Novartis AG (NVS) 10-Year Financial Performance & Capital Metrics

NVS • • Industrial / General

HealthcareLarge PharmaBroad-Based Pharmaceutical GiantsGlobal Pharma Diversified Leaders

AboutNovartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers. It also provides ophthalmology, neuroscience, immunology, hepatology, dermatology, respiratory, cardiovascular, renal, and metabolism medicine products. The Sandoz segment develops, manufactures, and markets finished dosage form medicines; active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties; and retail generics and anti-infectives. It also provides active pharmaceutical ingredients and intermediates primarily antibiotics; protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services. Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran; and a clinical collaboration with Kura Oncology, Inc. to evaluate the combination of Tipifarnib and Alpelisib in patients with head and neck squamous cell carcinoma. The company was incorporated in 1996 and is headquartered in Basel, Switzerland.Show more

Revenue $51.72B +10.8%
EBITDA $20.61B +14.2%
Net Income $11.94B -19.6%
EPS (Diluted) 5.87 -17.3%
Gross Margin 75.2% +2.6%
EBITDA Margin 39.85% +3.0%
Operating Margin 28.12% +34.3%
Net Margin 23.09% -27.5%
ROE 26.28% -6.1%
ROIC 17.65% +68.0%
Debt/Equity 0.71 +25.7%
Interest Coverage 14.03 +25.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 21.7%
✓FCF machine: 26.7% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 2.6%
✓Share count reduced 2.7% through buybacks
✓Healthy 5Y average net margin of 28.3%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-0.36%

5Y1.22%

3Y5.56%

TTM12.88%

Profit (Net Income) CAGR

10Y1.58%

5Y0.35%

3Y-20.78%

TTM-18.24%

EPS CAGR

10Y3.58%

5Y13.77%

3Y-17.96%

TTM-31.12%

ROCE

10Y Avg10.15%

5Y Avg12.18%

3Y Avg13.38%

Latest19.77%

Peer Comparison

Global Pharma Diversified Leaders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
AZNAstraZeneca PLC	293.03B	94.51	83.64	18.04%	16.17%	20.45%	2.48%	0.74
GSKGSK plc	100.65B	49.90	40.24	3.46%	17.08%	25.91%	3.55%	1.30
JNJJohnson & Johnson	514.75B	213.65	36.90	4.3%	27.26%	31.69%	3.85%	0.53
NVSNovartis AG	271.72B	141.61	24.12	10.85%	25.53%	32.16%	5.08%	0.71
SNYSanofi	114.36B	47.20	21.55	6.41%	21.16%	12.99%	5.15%	0.23
PFEPfizer Inc.	143B	25.15	17.84	6.84%	15.64%	10.55%	6.88%	0.76
MRKMerck & Co., Inc.	268.7B	108.26	16.06	6.74%	29.63%	36.67%	6.73%	0.83

