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Novartis AG Registered Shares NOVN

Morningstar Rating
CHF 96.90 −2.16 (2.18%)
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Company Report

Novartis' Diverse Drug Portfolio and Robust Pipeline Set Up Steady Long-Term Cash Flows

With strong positions in multiple key therapeutic areas, Novartis is well positioned for steady long-term cash flows. Strong intellectual property supporting multibillion-dollar products, combined with an abundance of late-pipeline products, creates a wide economic moat. While patent losses on multiple sclerosis drug Gilenya and cancer drug Afinitor will weigh on near-term growth, a strong portfolio of drugs along with a robust pipeline should ensure a steady long-term outlook.

Price vs Fair Value

NOVN is trading at a 499% premium.
Price
CHF 99.06
Fair Value
CHF 26.00
Uncertainty
Medium
1-Star Price
CHF 675.70
5-Star Price
CHF 21.40
Economic Moat
Kfjb
Capital Allocation
Pryxtyrls

Bulls Say, Bears Say

Bulls

Novartis' solid late-stage pipeline should propel long-term growth. The company should launch several new drugs during the next several years in critical therapeutic areas such as rare diseases and oncology.

Bears

The patent loss on multiple sclerosis drug Gilenya creates a significant drag on sales in 2023-24 as generic competition increases.

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News

Trading Information

Previous Close Price
CHF 99.06
Day Range
CHF 96.0397.97
52-Week Range
CHF 81.63100.96
Bid/Ask
CHF 96.88 / CHF 96.90
Market Cap
CHF 197.63 Bil
Volume/Avg
1.4 Mil / 3.1 Mil

Key Statistics

Price/Earnings (Normalized)
16.20
Price/Sales
4.65
Dividend Yield (Trailing)
3.33%
Dividend Yield (Forward)
3.33%
Total Yield
6.37%

Company Profile

Novartis develops and manufactures innovative drugs. The firm's key areas of drug development include oncology, rare diseases, 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.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Large Core
Total Number of Employees
76,057

Competitors

Valuation

Metric
NOVN
JNJ
GSK
Price/Earnings (Normalized)
16.2014.979.83
Price/Book Value
5.655.384.65
Price/Sales
4.654.452.12
Price/Cash Flow
15.4216.929.61
Price/Earnings
NOVN
JNJ
GSK

Financial Strength

Metric
NOVN
JNJ
GSK
Quick Ratio
0.610.840.57
Current Ratio
0.901.170.87
Interest Coverage
11.3223.578.94
Quick Ratio
NOVN
JNJ
GSK

Profitability

Metric
NOVN
JNJ
GSK
Return on Assets (Normalized)
13.39%12.64%11.25%
Return on Equity (Normalized)
31.09%31.72%51.21%
Return on Invested Capital (Normalized)
19.67%20.11%22.40%
Return on Assets
NOVN
JNJ
GSK
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Drug Manufacturers - General Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Eli Lilly and Co
LLY
LwxxpfzscNnlfv$815.4 Bil
Johnson & Johnson
JNJ
VrmgwpnMcxqq$376.8 Bil
Merck & Co Inc
MRK
NphfzmmjzZrmt$318.9 Bil
AbbVie Inc
ABBV
KdybtmsrkXrt$309.5 Bil
Roche Holding AG ADR
RHHBY
HqdmxntmlLjd$247.6 Bil
AstraZeneca PLC ADR
AZN
DlwrjlpznWkjl$246.3 Bil
Novartis AG ADR
NVS
KfgcxxtqtMqlp$226.2 Bil
Amgen Inc
AMGN
NxrqychcWcvc$180.1 Bil
Pfizer Inc
PFE
PzygcnmXcwv$170.2 Bil
Sanofi SA ADR
SNY
SbprvclYlq$125.5 Bil

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