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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.51
NVSEF's Cash to Debt is ranked higher than
52% of the 750 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.39 vs. NVSEF: 0.51 )
NVSEF' s 10-Year Cash to Debt Range
Min: 0.25   Max: 3.39
Current: 0.51

0.25
3.39
Equity to Asset 0.59
NVSEF's Equity to Asset is ranked higher than
64% of the 712 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.60 vs. NVSEF: 0.59 )
NVSEF' s 10-Year Equity to Asset Range
Min: 0.51   Max: 0.65
Current: 0.59

0.51
0.65
Interest Coverage 15.97
NVSEF's Interest Coverage is ranked higher than
57% of the 462 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 90.51 vs. NVSEF: 15.97 )
NVSEF' s 10-Year Interest Coverage Range
Min: 13.56   Max: 30.91
Current: 15.97

13.56
30.91
F-Score: 4
Z-Score: 3.90
M-Score: -2.64
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 18.54
NVSEF's Operating margin (%) is ranked higher than
88% of the 713 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9.34 vs. NVSEF: 18.54 )
NVSEF' s 10-Year Operating margin (%) Range
Min: 17.81   Max: 24.34
Current: 18.54

17.81
24.34
Net-margin (%) 15.60
NVSEF's Net-margin (%) is ranked higher than
87% of the 713 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.50 vs. NVSEF: 15.60 )
NVSEF' s 10-Year Net-margin (%) Range
Min: 15.35   Max: 31.38
Current: 15.6

15.35
31.38
ROE (%) 12.34
NVSEF's ROE (%) is ranked higher than
86% of the 716 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.00 vs. NVSEF: 12.34 )
NVSEF' s 10-Year ROE (%) Range
Min: 12.34   Max: 24.27
Current: 12.34

12.34
24.27
ROA (%) 7.27
NVSEF's ROA (%) is ranked higher than
83% of the 745 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 3.95 vs. NVSEF: 7.27 )
NVSEF' s 10-Year ROA (%) Range
Min: 7.27   Max: 15.83
Current: 7.27

7.27
15.83
ROC (Joel Greenblatt) (%) 54.76
NVSEF's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 735 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 14.63 vs. NVSEF: 54.76 )
NVSEF' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 34.63   Max: 69.69
Current: 54.76

34.63
69.69
Revenue Growth (%) 1.70
NVSEF's Revenue Growth (%) is ranked higher than
62% of the 549 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 5.10 vs. NVSEF: 1.70 )
NVSEF' s 10-Year Revenue Growth (%) Range
Min: 1.7   Max: 81.6
Current: 1.7

1.7
81.6
EBITDA Growth (%) 6.90
NVSEF's EBITDA Growth (%) is ranked higher than
73% of the 504 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.00 vs. NVSEF: 6.90 )
NVSEF' s 10-Year EBITDA Growth (%) Range
Min: -0.3   Max: 78.4
Current: 6.9

-0.3
78.4
EPS Growth (%) -4.60
NVSEF's EPS Growth (%) is ranked higher than
66% of the 506 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.70 vs. NVSEF: -4.60 )
NVSEF' s 10-Year EPS Growth (%) Range
Min: -4.6   Max: 87.7
Current: -4.6

-4.6
87.7
» NVSEF's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

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Ratios

vs
industry
vs
history
P/E(ttm) 22.70
NVSEF's P/E(ttm) is ranked higher than
73% of the 527 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 25.60 vs. NVSEF: 22.70 )
NVSEF' s 10-Year P/E(ttm) Range
Min: 9   Max: 23.9
Current: 22.7

9
23.9
P/B 2.70
NVSEF's P/B is ranked higher than
64% of the 700 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.84 vs. NVSEF: 2.70 )
NVSEF' s 10-Year P/B Range
Min: 1.63   Max: 4.01
Current: 2.7

1.63
4.01
P/S 3.56
NVSEF's P/S is ranked lower than
53% of the 717 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.95 vs. NVSEF: 3.56 )
NVSEF' s 10-Year P/S Range
Min: 1.88   Max: 4.76
Current: 3.56

1.88
4.76
PFCF 21.80
NVSEF's PFCF is ranked higher than
73% of the 328 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 24.79 vs. NVSEF: 21.80 )
NVSEF' s 10-Year PFCF Range
Min: 8.14   Max: 26.05
Current: 21.8

8.14
26.05
EV-to-EBIT 20.00
NVSEF's EV-to-EBIT is ranked higher than
63% of the 593 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 19.45 vs. NVSEF: 20.00 )
NVSEF' s 10-Year EV-to-EBIT Range
Min: 8.4   Max: 20.5
Current: 20

8.4
20.5
PEG 2.30
NVSEF's PEG is ranked higher than
68% of the 309 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.80 vs. NVSEF: 2.30 )
NVSEF' s 10-Year PEG Range
Min: 0.28   Max: 2.3
Current: 2.3

0.28
2.3
Shiller P/E 21.00
NVSEF's Shiller P/E is ranked higher than
74% of the 363 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 25.59 vs. NVSEF: 21.00 )
NVSEF' s 10-Year Shiller P/E Range
Min: 10.53   Max: 26.3
Current: 21

10.53
26.3

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.12
NVSEF's Dividend Yield is ranked higher than
95% of the 418 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.38 vs. NVSEF: 2.12 )
NVSEF' s 10-Year Dividend Yield Range
Min: 1.55   Max: 4.93
Current: 2.12