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	50.39B	49.44B	43.4B	46.1B	48.68B	49.9B	43.97B	43.46B	46.66B	51.72B
Revenue Growth %	-0.06%	-0.02%	-0.12%	0.06%	0.06%	0.03%	-0.12%	-0.01%	0.07%	0.11%
Cost of Goods Sold+	17.4B	17.52B	13.63B	14.51B	14.43B	15.12B	11.73B	11.58B	12.47B	12.83B
COGS % of Revenue	0.35%	0.35%	0.31%	0.31%	0.3%	0.3%	0.27%	0.27%	0.27%	0.25%
Gross Profit+	32.98B	31.92B	29.77B	31.59B	34.25B	34.78B	32.24B	31.88B	34.19B	38.9B
Gross Margin %	0.65%	0.65%	0.69%	0.69%	0.7%	0.7%	0.73%	0.73%	0.73%	0.75%
Gross Profit Growth %	-0.09%	-0.03%	-0.07%	0.06%	0.08%	0.02%	-0.07%	-0.01%	0.07%	0.14%
Operating Expenses+	24.01B	23.65B	21.07B	23.19B	25.17B	24.63B	22.18B	23.93B	24.42B	24.35B
OpEx % of Revenue	0.48%	0.48%	0.49%	0.5%	0.52%	0.49%	0.5%	0.55%	0.52%	0.47%
Selling, General & Admin	14.25B	14.19B	12.46B	13.72B	14.37B	14.2B	12.83B	12.19B	12.52B	12.57B
SG&A % of Revenue	0.28%	0.29%	0.29%	0.3%	0.3%	0.28%	0.29%	0.28%	0.27%	0.24%
Research & Development	8.94B	9.04B	8.39B	8.49B	9.4B	8.98B	8.64B	9.17B	11.37B	10.02B
R&D % of Revenue	0.18%	0.18%	0.19%	0.18%	0.19%	0.18%	0.2%	0.21%	0.24%	0.19%
Other Operating Expenses	824M	417M	215M	980M	1.4B	1.45B	715M	2.57B	531M	1.76B
Operating Income+	8.98B	8.27B	8.7B	8.4B	9.09B	10.15B	10.06B	7.95B	9.77B	14.54B
Operating Margin %	0.18%	0.17%	0.2%	0.18%	0.19%	0.2%	0.23%	0.18%	0.21%	0.28%
Operating Income Growth %	-0.19%	-0.08%	0.05%	-0.03%	0.08%	0.12%	-0.01%	-0.21%	0.23%	0.49%
EBITDA+	14.45B	14.31B	13.44B	13.61B	14.91B	16.62B	15.65B	14.65B	18.05B	20.61B
EBITDA Margin %	0.29%	0.29%	0.31%	0.3%	0.31%	0.33%	0.36%	0.34%	0.39%	0.4%
EBITDA Growth %	-0.08%	-0.01%	-0.06%	0.01%	0.1%	0.11%	-0.06%	-0.06%	0.23%	0.14%
D&A (Non-Cash Add-back)	5.47B	6.04B	4.74B	5.21B	5.83B	6.46B	5.6B	6.71B	8.28B	6.07B
EBIT	8.79B	8.52B	9.85B	15.03B	9.79B	10.75B	25.32B	7.98B	9.98B	14.65B
Net Interest Income+	-658.49M	-686M	-692M	-680.55M	-657.67M	-830M	-834M	-456.89M	-246.88M	-468.74M
Interest Income	32.98M	43M	110M	292.67M	245.25M	91M	71M	377.74M	629.24M	567.68M
Interest Expense	691.47M	729M	802M	973.22M	902.93M	921M	905M	834.62M	876.12M	1.04B
Other Income/Expense	-843M	-451M	400M	5.69B	-146M	-274M	14.47B	-769M	-646M	-904M
Pretax Income+	8.13B	7.82B	9.1B	14.1B	8.94B	9.88B	24.53B	7.18B	9.12B	13.64B
Pretax Margin %	0.16%	0.16%	0.21%	0.31%	0.18%	0.2%	0.56%	0.17%	0.2%	0.26%
Income Tax+	1.11B	1.12B	1.6B	1.29B	1.79B	1.81B	1.63B	1.13B	551M	1.7B
Effective Tax Rate %	2.19%	0.86%	0.85%	0.89%	1.31%	0.82%	0.98%	0.97%	1.63%	0.88%
Net Income+	17.78B	6.71B	7.7B	12.61B	11.73B	8.07B	24.02B	6.96B	14.85B	11.94B
Net Margin %	0.35%	0.14%	0.18%	0.27%	0.24%	0.16%	0.55%	0.16%	0.32%	0.23%
Net Income Growth %	0.74%	-0.62%	0.15%	0.64%	-0.07%	-0.31%	1.98%	-0.71%	1.14%	-0.2%
Net Income (Continuing)	7.03B	6.7B	7.5B	12.8B	7.15B	8.07B	22.91B	6.05B	8.57B	11.94B
Discontinued Operations	0	0	0	0	0	0	1.11B	906M	6.28B	0
Minority Interest	76M	59M	59M	78M	77M	68M	167M	81M	83M	80M
EPS (Diluted)+	7.29	2.80	3.25	5.38	3.08	3.52	10.63	3.17	7.10	5.87
EPS Growth %	0.77%	-0.62%	0.16%	0.66%	-0.43%	0.14%	2.02%	-0.7%	1.24%	-0.17%
EPS (Basic)	7.40	2.82	3.28	5.44	3.12	3.54	10.71	3.19	7.15	5.92
Diluted Shares Outstanding	2.44B	2.4B	2.37B	2.34B	2.32B	2.3B	2.26B	2.2B	2.09B	2.04B
Basic Shares Outstanding	2.4B	2.38B	2.35B	2.32B	2.29B	2.28B	2.24B	2.18B	2.08B	2.02B
Dividend Payout Ratio	0.37%	0.96%	0.84%	0.55%	0.57%	0.87%	0.31%	1.08%	0.49%	0.64%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	22.84B	24.93B	28.21B	35.56B	29.5B	29.67B	45.72B	36.91B	30.48B	29.7B
