Skip to Content
Morningstar
Get 14 Days Free

Novartis AG ADR NVS

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Novartis Posts Soft 1Q, Hurt by Tough Comparisons and Generic Pressures, but Key Drugs Track Well

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

Novartis reported soft growth in the first quarter as the prior-year quarter benefited from stocking due to the COVID-19 pandemic. However, we don’t expect any changes to our fair value estimate based on the minor weakness in the results, and the stock looks moderately undervalued. Further, the firm continues to innovate well with several new drugs posting solid launches, reinforcing our wide moat rating for the firm.

Read Full Analysis

Company Profile

Business Description

Novartis AG develops and manufactures healthcare products through two segments: Innovative Medicines and Sandoz. It generates the vast majority of its revenue from Innovative Medicines segment consisting global business franchises in oncology, ophthalmology, neuroscience, immunology, respiratory, cardio-metabolic, and established medicines. The company sells its products globally, with the United States representing close to one third of total revenue.

Contact
Lichtstrasse 35
Basel, 4056, Switzerland
T +41 613241111
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 110,000

Related

Investing Specialists
Our Ultimate Stock-Pickers' Top 10 Dividend-Yielding Stocks
A majority of the top 10 dividend-yielding names are undervalued.
Malik Ahmed Khan
Fund Spy
No Room on the ARK?
If you can get aboard, should you?
Ben Johnson
Stock Strategist Industry Reports
Implementation of Trump's Drug-Pricing Orders Unlikely
We don't foresee any impact on pharma companies' moats or valuations.
Damien Conover
Investing Specialists
Karen Andersen: The Race for a COVID-19 Vaccine
The Morningstar healthcare strategist discusses the latest on COVID-19, including virus forecasts and vaccine updates from the leading biotech and pharma companies.
Christine Benz
Investing Specialists
Our Ultimate Stock Pickers' Top 10 Dividend-Yielding Stocks
Many of the highest-yielding names are undervalued today.
Nupur Balain
Our Picks
4 High-Quality Bargains in an Uncertain Market
These undervalued wide-moat stocks earn low uncertainty ratings.
Susan Dziubinski
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 Buys and Sells
Funds focus purchases in basic materials and consumer sectors.
Nupur Balain
US Videos
Where to Invest for Income
A raft of companies have cut their dividends this year, leaving income investors concerned. But Morningstar's Dan Lefkovitz says there are still plenty of options out there.
Dan Lefkovitz
Stock Strategist Industry Reports
Innovation Supports Growth at Big Pharma/Big Biotech Companies
Moats and returns on invested capital look stable for companies with a solid list of pipeline drugs.
Damien Conover
Market Update
Who’s Growing Dividends in Today’s Market?
Morningstar indexes spotlight rising equity income streams.
Dan Lefkovitz
Stock Analyst Update
Drug Pricing Executive Orders Not Likely to Affect FVEs
We don’t expect these actions by President Trump to significantly affect our fair value estimates or moat ratings due to limited details, challenging implementation, and only minor impacts.
Damien Conover
Fund Spy
Dodge & Cox Stock Remains Best in Class
This gutsy fund retains its Gold rating.
Tony Thomas
Stock Strategist
Positive Data Boosts Outlook for Lilly
The wide-moat drugmaker's growth prospects are improving.
Damien Conover
Stock Strategist Industry Reports
Coronavirus Vaccine Progress Accelerates
Diagnostic testing, treatment, and a coronavirus vaccine could allow near-normal distancing and nonessential business recovery by mid-2021.
Karen Andersen
Stock Strategist Industry Reports
Coronavirus Has Limited Impact on Big Pharma and Big Biotech
Moats, valuations, and dividends look attractive in the market pullback.
Damien Conover
Our Picks
16 Solid Stocks During Rocky Times
This shortlist of high-quality companies with predictable cash flows and modest leverage are well-equipped for today’s market uncertainty.
Susan Dziubinski
Investing Specialists
Undervalued Dividend Payers From Our Ultimate Stock Pickers
These stocks are among the top holdings of some of our favorite investment managers.
Nupur Balain
Stock Strategist Industry Reports
Rounding Up Big Pharma Earnings
Recent results from some of the most undervalued large drugmakers we cover.
Damien Conover
Premium Article
4 More Stocks for the Next Decade
We think these wide-moat companies are poised to experience meaningful economic benefits in the future.
Susan Dziubinski
Stock Strategist Industry Reports
Drugmakers: Our Take on Earnings
Sector director Damien Conover shares his key takeaways from Johnson & Johnson, Novartis, Glaxo, and Bristol Myers Squibb's reports.
Damien Conover