1.55
4.93
Dividend Payout 0.44
NVSEF's Dividend Payout is ranked higher than
51% of the 376 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.33 vs. NVSEF: 0.44 )
NVSEF' s 10-Year Dividend Payout Range
Min: 0.21   Max: 1.53
Current: 0.44

0.21
1.53
Dividend growth (3y) 9.10
NVSEF's Dividend growth (3y) is ranked higher than
82% of the 235 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.50 vs. NVSEF: 9.10 )
NVSEF' s 10-Year Dividend growth (3y) Range
Min: -2.3   Max: 24.8
Current: 9.1

-2.3
24.8
Yield on cost (5-Year) 3.51
NVSEF's Yield on cost (5-Year) is ranked higher than
98% of the 429 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.44 vs. NVSEF: 3.51 )
NVSEF' s 10-Year Yield on cost (5-Year) Range
Min: 2.59   Max: 8.23
Current: 3.51

2.59
8.23
Share Buyback Rate -2.70
NVSEF's Share Buyback Rate is ranked higher than
73% of the 480 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: -2.70 vs. NVSEF: -2.70 )
NVSEF' s 10-Year Share Buyback Rate Range
Min: 42.5   Max: -2.7
Current: -2.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 13.30
NVSEF's Price/Tangible Book is ranked lower than
78% of the 639 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.10 vs. NVSEF: 13.30 )
NVSEF' s 10-Year Price/Tangible Book Range
Min: 0.17   Max: 35.07
Current: 13.3

0.17
35.07
Price/DCF (Projected) 1.20
NVSEF's Price/DCF (Projected) is ranked higher than
80% of the 349 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.70 vs. NVSEF: 1.20 )
NVSEF' s 10-Year Price/DCF (Projected) Range
Min: 0.76   Max: 1.48
Current: 1.2

0.76
1.48
Price/Median PS Value 1.10
NVSEF's Price/Median PS Value is ranked higher than
61% of the 675 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.10 vs. NVSEF: 1.10 )
NVSEF' s 10-Year Price/Median PS Value Range
Min: 0.73   Max: 1.78
Current: 1.1

0.73
1.78
Price/Peter Lynch Fair Value 2.20
NVSEF's Price/Peter Lynch Fair Value is ranked higher than
52% of the 149 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.40 vs. NVSEF: 2.20 )
NVSEF' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.76   Max: 2.13
Current: 2.2

0.76
2.13
Price/Graham Number 3.60
NVSEF's Price/Graham Number is ranked lower than
61% of the 470 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.20 vs. NVSEF: 3.60 )
NVSEF' s 10-Year Price/Graham Number Range
Min: 0.07   Max: 4.81
Current: 3.6

0.07
4.81
Earnings Yield (Greenblatt) 5.00
NVSEF's Earnings Yield (Greenblatt) is ranked higher than
69% of the 595 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.80 vs. NVSEF: 5.00 )
NVSEF' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.9   Max: 11.9
Current: 5

4.9
11.9
Forward Rate of Return (Yacktman) 14.93
NVSEF's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 531 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.45 vs. NVSEF: 14.93 )
NVSEF' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 12.7   Max: 68.5
Current: 14.93

12.7
68.5

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Major
Compare:GSK, JNJ, PFE, RHHBY, ABT » details
Traded in other countries:0HKE.UK, NOVN.Switzerland, NVS.USA, NOT.Germany, NOTA.Germany
Novartis AG was incorporated on February 29, 1996 under the laws of Switzerland. On December 20, 1996, the Company's predecessor companies, Ciba-Geigy and Sandoz, merged into this new entity, creating Novartis. The Company provides healthcare solutions that address the evolving needs of patients and societies worldwide with a portfolio that includes innovative medicines, preventive vaccines and diagnostic tools, generic pharmaceuticals and consumer health products. The Group's businesses are divided on a worldwide basis into the following four operating divisions: Pharmaceuticals, Vaccines and Diagnostics, Sandoz and Consumer Health. Pharmaceuticals Division researches, develops, manufactures, distributes and sells branded prescription medicines in the following therapeutic areas: Cardiovascular and Metabolism; Oncology; Neuroscience and Ophthalmics; Respiratory; Immunology and Infectious Diseases; and Other. Vaccines and Diagnostics Division researches, develops, manufactures, distributes and sells preventive vaccines and diagnostic tools. Its Sandoz Division is a global generic pharmaceuticals company that develops, manufactures, distributes and sells prescription medicines, as well as pharmaceutical and biotechnological active substances. It has activities in Retail Generics, Anti-Infectives and Biopharmaceuticals. Consumer Health Division consists of three business units: OTC, Animal Health and CIBA Vision. Each has its own research, development, manufacturing, distribution and selling capabilities. Each has manufacturing, distribution and selling capabilities. In global pharmaceutical market it competes against other international corporations which sell branded prescription pharmaceutical products. Novartis generally sells its prescription drugs mainly to wholesale and retail drug distributors, hospitals, clinics, government agencies and managed healthcare providers. The international pharmaceutical industry is regulated. Regulatory authorities around the world administer numerous laws and regulations regarding the testing, approval, manufacturing, importing, labeling and marketing of drugs, and also review the safety and efficacy of pharmaceutical products.

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