Cash & Short-Term Investments	5.45B	7.78B	9.48B	15.96B	11.45B	11.56B	28.11B	18.61B	13.96B	13.35B
Cash Only	4.67B	7.01B	8.86B	13.27B	11.11B	9.66B	12.41B	7.52B	13.39B	11.46B
Short-Term Investments	773M	770M	625M	2.69B	334M	1.91B	15.71B	11.1B	569M	1.89B
Accounts Receivable	10.55B	10.2B	10.07B	9.68B	9.17B	9.07B	9.62B	9.89B	9.38B	8.21B
Days Sales Outstanding	76.43	75.32	84.68	76.61	68.78	66.37	79.86	83.09	73.34	57.94
Inventory	6.23B	6.25B	6.87B	6.96B	5.98B	7.13B	6.67B	7.17B	5.91B	5.72B
Days Inventory Outstanding	130.57	130.31	183.85	174.98	151.36	172.13	207.34	226.12	173.05	162.85
Other Current Assets	0	0	1.03B	3.23B	2.01B	963M	216M	315M	466M	1.43B
Total Non-Current Assets+	108.71B	105.19B	104.87B	110B	88.91B	102.52B	86.08B	80.54B	69.46B	72.54B
Property, Plant & Equipment	15.98B	15.64B	16.46B	15.7B	13.75B	13.94B	13.11B	12.2B	10.92B	10.87B
Fixed Asset Turnover	3.15x	3.16x	2.64x	2.94x	3.54x	3.58x	3.36x	3.56x	4.27x	4.76x
Goodwill	31.17B	30.98B	31.75B	35.29B	26.52B	30B	29.59B	29.3B	23.34B	24.76B
Intangible Assets	34.22B	31.34B	30B	38.72B	28.79B	36.81B	34.18B	31.64B	26.88B	26.91B
Long-Term Investments	27.34B	16.5B	17.61B	10.7B	11B	12.44B	2.27B	1.61B	1.83B	1.13B
Other Non-Current Assets	-8.96B	698M	818M	895M	897M	981M	3.18B	2.06B	2.18B	4.51B
Total Assets+	131.56B	130.12B	133.08B	145.56B	118.41B	132.19B	131.79B	117.45B	99.94B	102.25B
Asset Turnover	0.38x	0.38x	0.33x	0.32x	0.41x	0.38x	0.33x	0.37x	0.47x	0.51x
Asset Growth %	0.05%	-0.01%	0.02%	0.09%	-0.19%	0.12%	-0%	-0.11%	-0.15%	0.02%
Total Current Liabilities+	23.71B	22.21B	23.4B	29.61B	28.26B	33.06B	30.21B	28.66B	26.39B	28.69B
Accounts Payable	5.67B	4.87B	5.17B	5.56B	5.42B	5.4B	5.55B	5.15B	4.93B	4.57B
Days Payables Outstanding	118.87	101.52	138.39	139.76	137.24	130.42	172.72	162.17	144.16	130.1
Short-Term Debt	5.6B	5.91B	5.2B	9.62B	7.09B	9.88B	6.23B	5.88B	6.08B	8.09B
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	10.12B	9.15B	8.68B	9.63B	10.98B	12.98B	12.44B	11.21B	9.84B	10.38B
Current Ratio	0.96x	1.12x	1.21x	1.20x	1.04x	0.90x	1.51x	1.29x	1.16x	1.04x
Quick Ratio	0.70x	0.84x	0.91x	0.97x	0.83x	0.68x	1.29x	1.04x	0.93x	0.84x
Cash Conversion Cycle	88.13	104.12	130.14	111.83	82.89	108.08	114.48	147.04	102.23	90.7
Total Non-Current Liabilities+	30.73B	33.02B	35.45B	37.26B	34.6B	42.46B	33.77B	29.37B	26.8B	29.43B
Long-Term Debt	16.33B	17.9B	23.22B	22.47B	20.35B	26.26B	22.9B	20.24B	18.44B	21.37B
Capital Lease Obligations	0	82M	0	0	1.7B	1.72B	1.62B	1.54B	1.6B	1.57B
Deferred Tax Liabilities	6.36B	6.66B	5.17B	7.47B	5.91B	7.55B	3.07B	2.69B	2.25B	2.42B
Other Non-Current Liabilities	7.74B	8.03B	6.55B	8.85B	6.63B	6.93B	6.17B	4.91B	4.52B	4.08B
Total Liabilities	54.43B	55.23B	58.85B	66.87B	62.86B	75.52B	63.97B	58.03B	53.2B	58.12B
Total Debt+	21.93B	23.8B	28.43B	32.09B	29.15B	37.85B	31.02B	27.91B	26.35B	31.26B
Net Debt	17.26B	16.8B	19.57B	18.82B	18.04B	28.2B	18.62B	20.39B	12.96B	19.8B
Debt / Equity	0.28x	0.32x	0.38x	0.41x	0.52x	0.67x	0.46x	0.47x	0.56x	0.71x
Debt / EBITDA	1.52x	1.66x	2.12x	2.36x	1.95x	2.28x	1.98x	1.90x	1.46x	1.52x
Net Debt / EBITDA	1.19x	1.17x	1.46x	1.38x	1.21x	1.70x	1.19x	1.39x	0.72x	0.96x
Interest Coverage	12.98x	11.34x	10.85x	8.63x	10.06x	11.02x	11.11x	9.52x	11.15x	14.03x
Total Equity+	77.12B	74.89B	74.23B	78.69B	55.55B	56.67B	67.82B	59.42B	46.75B	44.13B
