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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 0.36
NVS's Cash to Debt is ranked higher than
51% of the 774 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.08 vs. NVS: 0.36 )
NVS' s 10-Year Cash to Debt Range
Min: 0.2   Max: No Debt
Current: 0.36

Equity to Asset 0.56
NVS's Equity to Asset is ranked higher than
64% of the 725 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 0.61 vs. NVS: 0.56 )
NVS' s 10-Year Equity to Asset Range
Min: 0.51   Max: 0.65
Current: 0.56

0.51
0.65
Interest Coverage 15.97
NVS's Interest Coverage is ranked higher than
57% of the 449 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 124.75 vs. NVS: 15.97 )
NVS' s 10-Year Interest Coverage Range
Min: 13.54   Max: 30.91
Current: 15.97

13.54
30.91
F-Score: 6
Z-Score: 3.10
M-Score: -2.86
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
NVS's Operating margin (%) is ranked higher than
88% of the 736 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 10.25 vs. NVS: 18.54 )
NVS' s 10-Year Operating margin (%) Range
Min: 17.81   Max: 24.34
Current: 18.54

17.81
24.34
Net-margin (%) 15.60
NVS's Net-margin (%) is ranked higher than
88% of the 736 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.27 vs. NVS: 15.60 )
NVS' s 10-Year Net-margin (%) Range
Min: 15.35   Max: 31.38
Current: 15.6

15.35
31.38
ROE (%) 12.34
NVS's ROE (%) is ranked higher than
86% of the 747 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 7.02 vs. NVS: 12.34 )
NVS' s 10-Year ROE (%) Range
Min: 12.34   Max: 24.27
Current: 12.34

12.34
24.27
ROA (%) 7.27
NVS's ROA (%) is ranked higher than
84% of the 771 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.09 vs. NVS: 7.27 )
NVS' s 10-Year ROA (%) Range
Min: 7.27   Max: 15.83
Current: 7.27

7.27
15.83
ROC (Joel Greenblatt) (%) 54.76
NVS's ROC (Joel Greenblatt) (%) is ranked higher than
95% of the 767 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 15.47 vs. NVS: 54.76 )
NVS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 34.63   Max: 70.07
Current: 54.76

34.63
70.07
EBITDA Growth (%) 5.10
NVS's EBITDA Growth (%) is ranked higher than
71% of the 618 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.60 vs. NVS: 5.10 )
NVS' s 10-Year EBITDA Growth (%) Range
Min: -10.3   Max: 78.8
Current: 5.1

-10.3
78.8
EPS Growth (%) -6.40
NVS's EPS Growth (%) is ranked higher than
65% of the 597 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 5.40 vs. NVS: -6.40 )
NVS' s 10-Year EPS Growth (%) Range
Min: -6.4   Max: 81.7
Current: -6.4

-6.4
81.7
» NVS's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

NVS Guru Trades in Q3 2013

Jim Simons 424,200 sh (New)
Steven Cohen 4,624 sh (New)
RS Investment Management 55,920 sh (New)
Sarah Ketterer 71,794 sh (+21.87%)
Lee Ainslie 804,099 sh (+8.41%)
Ken Fisher 5,725,853 sh (+1.75%)
Manning & Napier Advisors, Inc 370,557 sh (+1.19%)
John Hussman 221,200 sh (+1.05%)
John Buckingham 83,563 sh (+0.12%)
Jean-Marie Eveillard 13,060 sh (unchged)
Mario Gabelli 10,840 sh (unchged)
Pioneer Investments 85,400 sh (unchged)
Chris Davis Sold Out
Tweedy Browne 295,290 sh (-0.27%)
HOTCHKIS & WILEY 2,126,326 sh (-0.53%)
Dodge & Cox 46,862,302 sh (-0.62%)
PRIMECAP Management 26,850,538 sh (-0.82%)
Murray Stahl 29,300 sh (-1.01%)
Irving Kahn 29,368 sh (-3.29%)
Bill Frels 3,824 sh (-10.92%)
» More
Q4 2013

NVS Guru Trades in Q4 2013

Sarah Ketterer 281,741 sh (+292.43%)
Steven Cohen 8,530 sh (+84.47%)
Jim Simons 659,298 sh (+55.42%)
RS Investment Management 80,049 sh (+43.15%)
John Buckingham 84,596 sh (+1.24%)
Ken Fisher 5,787,120 sh (+1.07%)
Murray Stahl 29,300 sh (unchged)
Mario Gabelli 10,840 sh (unchged)
Jean-Marie Eveillard 13,060 sh (unchged)
John Hussman 221,200 sh (unchged)
Pioneer Investments 85,400 sh (unchged)
PRIMECAP Management 26,720,705 sh (-0.48%)
Dodge & Cox 46,485,352 sh (-0.8%)
Tweedy Browne 292,340 sh (-1%)
HOTCHKIS & WILEY 2,077,223 sh (-2.31%)
Manning & Napier Advisors, Inc 359,927 sh (-2.87%)
Irving Kahn 27,368 sh (-6.81%)
Bill Frels 3,555 sh (-7.03%)
Lee Ainslie 267,321 sh (-66.76%)
» More
Q1 2014

