.29×	1.04×	0.93×	0.84×	0.89×	▲ 6.1%
Debt to equity	0.38×	0.38×	0.44×	0.56×	0.62×	▲ 11%
Interest coverage	12.78×	9.93×	11.43×	14.46×	15.42×	▲ 6.7%

NVS price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Drawback: higher risk than most peers: less short-term liquidity (current ratio 1.12 vs a peer median of 2.59) and more debt relative to equity (0.62× vs a peer median of 0.22×)higher risk: less liquidity (current ratio 1.12 vs peers 2.59) and more debt vs equity (0.62× vs peers 0.22×)

About average: growth

Ranks #291 of 1,157 healthcare companies (top 26%)

See how it ranks against its peers

Worth knowing

Share count shrinking. Shares outstanding down 10.0% from December 2022 to December 2025.

Novartis had 10.0% fewer shares at December 2025 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.

Financials may be out of date. Latest financial period ended 10 months ago.

The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.

Profit is backed by cash. Free cash flow is 126% of reported profit.

Novartis's free cash flow is 126% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Wide margins. Operating margin 31% (12 months to Dec 2025) vs a peer median of 7.1%.Operating margin 31% vs peers 7.1%.

Novartis keeps 31% of revenue as operating profit, more than 94% of peers (median 7.1%).

Questions investors ask about Novartis

Is Novartis getting weaker?

Its latest SEC filing (Feb 4, 2026) showed no major changes. Its overall score is 63/100, up 1 since Oct 28, 2026.

How is Novartis valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 68/100 against 1,393 healthcare peers. Earnings yield 4.6% vs a peer median of 1.5% (stronger than 75% of peers).Earnings yield 4.6% vs peers 1.5% (stronger than 75% of peers).

Is Novartis growing?

At about the same pace as its peers. Growth scores 57/100 against 1,393 healthcare peers. Earnings per share growth 21.2% vs a peer median of 9.8% (stronger than 70% of peers).Earnings per share growth 21.2% vs peers 9.8% (stronger than 70% of peers).

How profitable is Novartis?

More profitable than most of its peers. Profitability scores 94/100 against 1,393 healthcare peers. Operating margin 31.1% vs a peer median of 7.1% (stronger than 94% of peers).Operating margin 31.1% vs peers 7.1% (stronger than 94% of peers).

How risky is Novartis?

Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Beta 0.49 vs a peer median of 0.63 (stronger than 62% of peers).Beta 0.49 vs peers 0.63 (stronger than 62% of peers). Current ratio 1.12× vs a peer median of 2.59× (weaker than 87% of peers).Current ratio 1.12× vs peers 2.59× (weaker than 87% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Net income (12 months)

13.7B USD

14.0B USD

+2.4%

Free cash flow (12 months)

19.3B USD

17.6B USD

−8.9%

Cash

6.7B USD

11.4B USD

+71.8%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Return on assets (ROA)

18.2%

5.9%

14.9%

11.7%

12.6%

▲ 0.9 pts

Return on equity (ROE)

35.5%

11.7%

31.8%

27.1%

30.3%

▲ 3.2 pts

Current ratio

1.51×

1.29×

1.16×

1.04×

1.12×

▲ 7.9%

Quick ratio

1.29×

1.04×

0.93×

0.84×

0.89×

▲ 6.1%

Debt to equity

0.38×

0.44×

0.56×

0.62×

▲ 11%

Interest coverage

12.78×

9.93×

11.43×

14.46×

15.42×

▲ 6.7%