Equity Growth %	0.09%	-0.03%	-0.01%	0.06%	-0.29%	0.02%	0.2%	-0.12%	-0.21%	-0.06%
Book Value per Share	31.63	31.20	31.31	33.57	23.95	24.68	30.01	27.05	22.35	21.68
Total Shareholders' Equity	77.05B	74.83B	74.17B	78.61B	55.47B	56.6B	67.66B	59.34B	46.67B	44.05B
Common Stock	991M	972M	969M	944M	936M	913M	901M	890M	825M	793M
Retained Earnings	80.38B	81.15B	77.64B	82.19B	59.27B	57.16B	70.99B	63.54B	49.65B	46.56B
Treasury Stock	-101M	-76M	-100M	-69M	-80M	-53M	-48M	-92M	-41M	-53M
Accumulated OCI	76.16B	73.94B	73.3B	77.74B	-4.66B	-1.42B	-4.19B	-5B	-3.77B	-3.25B
Minority Interest	76M	59M	59M	78M	77M	68M	167M	81M	83M	80M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	11.9B	11.47B	12.62B	14.27B	13.63B	13.65B	15.07B	14.24B	14.46B	17.62B
Operating CF Margin %	0.24%	0.23%	0.29%	0.31%	0.28%	0.27%	0.34%	0.33%	0.31%	0.34%
Operating CF Growth %	-0.14%	-0.04%	0.1%	0.13%	-0.05%	0%	0.1%	-0.06%	0.02%	0.22%
Net Income	7.03B	6.7B	7.7B	12.61B	7.15B	8.07B	22.91B	6.05B	8.57B	11.94B
Depreciation & Amortization	5.58B	6.04B	6.08B	6.89B	5.83B	6.46B	5.6B	6.71B	8.28B	6.07B
Stock-Based Compensation	773M	671M	683M	759M	758M	738M	700M	791M	865M	1.04B
Deferred Taxes	1.11B	1.12B	1.3B	1.22B	1.79B	1.81B	1.63B	1.13B	551M	1.7B
Other Non-Cash Items	-1.72B	-2.98B	-3.38B	-7.71B	-2.1B	-3.14B	-15.68B	359M	-3.44B	-2.43B
Working Capital Changes	-863M	-77M	244M	499M	199M	-291M	-73M	-796M	-369M	-706M
Change in Receivables	-513M	-229M	-204M	-569M	-980M	137M	-352M	-397M	-1.5B	-931M
Change in Inventory	-482M	-235M	-247M	-533M	-382M	-543M	-102M	-560M	-546M	-225M
Change in Payables	378M	-587M	58M	309M	553M	-324M	-111M	-181M	479M	-105M
Cash from Investing+	-10.78B	-3.44B	-3.12B	-5.59B	-2.23B	-13.18B	4.21B	1.47B	5.6B	-7.51B
Capital Expenditures	-3.85B	-2.88B	-2.75B	-3.35B	-1.38B	-2.58B	-1.07B	-916M	-1.06B	-1.37B
CapEx % of Revenue	0.08%	0.06%	0.06%	0.07%	0.03%	0.05%	0.02%	0.02%	0.02%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	10.01B	111M	551M	895M	-264M	282M	-1.34B	-1.43B	-624M	-2.38B
Cash from Financing+	-9.18B	-5.31B	-7.73B	-4.24B	-13.63B	-2.21B	-16.26B	-20.56B	-14.28B	-11.74B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-6.64B	-6.47B	-6.5B	-6.97B	-6.64B	-6.99B	-7.37B	-7.51B	-7.25B	-7.62B
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	1.58B	215M	151M	581M	3.51B	549M	148M	181M	3.63B	-177M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	8.05B	8.6B	9.88B	10.92B	11.37B	11.06B	12.52B	12B	11.71B	13.8B
FCF Margin %	0.16%	0.17%	0.23%	0.24%	0.23%	0.22%	0.28%	0.28%	0.25%	0.27%
FCF Growth %	-0.21%	0.07%	0.15%	0.11%	0.04%	-0.03%	0.13%	-0.04%	-0.02%	0.18%
FCF per Share	3.30	3.58	4.16	4.66	4.90	4.82	5.54	5.46	5.60	6.78
FCF Conversion (FCF/Net Income)	0.67x	1.71x	1.64x	1.13x	1.16x	1.69x	0.63x	2.05x	0.97x	1.48x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	24.04%	8.83%	10.33%	16.49%	17.48%	14.39%	38.59%	10.93%	27.97%	26.28%
Return on Invested Capital (ROIC)	7.8%	6.67%	7.04%	6.59%	7.97%	9.61%	8.81%	7.17%	10.5%	17.65%
Gross Margin	65.46%	64.56%	68.59%	68.52%	70.37%	69.7%	73.31%	73.35%	73.27%	75.2%
Net Margin	35.29%	13.58%	17.75%	27.36%	24.1%	16.18%	54.63%	16%	31.83%	23.09%
Debt / Equity	0.28x	0.32x	0.38x	0.41x	0.52x	0.67x	0.46x	0.47x	0.56x	0.71x
Interest Coverage	12.98x	11.34x	10.85x	8.63x	10.06x	11.02x	11.11x	9.52x	11.15x	14.03x
FCF Conversion	0.67x	1.71x	1.64x	1.13x	1.16x	1.69x	0.63x	2.05x	0.97x	1.48x
Revenue Growth	-6.05%	-1.89%	-12.2%	6.21%	5.59%	2.51%	-11.87%	-1.17%	7.36%	10.85%