NVS Guru Trades in Q1 2014

Steven Cohen 12,821 sh (+50.3%)
Lee Ainslie 351,580 sh (+31.52%)
Sarah Ketterer 327,343 sh (+16.19%)
Bill Frels 4,105 sh (+15.47%)
HOTCHKIS & WILEY 2,302,956 sh (+10.87%)
Irving Kahn 28,068 sh (+2.56%)
Ken Fisher 5,889,287 sh (+1.77%)
John Buckingham 85,174 sh (+0.68%)
Murray Stahl 29,358 sh (+0.2%)
Pioneer Investments 85,400 sh (unchged)
Jean-Marie Eveillard 13,060 sh (unchged)
John Hussman 221,200 sh (unchged)
Dodge & Cox 46,441,169 sh (-0.1%)
Tweedy Browne 291,500 sh (-0.29%)
Mario Gabelli 10,740 sh (-0.92%)
RS Investment Management 76,544 sh (-4.38%)
PRIMECAP Management 24,014,586 sh (-10.13%)
Manning & Napier Advisors, Inc 314,309 sh (-12.67%)
Jim Simons 96,000 sh (-85.44%)
» More
Q2 2014

NVS Guru Trades in Q2 2014

Louis Moore Bacon 180,000 sh (New)
Dodge & Cox 51,102,219 sh (+10.04%)
Manning & Napier Advisors, Inc 332,704 sh (+5.85%)
Ken Fisher 5,969,963 sh (+1.37%)
Pioneer Investments 86,323 sh (+1.08%)
RS Investment Management 76,745 sh (+0.26%)
Murray Stahl 29,425 sh (+0.23%)
Jean-Marie Eveillard 13,060 sh (unchged)
Bill Frels 4,105 sh (unchged)
Lee Ainslie Sold Out
PRIMECAP Management 23,846,236 sh (-0.7%)
Tweedy Browne 288,825 sh (-0.92%)
John Buckingham 83,941 sh (-1.45%)
Sarah Ketterer 320,852 sh (-1.98%)
John Hussman 214,000 sh (-3.25%)
Mario Gabelli 10,240 sh (-4.66%)
Irving Kahn 26,368 sh (-6.06%)
HOTCHKIS & WILEY 649,519 sh (-71.8%)
Jim Simons 14,000 sh (-85.42%)
» More
» Details

Insider Trades

Latest Guru Trades with NVS

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Lee Ainslie 2014-06-30 Sold Out 0.42%$82.51 - $90.98 $ 88.631%0
Dodge & Cox 2014-06-30 Add 10.04%0.4%$82.51 - $90.98 $ 88.631%51102219
PRIMECAP Management 2014-03-31 Reduce -10.13%0.26%$78.2 - $83.82 $ 88.639%24014586
Lee Ainslie 2014-03-31 Add 31.52%0.1%$78.2 - $83.82 $ 88.639%351580
Lee Ainslie 2013-12-31 Reduce -66.76%0.56%$72.96 - $80.39 $ 88.6314%267321
John Hussman 2013-06-30 Reduce -47.49%0.52%$68.42 - $75.5 $ 88.6322%218900
Vanguard Health Care Fund 2013-06-30 Sold Out 0.2%$68.42 - $75.5 $ 88.6322%0
Lee Ainslie 2013-06-30 Add 39.5%0.2%$68.42 - $75.5 $ 88.6322%741689
Vanguard Health Care Fund 2013-03-31 Reduce -85.39%0.71%$63.3 - $71.32 $ 88.6331%726200
Lee Ainslie 2013-03-31 New Buy0.49%$63.3 - $71.32 $ 88.6331%531689
Dodge & Cox 2012-12-31 Add 2.65%0.11%$58.97 - $63.96 $ 88.6343%48438459
Dodge & Cox 2012-09-30 Add 3.23%0.12%$55.24 - $61.51 $ 88.6352%47187759
Michael Price 2012-03-31 Sold Out 1.3%$53.31 - $58.33 $ 88.6369%0
John Hussman 2012-03-31 Reduce -22.44%0.14%$53.31 - $58.33 $ 88.6369%515000
Mario Gabelli 2012-03-31 Reduce -37.42%$53.31 - $58.33 $ 88.6369%11740
Michael Price 2011-06-30 New Buy1.29%$54.23 - $64.52 $ 88.6349%144969
Vanguard Health Care Fund 2011-06-30 Add 30.01%0.45%$54.23 - $64.52 $ 88.6349%4869880
Mario Gabelli 2011-06-30 Add 65.83%$54.23 - $64.52 $ 88.6349%20215
Premium More recent guru trades are included for Premium Members only!!
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Ratios

vs
industry
vs
history
P/E(ttm) 1510.70
NVS's P/E(ttm) is ranked higher than
83% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 42.60 vs. NVS: 1510.70 )
NVS' s 10-Year P/E(ttm) Range
Min: 7.96   Max: 1510.7
Current: 1510.7

7.96
1510.7
P/S 3.70
NVS's P/S is ranked higher than
53% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 3.45 vs. NVS: 3.70 )
NVS' s 10-Year P/S Range
Min: 1.93   Max: 4.27
Current: 3.7

1.93
4.27
EV-to-EBIT 19.39
NVS's EV-to-EBIT is ranked higher than
85% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 33.72 vs. NVS: 19.39 )
NVS' s 10-Year EV-to-EBIT Range
Min: 9.1   Max: 20.3
Current: 19.39

9.1
20.3
PEG 199.60
NVS's PEG is ranked higher than
83% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. NVS: 199.60 )
NVS' s 10-Year PEG Range
Min: 0.3   Max: 199.6
Current: 199.6

0.3
199.6
Current Ratio 1.27
NVS's Current Ratio is ranked higher than
50% of the 560 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.49 vs. NVS: 1.27 )
NVS' s 10-Year Current Ratio Range
Min: 0.9   Max: 2.83
Current: 1.27

0.9
2.83
Quick Ratio 1.02
NVS's Quick Ratio is ranked higher than
54% of the 560 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.77 vs. NVS: 1.02 )
NVS' s 10-Year Quick Ratio Range
Min: 0.66   Max: 2.48
Current: 1.02

0.66
2.48

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.10
NVS's Dividend Yield is ranked higher than
96% of the 455 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.36 vs. NVS: 3.10 )
NVS' s 10-Year Dividend Yield Range
Min: 0.99   Max: 4.89
Current: 3.1

0.99
4.89
Dividend Payout 0.73
NVS's Dividend Payout is ranked higher than
75% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. NVS: 0.73 )
NVS' s 10-Year Dividend Payout Range
Min: 0.2   Max: 1.99
Current: 0.73

0.2
1.99
Dividend growth (3y) -8.10
NVS's Dividend growth (3y) is ranked higher than
69% of the 329 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: -0.10 vs. NVS: -8.10 )
NVS' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 107.6
Current: -8.1

0
107.6
Yield on cost (5-Year) 2.29
NVS's Yield on cost (5-Year) is ranked higher than
83% of the 465 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.38 vs. NVS: 2.29 )
NVS' s 10-Year Yield on cost (5-Year) Range
Min: 0.73   Max: 3.61
Current: 2.29

0.73
3.61
Share Buyback Rate -2.50
NVS's Share Buyback Rate is ranked higher than
71% of the 560 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: -1.50 vs. NVS: -2.50 )
NVS' s 10-Year Share Buyback Rate Range
Min: 41.9   Max: -2.5
Current: -2.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 14.10
NVS's Price/Tangible Book is ranked lower than
63% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 5.20 vs. NVS: 14.10 )
NVS' s 10-Year Price/Tangible Book Range
Min: 0.17   Max: 94.26
Current: 14.1

0.17
94.26
Price/DCF (Projected) 1.30
NVS's Price/DCF (Projected) is ranked higher than
90% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 33.80 vs. NVS: 1.30 )
NVS' s 10-Year Price/DCF (Projected) Range
Min: 0.66   Max: 1.62
Current: 1.3

0.66
1.62
Price/Median PS Value 1.20
NVS's Price/Median PS Value is ranked higher than
59% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 1.20 vs. NVS: 1.20 )
NVS' s 10-Year Price/Median PS Value Range
Min: 0.67   Max: 2.81
Current: 1.2

0.67
2.81
Price/Peter Lynch Fair Value 2.70
NVS's Price/Peter Lynch Fair Value is ranked higher than
86% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 9999.00 vs. NVS: 2.70 )
NVS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.75   Max: 4.2
Current: 2.7

0.75
4.2
Price/Graham Number 3.70
NVS's Price/Graham Number is ranked higher than
62% of the 807 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 4.30 vs. NVS: 3.70 )
NVS' s 10-Year Price/Graham Number Range
Min: 0.07   Max: 77.84
Current: 3.7

0.07
77.84
Forward Rate of Return (Yacktman) 8.85
NVS's Forward Rate of Return (Yacktman) is ranked higher than
81% of the 629 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 2.49 vs. NVS: 8.85 )
NVS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 9   Max: 68.4
Current: 8.85

9
68.4

Business Description

Industry: Drug Manufacturers » Drug Manufacturers - Major
Compare:GSK, JNJ, PFE, RHHBY, ABT » details
Traded in other countries:0HKE.UK, NOVN.Switzerland, NVSEF.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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