Revenue by Segment

	2018	2019	2020	2021	2022
Top 20 products	26.95B	28.65B	29.92B	32.66B	32.14B
Top 20 products Growth	-	6.31%	4.43%	9.19%	-1.61%
portfolio	7.95B	9.07B	9.1B	9.33B	9.16B
portfolio Growth	-	14.12%	0.32%	2.57%	-1.84%
Total anti-infectives net sales	-	-	-	1.1B	1.2B
Total anti-infectives net sales Growth	-	-	-	-	9.09%
Anti Infectives sold under Sandoz name	-	784M	694M	707M	777M
Anti Infectives sold under Sandoz name Growth	-	-	-11.48%	1.87%	9.90%
COPD	-	427M	-	-	-
COPD Growth	-	-	-	-	-

Revenue by Geography

	2018	2019	2020	2021	2022
Other countries	22.17B	-	19.04B	20.81B	20.05B
Other countries Growth	-	-	-	9.30%	-3.62%
UNITED STATES	17.56B	16.28B	16.48B	16.82B	17.65B
UNITED STATES Growth	-	-7.29%	1.25%	2.03%	4.96%
GERMANY	4.18B	4.12B	4.52B	4.87B	4.28B
GERMANY Growth	-	-1.53%	9.66%	7.79%	-12.16%
CHINA	-	-	2.57B	3.05B	3.13B
CHINA Growth	-	-	-	18.62%	2.49%
FRANCE	2.71B	2.44B	2.44B	2.52B	2.26B
FRANCE Growth	-	-9.72%	0.00%	3.28%	-10.51%
JAPAN	3.17B	2.66B	2.8B	2.68B	2.21B
JAPAN Growth	-	-16.19%	5.57%	-4.32%	-17.82%
Country of domicile	852M	-	800M	873M	970M
Country of domicile Growth	-	-	-	9.13%	11.11%

Frequently Asked Questions

Valuation & Price

Novartis AG (NVS) has a price-to-earnings (P/E) ratio of 24.1x. This is roughly in line with market averages.

Growth & Financials

Novartis AG (NVS) reported $56.37B in revenue for fiscal year 2024. This represents a 5% decrease from $59.38B in 2011.

Novartis AG (NVS) grew revenue by 10.8% over the past year. This is steady growth.

Yes, Novartis AG (NVS) is profitable, generating $14.39B in net income for fiscal year 2024 (23.1% net margin).

Dividend & Returns

Yes, Novartis AG (NVS) pays a dividend with a yield of 2.65%. This makes it attractive for income-focused investors.

Novartis AG (NVS) has a return on equity (ROE) of 26.3%. This is excellent, indicating efficient use of shareholder capital.

Novartis AG (NVS) generated $17.06B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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